Contents
About Business

02

Stakeholders’ Engagement

11

Directors’ Report

14

Corporate Governance Report

33

Standalone Financial Statements
Independent Auditor’s Report

60

Balance Sheet

76

Statement of Profit and Loss

77

Cash Flow Statement

78

Notes to Financial Statements

81

Consolidated Financial Statements
Independent Auditor’s Report138

Balance Sheet

148

Statement of Profit and Loss

149

Cash Flow Statement

150

Notes to Financial Statements

153

Annexures to Directors’ Report 213

ESG Report259

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The packed brand activity calendar started with #safegettogethers, a purpose-led campaign, during the unlock phaseand ended with the coolest brand association, James bond. The year 2020-21 also saw brand health indicators growsubstantially led by the following key marketing initiatives:

AT-HOME CONSUMPTION
Heineken® launched two strategic campaigns to drive
at-home penetration. ‘Pure Malt Served at Home’ on
e-commerce platforms was targeted at discerning andaffluent consumers. The BTL-focused campaign ‘Star ofYour Home Parties’ helped drive at-home consumption
through bulk offtake consumer promotions.

HOME GATHERING
Heineken® continued its efforts of driving the#SocialiseResponsibly initiative by launching a new
campaign‘Home
Gathering’topropagate#SafeGetTogethers during the unlock phase. The
campaign reached 34 million people and generated 248
million impressions.

JAMES BOND
The iconic Heineken® association with James Bondcame to life with the release of “No Time to Die”. The
high-impact campaign leveraged the partnership at
every consumer touchpoint to reinforce Heineken® as
an international, premium, and aspirational brand. A
10-week-long, integrated 360° campaign was
activated across the country, supported by an
exclusive movie screening for customers, consumers,
and influencers.

EURO & UCL
The UEFA EURO 2020™ campaign was activated in India
to celebrate what fans of rival teams have in common –enjoying a nice cold Heineken® while cheering for theirteams. The campaign reached 20+ million football fansthrough ATL and BTL platforms.

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Directors’ ReportYour Company’s Directors are pleased to present this Annual Report on the business performance and operations of theCompany and the audited accounts of United Breweries Limited (‘UBL’ or ‘your Company’ or ‘the Company’) for thefinancial year ended March 31, 2022 (‘the year under review’, ‘the year’ or ‘FY22’).
Management Summary
The year 2021-22 was characterized by two high impact events - the second wave of COVID and the integration with
HEINEKEN - which have reshaped your Company and ultimately made it stronger, more resilient and better prepared
for the future.
• The Delta wave, a virulent incarnation of COVID, that swept the country in April and May 2021, had a devastating
impact on companies and communities alike. Amidst the nation-wide spike in infections that brought us all to thegrips of a public health emergency, your Company stood by two guiding principles - first, ensuring the health andsafety of our colleagues, consumers and other stakeholders and second, extending support and relief to communities
which were most impacted by the pandemic by means of medical support, donations and local aid. The resilience andcommitment demonstrated by our colleagues and stakeholders was crucial for your Company to sail through thesetough months. Your Company continued to engage its consumers and also practiced tight cost control measures topreserve cash. The work done during this period in terms of zero based cost management will stand your Company
in good stead for the future.
• Your Company’s integration with HEINEKEN seeks to capitalize on our collective strengths to win in the market. With
HEINEKEN having been a UBL Shareholder and an active member of the board for over a decade, there is continuity
in business strategy and confidence in UBL’s market leadership, expertise and the growth potential of the beermarket in India. Your Company is stronger together with HEINEKEN and well-poised to accelerate penetration, drive
premiumization, unlock future growth and shape the Indian beer industry.
During the period, your Company delivered some strong results:• Volumes in the December quarter recovered to pre-COVID levels thanks to continuous engagement with consumers
and the opening of markets. The month of March saw a record sales volume with early onset of summer.
• The Company expanded its market share during the financial year, thereby solidifying its market leadership.
• With progressively recovering volumes throughout the year, financial results showed recovery vs prior year with net
sales up 38% and EBIT up 157%.
• Robust underlying free operating cash flows at Rs.721 crores due to continued improvement in working capital andoptimised investment levels.
(Given the strong liquidity position, the Board proposes a dividend significantly up to Rs.10.50 per Share, representing
circa 76.06% pay out of profit after tax.)
During the year, your Company continued to invest in future growth drivers mapped to our strategic priorities. Withan eye on driving category penetration and creating new opportunities for growth, your Company launched a new
campaign to boost at-home beer consumption. The new and refreshed packaging for Kingfisher received a positive
response from customers and consumers and is a significant step in our journey to retain the iconicity of our flagshipbrand. We continued to strengthen the premium portfolio by expanding our craft style Belgian wheat beer Ultra Witbier.
The pandemic also reinforced the importance of working together as a collective force and during the year, yourCompany conducted trainings and workshops for colleagues and launched best-in-class inclusion and diversity policies
with the objective of building a diverse, empowered and engaged workforce with the right culture and capabilities.
Your Company strives to relentlessly drive productivity and capital efficiency and during the year implemented a combinationof productivity and cost control measures. As a result, EBIT margin improved by 404 basis points to 8.7%. Strict cash and
14 | United Breweries Limited

working capital management enabled the pre-payment of the remaining debt and year end bank balances are morethan Rs. 850 Crores. We also continued to engage with external stakeholders to enable a fair regulatory environment
for beer in India.
Our future depends on how we shoulder our present responsibilities and your Company, a responsible corporate citizen,
aims to build an organization that not just delivers value to Shareholders but also works together to brew a better world
with responsibility and sustainability at the heart of its agenda. During the year, we continued to work towards reducing
our overall water consumption needs for the business and improve water stressed areas, with consumption per hl
reducing by 5% to 3.4 hl/hl. In a phased manner, we are gradually moving to renewable energy sources to support our
carbon footprint reduction in addition to recycling our packaging materials. Renewable energy usage for the year has
reached 81%. We are pleased to share a comprehensive report on ESG as part of this annual report.
Overall, your Company is optimistic about the long-term growth drivers of the industry on the basis of GDP growth,
climatic conditions, rapid urbanization, rising incomes and evolving consumer trends, and is brimming with renewed
vigour to shape the future of Indian beer market together with HEINEKEN.

UBL & HEINEKEN: STRONGER TOGETHER!
FINANCIAL SUMMARY
Financial performance for the year ended March 31, 2022 is summarized below:(Amount in Rupees million)
STANDALONE FINANCIAL RESULTS

Year ended March 31
2022

2021

Gross Turnover

131,174

101,834

Net Turnover

58,31942,407

Other Income

297

502

7,246

4,298

—

(72)

Depreciation and amortization(2,169)(2,319)

EBIT

5,077

1,907

Interest

(148)

(227)

Profit before Taxation

4,929

1,680

Provision for Taxation(1,279)(551)

Profit after Tax available for appropriation

3,650

1,129

EBITDA
Exceptional Items

Appropriations:
(132)

(661)

Transfer to the General Reserve

—

(113)

Other Comprehensive Income/(Loss)

6

149

3,524

504

Dividend on Equity Shares (including taxes thereon)

Balance carried to the Balance Sheet

The financial statements for the year ended March 31, 2022 have been prepared under Indian Accounting Standards(“Ind AS”) pursuant to notification by the Ministry of Corporate Affairs under the Companies (Indian AccountingStandards) Rules, 2015 as amended.
In a year, where the beer industry was again under pressure due to the second and third wave of COVID with consequent
impact across businesses, your Company was able to increase its sales volumes and profits. The Gross turnover for
Annual Report 2022 | 15

FY22 stood at Rs.131,174 million which grew by 29%. Your Company achieved a Net turnover (net of excise duty) of
Rs.58,319 million during FY22 as against Rs.42,407 million during FY21. Despite two waves of COVID during FY22, yourCompany could achieve improved performance. Interest cost was contained with effective working capital management.
EBITDA for the year under review stood at Rs.7,246 million as compared to Rs.4,298 million in the previous year, an
increase of 68.6% over the previous year.
Profit before taxation for the year stood at Rs.4,929 million. Profit after taxation stood at Rs.3,650 million. Increased
volumes, better operational management, and efficiently controlled costs resulted in higher sales and profits.

DIVIDEND
We take pleasure in proposing a dividend of Rs.10.50 per Equity Share of Re.1/- each for the year ended March 31,
2022. The dividend declared for the previous year was Re.0.50/- per Equity Share of Re.1/- each. The total dividend isRs. 2776.3 million, which amounts to about 76.06 % of the Profit after Tax.

RESERVESThe Company does not propose to transfer any amount to General Reserve.

CAPITAL
The Authorized Share Capital of the Company stands at Rs. 9,990 million, comprising Equity Share Capital of
Rs. 4,130 million and Preference Share Capital of Rs. 5,860 million. The Issued, Subscribed and Paid-up Equity Share
Capital of the Company as on March 31, 2022 remains unchanged at Rs. 264.4 million comprising 26,44,05,149 Equity
Shares of Re.1/- each.
On June 23, 2021, Heineken International B.V. acquired an additional 3,96,44,346 Equity Shares of the Company being
14.99% of the Equity Share Capital from the Recovery Officer, DRT (under sale proclamation) through a block deal
taking Heineken Group Shareholding in the Company from 46.52% to 61.52%. Heineken Group has therefore becomea majority promoter shareholder.

MANAGEMENT DISCUSSION AND ANALYSIS
Industry Overview
Beer has been bringing people together for many years. In India, we believe our best days are ahead of us as young
people continue to choose beer as a social lubricant. The beer market is gaining prominence owing to rising disposable
incomes, preference for differentiated and immersive consumer experiences, the popularity of low-alcohol beverages
and growing social acceptance.
During the FY22, business commenced in April 2021 on a good trend. However, government restrictions towards thelast week of April following the spike in infection resulted in challenging market conditions. The next two months of
the quarter witnessed muted volumes with some recovery towards the end of June as markets opened up gradually.
Restrictions in the June quarter were less stringent compared to the previous year’s period, with almost all the markets
partially functional in some form.
The second quarter saw volumes stabilize, with a number of markets achieving volumes comparable to or ahead of
pre-COVID levels by September. The third quarter witnessed robust growth, resulting in quarterly volumes back to
pre-COVID levels. January 2022 was impacted negatively by the third COVID wave, whereby market demand recovered
during February, followed by a strong performance in March at the start of the peak season.
The industry’s potential is yet to be fully unlocked owing to factors such as a relatively limited outlet universe, various
government regulations and high taxation policies in most states across India. Rapid urbanization, rising middle class,and change in societal perspective, along with the launch of new low-and no-alcohol variants of beer and technologicaladvancements, are poised to propel market growth. The introduction of online ordering and ease of doorstep delivery
16 | United Breweries Limited

in certain states could further enable wider distribution towards end consumers. Overall, the industry fundamentals
remain very strong and your Company is convinced that with the current strategies in place, it can drive, lead and shapethe beer market in India.
Sales and Marketing
The rise of the Delta variant, which led to the second wave of lockdowns throughout the summer and beyond, impacted
business. Despite this, we continued to communicate with our consumers.
Our flagship brand Kingfisher engaged with consumers with relevant messaging on COVID-appropriate behavior
anchored on optimism and hope. Our digital initiatives helped build linkages to at-home consumption and ensured
relevant communication for our consumers. During the second half of the year, Kingfisher engaged with its consumers
on the need to socialize responsibly in addition to topical messaging around festivities.
In 2021, our association with IPL continued, and our integrated communication helped drive positive consumer
connections and improve brand health metrics. In the minds of our consumers, Kingfisher remained one of the top
recalled brands with respect to the IPL.
Kingfisher also unveiled its new packaging in Goa in December 2021 and in multiple markets later. The new packaging
has garnered an encouraging response from our trade partners and consumers.
The global sponsors of UEFA Champions League and Euro 2020, Heineken also brought the #SocialiseResponsibly
and #BetterTogether campaigns for Euro 2020 and Champion’s League to Indian consumers. Heineken was also theofficial sponsor for the much-awaited offering from the James Bond franchise –’No Time to Die.’ The new Bond
movie release was amplified through release on the digital medium along with engaging James Bond and Heineken
co-branded memorabilia. Heineken also activated Live Your Music (LYM) through its property ‘Krank’ in India andbrought high-energy music sessions leading up to our signature New Year festival in Goa.
Amstel International Strong Beer continued its footprint expansion despite the operational challenges of navigating
through a difficult year. Haryana, Telangana and Maharashtra were added to the list of Amstel markets post the gradualunlocking of markets last year.
Kingfisher Ultra led the premiumization agenda for brand Kingfisher and the brand was active on TV and digital
media, with the versatile actor Farhan Akhtar anchoring the “Live the Ultra Life” thematic campaign. Kingfisher Ultraextended its offering in draught format in the Maharashtra market and promoted the new offering with an influencerled campaign - ‘Smoothest Brew on Tap.’ The new format has gained a lot of appreciation, and we intend to expand it
to other key metros in the coming year.
On-ground, Ultra continued its association with two prestigious Derby events in Bombay and Bangalore. With COVID
restrictions being eased, the events operated with limited seating capacity and were aired live on Facebook and YouTube.
Kingfisher Ultra accelerated to activate the main brand pillar of music with its music IP ‘Ultra Access,’ with a series of 13
events bringing in Indian and international artists across eight metros and creating a superlative experience. The brandalso continued its partnership with the Satellite Beachside music festival during the year-end celebrations. The festival
executed five pre-events, two mini festivals and a four-day main event, connecting with over 6,000 consumers acrossmajor metros.
Ultra Witbier, our craft-style beer brand, expanded its presence into nine markets across the country, covering mostof the key markets. The brand introduction has largely been supported by digital media and has built good overallawareness.
London Pilsner went live with its ‘Taste of London in every sip’ campaign with cricketer Ben Stokes in the key markets.
The campaign on digital and OOH generated good brand recall and association.
UB Export continued to build on its franchise and awareness in Karnataka with its ‘Innoba Star’ campaign withsuperstar – Rakshit Shetty.
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Supply Chain
Manufacturing expenses for FY22 amounted to Rs.29,327 million, representing 50% of net sales, as against Rs.20,363
million in the previous financial year, which constituted 48% of net sales. The year was marred by two COVID waves.
The supply chain team focused primarily on the safety of our colleagues in addition to ensuring that production anddelivery of volumes were done safely and within the strict guidelines as per the Ministry of Home Affairs and relevant
local authorities. The supply chain has delivered well against the set targets despite a challenging environment due todisrupted global supply chain, material shortages, and partial lockdowns. Tight cost control measures, planning, andinitiation for material supply security for the 2022 season have remained top priorities.
The supply chain has also focused on expanding its specialty footprint to drive premiumization across key markets.
In line with this strategy, we continued to expand the production of premium brands at various breweries to ensure
product availability via Witbier capacity at Chamundi Brewery (Karnataka). The commercial supplies are expected by thesecond half of 2022.
With sustainability at the heart of our business, your Company initiated the commissioning of the “New Water” projectin our brewery in Chopanki (Rajasthan). This is the first of its kind project in the alcobev space in India and will help
breweries reach Zero Liquid Discharge (ZLD), significantly reducing our fresh consumption through recovery and reuse.
More such projects are planned across other breweries in line with our ESG roadmap in the coming years. This is well on
track to meeting the key deliverables and should be streamlined by the second half of 2022.
Your Company’s renewable energy usage for FY22 stands at 80.8%. UBL’s own units consumed 32.4% of electricity
generated from renewable sources. In addition, 96% of thermal energy comes from renewable sources. This has led
to a reduction of carbon footprint by 32,350 tons of Co2 , equivalent to 1.59 Mio trees’ annual absorption capacity, aforward step towards our carbon emission goals.
Input material costs and availability have remained under stress during the entire year.
• Barley-malt has seen extremely high prices due to the reasons listed below.
• Competitive crops are trading at prices that are significantly higher vs. barley. This has led to more farmers shifting
to alternative crops and hence a drop in area under barley cultivation. There is enhanced demand for barley by otherindustries which are looking for cheaper grain alternatives combined with global commodity inflation.
• Unseasonal showers impacted 2022 harvest quality in March, leading to lower-than-expected arrivals of malting
barley in the market.
• Prices of all major packaging commodities like aluminum, paper, and steel continued to remain high globally,
adversely impacting our packaging cost for cans, cartons, crowns, and labels.
• The biggest material cost element, ‘Bottles’ remained under stress as the recycled bottle supply chain was disrupted
by COVID waves and higher cullet prices in certain states.
• There was higher focus on localization and value engineering for cost optimization• Increased proportion of localized malt from imported barley with an equivalent reduction in direct usage of imported
malt for some of our brands.
• Shifting to Kraft cartons in some of the premium brands.
Research and Development
Your Company’s Research and Development function continues to support its growth strategy with a focus on new
capabilities, development of new products, enhancement of existing products, productivity improvement and cost
reduction.
Human Resources
Human Resources (HR) develops UBL’s most important asset – our people. Your Company recognizes that thelong-term success and sustainable growth of our organization depends on our capacity to attract, retain and develop our
18 | United Breweries Limited

employees. We are committed to providing our employees across the country with a safe and healthy work environmentand helping them realize their full potential. The organization fosters an open and transparent work culture that drives
innovation and nurtures entrepreneurial spirit among all employees. Your Company believes in celebrating milestones,
both big and small, and encourages people to connect, communicate and collaborate through various forums.
UBL has an inclusive culture and takes pride in being an equal opportunity employer. We encourage all forms of diversity
and believe that it adds to building a more engaged workforce, thereby contributing to better business performance.
In addition to the mandated policies to develop a conducive work environment, we have an Inclusion and Diversity
Council that plays an active role in realizing our goal of nurturing an empowered workforce.
Learning is ingrained in our culture and employees are constantly encouraged and given ample opportunities to upgrade
their knowledge and skill. On the job training is the principal source of learning in addition to curated initiatives to build
talent and leadership with an aim to enhance the organizational capability to compete and win in the market. Apartfrom our mandatory programs, customized learning modules are also offered to build specific capabilities at various
levels of the organization. The UBL Competency Framework helps in assessing the current and future talent capability.
It also helps highlight the specific strengths to be further developed and flags critical skills that can be sharpened.
Your Company believes in ethical governance and abides by the robust policies laid down under the Code of BusinessConduct. The guidelines laid down in the Code help our employees navigate difficult situations related to the business.
Our employees and vendors can report any violation of the Code via an online platform named Speak-Up. The platform
is managed by a third party to ensure that the identity of the whistleblower is protected.
UBL uses technology effectively in all stages of the employee life cycle from onboarding to retirement. This has resulted
in standardized automated processes, improved productivity, and enhanced employee experience.
The inputs from our annual employee engagement survey help in continuous improvement of our people practices,
policies and programs and lends an ear to the ground in terms of employee expectations.
Industrial Relations continue to be harmonious and peaceful at all levels and at all locations of the Company.
All the wage agreements have been renewed in a timely manner and are valid and subsisting. Workers and unions
support the implementation of reforms that impact quality, cost, and improvements in productivity across all locations,which is commendable.
UBL has 2,837 employees on its rolls across all locations. The Company has not offered any stock options to theemployees during the year under review.
Total employee benefit expenses for the year stood at Rs. 5,194 million, as compared to Rs. 4,823 million in the previous
year. This constituted 3.96% of gross revenue from operations. Your Directors place on record their sincere appreciation
to all employees for their contribution towards the continued success of the organization.
Significant changes in Key Financial Ratios
Following are the Key Financial Ratios, where variance of more than 25% is noticed as compared to the previous
financial year, along with detailed explanations therefor, including.
Debtors Turnover: Improvement in Debtors Turnover ratio from 7.42 to 9.90 due to increase in sales as compared toprevious year which was impacted by the pandemic and recoveries as per credit terms.
Inventory Turnover: Improvement in Inventory turnover ratio from 7.16 to 9.87 due to increase in sales as compared toprevious year which was impacted by the pandemic and reduction in inventory levels in certain categories considering
the timing of purchases.
Debt Service Coverage Ratio: Improvement in debt service coverage ratio from 1.61 to 2.21 due to increase in salesleading to increase in profits as compared to previous years which was impacted by the pandemic and repayment ofdebt in the current year.
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Debt Equity Ratio: No debts at year end March 31, 2022 compared to 2,502 million as on March 31, 2021.
Net Profit Ratio: Net profit ratio increased from 1.11% in 2020-2021 to 2.78% in 2021-2022, primarily on account of
increase in sales leading to increase in profits as compared to previous year which was impacted by the pandemic.
Return on Equity: Return on Equity increases from 3% in 2020-2021 to 10% in 2021-2022 due to increase in salesleading to increase in profits as compared to previous year which was impacted by the pandemic.
Impact of COVID
The FY22 continued to be impacted following the second wave of COVID in April-May 2021. The human, social andeconomic impact from COVID has been severe, especially for the beer industry where volumes were lower compared toprevious years. The third wave of COVID in January 2022 was fortunately less impactful.
The Company continues to place the health and safety of its stakeholders as the top priority, while also extending
support to various communities in which it operates by means of medical support and relief.
Despite a challenging business environment, your Company remained focused on key strategic pillars: increasing
category penetration, building a strong brand portfolio, managing costs and cash, ensuring further improvements onsustainability, while fostering a highly engaged and inclusive workforce that is supported by best-in-class processes.
Although the trajectory of COVID is unknown, the Company is confident in successfully navigating such uncertainties
with its leadership position, strong brand portfolio, and healthy financial position. The Company expanded its market
share during the financial year thereby solidifying its leadership.

CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY
United Breweries aims to brew a better world and firmly believes in growing the business in a socially and environmentally
responsible and sustainable way while meeting the interests of all its stakeholders. Your Company is committed to
improving the lives of the community it works with and reducing the impact of its operations on the environment it
draws its resources from.
Thus, over the last year, we continued to support our core Corporate Social Responsibility (CSR) programs on water
conservation, safe drinking water and community development initiatives while also focusing on the health and safetyof our communities by responding to the COVID crisis. Through partnerships with credible implementation partners, we
aim to build a more equitable and sustainable future for our co-communities.
UBL is committed to water stewardship and makes conscious efforts to conserve and replenish water. Last year, we spent
more than 60% of our CSR funds on water initiatives through six large water conservation projects. In the next five
years, we are focused on increasing this commitment to 75%. In addition to implementing large rainwater harvesting
and watershed management projects in the vicinity of our breweries for water conservation, we also make extensive
efforts to generate awareness in the communities on adopting rainwater harvesting practices, promoting climateresilient practices for agriculture, and incorporating necessary infrastructure for water preservation. We undertook theseprojects in Tamil Nadu, Punjab, Rajasthan, Haryana, Telangana, Karnataka, and Kerala.
Our project to develop an Urban Dense Forest in the Waluj MIDC area in Aurangabad, Maharashtra, which was initiatedin FY21, got completed last year. Under this project, we planted 75,000 trees in 75+ native species in an area of 5 acresand improved the biodiversity in this region using the Miyawaki technique of afforestation.
The COVID pandemic has impacted lives and livelihoods. As a responsible corporate citizen, our first response was tostand with our communities and ensure the supply of basic necessities during the lockdown. By initiating discussions
with the Panchayat and the people on the ground, UBL galvanized its NGO partners to conduct a rapid needs assessment
to find out the requirement of the community. With the help of our NGO partners, we made provisions for ambulances,oxygen cylinders, ICU beds, oxygen plants and ventilators for various locations. We also partnered with the NRAI
(National Restaurant Association of India) under the H.E.A.L program to launch a country-wide vaccination program foressential workers of the restaurant industry. Over 2500 people were vaccinated through this initiative.
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Your Company is committed to creating a more equal world, and this can only be achieved when women are given
equal opportunities. During the year, we launched Pragati - our scholarship program to support meritorious female
students across India in realizing their dreams of a fulfilling career. We provided scholarships from standard 9th tounder-graduation as part of this project.
The Business Responsibility and Sustainability Report in the format prescribed under the Securities and Exchange Boardof India (“SEBI”) (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“the Listing Regulations”) is
annexed as Annexure-A. Annual Report on CSR activities in terms of the Companies Act, 2013 (“the Act”) and theCompanies (Corporate Social Responsibility) Rules, 2014, is annexed as Annexure-B.
SustainabilityYour Company aims to brew a better world with responsibility and sustainability at the heart of its agenda. United
Breweries has framed long-term Environment, Social and Governance (ESG) sustainability goals on various Materiality
Indices in order to make its place among the responsible organizations across the globe.
Water has been the focus of our business, and we are continuously working towards reducing our overall water
consumption at the organization. We also monitor and work towards improving water-stressed areas.
Our energy consumption is gradually shifting to renewable sources, in a planned and phased manner, in both electricity
and thermal, and these initiatives are supporting our carbon footprint reduction.
We continue to focus on recycling our packaging materials. More than 60% of bottles used by us are recycled by us andthe remaining are also recycled by bottle manufacturers and others.
Our secondary packaging like carton is made by using more than 80% recycled paper. We have tied up with CPCBapproved plastic waste recyclers through Extended Producer Responsibility (EPR) guidelines to recycle 100% equivalentof the low-density polyethylene used in our manufacturing process.
Green EnergyYour Company has been consistently marching ahead in its journey of maximizing the usage of Green Energy. Thisjourney demonstrates the organizational vision to lead the initiative by being proactive and contributing to environment
protection. This is aligned with our long-term Sustainability Goals as part of ESG Roadmap. Total renewable energy
usage for FY22 stood at 80.7%. UBL’s own units consumed 32.4% electricity generated from renewable sources.
To supplement this, 96% of thermal energy came from use of renewable sources. The renewable electrical energy usage
is equivalent to carbon footprint of 32,350 tons of Co2 which is equivalent to 1.37 Mio trees. Our breweries in Karnataka
and Tamil Nadu are leading the Renewable Energy drive with Total Renewable energy usage of more than 80%.
Awards1) Pollution Control Board:
Our brewery at Palakkad, Kerala won the Best Innovative Water Technology Industry.
2) Confederation of Indian Industry (CII) Environment, Health and Safety (EHS) Excellence Awards:
Our breweries at Palakkad, Kerala received EHS Bronze Category award for 2021.
3) Total Productive Management (TPM):
In our journey of operational excellence through process of TPM, we are on a continual improvement path and in
FY22, we bagged 4 prestigious national level awards.
• Our Brewery at Taloja, Mumbai was awarded with Platinum award (Innovative Kaizen Category) at 40th CII National
Level Competition.
• Our Brewery at Chopanki, Rajasthan was awarded with 2 Gold awards at Challengers Trophy (Innovative Kaizen
Category) organized by CII Institute of Quality.
• Our Brewery at Palakkad, Kerala was awarded with 1 Gold award at Challengers Trophy (Autonomous Management
Category) organized by CII Institute of Quality.
Annual Report 2022 | 21

OPPORTUNITIES, THREATS, RISKS & CONCERNS
India is the second-most populous country in the world with over 1.3 billion people, i.e., more than a sixth of the world’s
population. Over 50% of its population is below the age of 25 and more than 65% below the age of 35, as per statistics
from the United Nations, Department of Economic and Social Affairs. The sheer size of India’s population provides amassive opportunity for growth.
Rapid urbanization, rising incomes, change in societal perspective, the launch of new low-and no-alcohol variant beer
and technological advancements are a few factors that will propel market growth. The introduction of online order andease of doorstep delivery in certain states could further drive the market. Should certain State Governments proactively
open up and regulate the online sale of alcohol / home delivery, it would be favorable for the beer industry in the longterm. India has all the necessary infrastructure required to further develop online sale of beer.
The consumption of alcoholic beverages is becoming more acceptable particularly among youth, working women andurban residents who are developing an appetite for beer, which is emerging as a social beverage in metros and tier twocities. Beer is gradually becoming a perfect after-work companion for corporate India as well.
Compared to various international markets including markets in Asia, beer penetration is very low in India. Beer accounts
for a very low share of consumption compared to other alcohol products and along with the current cultural evolution,higher disposable income and demographics, there is a great long-term opportunity for your Company to shape thebeer industry in India.
Threats, Risks and Concerns
But for the short-term impact due to COVID, the beer industry has been modestly flourishing, with both new and oldbrands catering to a growing pool of beer enthusiasts across the country. As exciting as this is, there are also several
challenges.
There is a perennial threat of competition introducing new brands in various segments like craft and premium beers.
However, we compete fearlessly and healthily based on brand variants, product quality, distribution network, brandvalue and promotion strategies.
A variety of taxes & levies are imposed on beer during and after production, transport, and sale by each state. Pricing
regulations, inadequate market infrastructure and restrictions as well as additional taxes on inter-state movement ofbeer continue to pose a challenge to the industry. Government intervention in distribution, ever increasing taxation,
restricted communication, and increased cost of raw materials prices (glass, barley malt, other packaging material, etc.)
and government restrictions applied on advertising also pose challenges to industry growth.
The threat of prohibitive actions, which stems from constant changes in the political climate in the country, is alsopresent.
The distribution of beer in India is still largely controlled by the state-or state-owned corporations resulting in stricter
regulations across various states so as to have better control over prices, consumption, and excise duty.
The market for beer is characterized by pricing and competitive pressures. The effects of social and economic cataclysms
in the market often make it difficult to predict demand cycles. To overcome these challenges, we continue to remain
cost conscious at all levels of operations, and work with a high level of agility and efficiency.
We continue to invest in and expand the brand portfolio while continuing to be cost-efficient and quality-focussed. We
upgrade and adopt modern technologies and solutions to be able to respond with agility to current market demands,
without losing focus on quality.
In order to cater to new consumers, capture market opportunities, compete with new launches by competitors andin continuous endeavor to offer new product ranges and cater to new occasions, your Company has expanded its
22 | United Breweries Limited

“Kingfisher Ultra Draft” offering in the lighthouse market of Maharashtra and has received an encouraging response
from consumers. Your Company plans to launch this offering in other relevant Northern markets in a phased manner.
The labor market in India is becoming more competitive. Your Company has taken various initiatives to be able tocontinue to attract the right talent, build a diverse and inclusive culture and continue to create an engaging place towork.
Non-availability of water, rationing of its supply and restrictions on withdrawal of ground water also pose major threat.
We have built infrastructure which helps in reduction of water consumption in breweries as a sustainability initiative.
We have pro-actively managed sustainability under our “3R” policy to reduce, recycle and recharge as well as lookat opportunities for water conservation through Rainwater Harvesting to achieve a positive or at least neutral waterbalance.
The Company also focuses on secure IT operations and addressing risks of cyber security. This includes risks from IT
security lapses, malware and ransomware attacks, disruptions in key Enterprise Processes and hacking, which could leadto disruptions in business operations and loss and/or leakage of confidential data.
Prospects
The growth rates of Indian beer industry compare favorably to the global beer industry average. Factors such as climaticconditions and younger population make the future more promising for the beer industry in India. With growth in
GDP estimated beyond 5%, higher disposable income and growth in the middle and upper class, change in consumer
behavior and examples of liberalization in retail / distribution, the beer market is expected to grow at a healthy pace.
Your Company’s established brand equity provides a significant competitive advantage over other domestic andinternational brands. Your Company has the benefit of a strong distribution network across the length and breadth ofthe country and rapid growth can be expected year on year.
The competitive environment is expected to remain intense, and your Company shall continue to focus on robust
innovations to solidify its market leadership. Though a challenging commodity inflation environment will have an impact
on costs, your Company shall continually strive for appropriate price increase approvals and achieve high operational
efficiencies to offset the increase in costs. Augmenting capacities in critical markets will continue to be a priority investmentin the future too.
The Company seeks to drive beer category penetration, drive further premiumization, reinforce the iconicity of Kingfisher
while building the overall brand in addition to continued focus on efficiency & compliance, execution of the ESG agenda,
digitalization and people development to build a highly motivated and skilled workforce.
Through these actions, we are confident that your Company would continue its leadership position, drive growth of theoverall market and expand profit margins in the years to come.
Growth in premium retail trade and on-premises outlets in metropolitan cities has increased the range of beers andimproved the retail environment. In a few States, the Government has issued additional licenses for sale of beer which
signals good growth prospects for the industry. Innovative introductions also help in penetrating untapped markets andconsumer segments and your Company’s new introductions have fared well.
Risk Management
Though already established efficiency programmes apply to all aspects of our business, there is a constant drive for further
efficiencies and reducing cost. Backed by strong internal control systems, the current Risk Management Framework
consists of key elements laying down the roles and responsibilities in relation to risk management covering a range of
responsibilities, from strategic to operational. These role definitions, inter alia, provide the foundation for appropriate
risk management procedures, their effective implementation across your Company and independent monitoring
and reporting. The Risk Management Committee, constituted by the Board, monitors, and reviews the strategic risk
management plans of your Company as a whole and provides necessary directions on the same.
Annual Report 2022 | 23

The Corporate Risk Management Cell, through focused interactions with businesses, facilitates the identification andprioritization of strategic and operational risks, development of appropriate mitigation strategies and conducts periodic
reviews of the progress on the management of identified risks.
The competitive environment is expected to remain intense. Your Company’s strategy and focus remains consistent torobustly strengthen its leadership and thereby maintain its position as the clear leader in the Indian Beer Market. In line
herewith, your Company endeavours to continually sharpen its Risk Management systems and processes in line with arapidly changing business environment.
The COVID pandemic has triggered new risks in business operations. While the impact of the pandemic continues
to unfold, your Company pro-actively put in place Crisis / Contingency Management Teams, both at the breweries aswell as at the Corporate office. These cross-functional teams, represented by senior management, continually review
strategic, operational, financial matters as well as measures relating to employee well-being health and safety.
Detailed advisories have been issued to employees on how to safeguard themselves, their colleagues and associates,
and their families both at the workplace as well as at their homes. These guidelines also provide details on social
distancing norms and the organisational support system. Heightened safety protocols were implemented at all units
that resumed operations, with end-to-end solutions from transportation of workmen, screening, regular deep cleaningand sanitisation, innovations to ensure safe distancing and strict adherence to hygiene standards and use of personal
protective equipment where required.
Through these actions, your Directors are confident that your Company would sustain its leadership position, growahead of the market, and realize improved profitability in the years to come.
Internal Control System
Your Company has established a robust system of Internal Controls to ensure that assets are safeguarded, and transactions
are appropriately authorized, recorded and reported. With the introduction of Internal Controls over Financial Reporting(ICFR) in the Act, we have made an evaluation of functioning and quality of internal controls and Corporate Governance
Policy that guides the conduct of affairs of your Company and clearly delineates the roles, responsibilities, and authorities
at each level of its governance structure and key functionaries involved in governance.
The Internal Financial Control framework of your Company is established in accordance with COSO (Committee ofSponsoring Organizations) framework and is commensurate with the size and operations of your Company’s business.
In addition to statutory mandate, Internal Audit evaluates and provides assurance of its adequacy and effectivenessthrough periodic reporting. Controls in place are routinely evaluated and audited by the Internal and Statutory Auditors
and gaps are identified by the Auditors through a detailed testing exercise. The process of internal control ensures orderlyand efficient conduct of business, safeguarding of assets, prevention and detection of frauds and errors, accuracy andcompleteness of accounting records and timely preparation of reliable financial information. Financial Statements areprepared based on Significant Accounting Policies that are carefully selected by management. The Accounting Policies
are reviewed and updated from time to time.
These, in turn are supported by a set of Standard Operating Procedures (SOPs) that have been established for the business.
Internal Control evaluates adequacy of segregation of duties, transparency in authorization of transactions, adequacy ofrecords and documents, accountability & safeguarding of assets and reliability of the management information system.
The systems, SOPs and controls are reviewed and audited by Internal Audit periodically for identification of control
deficiencies and opportunities, whose findings and recommendations are reviewed by the Audit Committee and tracked
through till implementation.
Your Company believes that the overall internal control system is dynamic and reflects the current requirements at all
times, thereby ensuring that appropriate procedures and operating and monitoring practices are in place by regular
audit and review processes to ensure that such systems are reinforced on an ongoing basis.
24 | United Breweries Limited

OTHER INFORMATION
Subsidiary Company
Maltex Malsters Limited is the only subsidiary in which your Company holds 51% of its Equity Share Capital. Maltex
Malsters Limited is a non-listed entity and is not a material non-listed subsidiary as defined in Regulation 16(1)(c) of the
Listing Regulations.
UBL has formulated a policy for determining material subsidiaries which is placed on the website of the Company
www.unitedbreweries.com and is available through the webpage:https://www.unitedbreweries.com/pdf/policyandcodes/Policy%20for%20Determining%20Material%20Subsidiaries-PDF.pdf
The consolidated financial statements of the Company including the financial statements of its subsidiary forms part ofthis Report in terms of the Act and the Listing Regulations. A statement containing the salient features of the financial
statements of the subsidiary and associate is attached as Annexure-C to this Report.
Cash Flow Statement
A Cash Flow Statement for the year ended March 31, 2022 is appended.
Particulars of Loans, Guarantees or Investments
Details of loans, guarantees and investments covered under Section 186 of the Act are given in the notes to the Financial
Statements. The Company has not advanced loans to Directors / to a Company in which the Director is interested towhich provisions of Section 185 of the Act apply and has not given loans / guarantees /provided security to which
provisions of Section 186 of the Act apply.
Listing requirements
Your Company’s Equity Shares are listed on the BSE Limited and National Stock Exchange of India Limited. Listing fees
have been paid to these Stock Exchanges for the year 2022-2023.
Depository System
The trading in the Equity Shares of the Company is under compulsory dematerialization mode. The Company hasentered into an agreement with National Securities Depository Limited and Central Depository Services (India) Limitedin accordance with the provisions of the Depositories Act, 1996 and as per the directions issued by the Securities
and Exchange Board of India. As the depository system offers numerous advantages, Members are requested to takeadvantage of the same and avail the facility of dematerialization of the Company’s Shares.
Deposits
There were no outstanding deposits at the end of the previous financial year. The Company has not invited any deposits
during the year.
Ratio of Remuneration and Particulars of Employees
In terms of sub-section(1) of Section 136 of the Act, the Company has opted to provide full version of financial
statements including consolidated financial statements, auditor’s report and other documents required to be annexed
to such financial statements excluding the details relating to ratio of the remuneration of each Director to the median
employee’s remuneration and remuneration drawn by certain employees over the threshold etc. as provided in subsection(12) of Section 197 of the Act read with Rule 5(1) & 5(2) of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules, 2014. The details provided by the Company are in compliance with Section 136(1) of the
Act and includes salient features of Form AOC-3A.
Also, in terms of second proviso to this Section, the Company shall keep open for inspection for all Members, statement
relating to above details at its registered office. Any Member interested in inspection of the documents pertaining to
Annual Report 2022 | 25

above information or desires a copy thereof may write to the Company Secretary. The above details be treated as partof this Annual Report.
Cautionary Statement
Statements in this Report, particularly those which relate to ‘Management Discussion and Analysis’ and ‘Opportunities,
Threats, Risks and Concerns’, describing the Company’s objectives, projections, estimates and expectations, mayconstitute ‘forward looking statements’ within the meaning of applicable laws and regulations. Actual results might
differ materially from those either expressed or implied.
Employees Stock Option Scheme and Sweat Equity Share
The Company has not offered any Shares to its employees or Key Managerial Personnel under a scheme of Employees’
Stock Option and has also not issued any Sweat Equity Shares at any time.
Related Party Transactions
Details of transactions with related parties as defined in the Act and the Rules framed thereunder, the Listing Regulations
and Accounting Standard 18 of the Companies (Accounting Standards) Rules, 2006, have been reported in the Notes
to financial statements. Approval of the Audit Committee and the Board of Directors as required under the Listing
Regulations has been obtained for such transactions.
The Company has formulated a policy on materiality of Related Party Transactions and also on dealing with Related
Party Transactions which is placed on the website of the Company www.unitedbreweries.com and is available throughthe webpage http://unitedbreweries.com/pdf/policyandcodes/Policy%20on%20Related%20Party%20Transactions.pdf.
All transactions entered by the Company during FY22 with related parties were in the ordinary course of business andon an arm’s length basis. During the year, the Company has not entered into any transaction with related parties which
could be considered material in accordance with the policy of the Company on materiality of related party transactions.
Familiarization programme for Independent Directors
During the last financial year, the Company has not appointed any new Independent Director. The Company has
inducted Ms. Geetu Gidwani Verma and Mr. Manu Anand with effect from May 29, 2022 as Independent Directors of
the Company. The existing Board comprises Executive, Non-Executive, and Independent Directors who have been at thehelm of Management of the Company for several years and are fully conversant with the business and operations of theCompany. The Familiarization programme for new Independent Directors upon induction shall aim to familiarize themwith the Company, their roles, rights, responsibility in the Company, business model of the Company etc. The Board of
Directors has complete access to requisite information within the Company.
Familiarization will be undertaken during the year for new Independent Directors. Also, at the Board Meeting itself businessis discussed at length along with Industry dynamics, Strategic planning, and other relevant information. Presentations
are regularly made to the Board of Directors / Audit Committee / Nomination & Remuneration Committee and otherCommittees on various related matters, where Directors get an opportunity to interact with Senior Management. The
Company has issued appointment letters to the Independent Directors which also incorporates their role, duties, andresponsibilities. The details of the Familiarization Programme for Independent Directors are disclosed on the Company’s
website at the webpage: https://www.unitedbreweries.com/pdf/policyandcodes/Familiarisation-Programme-2022.pdf
For new Independent Directors, the Company will issue appointment letters effective their date of appointment.
Whistle Blower Policy
The Company has adopted vigil mechanism which is a channel for receiving and redressing of complaints about any
misconduct, actual or suspected fraud, actual or potential violations of the Company’s code of conduct and any other
unethical, unlawful, or improper practices, acts, or activities within the Company. The Company has formulated a Whistle
Blower Policy for Employees and Directors and has ensured adequate safeguards against victimization of whistle blowers.
The details of establishment of the vigil mechanism are disclosed on the Website of the Company.
26 | United Breweries Limited

None of the Employees and Directors have been denied access to the Chairman of the Audit Committee. There are no
whistle blowing complaints leading to material fraud or which have an impact on the financials of the Company.
Internal Complaints Committee
UBL has constituted an Internal Complaints Committee (ICC) at its Corporate / Registered Office and at all its breweries/
Regional Offices to consider and deal with all reported sexual harassment complaints. The constitution of the ICC is as
per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Investigations are
conducted, and decision made by the ICC at the respective locations, and the constitution is as prescribed. Details ofcomplaints pertaining to sexual harassment filed, disposed of, and pending during the financial year are provided in the
Corporate Governance and Business Responsibility and Sustainability Report of this Annual Report.
Conservation of Energy
The Company is taking continuous steps to conserve energy. Its “Sustainability” initiatives are disclosed separately as
part of this Report.
The information on conservation of energy, technology absorption, foreign exchange earnings and outgo, as stipulated
under clause (m) of sub-section (3) of Section 134 of the Act read with the Companies (Accounts) Rules, 2014 is set out
herewith as Annexure-D to this Report.
Code of Business Conduct and Ethics
The Board of Directors of UBL have adopted a Code of Business Conduct and Ethics in terms of the Listing Regulations
which has been posted on the website of the Company viz., www.unitedbreweries.com.
Code for Prevention of Insider TradingYour Company has adopted a comprehensive ‘Code of Conduct to Regulate, Monitor and Report of Trading by Insiders’and also a ‘Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information’ relating to
the Company, under the provisions of the Securities Exchange Board of India (Prohibition of Insider Trading) Regulations,
2015.
The Board of Directors have approved and adopted the ‘Code of Conduct to Regulate, Monitor and Report of Trading
by Insiders’ and a ‘Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information’.
Directors
The Board of Directors of UBL currently comprises of eight Directors with a balanced combination of Executive,
Non-Executive, and Independent Directors.
Mr. Jan Cornelis van der Linden, a Non-Executive Director retires by rotation at this Annual General Meeting (AGM), andbeing eligible, has offered himself for re-appointment. Resolution for re-appointment of Mr. Jan Cornelis van der Linden
is proposed at this AGM.
The Committee members expressed their grief over the sad demise of Mr. Ravi Nedungadi and Mr. C Y Pal, erstwhile
Directors of the Company, and conveyed their heartfelt condolences to their families for their loss. Their contribution to
the Board and the Company were acknowledged.
Mr. Berend Odink is a Director with effect from June 29, 2021.
Ms. Geetu Gidwani Verma and Mr. Manu Anand were appointed as an Additional Directors with effect from May 29,
2022 and the Resolutions for regularization of their appointment have been proposed for approval of Members at thisAGM. Mr. Sunil Alagh and Mr. Stephan Gerlich, Independent Directors of the Company voluntarily resigned with effectfrom June 13, 2022.
The Board of Directors place on record, its appreciation for Mr. Sunil Alagh and Mr. Stephan Gerlich for their invaluable
contribution, guidance, and support provided by them during their tenure as Independent Directors of your Company.
Annual Report 2022 | 27

Chief Financial Officer
Mr. Berend Odink, Director is also the Chief Financial Officer of the Company.
Meetings of the Board of Directors and Committees of the Board
The Meetings of the Board and Committees are pre-scheduled, and a tentative calendar of the meetings finalized inconsultation with the Directors is circulated to them in advance to facilitate them to plan their schedule. In case of
special and urgent business needs, approval is taken by passing resolutions through circulation. During FY22, seven (7)Board Meetings were held. Other details including the composition of the Board and various Committees and Meetings
thereof held in FY22 are given in the Corporate Governance Report forming part of this Report.
Meeting of the Independent Directors
During the year, one (1) Meeting of Independent Directors was held on November 08, 2021. All Independent Directors
have given a declaration that they meet the criteria of Independence and in the opinion of the Board, the Independent
Directors fulfill the condition of Independence as laid down under the Act and Listing Regulations.
Audit Committee
The Audit Committee of the Board of Directors is constituted to act in accordance with the terms of reference andperform roles, as prescribed under the Act and Listing Regulations. The composition of the Audit Committee, its termsof reference, roles and details of Meetings convened and held during the year under review are given in the Corporate
Governance Report forming part of this Report.
During the year under review, all the recommendations of the Audit Committee were accepted by the Board.
Nomination and Remuneration Committee
The Nomination and Remuneration Committee is constituted to act in accordance with the terms of reference andperform roles, as prescribed under the Act and Listing Regulations. The composition of the Nomination and Remuneration
Committee, its terms of reference, roles and details of Meetings convened and held during the year under review are
given in the Corporate Governance Report forming a part of this Report.
Policy on Performance Evaluation
UBL has formulated a Performance Evaluation Policy inter-alia prescribing evaluation criteria for Independent Directors
and the Board of Directors of the Company. The Policy is posted on the website of the Company and is available throughthe webpage http://unitedbreweries.com/pdf/policyandcodes/Directors%20Performance%20Evaluation%20Policy.pdf.
Performance Evaluation of Directors
Performance evaluation of Non-Executive Directors including Independent Directors, the Board as a whole andCommittees of the Board is being carried out in accordance with the statutory provisions as contained in the Act andListing Regulations.
To ensure an effective evaluation process, the Nomination and Remuneration Committee has put in place a robust
framework for conducting the exercise with key steps and practices defined clearly. Performance of the Board is evaluatedon various parameters such as composition, strategy, tone at the top, risk and controls and diversity. Also, a questionnaire
for Committees is framed on parameters such as adherence to the terms of reference and adequate reporting to theBoard. Parameters for the Directors, including intellectual independence of the Director, participation in formulation ofbusiness plans, constructive engagement with colleagues and understanding of the risk profile of the Company.
Keeping in view the sensitivity, confidentiality is ensured. As part of this process, customized questionnaires, were
circulated to all Directors of the Company. Each Director is required to undertake a self-assessment. Additionally, theeffectiveness of the Board and Committees is also evaluated by each Member of the Board and Committee through anelectronic platform and kept confidential.
Summary of responses received from Directors was placed at a Board Meeting.
28 | United Breweries Limited

Remuneration Policy
The Company carries out periodic reviews of comparable Companies and through commissioned survey ascertains the
remuneration level prevailing in these Companies. The Company’s Remuneration Policy is designed to ensure that the
remuneration applicable to Managers in the Company is comparable with multinational Companies operating in Brewing
or similar industry in India. In line with statutory requirements, the Board of Directors has adopted a Remuneration Policy
for Directors, Key Managerial Personnel (KMP) and other employees of the Company. The Remuneration Policy lays
down the criteria for appointment and removal of Directors, KMP and Senior Management. The Policy also prescribes
the criteria and manner for fixation and approval of remuneration payable to Directors, KMP and other employees.
The Policy is posted on the website of the Company www.unitedbreweries.com.
Dividend Distribution Policy
As required under Regulation 43A of the Listing Regulations, the Company has formulated a Dividend Distribution
Policy. This policy is available through the weblink https://www.unitedbreweries.com/pdf/policyandcodes
Foreign Exchange Earnings and Outgo
During FY22 total foreign exchange earnings of the Company stood at Rs.1,684 million (Previous Year: Rs. 768 million)
and foreign exchange outgo stood at Rs.1,117 million (Previous Year: Rs.1,641 million).
Corporate Governance Report
Report on Corporate Governance forms a part of this Report along with the Certificate from the Company Secretary inPractice.
Annual Return
As required under sub-section (3) of Section 92 of the Act as amended by the Companies (Amendment) Act, 2017,
the Company has placed a copy of the Annual Return in Form MGT-9 on its website www.unitedbreweries.com and isavailable through the webpage: https://www.unitedbreweries.com/investors.
Auditors and the Auditor’s Report
Messrs S.R. Batliboi & Associates LLP., Chartered Accountants (Firm Registration Number 101049W/E300004), thecurrent Statutory Auditors of the Company have completed their two terms of five consecutive years from 2012. They
are statutorily not eligible for re-appointment and therefore they cannot continue as Statutory Auditors of the Company
after the conclusion of this AGM. Your Board of Directors place on record their appreciation for the valuable services
rendered by them during their tenure as Statutory Auditors of your Company.
It is proposed to appoint Messrs Deloitte Haskins & Sells, Chartered Accountants (Firm Registration Number 008072S),
as the Statutory Auditors of your Company to hold office from the conclusion of this AGM till the conclusion of the
28th AGM.
Messrs Deloitte Haskins & Sells, Chartered Accountants, have consented to be the Statutory Auditors of your Company,
if appointed by the Members at the AGM and have also confirmed that their appointment would be within the limits
specified under Section 139 of the Act.
There are no qualifications or adverse remarks in the Auditor’s Report which require any clarification or explanation.
Secretarial Audit
Pursuant to Section 204 of the Act and Rule 9 of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Company has appointed Mr. Sudhir Hulyalkar, Company Secretary in Practice, to undertake
Secretarial Audit of the Company for the FY22. The Secretarial Audit Report forms part of this Report and is annexed
as Annexure-E.
There are no qualifications or adverse remarks in the Secretarial Audit Report.
Annual Report 2022 | 29

Reporting of frauds by auditors
During the year under review, under Section 143(12) of the Act, neither the statutory auditors nor the secretarial
auditor have reported to the audit committee, any instance of fraud committed against the Company by its officers or
employees, the details of which would be required to be mentioned in this Report.
Details of Significant and Material Orders
No order/s have been passed or stringent action taken by any Regulator or Court or Tribunal impacting the going
concern status of the Company. However, we bring to your attention the following developments / orders for sake oftransparency.
(i) It is in public domain that United Breweries (Holdings) Limited {UBHL}, a promoter of UBL was ordered to be wound up
by Hon’ble High Court of Karnataka vide dated February 07, 2017. Appeal filed by UBHL against the said winding up
order was dismissed by the Hon’ble Karnataka High Court on March 06, 2020. Against this dismissal, a special leave
petition has been filed by UBHL before the Hon’ble Supreme Court of India. The Supreme Court on October 2, 2020
had also allowed the winding-up of UBHL. However, UBL has not received any confirmation from UBHL in terms ofSupreme Court order of Winding-up.
(ii) As per disclosures received by UBL in May 2018 under SEBI (Prohibition of Insider Trading) Regulations, 2015 andSEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 from a few Promoter Companies controlled
by Dr. Vijay Mallya, we notice that 4,13,15,690 Equity Shares held by such entities in UBL constituting 15.63%of the total paid up capital had been transferred to the demat account of Enforcement Directorate (ED), Mumbai,
Government of India. Earlier, in August 2017, 13,89,068 Equity Shares constituting 0.52% of the total paid-up
capital were also transferred to the demat account of ED. The ED thereby held 4,27,04,758 Equity Shares constituting
16.15% of the total paid-up capital in the Company. UBL did not receive any communication from the ED in thisregard. These Equity Shares were later on transferred by ED to Recovery Officer-I, DRT-II, Bengaluru.
Recovery Officer-I, DRT-II, Bengaluru had transferred 74,04,932 Equity Shares comprising 2.80% of the total
paid-up Equity Share capital of the Company in its name from the demat account of UBHL which is under liquidation.
However, UBL did not receive any disclosure from UBHL in terms of SEBI (Prohibition of Insider Trading) Regulations,2015 and SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011. The Recovery Officer-I, DRT-II,
pursuant to a block deal through BSE / NSE on March 27, 2019 has transferred 74,04,932 constituting 2.80% Equity
Shares of the Company to Heineken International B.V.
On June 23, 2021, the Recovery Officer-I, DRT-II, Bengaluru, had sold 3,96,44,346 (14.99%) Equity Shares out of
4,27,04,758 (16.15%) Equity Shares of the Company through the block deal window of the BSE Ltd. These Shareswere purchased by the Heineken International B.V. a promoters’ Shareholder of the Company, in accordance withthe terms of the proclamation issued by the Recovery officer and all applicable laws. As a result, the Heineken Group
shareholding in the Company has been increased substantially from 46.52% to 61.52% of the total Equity Sharecapital of the Company.
We understand, as on date, the Recovery Officer-I, DRT-II, Bengaluru holds 30,60,412 Equity Shares constituting
1.16% of the total paid-up capital of the Company comprising 13,89,068 (0.53%) Equity Shares of United Breweries(Holdings) Limited and 16,71,344 (0.63%) Equity Shares of McDowell Holdings Limited, promoters of the Company.
(iii) Pursuant to Order of Debt Recovery Tribunal, Karnataka, Bengaluru dated September 30, 2015, dividend for thefinancial years 2015-2016 onwards payable to Dr. Vijay Mallya and United Breweries (Holdings) Limited (UBHL)
have been withheld till disposal of the O.A. The Recovery Officer-I, DRT-II, Bengaluru vide letter dated October 11,
2018 directed the Company to make payment of dividend for the financial year 2017-2018 on Equity Shares held
by UBHL in the Company to the account of Recovery Officer-I, DRT-II. Thereafter, the Official Liquidator, vide letter
dated October 26, 2018 informed the Company that the Hon’ble High Court of Karnataka has directed the Official
Liquidator by Order dated August 29, 2018 to collect rent and other income due to UBHL, the Company which is inliquidation. The Official Liquidator also directed the Company to remit the dividend aggregating to Rs.7,83,89,631.10
30 | United Breweries Limited

for the financial years 2015-2016, 2016-2017 and 2017-2018 payable to UBHL to the account of Official Liquidator.
Accordingly, the Company has remitted the aforesaid dividend amounts to the account of Official Liquidator.
Further, pursuant to letter dated October 12, 2021 from office of Official Liquidator, High Court of Karnataka
for payment of dividend on shareholding of UBHL in United Breweries Limited, the Company has remitted
Rs.13,66,19,990.70 toward dividend accrued on the shareholding of UBHL for the financial years 2017-2018 to2020-2021 to the account of Official Liquidator.
(iv) Effective April 05, 2016, the State Government of Bihar had imposed a ban on sale and consumption of alcoholic
beverages in Bihar though it had permitted manufacture of alcoholic beverages for export out of the State vide
Notification dated April 05, 2016. The said Notification of Bihar Government imposing ban was struck down by
Patna High Court vide Judgement dated September 30, 2016. The State Government of Bihar has challenged theJudgement of Patna High Court in Supreme Court which is pending. Subsequently, effective April 01, 2017, totalprohibition (including export out of state) has been imposed in Bihar State and production of beer at the Company’s
brewery at Kopakalan, Naubatpur, Patna was discontinued. The Company had then commenced manufactureof non-alcoholic beverages (NAB) at its above facility. Considering the economies in scale of operation in NAB
products, and consequent impact, the Management has decided to close the operations of NAB manufactured outof Company’s unit in Naubatpur effective May 01, 2022. The Management has made alternate arrangements to
manufacture NAB products by entering into a contract manufacturing arrangement.
(v) Pursuant to enquiry initiated by Competition Commission of India (“CCI”) on October 10, 2018 in relation toallegations of price-fixation and cartelization, the office of the Director General, Competition Commission of India
had completed its investigation in November 2019 and filed its investigation report (DG Report) with the CCI. UBL
and other parties to the enquiry, filed their comments / objections to the DG Report and appeared for an oral hearing
in the matter. Hearings were held on February 11, 2021 and March 12, 2021 respectively. UBL filed its response andargued during the oral hearings countering the DG report. Subsequently written submissions were filed with the CCI.
Thereafter CCI issued an Order dated September 24, 2021 levying a penalty of Rs.75,183 lakhs for the contraventionof provision of Section 3 of the Competition Act, 2002. UBL and individuals connected to UBL filed their Appeal
before the NCLAT. After hearing the Company’s Interlocutory application, the NCLAT vide its order dated December
22, 2021 granted a stay of the CCI order subject to payment of deposit of 10% of penalty amount during thependency of the appeal and the Company has deposited the said amount by way of Fixed Deposit Receipt (FDR).
Based on the advice of the external legal experts, the Management is of the view that the Director General and the
CCI have not considered all aspects of its submissions particularly considering the nature of the regulations governing
the manufacture, distribution, and sale of beer in India. As advised by the Company’s external legal experts, theCompany has a strong case on merits, there exists uncertainty relating to the final outcome in this matter, which isdependent on judicial proceedings; and that it is not in a position to reliably estimate the final obligation relating topenalties, if any.
The orders / proceedings mentioned above do not have any impact on going concern status of the Company.
Directors’ Responsibility Statement
Pursuant to clause (c) of sub-section (3) of Section 134 of the Act, 2013, the Board of Directors report that:(a) in the preparation of the annual accounts for the financial year ended March 31, 2022, the applicable accounting
standards have been followed along with proper explanation relating to material departures;(b) the Directors have selected such accounting policies and applied them consistently and made judgments andestimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company
at the end of the financial year and of the profit of the Company for that period;
Annual Report 2022 | 31

(c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordancewith the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud
and other irregularities.
(d) the Directors have prepared the annual accounts on a going concern basis;(e) the Directors have laid down internal financial controls to be followed by the Company and ensured that suchinternal financial controls are adequate and were operating effectively, and(f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws andensured that such systems were adequate and operating effectively.
All Annexures referred to in the Directors’ Report have been disclosed under the Statutory Information forming
part of this Annual Report.

ACKNOWLEDGEMENT AND APPRECIATIONYour Directors take this opportunity to thank UBL’s customers, Shareholders, suppliers, bankers, business partners andassociates, financial institutions and central and state governments for their consistent support and encouragement to
the Company. Finally, your Directors would like to convey sincere appreciation to all the employees of the Company for
their hard work and commitment.
		

April 26, 2022.
Bengaluru

32 | United Breweries Limited

Rishi Pardal
Managing Director
DIN: 02470061

By Authority of the Board
Berend Odink
Director & CFO
DIN: 09138421

Corporate Governance Report
As manifested in the Company’s vision, United Breweries Limited (UBL) has always strived for excellence in Corporate
Governance. Beyond mere compliance, we are committed towards taking all strategic initiatives to enhance Shareholders’wealth in the long term. In pursuit of corporate goals, the Company accords high importance to transparency,
accountability, and integrity in its dealings. Our philosophy on Corporate Governance is driven towards welfare of all
the Stakeholders and the Board of Directors remains committed towards this end.
The Board of Directors supports the broad principles of Corporate Governance and lays strong emphasis on its role toalign and direct the actions of the Company in achieving its objectives.

BOARD OF DIRECTORSThe Company is managed and controlled through a professional Board of Directors. The Board comprises of a balanced
combination of Non-Executive and Independent Directors in addition to the Managing Director and Chief Financial
Officer (CFO). The Board consists of eminent persons with considerable professional expertise and experience.
Executive Director

Independent Directors

Mr. Rishi Pardal (Managing Director)

Mr. Sunil Alagh **Mr. Berend Odink (Director & CFO)

Ms. Kiran Mazumdar Shaw
Mr. Madhav Bhatkuly

Non-Executive Directors

Mr. Stephan Gerlich **Mr. Christiaan A J Van Steenbergen

Ms. Geetu Gidwani Verma *Mr. Jan Cornelis van der Linden

Mr. Manu Anand *Senior Vice President – Legal & Company Secretary

Mr. Govind Iyengar

Audit Committee

Nomination and Remuneration Committee

Mr. Madhav Bhatkuly

Chairman

Ms. Kiran Mazumdar Shaw

Chairperson

Mr. Jan Cornelis van der Linden

MemberMr. Christiaan A J Van Steenbergen

MemberMr. Sunil Alagh

MemberMr. Sunil Alagh

MemberStakeholders’ Relationship Committee

Risk Management Committee

Mr. Madhav Bhatkuly

Chairman

Mr. Sunil Alagh

Chairman

Mr. Berend Odink

MemberMr. Rishi Pardal

MemberMr. Sunil Alagh

MemberMr. Berend Odink

MemberMr. Stephan Gerlich

MemberMr. Jan Cornelis van der Linden

Member

Ms. Kiran Mazumdar Shaw

MemberMr. Madhav Bhatkuly

MemberMr. Stephan Gerlich

MemberCorporate Social Responsibility/Environmental,
Social and Governance Committee
Mr. Stephan Gerlich

Chairman

Mr. Rishi Pardal

MemberMr. Berend Odink

MemberMr. Christiaan A J Van Steenbergen

Member

Ms. Kiran Mazumdar Shaw

MemberIn addition to the above-mentioned mandatory Committees required to be constituted as per Companies Act, 2013
(the “Act”) and/or Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,2015, (Listing Regulations), a few other Non-mandatory Committees are also constituted by the Board, details whereof
are disclosed in this report.

Annual Report 2022 | 33

Auditors

Messrs S.R. Batliboi & Associates LLP, (Firm registration no. 101049W/E300004) Chartered
Accountants
Messrs Deloitte Haskins & Sells, (Firm registration no. 008072S) Chartered Accountants***

Registrar and Share
Transfer Agent

Integrated Registry Management Services Private Limited

Notes: *Ms. Geetu Gidwani Verma and Mr. Manu Anand shall be appointed as Independent Directors with effectfrom May 29, 2022.

**

Mr. Sunil Alagh and Mr. Stephan Gerlich have voluntary resigned from their position as Board memberswith effect from June 13, 2022.

*** Messrs Deloitte Haskins & Sells, Chartered Accountants, has been recommended by the Board forappointment as Statutory Auditors of the Company in place of Messrs. S.R. Batliboi & Associates LLP.,
Chartered Accountant, to hold office from the conclusion of this Annual General Meeting (AGM) till theconclusion of the 28th AGM.
Profile of Directors and their other Directorships
Brief Resume
Mr. Rishi Pardal (DIN: 02470061)
Mr. Rishi Pardal has been appointed on the Board of UBL effective
August 01, 2020.
Mr. Rishi came to UBL from Avery Dennison Corporation, a Fortune 500
Company which he joined in November 2010 as Vice President and Managing
Director of Retail Brand and Information Solutions, South Asia. He championed
significant growth and profitability improvement at businesses across India,
Bangladesh, Sri Lanka and Pakistan. In 2014, Mr. Rishi was appointed tothe position of Vice President and General Manager, North Asia where hemade equally significant progress. In June 2017, he was promoted to hislast position i.e., Vice President of Global Apparel Solutions for Retail Brand
and Information Solutions and was a Member of Corporate Leadership Teamof Avery Dennison Corporation. As a Member of the Corporate Leadership
Team, Mr. Rishi was engaged in contributing to strategy and initiatives thathave a global and cross Business impact for Avery Dennison Corporation
including sustainability, diversity, business policies etc.
Prior to Avery Dennison Corporation, Mr. Rishi was Managing Director of
Marico Bangladesh Limited, following a 14-year career in various Management
roles with Hindustan Unilever Limited. He has extensive experience in sales
and customer development, marketing, corporate governance, brand equity
and talent development.
Mr. Rishi has completed his Masters’ Program in International Business fromthe Indian Institute of Foreign Trade, New Delhi. He has also completed
various functional, leadership and Management Development Programs from
Northwestern-Kellogg’s, IMD and Harvard Business School (in-progress).

34 | United Breweries Limited

Other Directorships &Committee Memberships inIndia and Areas of Expertise
Other Directorship & Committee
Membership:
NIL
Areas of Expertise:
Business Strategy, Sales &Marketing, Customer Development,
Corporate Governance, Brand
Equity and Talent Development

Brief Resume
Mr. Berend Odink (DIN: 09138421)
Mr. Berend Odink holds MSc in Economics from the Erasmus University,
Rotterdam, Netherlands with a specialization in Financial Economics. After
three years working in investment banking at Merrill Lynch in London, hejoined Heineken in 2004 at Global Business Development in the Netherlands
and thereafter worked in various capacities in Heineken Global and theNetherlands as Manager Purchasing Control from 2008 to 2012, as FinanceManager from 2012 to 2016. In 2016 he was appointed Finance Directorof Heineken Ethiopia where he strengthened the Finance function while
delivering strong financial results. He brings with him about 21 years’
experience of a professional in finance. Mr. Berend was appointed as Chief
Financial Officer of the Company in August 2019.

Other Directorships &Committee Memberships inIndia and Areas of Expertise
Other Directorship:• Maltex Malsters Limited
Other Committee Membership:
NIL
Areas of Expertise:
Financial Economics.

Mr. Berend Odink has been on the Board of UBL since June 29, 2021.
Mr. Christiaan A J Van Steenbergen (DIN: 07972769)
Mr. Christiaan A J Van Steenbergen was appointed Chief Human Resources
Officer of Heineken in May 2014. Prior to that, he was Executive Vice President
Corporate HR of Royal DSM since 2010 based in Heerlen, the Netherlands.
He is a lawyer by training and has spent more than 20 years in Senior HR
and operational roles. He was Chief Human Resources Officer Cadbury,
President Europe Cadbury, for 8 years from 2002 to 2010. Prior to Cadbury,
he held different positions in Quick Restaurants SA in Belgium as CEO and in
Randstad Belgium as Managing Director. He retired from Heineken effective
March 01, 2021.

Other Directorship & Committee
Membership:
NIL
Areas of Expertise:
Legal and Human Resource,
Business Strategy, Brand Building
and Leadership

Mr. Christiaan A J Van Steenbergen has been on the Board of UBL sinceNovember 08, 2017.
Mr. Jan Cornelis van der Linden (DIN: 08743047)
Mr. Jan Cornelis van der Linden, is an MBA in Business Administration from
Erasmus University, Rotterdam, Netherlands. He has completed various
Management Development Programs from Harvard Business School,
Wharton – University of Pennsylvania, INSEAD Business School and Universityof Michigan. He joined Heineken in 1999 as Management Trainee, and sincethen has worked in increasingly senior international management positions in
Sales, Marketing and General Management. From 1999-2008 he worked in
Africa, Ireland and was part of the Management Team at Group Commerce,
Heineken International, in the capacity of Global Brand Director Amstel. In
2008 he became Executive Board Member of Nigerian Breweries Plc. andjoined the Management Team at Heineken UK in 2012. In 2015 he wasappointed as Managing Director of Heineken China and in August 2019 he
was appointed as Managing Director of Heineken Vietnam. Currently, Mr. vander Linden is President Asia Pacific, Heineken.

Other Directorship & Committee
Membership:
NIL
Areas of Expertise:
Business Development, Business
Strategy & Transformation,
Marketing and Commercial.

Mr. Jan Cornelis van der Linden has been on the Board of UBL since June 01,
2020.
Annual Report 2022 | 35

Brief Resume
Mr. Sunil Alagh (DIN: 00103320)
Mr. Sunil Alagh is the Managing Director of SKA Advisors Private Limited,a Business Advisory / Consultancy firm with a focus on Marketing and Brandbuilding strategies. He is a graduate in Economics (Hons.) with MBA from
IIM Calcutta. He has worked with ITC Limited, Jagatjit Industries Limited andBritannia Industries Limited. He was Managing Director and CEO of Britannia
Industries Limited from 1989 to 2003. During this tenure, Britannia figuredin the Forbes Magazine list of 300 Best Small Companies in the world for
3 years. It also became the Number 1 food Brand in India.
He is on the Board of Indofil Industries Ltd., and Pritish Nandy Communications
Ltd. In addition, he was a Senior Advisor to AXA, France, a Member on Advisory
Board of Vikas Ecotech Ltd., New Delhi and on the Executive Committee ofthe Federation of Indian Chambers of Commerce and Industry (FICCI). He is
a former Member of the Board of IL&FS Investsmart Ltd., the Indian Advisory
Board of Schindler Switzerland, Board of Governors’ of IIM Bangalore and
IIM Indore, the Governing Council of the National Institute of Design,
Ahmedabad and a Member of the Round Table on Higher Education of the
Ministry of HRD, Government of India. He is also the past Board Memberof Prasar Bharati, India. He was honoured with the ‘Gold Medal Kashlkar
Memorial Award 2000’ for outstanding contribution to the food processing
industry in India. He was a finalist for the Ernst and Young Entrepreneur of
the Year Award, 2002.

Other Directorships &Committee Memberships inIndia and Areas of Expertise
Other Directorships:• Indofil Industries Limited• SKA Advisors Private Limited• Pritish Nandy Communications
Limited
Other Committee Memberships:• Indofil Industries Limited Audit Committee;• Indofil Industries Limited Stakeholders’ RelationshipCommittee.
Areas of Expertise:
Business Strategy with emphasis
on Marketing and Brand Building.

Mr. Alagh has been on the Board of UBL since April 29, 2005.
Ms. Kiran Mazumdar Shaw (DIN: 00347229)
Ms. Kiran Mazumdar-Shaw is a pioneering biotech entrepreneur, a healthcare
visionary, a global influencer and a passionate philanthropist. She is a pioneerof India’s biotech industry and founder of Biocon.
She is the proud recipient of two of India’s highest civilian honours, the Padma
Shri (1989) and the Padma Bhushan (2005). She was also honoured with theOrder of Australia, Australia’s Highest Civilian Honour in January 2020. In 2016,
she was conferred with the highest French distinction - Knight of the Legion of
Honour. The U.S. based Chemical Heritage Foundation has conferred her withthe ‘2014 Othmer Gold Medal’.
Ms. Mazumdar-Shaw has been ranked amongst the world’s top 20 inspirational
leaders in the field of biopharmaceuticals in The Medicine Maker Power List
2021, she has been on this list every year since 2015. Her achievements havebeen recognised with the ‘Lifetime Achievement Award for Outstanding
Achievement in Healthcare’ by the Indian Council of Medical Research (ICMR),
New Delhi. She has been named as the winner of EY World Entrepreneur of
the Year 2020 Award, which is a testimony to her entrepreneurial journey ofover four decades.
She holds key positions in various industry, educational, government andprofessional bodies globally. She has been elected as a full-term Member of theBoard of Trustees of The Massachusetts Institute of Technology (MIT), USA. She
has been elected as a Member of the prestigious USA based National Academyof Engineering (NAE), for her contribution to the development of affordable
bio-pharmaceuticals and the biotechnology industry in India and she is a first36 | United Breweries Limited

Other Directorships:• Biocon Limited(Executive Chairperson);• Syngene International Limited(Non-Executive Chairperson);• Biocon Biologics Limited(Executive Chairperson);• Narayana Hrudayalaya Limited;• Infosys Limited;• Biocon Pharma Limited;• Biocon Biosphere Limited;• Biofusion Therapeutics Limited;• Mazumdar Shaw Medical
Foundation;• Biocon Academy;• Narayana Vaishno Devi Speciality
Hospitals Private Limited;• Immuneel Therapeutics Private
Limited;• Science Gallery Bangalore;• CSEP Research Foundation

Brief Resume

Other Directorships &Committee Memberships inIndia and Areas of Expertise

Ms. Kiran Mazumdar Shaw (DIN: 00347229) (contd.)

Other Committee Membership:
female Foreign Fellow to be elected as a member of the Australian Academy • Biocon Pharma Limited –Audit Committee (Chairperson).
of Technology and Engineering (ATSE). Recently, she has been elected as theFellow of the Royal Society of Edinburgh (RSE), Scotland’s National Academy forthe advancement of learning and useful knowledge.
Areas of Expertise:
Ms. Mazumdar-Shaw pioneered the setting up of Association of Biotech Led Biotechnology, General
Enterprises (ABLE), which has been instrumental in bringing government, Management, Finance & Risk
industry and academia together to charter a clear and progressive growth path Management, Scientific knowledge,
for biotechnology in India. She is a founder Member of Karnataka’s Vision Global Healthcare, Corporate
Group on Biotechnology and currently chairs this forum.
Governance and Compliance.
She holds a bachelor’s degree in science (Zoology Hons.) from Bangalore
University and a master’s degree in malting and brewing from Ballarat College,
Melbourne University. She has been awarded with several honorary degrees
from the Universities of repute including Ballarat (2004), University of Abertay(2007), University of Glasgow (2008), Heriot-Watt University (2008), National
University of Ireland (2012), Trinity College, Dublin (2012), Deakin University(2019) for her pre-eminent contributions in the field of biotechnology.
Ms. Mazumdar-Shaw has been on the Board of UBL since October 26, 2009.
Other Directorship:• New Horizon Wealth Management
Mr. Madhav Bhatkuly has a Master’s Degree in Commerce from Sydenham
Private Limited
College, Bombay and a Master’s Degree in Economics from the London Schoolof Economics. He is a recipient of the Foreign and Commonwealth Scholarship
Other Committee Membership:from the British Government. Mr. Bhatkuly was a country partner of Arisaig
NIL
Partners from 1999 to 2005. Prior to that, he was associated with SG Securities
and ICICI Bank Limited. He partnered with Chris Hohn of The Children’s
Areas of Expertise:
Investment Fund, (UK) TCI to set up a dedicated India Fund.
Finance and Economics.
He is credited to have been amongst the first institutional investors in manysmall Companies which have gone on to become some of India’s leading
names. He has been featured on several TV shows including “CNBC’s Wizards
of Dalal Street”, Indianomics, the Karan Thapar Show etc. and has been invited
to speak at many business schools such as the Indian Institute of Management
and by many organisations such as the Confederation of India Industries (CII),
Goldman Sachs etc.
Mr. Madhav Bhatkuly (DIN: 00796367)

He currently serves as Director on the Board of New Horizon Opportunities
Master Fund (NHOF).
Mr. Bhatkuly has been on the Board of UBL since October 26, 2009.

Annual Report 2022 | 37

Brief Resume
Mr. Stephan Gerlich (DIN: 00063222)
Mr. Stephan Gerlich retired from Bayer after 41 years working with Bayer indifferent functions and Countries across Mexico, United States of America,
France and India. For 11 years he was Managing Director for Bayer in India,
based in Mumbai. Mr. Stephan Gerlich retired as Managing Director ofBayer de Mexico in October 2019 and now lives in his home country, Germany,
since then.
Mr. Gerlich has been on the Board of UBL since July 02, 2010.

Other Directorships &Committee Memberships inIndia and Areas of Expertise
Other Directorship & Committee
Membership:
NIL
Areas of Expertise:
Overall Business Management &Operations in Healthcare, Crop
Science & Material Science.

Note: Committee Memberships of Directors mentioned above includes only those Committees prescribed for reckoningof limits under Regulation 26(1)(b) of the Listing Regulations. None of the Directors are related inter-se.
Profile of New Independent Directors and their other Directorships
Brief Resume
Ms. Geetu Gidwani Verma (DIN: 00696047)
Ms. Geetu Verma is a global business leader with close to 35 years’ experience in
the FMCG sector with Procter & Gamble, Pernod Ricard, PepsiCo and Unilever.
Her experience pans launching breakthrough innovations, leading businessesof scale, turnaround assignments in developed and emerging markets – Asia,
Europe.
Ms. Verma is now a global management consultant, helping businesses with
innovation, marketing strategy & new business models to create sustainablegrowth. She partners OxfordSM, a BCorp and a global strategic and marketing
consultancy headquartered in the UK. She is also a strategy advisor toCompanies in the nutrition and social impact space both in Netherlands andIndia.
She is credited with having turned around HUL India’s Foods & Refreshment(F&R) business, has led the turnaround / creation of iconic brands for the Indian
market – Kissan, Brooke Bond Red Label, Kwality Walls, Kurkure, Royal Stagand led strategic business acquisitions in India and Europe.
Ms. Verma has been recognized as among the most powerful women in Indianbusiness by Business Today and ranked among the top 10 most influential
marketers, several years in a row. She is an immensely respected FMCG industry
voice, an ardent advocate on authentic leadership and a strong proponent of
an inclusive culture that helps diversity thrive.
Ms. Geetu Verma shall be appointed on the Board of UBL effective May 29,
2022.

38 | United Breweries Limited

Other Directorships &Committee Memberships inIndia and Areas of Expertise
Other Directorships:• Philips India Limited• Dhanvarsha Finvest Limited
Other Committee Membership:• Philips India Limited –Audit Committee
Areas of Expertise:• Business strategy, brand building
and innovation• Turning around scale businesses• Leading start-ups to scale• M&A and integration strategy

Brief Resume
Mr. Manu Anand (DIN:00396716)
Mr. Manu is a Chartered Accountant and has completed Advanced Management
Program from the Wharton School of the University of Pennsylvania, USA.
Mr. Manu brings the experience of over three decades, out of which he has
been in the general manager roles for the last 20 years with a track recordof building diverse teams, driving growth, managing multi-billion-dollar P&Ls,
and leading change and transformation.
In his role with Mondelez International before his retirement, he managed
the Chocolate business (approx. $2 billion) operations across the Asia Pacific,
Middle East, and Africa, covering a range of developed and developing
markets. The role required managing the levers of P&L, driving top andbottom line and market share growth through a combination of region-wide
and market-specific initiatives on the brands and innovation. In addition, heran a consolidated supply chain with a complex manufacturing site network
and worked closely with sales teams in markets to deliver sustained businessperformance.

Other Directorships &Committee Memberships inIndia and Areas of Expertise
Other Directorships:• Manjushree Technopack Limited• DFM Foods Limited
Other Committee Membership:• Manjushree Technopark Limited:
Audit Committee
Areas of Expertise:
General Management, Finance,
Sales and Marketing in Food andBeverage industry.

Mr. Manu was earlier leading the India business for Mondelez International
and as Managing Director for Cadbury India Limited was responsible for all
business functions; the role required a high degree of general management
skills to steer the categories and functions appropriately to drive continued
growth and build competent teams.
Mondelez International started transforming to a category run model fromthe end of 2014, and he led significant change management initiatives totransition the organization to the new model seamlessly.
At PepsiCo India, Mr. Manu spent 19 years in various roles and is credited withbuilding its food business virtually from scratch.
In his last role at PepsiCo as the Chairman and CEO, PepsiCo India, Mr. Manu
was responsible for PepsiCo’s beverage and foods business (including JVs) in
India and South Asia, reporting to the President of AMEA. PepsiCo India was ascale operation with over 6000 direct employees, over 50 manufacturing sites,
and availability in over 2 million retail outlets with high growth driven by scale
brands.
Preceding this, Mr. Manu was based in Bangkok as the President of South East
Asia. He was responsible for the Beverage and Food businesses in Thailand,
Vietnam, Malaysia, Indonesia, Singapore, Cambodia and Laos. The Business
Unit was a complex portfolio of different business models in the various stagesof development across the markets. It included Company-owned businesses,
Joint Ventures, and Franchise business models through bottlers. The job helped
develop a strong ability to collaborate and work effectively with local partners
while learning to work effectively in a multi-cultural environmental. As a result.
Mr. Manu successfully built sustainability and profitable growth models in thesecompetitive, high potential markets with healthy growth in top and bottom lines.
Annual Report 2022 | 39

Other Directorships &Committee Memberships inIndia and Areas of Expertise

Brief Resume
Mr. Manu Anand (DIN:00396716) (contd.)
Currently Mr. Manu is the Senior Advisor with Advent and Director on
Manjushree Technopack and DFM Foods boards. He has also been a memberof CII and has experience as Chairman of PepsiCo India and Director on boardof Mondelez India.
Mr. Manu Anand shall be appointed on the Board of UBL effective May 29,
2022.

Membership in Boards and Board Committees - other than United Breweries Limited (UBL)

Name of the Directors

Membership in Board Committees other than UBL
Membershipin Boards other Prescribed for reckoning the limits
Other
than UBL
under Regulation 26(1)(b) of Listing Committees not
in India
Regulations*so prescribed**

Mr. Rishi Pardal

NIL

NIL

NIL

Mr. Berend Odink

1

NIL

NIL

Mr. Christiaan A J Van Steenbergen

NIL

NIL

NIL

Mr. Jan Cornelis van der Linden

NIL

NIL

NIL

Mr. Sunil Alagh

3

2

3

Ms. Kiran Mazumdar Shaw

14

1 (Chairperson of 1 Committee)

8Mr. Madhav Bhatkuly

1

NIL

NIL

Mr. Stephan Gerlich

NIL

NIL

NIL

Membership in Boards and Board Committees of New Independent Directors - other than UBLName of the Directors

Membership in Board Committees other than UBL
Membershipin Boards other Prescribed for reckoning the limits
Other
than UBL
under Regulation 26(1)(b) of Listing Committees not
in India
Regulations*so prescribed**

Ms. Geetu Gidwani Verma

2

1

2

Mr. Manu Anand

2

1

2

*

Audit Committee and Stakeholders’ Relationship Committee.

** Nomination and Remuneration Committee, Share Transfer Committee and Other Committees.
The above position is as on the date of this Report and in respect of their Directorships only in Indian Companies.
Notes:
a)Mr. Rishi Pardal is not a Director in any other Company.

b)

Mr. Berend Odink is on the Board of 1 Company.

c)Mr. Christiaan A J Van Steenbergen is on the Board of 1 Overseas Company.

d)Mr. Jan Cornelis van der Linden is on the Board of 11 Overseas Companies.

e)Mr. Sunil Alagh is on the Board of 3 Companies. Out of which 1 is a Private Limited Company.

40 | United Breweries Limited

f)

g)
h)
i)
j)

Ms. Kiran Mazumdar Shaw is on the Board of 14 Companies. Out of which 2 are Private Limited Companies and
4 are Section 8 Companies under the Companies Act, 2013. Ms. Mazumdar is also on the Board of 9 Overseas
Companies.
Mr. Madhav Bhatkuly is a Director in 1 Private Limited Company. Mr. Bhatkuly is also on the Board of 1 Overseas
Company.
Mr. Stephan Gerlich is not a Director in any other Company.
Ms. Geetu Gidwani Verma is on the Board of 2 Companies.
Mr. Manu Anand is on the Board of 2 Companies.

General Administration
Research and Innovation













Legal and Human Resource
Industry Knowledge











Mr. Manu Anand(effective May 29, 2022)

Financial Management and Economics



Ms. Geetu Gidwani Verma(effective May 29, 2022)

Strategic Planning

Mr. Stephan Gerlich







Mr. Madhav Bhatkuly

Sales and Marketing

Ms. Kiran Mazumdar Shaw

Mr. Sunil Alagh

Mr. Jan Cornelis van der
LindenMr. Berend Odink

Business Strategy, Brand Building andLeadership

Mr. Christiaan A J Van
Steenbergen

SkillsMr. Rishi Pardal

The skills / expertise / competencies available with the Board are as per the matrix given below:



























Board Meetings

Matters of policy and other relevant and significant information are regularly made available to the Board. In order toensure better Corporate Governance and transparency, the Company has constituted an Audit Committee, Stakeholders’Relationship Committee, Nomination and Remuneration Committee, Corporate Social Responsibility/ Environmental,
Social and Governance Committee, Risk Management Committee, Share Transfer Committee, Borrowing Committee
and Special Purpose Committee to look into the Terms of Reference of each Committee.
In addition to securing Board approvals for various matters prescribed under the Act, matters such as annual budget,
operating plans, material show cause notices and demands, if any, minutes of Committee Meetings and subsidiary
Company, control self-assessment, risk management and updates thereof are regularly placed before the Board. Thereis a comprehensive management reporting system involving preparation of operating results and their review by senior
management and by the Board.
During the financial year ended on March 31, 2022, seven (7) Board Meetings were held on April 27, 2021, May 12,
2021, June 29, 2021, July 04, 2021, July 28, 2021, October 27, 2021 and January 28, 2022. During the financial year,
Mr. Stephan Gerlich was the Acting Chairman of the Board.
Annual Report 2022 | 41

Attendance at Board Meetings and AGM

Category

Number of
Board Meetings
Held

Mr. Rishi Pardal

Managing Director

7

7

YES

Mr. Berend Odink *Director & CFO

7

5

YES

Mr. A K Ravi Nedungadi **Director (NE)

7

5

N.A.

Mr. Christiaan A J Van Steenbergen Director (NE)

7

7

YES

Mr. Jan Cornelis van der Linden

Director (NE)

7

6

YES

Mr. Sunil Alagh

Director (IND)

7

7

YES

Ms. Kiran Mazumdar Shaw

Director (IND)

7

7

YES

Mr. Madhav Bhatkuly

Director (IND)

7

7

YES

Mr. Stephan Gerlich

Director (IND)

7

7

YES

Names of the Directors

Number of
Attendance atBoard Meetings the last AGM held
attendedon 29.07.2021

Notes: NE – Non-Executive, IND – Independent.
* Mr. Berend Odink was appointed as Director & CFO with effect from June 29, 2021.
** Mr. A K Ravi Nedungadi resigned as Non-Executive Director with effect from July 29, 2021.

COMMITTEES OF DIRECTORSThe Board has constituted Committees of Directors as mandatorily required and to deal with matters which need urgent
decisions and timely monitoring of the activities falling within their terms of reference. The Board Committees are as follows:
Audit Committee

The Audit Committee comprises of Mr. Madhav Bhatkuly, Mr. Jan Cornelis van der Linden and Mr. Sunil Alagh as
Members, out of which two are Independent Directors and one is a Non-Executive Director. The Chairmanship of theCommittee vests with Mr. Madhav Bhatkuly.
The Committee oversees the financial reporting process, disclosure requirements and matters relating to Internal
Control System. The Committee also reviews periodically the financial accounts, adequacy of the internal audit function,compliance with accounting standards and other areas within its Terms of Reference, as under:i)

Oversee the Company’s financial reporting process and the disclosure of its financial information to ensure that thefinancial statement is correct, sufficient and credible;

ii)

Recommending to the Board, the appointment, remuneration and terms of appointment of auditors of the Company;iii)

Approval of payment to statutory auditors for any other services rendered by the statutory auditors;

iv)

Reviewing, with the Management, the Annual Financial Statements and auditor’s report before submission to theBoard for approval, with particular reference to;• Matters required to be included in the Directors Responsibility Statement to be included in the Board’s report interms of Clause (c) of sub-section 3 of Section 134 of the Act;• Changes, if any, in accounting policies and practices and reasons for the same;• Major accounting entries involving estimates based on the exercise of judgement by the Management;• Significant adjustments made in the Financial Statements arising out of Audit findings;• Compliance with listing and other legal requirements relating to Financial Statements;• Disclosure of any related party transactions;• Modified opinion(s) in the draft audit report;v)

Reviewing with the Management the quarterly Financial Statements before submission to the Board for approval;

42 | United Breweries Limited

vi)

Reviewing with the management, the statement of uses / application of funds raised through an issue (public issue, rights
issue, preferential issue, etc.), the statement of funds utilized for purposes other than those stated in the offer document /prospectus / notice and the report submitted by the monitoring agency monitoring the utilization of proceeds of a public
or rights issue and making appropriate recommendations to the Board to take up steps in this matter;vii)

Reviewing and monitoring the auditor’s independence and performance, and effectiveness of audit process;viii) Approval or any subsequent modification of transactions of the Company with related parties;ix)

Scrutiny of inter-corporate loans and investments;x)

Valuation of undertakings or assets of the Company, wherever it is necessary;xi)

Evaluation of internal financial controls and risk management systems;

xii)

Reviewing with the management the performance of statutory and internal auditors, adequacy of the internal control
system;xiii) Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department,
staffing and seniority of the official heading the department, reporting structure, coverage and frequency ofinternal audit;xiv) Discussion with internal auditors of any significant findings and follow-up thereon;
xv)

Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspectedfraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board;xvi) Discussing with statutory auditors before the audit commences, about the nature and scope of audit as well as
post-audit discussion to ascertain any area of concern;xvii) To look into the reasons for substantial defaults in the payments to the depositors, debenture holders, Shareholders(in case of non-payment of declared dividends) and creditors;
xviii) To review the functioning of Whistle Blower mechanism;xix) Approval of appointment of Chief Financial Officer (i.e., the whole-time Finance Director or any other person heading
the finance function or discharging that function) after assessing the qualifications, experience and background, etc.
of the candidate;xx)

To review utilization of loans and / or advances from investment by holding Company in the subsidiary exceeding
Rs.100 Crore or 10% of the asset size of the subsidiary, including existing loans, advances and investments;xxi) To consider and comment on rationale, cost-benefits and impact of schemes involving merger, demerger, amalgamation
etc. and;xxii) Carrying out any other function as is mentioned in terms of reference of the Audit Committee.
The Audit Committee mandatorily reviews the following information:
1. Management discussion and analysis of financial conditions and results of operations;
2. Management letters/letters of internal control weaknesses issued by the Statutory Auditors;
3. Internal audit reports relating to internal control weaknesses;
4. The appointment, removal and terms of remuneration of the Chief Internal Auditor; and5. Statement of deviations:(a) quarterly statement of deviation(s) including report of monitoring agency;(b) annual statement of funds utilized for purposes other than those stated in the offer documents / prospectus /notice.
During the financial year ended March 31, 2022, five (05) Audit Committee Meetings were held on April 26, 2021,
June 29, 2021, July 27, 2021, October 26, 2021, and January 27, 2022.
Annual Report 2022 | 43

Attendance at Audit Committee Meetings

Category

Number of Audit
Committee Meetings held

Number of Audit
Committee Meetings attended

Mr. Madhav Bhatkuly

Chairman

05

05

Mr. Jan Cornelis van der Linden

Member05

04

Mr. Sunil Alagh

Member05

05

Names of the Directors

Share Transfer Committee

The Share Transfer Committee comprises of Mr. Stephan Gerlich, Mr. Rishi Pardal, Mr. Berend Odink and Mr. Christiaan
A J Van Steenbergen as Members. The Chairmanship of the Committee vests with Mr. Stephan Gerlich.
The Terms of Reference are as under:• To monitor Transfer, Transmission and Transposition of the Shares of the Company;• Issue of Duplicate Share Certificates, in lieu of Certificates lost or misplaced;• Issue of New Share Certificates In lieu of Certificates torn, mutilated, cages for transfer filled up etcetera;• Consolidation and sub-division of Share Certificates;• To oversee compliance of the norms laid down under the Depositories Act, 1996;• To appoint / remove Registrar and Transfer Agent;• To oversee compliance of the norms laid down under the Tripartite Agreement with National Securities Depository
Limited / Central Depository Services (India) Limited, and• Perform all such acts and deeds, matters and things as it may in its absolute discretion deem necessary, expedient,desirable, usual or proper and to settle any question, dispute, difficulty or doubt that may arise in regard to the mattersarising out of the aforesaid acts.
In order to facilitate prompt and efficient service to the Shareholders, all the transactions in connection with Transfer,
Transmission, issue of Duplicate Certificates, etc., have been entrusted to Integrated Registry Management Services Private
Limited, Registrar and Share Transfer Agent and the same are being processed and approved once in ten days.
During the financial year ended March 31, 2022, four (04) Share Transfer Committee Meetings were held on April 23,
2021, July 21, 2021, October 22, 2021, and January 24, 2022 for approving the transactions falling within the Terms ofReference mentioned above.
Attendance at Share Transfer Committee Meetings

Names of the Directors

Category

Number of Share Transfer
Committee Meetings held

Number of Share Transfer
Committee Meetings attended

Mr. Stephan Gerlich

Chairman

44

Mr. Rishi Pardal

Member4

4

Mr. Berend Odink *Member4

2

Mr. A K Ravi Nedungadi **Member4

2

Mr. Christiaan A J Van Steenbergen

Member4

4* Mr. Berend Odink was appointed as Director & CFO with effect from June 29, 2021.
** Mr. A K Ravi Nedungadi resigned as Non-Executive Director with effect from July 29, 2021.
The Board of Directors has, by a resolution by circulation passed on May 5, 2004, delegated the power to approvetransfers / transmission etc., up to 5,000 Shares to the Managing Director and the Company Secretary, who can act
severally in the above matter.
44 | United Breweries Limited

Stakeholders’ Relationship Committee

The Stakeholders’ Relationship Committee comprises of Mr. Madhav Bhatkuly, Mr. Berend Odink, Mr. Sunil Alagh, andMr. Stephan Gerlich as Members. The Chairmanship of the Committee vests with Mr. Madhav Bhatkuly.
The Terms of Reference are as under:• Resolving the grievances of the security holders of the listed entity including complaints related to transfer/transmission of Shares, non-receipt of annual report, non-receipt of declared dividends, issue of new / duplicate
certificates, general Meetings etc.;• Review of measures taken for effective exercise of voting rights by Shareholders;• Review of adherence to the service standards adopted by the listed entity in respect of various services being renderedby the Registrar & Share Transfer Agent; and• Review of the various measures and initiatives taken by the listed entity for reducing the quantum of unclaimed
dividends and ensuring timely receipt of dividend warrants / annual reports / statutory notices by the Shareholders of
the Company.
The Compliance Officer is Mr. Govind Iyengar, Senior Vice President – Legal and Company Secretary.
Number of Shareholders’ complaints received from 01-04-2021 to 31-03-2022 (These
complaints pertained mainly to non-receipt of Share Certificates upon transfer, non-receipt
of Annual Report, non-receipt of Dividend, etc.)

05

Number of complaints not solved to the satisfaction of the Shareholders

NIL

Number of pending Share transfers

NIL

During the financial year ended March 31, 2022, two (2) Stakeholders Relationship Committee Meetings were held on
April 23, 2021, and October 22, 2021.
Attendance at Stakeholders Relationship Committee Meetings

Names of the Directors

Category

Number of Stakeholders
Relationship Committee
Meetings held

Number of Stakeholders
Relationship Committee
Meetings attended

Mr. Madhav Bhatkuly

Chairman

2

2

Mr. Berend Odink *Member

2

1

Mr. A K Ravi Nedungadi **Member

2

1

Mr. Sunil Alagh

Member2

2

Mr. Stephan Gerlich

Member2

2* Mr. Berend Odink was appointed as Director & CFO with effect from June 29, 2021.
** Mr. A K Ravi Nedungadi resigned as Non-Executive Director with effect from July 29, 2021.
Corporate Social Responsibility/ Environmental, Social and Governance CommitteeYour Company has been focusing on Corporate Social Responsibility (CSR) activities viz., Primary Health, Primary
Education, Water Conservation & Providing Safe Drinking Water and Responsible Consumption of Alcohol. UBL has
formulated a CSR policy for a seamless integration of market place, work place, environment and community concernswith its business operations. We use CSR as an integral business process in order to support sustainable development
and inclusive growth in our constant endeavour to be a good corporate citizen.
The CSR / ESG Committee comprises of Mr. Stephan Gerlich, Mr. Rishi Pardal, Mr. Berend Odink, Mr. Christiaan
A J Van Steenbergen and Ms. Kiran Mazumdar Shaw as Members. The Chairmanship of the Committee vests with
Mr. Stephan Gerlich.
During the financial year ended March 31, 2022, one (1) CSR / ESG Committee Meeting was held on March 15, 2022
which was attended by all the Members.
Annual Report 2022 | 45

Risk Management Committee
The Risk Management Committee comprises of Mr. Sunil Alagh, Mr. Rishi Pardal, Mr. Berend Odink, Mr. Jan Cornelis vander Linden, Ms. Kiran Mazumdar Shaw, Mr. Madhav Bhatkuly, and Mr. Stephan Gerlich as Members. The Chairmanshipof the Committee vests with Mr. Sunil Alagh.
The Terms of Reference are as under:• To formulate a detailed risk management policy which shall include:a. A framework for identification of internal and external risks specifically faced by the listed entity, in particularincluding financial, operational, sectoral, sustainability (particularly, ESG related risks), information, cyber security
risks or any other risk as may be determined by the Committee.
b. Measures for risk mitigation including systems and processes for internal control of identified risks.
c. Business continuity plan.
• To ensure that appropriate methodology, processes and systems are in place to monitor and evaluate risks associatedwith the business of the Company.
• To monitor and oversee implementation of the risk management policy, including evaluating the adequacy of risk
management systems.
• To periodically review the risk management policy, at least once in two years, including by considering the changing
industry dynamics and evolving complexity.
• To keep the board of directors informed about the nature and content of its discussions, recommendations andactions to be taken.
• The appointment, removal and terms of remuneration of the Chief Risk Officer (if any) shall be subject to review by
the Risk Management Committee.
During the financial year ended March 31, 2022, two (02) Risk Management Committee Meetings were held on
October 26, 2021 and February 24, 2022.
Attendance at Risk Management Committee Meetings

ChairmanMemberNumber of Risk
Management Committee
Meetings held2
2

Number of Risk
Management Committee
Meetings attended
2

MemberMemberMemberMemberMember

2
2
2
2
2

2
1
2
2
2

Names of the Directors

Category

Mr. Sunil Alagh
Mr. Rishi Pardal
Mr. Berend Odink
Mr. Jan Cornelis van der Linden
Ms. Kiran Mazumdar Shaw
Mr. Madhav Bhatkuly
Mr. Stephan Gerlich

2

Borrowing Committee
Having regard to the size of operations, frequency of funds requirement and administration convenience, the Board hasconstituted a Borrowing Committee of Directors and has delegated powers to borrow moneys within approved limits
from time to time.
The Borrowing Committee comprises of Mr. Madhav Bhatkuly, Mr. Berend Odink, Mr. Sunil Alagh, Ms. Kiran Mazumdar
Shaw and Mr. Stephan Gerlich as Members. The Chairmanship of the Committee vests with Mr. Madhav Bhatkuly.
During the financial year ended March 31, 2022, there was no Borrowing Committee Meetings held.
Special Purpose Committee
The Special Purpose Committee was formed inter alia to review the investigation / matters with respect toCompetition Commission of India. The Special Purpose Committee comprises of Mr. Madhav Bhatkuly, Mr. Rishi Pardal,
46 | United Breweries Limited

Mr. Berend Odink and Mr. Christiaan A J Van Steenbergen. The Chairmanship of the Committee vests with Mr. Madhav
Bhatkuly.
During the financial year ended March 31, 2022, three (03) Special Purpose Committee Meetings were held on
October 28, 2021, November 09, 2021 and November 30, 2021 which were attended by all the Members.
Nomination and Remuneration Committee
The Nomination and Remuneration Committee comprises of Ms. Kiran Mazumdar Shaw, Mr. Christiaan A J Van
Steenbergen and Mr. Sunil Alagh as Members. The Chairperson of the Committee vests with Ms. Kiran Mazumdar
Shaw.
The Terms of Reference are as under:• Formulate criteria for determining qualifications, positive attributes and independence of a Director and recommend
to the Board a policy relating to, the remuneration of the Directors, Key Managerial Personnel and other employees;• For appointment of an Independent Director, the Committee shall evaluate the balance of skills, knowledge andexperience on the Board and on the basis of such evaluation, prepare a description of the role and capabilities
required of an Independent Director. The person recommended to the Board for appointment as an Independent
Director shall have the capabilities identified in such description. The Committee for the purpose of identifying
suitable candidates may:a) use the services of an external agencies, if required;b) consider candidates from a wide range of backgrounds, having due regard to diversity; andc) consider the time commitments of the candidates.
• Formulate criteria for evaluation of performance of Independent Directors and the Board of Directors;• Devise a policy on diversity of Board of Directors;• Identify persons who are qualified to become Directors and who may be appointed to the Board as well as senior
management in accordance with the criteria that may be laid down, and recommend to the Board their appointment
and removal;• To extend or continue the term of appointment of the Independent Director, on the basis of the report of performance
evaluation of Independent Directors;• Recommend to the Board, all remuneration, in whatever form, payable to senior management; and• Operate and cover areas as may be prescribed under the Act, and other applicable Regulations from time to time
including formulation of Employee Stock Option Scheme to Employees / Directors in compliance with guidelines
prescribed.
During the financial year ended March 31, 2022, six (06) Nomination and Remuneration Committee Meetings were
held on April 19, 2021, June 29, 2021, July 26, 2021, October 25, 2021, January 25, 2022 and March 21, 2022.
Attendance at Nomination and Remuneration Committee Meetings
Names of the Directors

Category

Number of Nomination andRemuneration Committee
Meetings held

Number of Nomination andRemuneration Committee
Meetings attended

Ms. Kiran Mazumdar Shaw

Chairperson

66

Mr. A. K. Ravi Nedungadi *Member

6

3

Mr. Sunil Alagh

Member6

6

Mr. Christiaan A J Van
Steenbergen

Member6

6* Mr. A K Ravi Nedungadi resigned as Non-Executive Director with effect from July 29, 2021.
The Company Secretary was present in all the Meetings of the Board and / or Committees.
Note: For “Performance Evaluation of Directors” please refer to page No. 28 of Directors Report.
Annual Report 2022 | 47

Remuneration Policy
The Company carries out periodic reviews of comparable Companies and through commissioned survey ascertains the
remuneration levels prevailing in these Companies. The Company’s Remuneration Policy is designed to ensure that the
remuneration applicable to Managers in the Company is comparable with multinational Companies operating in Brewing
or similar industry in India. In line with statutory requirements, the Board of Directors has adopted a Remuneration Policy
for Directors, Key Managerial Personnel (KMP) and other employees of the Company. The Remuneration Policy lays
down the criteria for appointment and removal of Directors, KMP and Senior Management. The Policy also prescribes
the criteria and manner for fixation and approval of remuneration payable to Directors, KMP and other employees.
The Policy is posted on the website of the Company www.unitedbreweries.com and is available through the webpage:
http://unitedbreweries.com/pdf/policyandcodes/Remuneration-Policy.pdf.
For the financial year ended March 31, 2022, Mr. Rishi Pardal, Managing Director and Mr. Berend Odink, Director & CFO(effective June 29, 2021) were paid remuneration as Director as under:(Rupees)
Joining
Bonus

Salary &Allowance

Mr. Rishi Pardal

2,70,00,000*

6,12,65,736

NIL

NIL

57,90,293

83,61,630

Mr. Berend Odink(June 29, 2021, to
March 31, 2022)

NIL

2,07,56,973

NIL

29,80,377

84,91,981

5,46,387

Name

VariableLong Term
Perquisites
Pay
Incentive Payment

RetiralBenefits* Mr. Rishi Pardal was paid the balance of joining bonus being part of his agreed one-time joining bonus.
Performance criteria is decided by Nomination and Remuneration Committee and the Board.
Sitting fees to Directors during 2021-2022
Sl. No.

Name of the Directors

Sitting fees paid (Rupees)*1.

Mr. A K Ravi Nedungadi

8,00,000/-

2.

Mr. Christiaan A J Van Steenbergen

14,00,000/-

3.

Mr. Jan Cornelis van der Linden

11,00,000/-

4.

Mr. Sunil Alagh

17,50,000/-

5.

Ms. Kiran Mazumdar Shaw

11,50,000/-

6.

Mr. Madhav Bhatkuly

16,00,000/-

7.

Mr. Stephan Gerlich

12,00,000/-* Subject to deduction of tax at source, as applicable.
Sitting fees are being paid @ Rs.1,00,000/- for attending Board Meetings and Audit Committee Meetings andRs.50,000/- for attending other Committee Meetings including Independent Directors Meeting. During the year, there
was no pecuniary relationships or transactions between the Company and any of its Non-Executive Directors apart fromreceiving sitting fees and commission. The Company has not provided any stock options scheme or pension to any of
the Directors.
Commission to Directors during 2021-2022
Sl. No.

Name of the Directors

Commission (Rupees) ##1.

Mr. A K Ravi Nedungadi #28,24,857/-

2.

Mr. Sunil Alagh

98,87,006/-

3.

Ms. Kiran Mazumdar Shaw

98,87,006/-

4.

Mr. Madhav Bhatkuly

98,87,006/-

5.

Mr. Stephan Gerlich

98,87,006/-

48 | United Breweries Limited

# Commission is paid on a pro rata basis to Mr. A K Ravi Nedungadi as he resigned as Non-Executive Director witheffect from July 29, 2021.
## Subject to deduction of tax at source. The above amount excludes applicable Goods and Services Tax which was paidby the Company under reverse charge separately.
Independent Directors
The Independent Directors of the Company viz., Ms. Kiran Mazumdar Shaw, Mr. Sunil Alagh, Mr. Madhav Bhatkuly,
and Mr. Stephan Gerlich have been re-appointed on the Board for a second consecutive term at the AGM held on
August 22, 2019. All of them have given a declaration that they meet the criteria of independence and in the opinionof the Board, the Independent Directors fulfil the conditions of independence as laid down under the Act, and Listing
Regulations.
On the recommendation of Nomination and Remuneration Committee, the Board has appointed Ms. Geetu Gidwani
Verma and Mr. Manu Anand as Additional Directors with effect from May 29, 2022, to hold office up to the date of
the forthcoming AGM. The Board considered the domain knowledge and experiences of Ms. Geetu Gidwani Vermaand Mr. Manu Anand in the areas of marketing / digital and finance respectively while approving their appointment
as Independent Directors on the Board of the Company. The Board is of the opinion that Ms. Geetu Gidwani Vermaand Mr. Manu Anand, Independent Directors possesses requisite qualification, experience, expertise and holds highstandards of integrity and is independent of the Management of the Company and fulfils the conditions specified underthe Act, read with Rules thereunder and the SEBI LODR Regulations for their appointment as Independent Directors of
the Company. Being eligible, Ms. Geetu Gidwani Verma and Mr. Manu Anand have offered themselves to be appointed
as Independent Directors of your Company. As per the provisions of the Act, the Independent Directors shall not beliable to retire by rotation.
Mr. Sunil Alagh and Mr. Stephan Gerlich, Independent Directors considering their long tenure on the UBL Board and due
to other personal commitments, that they have now, have voluntarily relinquished their position as Board members witheffect from June 13, 2022, after serving 17 years and 12 years respectively. The Board places on record its appreciation
for Mr. Sunil Alagh and Mr. Stephan Gerlich for their invaluable contribution, guidance and support provided by themduring their tenure as Independent Directors. The Independent Directors have confirmed that there are no other material
reasons for their resignations as Independent Directors other than those stated above.
During the financial year ended March 31, 2022, one (1) Independent Directors Meeting was held on November 08,
2021, which were attended by all the Members viz., Ms. Kiran Mazumdar Shaw, Mr. Sunil Alagh, Mr. Madhav Bhatkuly,
and Mr. Stephan Gerlich.

SHAREHOLDERS’ INFORMATION
General Body Meetings
The previous three AGMs of the Company were held on the dates, time and venue as given below:
Date
July 29, 2021
August 26, 2020
August 22, 2019

Time

Venue

01.00 p.m. (IST) Video Conference/ Other Audio-Visual Means
12.30 p.m. (IST) Video Conference/ Other Audio-Visual Means
11.00 a.m. (IST) Level 1, UB Tower, UB City, #24, Vittal Mallya Road,
Bengaluru - 560 001.

Special Resolutions
Passed
Two
Two
Four

All the Resolutions set out in respective Notices were passed by the Members at the above AGMs.
Extraordinary General Meeting
During FY 2022, an Extraordinary General Meeting (EGM) was held on April 09, 2021, for the purpose of paymentof remuneration to Mr. Rishi Pardal, Managing Director for the period August 01, 2020, to March 31, 2021, andMr. Shekhar Ramamurthy, former Managing Director for the period April 01, 2020, to July 31, 2020, beyond the ceiling
Annual Report 2022 | 49

in case of inadequacy or absence of profits during the financial year ended March 31, 2021, arising out of COVID
impact. The Special Resolutions were passed with requisite majority at the EGM.
Postal Ballot
The Company had not conducted any Postal Ballot during the year. None of the businesses proposed to be transacted
in the ensuing AGM require passing of resolution through postal ballot.
Remote E-voting
In terms of Section 108 of the Act, Rules framed thereunder and Regulation 44 of the Listing Regulations, theCompany is providing remote e-voting facility to its Shareholders in respect of all resolutions proposed to be passed at
this AGM.
Dividend
Post its declaration at this AGM, dividend on Equity Shares for the financial year ended March 31, 2022, will be paid onor before September 09, 2022, to the Members whose names appear:i. as Beneficial Owners as at the close of the business hours on Wednesday, August 03, 2022, as per the list to be
furnished by the Depositories in respect of the Shares held in electronic form, andii. as Members in the Register of Members of the Company as on Wednesday, August 10, 2022, after giving effect toall valid Share transfers in physical form which are lodged with the Company on or before Wednesday, August 03,
2022.
Unclaimed Dividend
Unclaimed Dividend for the financial year ended March 31, 2015, will be due for transfer to the Investor Education andProtection Fund (IEPF) on October 27, 2022, in terms of the applicable provisions of the Act. Members who have notencashed the Dividend Warrants for the aforesaid Dividend are requested to approach the Registrar and Share Transfer
Agent of the Company. Further, the Equity Shares held by the Shareholders (either in physical form or in demat form)
in respect of such unclaimed dividend which has not been encashed and in respect of which dividend has not been
claimed for last seven consecutive years shall also be transferred to the IEPF in terms of provisions of the Act, and theRules made thereunder.
Unclaimed Shares
After due compliance with the procedure prescribed in Schedule VI of the Listing Regulations relating to unclaimed
Shares, we have transferred all unclaimed Equity Shares in one folio and have dematerialized these Equity Shares in ademat account with HDFC Bank Limited who has arrangement with National Securities Depository Limited (Depository).
The voting rights on these Shares shall remain frozen till the rightful owner of such Equity Shares claims the Shares.
Details relating to unclaimed Equity Shares as on March 31, 2022, as required under Schedule V(F) of the Listing
Regulations is given hereunder:
No. of Shareholders
holding unclaimed
Shares as on
01.04.2021

No. ofunclaimed
Shares as on
01.04.2021

1,388

228,483

No. ofNo. of unclaimed No. of Shareholders
Balance
Shareholders
Sharesholding unclaimed unclaimed
who claimed
transferred
Shares as on
Shares as
Shares during during the year
31.03.2022
onthe year31.03.2022
16

3,330

1,372 **

225,153

VotingRightsFrozen(%)
0.09**During the year, the Company credited 3,330 Equity Shares held by 16 Shareholders in unclaimed suspense
account. As on March 31, 2022, the Company holds 225,153 Equity Shares held by 1,372 Shareholders in unclaimed
suspense account.
50 | United Breweries Limited

Investor Education and Protection Fund (IEPF)
As per Section 124(5) of the Act, any money transferred to the unpaid dividend account of a Company which remained
unpaid or unclaimed for a period of seven years from the date of such transfer shall be transferred by the Company to
IEPF. Pursuant to the said provision, the Company had transferred Rs. 9,81,247 as dividend for the year 2013-2014 to
IEPF which remained unclaimed for a period of seven years.
Further, pursuant to Section 124(6) of the Act, all Shares in respect of which unpaid or unclaimed dividend has beentransferred under Section 124(5) of the Act, shall also be transferred by the Company in the name of IEPF.
Pursuant to the said provisions, the Company has transferred 15,82,047 Equity Shares held by 10,219 Shareholders(including 10,39,357 Equity Shares held by 6,297 Shareholders from Unclaimed Suspense Account) to IEPF after
following due procedure laid down under the Investor Education and Protection Fund Authority (Accounting, Audit,
Transfer and Refund) Rules, 2016, as amended (the Rules). Details of Dividend and Equity Shares transferred to IEPF is
uploaded on the website of the Company and is available through the webpage: http://unitedbreweries.com/investors.
Out of 15,82,047 Shares, IEPF has credited 34,399 Shares to a Shareholder’s account.
The Shareholders may claim the Dividend and Equity Shares transferred to IEPF after following the procedure laid downin the Rules. The Company has appointed a Nodal Officer for the purpose of coordinating with the IEPF Authority inrespect of claims by Shareholders. Details of the Nodal Officer is uploaded on the website of the Company.
Means of Communication
The Company has its own website and all vital information relating to the Company and its performance including
quarterly financial results, official press releases, presentation to analysts, shareholding pattern etc., are posted on the
Company’s website www.unitedbreweries.com. Apart from furnishing financial results to all the Stock Exchanges,
the Quarterly, Half-yearly and Annual Results of the Company’s performance are published in ‘The Financial Express’ and‘Kannada Prabha’ Newspapers. As part of transparency, good governance and consistency in reporting, the Company
publishes its detailed financial results along with notes and not only extracts in the Newspapers in the same form as
furnished to the Stock Exchanges where the Company’s Shares are listed and uploaded on the website of the Company.
The Company has designated an exclusive Email-ID viz., ublinvestor@ubmail.com for the purpose of registering
complaints by the investors. The investors can post their grievances by sending a mail to the said Email-ID.
Credit Ratings
The Company has not issued any debt instruments and does not have any fixed deposit programme or any scheme or
proposal involving mobilization of funds in India or abroad during the financial year ended March 31, 2022.
The ratings given by ICRA Limited for short-term borrowings and long-term borrowings of the Company are A1+ andAA+ respectively.
Familiarization programme for Independent Directors
The details of the Familiarization programme for Independent Directors is disclosed on the Company’s website at the
webpage: https://www.unitedbreweries.com/pdf/policyandcodes/Familiarisation-Programme-2022.pdf.
Secretarial Standards
The Company complies with all applicable mandatory Secretarial Standards issued by the Institute of Company Secretaries
of India.
Disclosures
1. Management Discussion and Analysis forms part of the Directors’ Report.
2. The Company has formulated a policy on materiality of Related Party Transactions and also on dealing with Related
Party Transactions which is placed on the website of the Company www.unitedbreweries.com and is available
through the webpage:
http://unitedbreweries.com/pdf/policyandcodes/Policy%20on%20Related%20Party%20Transactions.pdf.
Annual Report 2022 | 51

3. During the financial year ended March 31, 2022, there were no materially significant related party transactions
with the Company’s Directors or their relatives. Details of related party transactions form part of Notes to Accounts.
In preparation of Financial Statements for the year under review, treatment as prescribed in Indian AccountingStandards (Ind AS) has been followed.
4. The Company has complied with all the statutory requirements comprised in the Listing Agreements / Regulations /Guidelines / Rules of the Stock Exchanges / Securities and Exchange Board of India (SEBI) / other Statutory Authorities.
5. The Company did not suffer from any levies and there were no strictures on any Capital market related matters.
The Company has complied with all the mandatory and certain non-mandatory requirements of Corporate
Governance as prescribed under the Listing Regulations.
6. The Company has not issued any Global Depository Receipts or American Depository Receipts or warrants or any
convertible instruments.
7. The Company does not trade in commodities. However, with respect to certain raw / packaging materials, theCompany mitigates commodity pricing risks by using pricing benchmarks and tracking pricing trends over a longer
period of time and has entered into long term contracts where found beneficial.
The Company’s import payments for materials and services are covered by natural hedge with the export earnings.
8. The Company has not raised any funds through preferential allotment or qualified institutional placement as per the
Listing Regulations.
9. The Company has formulated a policy for determining material subsidiaries which is placed on the website of theCompany www.unitedbreweries.com and is available through the webpage:
http://unitedbreweries.com/pdf/policyandcodes/Policy%20for%20Determining%20Material%20Subsidiaries-PDF.pdf
10. The Company has obtained a certificate from M/s BMP & Co. LLP, Practising Company Secretary, confirming thatnone of the Directors on the Board of the Company have been debarred or disqualified from being appointed orcontinuing as Directors of Companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs,
or any such other Statutory Authority.
11. The Company has received three complaints in relation to Sexual Harassment during the financial year 2021-2022
which stands resolved.
No. of Complaints filed
during the year

No. of Complaints disposed
during the year

No. of Complaints pending
as on 31.03.2022

03

03

NIL

12. During the year, the Company has paid Rs.323 Lacs (including GST and reimbursement of expenses) to the Statutory
Auditors towards Statutory Audit and other services provided by them to the Company. The Company has also paid
Rs.19.46 Lacs for other services to all the entities in the network firm / network entity of which Statutory Auditor isa part during the year.
13. The Company has complied with corporate governance requirements specified in Regulation 17 to 27 and Clauses(b) to (i) of sub-Regulation (2) of Regulation 46 of the Listing Regulations.
14. The Company has adopted vigil mechanism which is a channel for receiving and redressing of complaints about any
misconduct, actual or suspected fraud, actual or potential violations of the Company’s code of conduct and anyother unethical, unlawful or improper practices, acts or activities within the Company. The Company has formulateda Whistle Blower Policy for Employees, Directors and also for vendors and has ensured that there are adequate
safeguards against victimization of whistle blowers. The details of establishment of the vigil mechanism are disclosed
on the website of the Company.
15. None of the Employees and Directors have been denied access to the Chairman of the Audit Committee.
Note: For “Additional Disclosures on Significant and Material Orders” please refer to page No. 30 of Directors Report.
52 | United Breweries Limited

General Shareholder Information
The Company’s financial year begins on April 01 and ends on March 31 of immediately subsequent year. During
financial year 2021-2022, the meetings of the Board of Directors, for approval of quarterly financial results, were heldon the following dates within statutory time limits:
Division of Financial Calendar

Declaration of Results

April 01 to June 30

First Quarter Results

July 28, 2021

July 01 to September 30

Second Quarter and Half yearly Results

October 27, 2021

October 01 to December 31

Third Quarter Results

January 28, 2022

January 01 to March 31

Fourth Quarter and Annual Results

April 26, 2022

AGM Information
Board Meeting for consideration of Accounts

April 26, 2022

Cut-off-Date for ascertaining Shareholders entitled for July 08, 2022
NoticeCut-off-Date for determining the eligibility to vote byremote e-voting system

August 03, 2022 (close of business hours)Book Closure dates

August 04, 2022 to August 10, 2022 (both days inclusive).

Remote E-voting starting date and time

August 07, 2022 at 9.00 a.m.

Remote E-voting closure date and time

August 09, 2022 at 5.00 p.m.

Date of AGM

August 10, 2022

Time

01.00 p.m. IST

Venue

The Company is conducting Meeting through Video
Conference / Other Audio-Visual Means pursuant to the
Ministry of Corporate Affairs Circulars and as such there is norequirement to have a venue for the AGM. For details pleaserefer to the Note below.

Participation through video conference

Services provided by Central Depository Services (India)
Limited (CDSL) and login through e-voting portal of CDSL.

Helpline number for video conference participation

Toll free No. 022-2305 8738 and 022-2305 8542/43

Webcast and transcripts

http://www.unitedbreweries.com/investors

Dividend record dateAugust 03, 2022

Dividend payment date

September 09, 2022

Note: Pursuant to the General Circular numbers 14/2020 dated April 08, 2020, 17/2020 dated April 13, 2020,
20/2020 dated May 05, 2020, 22/2020 dated June 15, 2020, 33/2020 dated September 28, 2020, 39/2020
dated December 31, 2020, 02/2021 dated January 13, 2021, 10/2021 dated June 23, 2021, 19/2021 dated
December 08, 2021, 21/2021 dated December 14, 2021, and 02/2022 dated May 05, 2022 issued by the Ministryof Corporate Affairs (MCA) and Circular number SEBI/HO/CFD/CIR/P/2020/79 dated May 12, 2020 and SEBI/
HO/CFD/CMD2/CIR/P/2021/11 dated January 15, 2021 issued by the Securities and Exchange Board of India(SEBI) (hereinafter collectively referred to as “the Circulars”). As per MCA Circular No. 02/2022 dated May 05,
2022, Companies are allowed to hold AGM through VC/OAVM, without the physical presence of Members
at a common venue till December 31, 2022. In compliance with the Circulars, this AGM is being held through
VC /OAVM and the Notice and the Annual Report 2021-2022 are being sent only by electronic mode to those Members
whose Email addresses are registered with the Company / Depository Participant(s). Members may also note that the
Notice and the Annual Report 2021-2022 are also available on the Company’s website, www.unitedbreweries.com andwebsite of the Central Depository Services (India) Limited (CDSL) viz., https://www.evotingindia.com and the websitesof the Stock Exchanges i.e. BSE Limited and National Stock Exchange of India Limited, at https://www.bseindia.com andhttps://www.nseindia.com respectively.
Annual Report 2022 | 53

Listing with Stock Exchanges
The Equity Shares of UBL are listed with BSE Limited and National Stock Exchange of India Limited. UBL has paid theAnnual Listing Fee to all these Stock Exchanges for the year 2022-2023. The Scrip Code of Equity Shares on these Stock
Exchanges are as under:
STOCK EXCHANGESSCRIP CODE

BSE LIMITED
Address: Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001

532478NATIONAL STOCK EXCHANGE OF INDIA LIMITED
Address: Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (East) Mumbai - 400 051

UBLMarket price data of the Company’s Equity Shares traded on
the BSE Limited (BSE), during the period April 2021 to March 2022
Month

High (Rs.)

Low (Rs.)

Close (Rs.)

Sensex – Close

April, 2021

1,250.50

1,050.00

1,212.90

48,782.36

May, 2021

1,314.45

1,190.90

1,254.05

51,937.44

June, 2021

1,497.65

1,238.00

1,447.55

52,482.71

July, 2021

1,476.45

1,394.15

1,427.80

52,586.84

August, 2021

1,537.65

1,366.00

1,474.70

57,552.39

September, 2021

1,685.00

1,471.25

1,570.95

59,126.36

October, 2021

1,740.60

1,557.10

1,657.95

59,306.93

November, 2021

1,793.65

1,441.60

1,504.25

57,064.87

December, 2021

1,638.60

1,485.85

1,582.75

58,253.82

January, 2022

1,682.35

1,474.80

1,620.00

58,014.17

February, 2022

1,676.00

1,455.00

1,500.85

56,247.28

1,274.60

1,488.80

58,568.51

March, 2022
1,520.55(Market Price data source: www.bseindia.com)

Graphical representation of the Company’s Shares in comparison to broad-based indices i.e., BSE Sensex, is given below:
Comparision - UBL Share Price Vs. BSE Sensex
2,200

59,126.36 59,306.93

60,000

BSE Sensex

55,0001,657.95

25,0001,582.75

1,570.95

1,900

1,600

1,504.25

1,500.85 1,488.80

1,427.80
1,212.90

Jun-21

1,500
1,400
1,300

1,254.05

Apr-21 May-21

1,200
Jul-21

Aug-21 Sep-21

Oct-21

Nov-21 Dec-21

Jan-22Months (2021 - 2022)

Sensex54 | United Breweries Limited

1,700

1,620.00

1,474.70

1,447.55

35,00030,00056,247.28

1,800

48,782.36

40,000

2,100
2,000

52,482.71 52,586.84

50,00045,00057,064.87

51,937.44

58,568.51

58,253.82 58,014.17

57,552.39

UBL stock priceFeb-22Mar-22

1,100

UBL Closing Price (Rs.)(Equity Shares of Re.1)

65,000Comparision - UBL Share Price Vs. BSE Sensex
Market price data of the Company’s Equity Shares traded on
65,0002,200
the National Stock Exchange of India Limited, (NSE) during the period April 2021 to March 2022
59,126.36 59,306.93

MonthApril,55,000
2021

51,937.44

BSE Sensex

1,250.05

1,051.4057,064.87

1,211.90
56,247.28

14,631.10
1,900

1,191.00

1,253.35

1,800
15,582.80

1,446.30
1,620.00

1,700
15,721.50

1,428.60

15,763.05

June, 2021 48,782.36

1,498.95

July, 2021

1,477.35

45,00040,0001,447.55

August, 2021

1,538.00

1,657.95
1,238.45

1,582.75

1,570.95

1,393.65

1,474.70

Nifty– Close
2,000

1,600
1,500

1,475.00
1,500.85 1,488.80 17,132.20

1,686.00

1,469.55

1,571.50

17,618.15

1,254.05
1,741.40

1,556.55

1,658.55

17,671.65

1,785.80

1,443.00

1,504.35

16,983.20

1,427.80

1,212.90

Close (Rs.)

1,365.15 1,504.25

35,000 2021
September,

October,
30,0002021

2,100

Low (Rs.)

52,586.84
1,315.00
52,482.71

May,50,000
2021

58,568.51

58,253.82 58,014.17

57,552.39
High (Rs.)

UBL Closing Price (Rs.)(Equity Shares of Re.1)

60,000November, 2021
25,000

Apr-21 May-21
December, 2021

Jun-21

Jul-21
1,654.00

January, 2022

Aug-21 Sep-21

Oct-21 Nov-21
1,484.05

February, 2022

1,682.55
Sensex1,678.25

March, 2022

1,510.00

Dec-21

1,400
1,300
1,200

Jan-22 Feb-22
1,586.05

Mar-22Months (2021 - 2022)

1,460.30

1,100

17,354.05

1,619.20
UBL stock price
1,451.10
1,500.95

17,339.85
16,793.90

1,274.50

17,464.75

1,489.55(Market Price data source: www.nseindia.com)
Graphical representation of the Company’s Shares in comparison to broad-based indices i.e., NSE Nifty, is given below:
Comparision – UBL Share Price Vs. NSE Nifty
17,132.20

17,00017,618.15

15,582.80

NSE Nifty

15,00015,721.50

2,200

17,671.65

17,464.75

17,354.05

16,983.20

17,339.85

16,793.90

15,763.05

1,800
1,658.55

1,600

1,586.05

1,446.30
9,000

1,700

1,619.20

1,571.50

11,0001,475.00

1,504.35

1,500
1,500.95 1,489.55

1,428.60
1,211.90

2,000
1,900

14,631.10
13,000

7,000

2,100

1,400

UBL Closing Price (Rs.)(Equity Shares of Re.1)

18,0001,300

1,253.35

1,200

5,000

1,100
Apr-21 May-21

Jun-21

Jul-21

Aug-21 Sep-21

Oct-21

Nov-21 Dec-21

Jan-22

Feb-22Mar-22Months (2021 - 2022)

Nifty

UBL stock price

Annual Report 2022 | 55

Share Transfer System
All matters pertaining to Share Transfer are being handled by Integrated Registry Management Services Private Limited,
the Registrar and Share Transfer Agent of the Company. The Share Transfer requests received are processed by themand a Memorandum of Transfer is sent to the Company for approval. Time taken for processing Share Transfer requests
including dispatch of Share Certificates is 10 days, while it takes a minimum of 10-12 days for processing dematerialization
requests. The Company regularly monitors and supervises the functioning of the system so as to ensure that there are
no delays or lapses in the system.
The distribution of shareholding as on March 31, 2022 is furnished below:
Category (Rs.)

No. of Shareholders% (Percentage)

66,161

99.39

69,38,638

2.62

5,001 – 10,000

115

0.17

8,46,084

0.33

10,001 – 20,000

66

0.10

9,31,449

0.35

20,001 – 30,000

30

0.05

7,48,844

0.28

30,001 – 40,000

25

0.04

8,94,732

0.34

40,001 – 50,000

18

0.03

7,97,187

0.30

50,001 – 1,00,000

34

0.05

25,16,489

0.95

1,00,001 and Above

115

0.17

25,07,31,726

94.83

66,564100.0026,44,05,149

100.00Up to 5,000

Total

No. of Shares held

% (Percentage)

Shareholding Pattern as on March 31, 2022
Category

No. of Shares held

Percentage of Shareholding

Promoters
Indian2,91,79,240

11.03

Foreign

16,30,81,891

61.68

Sub-Total

19,22,61,131

72.71

Foreign Institutional Investors (FIIs)

2,30,01,093

8.70

78,57,330

2.97

15,47,648

0.58

2,61,59,307

9.89

Banks / Financial Institution

7,04,139

0.27

Central / State Governments

30,61,412

1.16

Insurance Companies

44,70,812

1.69

Bodies Corporate

43,00,824

1.63

Trust

2,54,730

0.10

NRI

4,44,364

0.17

Clearing Members

1,70,266

0.06

Overseas Corporate Bodies

1,72,093

0.07

Qualified Foreign Investors——

Sub-Total

4,12,85,595

15.62

Total

26,44,05,149

100.00Individuals
Others
IEPF
Mutual Funds

56 | United Breweries Limited

Pie-Chart of Shareholding Pattern
2.97% (Individuals)
8.70% (FIIs)
15.62% (Others)

72.71% (Promoter & Group)

Equity Shares of the Company held by Promoters, Directors and Key Managerial Personnel
0.46% (Physical mode)

Number of Equity Shares held
Sl. No.

Names

As on March 31, 2022

As on March 31, 2021

No. of Shares% of Total

No. of Shares% of Total

Promoters
1.

Scottish & Newcastle India Limited

8,99,94,960

34.04

8,99,94,960

34.04

2.

Heineken International B.V.

6,41,69,921

24.27

2,45,25,575

9.28

3.

Heineken UK Limited

3.21
84,89,270
99.54% (Electronic
mode)

3.21

4.

Dr. Vijay Mallya (singly & jointly)

2,13,53,620

8.08

2,13,53,620

8.08

5.

McDowell Holdings Limited

45,51,000

1.72

45,51,000

1.72

6.

Kamsco Industries Limited

32,74,000

1.24

32,74,000

1.24

7.

Pharma Trading Company Private Limited

620

0.00

620

0.00

8.

UB Overseas Limited

4,27,740

0.16

4,27,740

0.16

9.

United Breweries (Holdings) Limited

NIL

NIL

NIL

NIL

10.

Mallya Private Limited

NIL

NIL

NIL

NIL

11.

The Gem Investment & Trading Company
Private Limited

NIL

NIL

NIL

NIL

12.

Devi Investments Private Limited

NIL

NIL

NIL

NIL

13.

Vittal Investments Private Limited

NIL

NIL

NIL

NIL

19,22,61,131

72.71

15,26,16,785

57.72

Total

84,89,270

Directors & Key Managerial Personnel
1.

Mr. Rishi Pardal

Nil

Nil

Nil

Nil

2.

Mr. Berend Odink

Nil

Nil

Nil

Nil

3.

Mr. Govind Iyengar

Nil

Nil

Nil

Nil

Note: As per confirmation received from Registrar and Share Transfer Agent.

Annual Report 2022 | 57

As per disclosures received by UBL, 4,27,04,758 Equity Shares held by a few Promoter Companies promoted by Dr. Vijay
Mallya viz., United Breweries (Holdings) Limited, Devi Investments Private Limited, Vittal Investments Private Limited,
Kamsco Industries Private Limited, Mallya Private Limited, McDowell Holdings Limited, Pharma Trading Company Private
Limited, and The Gem Investment and Trading Company Private Limited constituting 16.15% of the total paid up capital
have been transferred to the demat account of Enforcement Directorate (ED), Mumbai. However, UBL has not received
any communication from the ED so far in this regard. These Equity Shares were later on transferred by ED to Recovery
Officer-I, DRT-II, Bengaluru.
On June 23, 2021, the Recovery Officer-I, DRT-II, Bengaluru, had sold 3,96,44,346 (14.99%) Equity Shares out of
4,27,04,758 (16.15%) Equity Shares of the Company through the block deal window of the BSE Ltd. Heineken
International B.V. acquired these Shares from the Recovery Officer, DRT (under sale proclamation) through a block deal
taking Heineken Group Shareholding in the Company from 46.52% to 61.52%. Heineken Group has therefore becomea majority promoter Shareholder.
For further information, please refer to point (ii) on page No. 30 under the heading “Additional Disclosures on Significant
and Material Orders” in Directors Report.
Dematerialization of Shares
The Company has set up requisite facilities for dematerialization of its Equity Shares in accordance with the provisions of
the Depositories Act, 1996 with National Securities Depository Limited and Central Depository Services (India) Limited.
The Company has entered into agreements with both the Depositories for the benefit of Shareholders. The International
Securities Identification Number (ISIN) allotted to Equity Shares of the Company is INE686F01025.
Effective April 01, 2019, transfer of Equity Shares of the Company held in physical form will not be processed and2.97% (Individuals)
accepted in terms of the Listing Regulations, as amended by SEBI (Listing Obligations and Disclosure Requirements)
8.70%(FIIs) form may open a demat account(Fourth Amendment) Regulations, 2018. Members holding Equity Sharesin physicalwith any depository participant and get their physical shareholding converted into dematerialised form. This will bring
15.62%(Others)
numerous advantages including convenience in managing shareholding, transfer andtrading
in Equity Shares. Procedurefor dematerialisation of physical shareholding is placed on the website of the Company and can be viewed using the
webpage: http://unitedbreweries.com/pdf/investorinfodividend/Guidance%20Note_Dematerialise%20Shares.pdf
The status of Dematerialization of the Company’s Shares as on March 31, 2022 is as under:Mode

No. of Shares% age

No. of Shareholders

Physical mode

12,05,948

0.46

4,362

Electronic mode

26,31,99,201

99.54

62,202

TOTAL

26,44,05,149

100.0066,56472.71% (Promoter & Group)

Shares held in physical and demat form as on March 31, 2022
0.46% (Physical mode)

99.54% (Electronic mode)

58 | United Breweries Limited

For any assistance regarding Share Transfers, Transmissions, change of address, issue of duplicate / lost Share Certificates/
exchange of Share Certificate / Dematerialization and other relevant matters, please write to the Registrar and Share
Transfer Agent of the Company, at the address given below:
INTEGRATED REGISTRY MANAGEMENT SERVICES PRIVATE LIMITED
30, RAMANA RESIDENCY, 4TH CROSS, SAMPIGE ROAD, MALLESWARAM, BENGALURU-560 003.
Tel. No.: (+91 080) 2346 0815 to 2346 0818 Fax No.: (+91 080) 2346 0819
CIN : U74900TN2015PTC101466; Email: blr@integratedindia.in
Contact Person: MR. VIJAYAGOPAL
Investors can also post their queries to ‘ublinvestor@ubmail.com’
Additional information on Corporate Governance Report is attached as Annexure - F to this Report.

Annual Report 2022 | 59Independent Auditor’s Report
To the Members of United Breweries Limited
Report on the Audit of the Standalone Financial Statements
OpinionWe have audited the accompanying standalone financial statements of United Breweries Limited (“the Company”),
which comprise the Standalone Balance Sheet as at March 31, 2022, the Standalone Statement of Profit and Loss,
including the Standalone Statement of Other Comprehensive Income, the Standalone Cash Flow Statement and theStandalone Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements,
including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone
financial statements give the information required by the Companies Act, 2013, as amended (“the Act”) in the mannerso required and give a true and fair view in conformity with the accounting principles generally accepted in India, of thestate of affairs of the Company as at March 31, 2022, its profit including other comprehensive income, its cash flows
and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs),
as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described inthe ‘Auditor’s Responsibilities for the Audit of the Standalone Financial Statements’ section of our report. We are
independent of the Company in accordance with the ‘Code of Ethics’ issued by the Institute of Chartered Accountantsof India together with the ethical requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financial statements.
Emphasis of Matter
We draw attention to below mentioned notes to the accompanying standalone financial statements:(a) Note 35(a) which more fully describes the matter pertaining to the levy of a penalty of Rs 75,183 Lakhs on the
Company, vide Order issued by the Competition Commission of India (CCI) for alleged contravention of theprovisions of section 3 of the Competition Act, 2002. Based on advice of external legal experts, the Company is of
the view that it has strong case on merits, there exists uncertainty relating to the final outcome in this matter, which
is dependent on judicial proceedings; and that it is not in a position to reliably estimate the final obligation relating
to penalties, if any. Accordingly, no provision has been recorded in the books of account; and(b) Note 42 which more fully describes the uncertainty relating to the outcome of special leave petition filed by the
Bihar State Government before the Honourable Supreme Court of India and the consequential impact thereof.
Our opinion is not modified in respect of aforesaid matters.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of thestandalone financial statements for the financial year ended March 31, 2022. These matters were addressed in thecontext of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed
the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We
have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the standalone financial
60 | United Breweries Limited

Independent Auditor’s Report contd.
statements section of our report, including in relation to these matters. Accordingly, our audit included the performanceof procedures designed to respond to our assessment of the risks of material misstatement of the standalone financial
statements. The results of our audit procedures, including the procedures performed to address the matters below,
provide the basis for our audit opinion on the accompanying standalone financial statements.
Key audit matters

How our audit addressed the key audit matter

Revenue from sale of products(as described in Note 2.1(d), (v) and 21 of the standalone financial statements)
Revenue from sale of products is recognised when Our procedures included the following:
control of products has been transferred to the • Assessed the Company’s revenue recognition accounting policy
customer and there is no unfulfilled obligation
for sale of products, including those relating to discounts andthat could affect the customer’s acceptance of
incentives.
the products. Revenue from sale of products is• Understood, evaluated and tested on sample basis the design andmeasured at the fair value of the consideration
operating effectiveness of key internal controls over recognition
received or receivable, net of returns andand measurement of revenue, discounts, and incentives.
allowances, discounts and incentives.
• Performed test of details on a sample basis and inspected theAt year end, amounts of discounts and incentives
underlying accounting documents relating to sales and accrualthat have been incurred and not yet issued toof discounts and incentives.
customers are estimated and accrued. Significant• Tested on a sample basis, sales transactions near year end datejudgement is required in estimating accruals
as well as credit notes issued to customers after the year end
relating to discounts and incentives recognised
date.
in relation to sales made during the year.
• Obtained an understanding of and evaluated underlying data
used in management assessment of estimates relating todiscounts and incentives.
• Performed analytical procedures on revenue, discounts andincentives.
• Assessed the disclosures in the standalone financial statements
in respect of revenue, discounts and incentives for compliancewith disclosure requirements.
Provision for trade receivables(as described in Note 2.1(v), 10 and 40(b) of the standalone financial statements)
Trade receivable balances represent significant Our procedures included the following:
portion of the total assets as at March 31, • Understood, evaluated and tested on a sample basis the design2022. Trade receivables include dues from stateand operating effectiveness of internal controls over trade
government corporations, distributors, retailers
receivables.
and contract manufacturing units. The Company• Performed audit procedures on existence of trade receivables,
records expected credit loss for unsecured trade
which included reading and comparing balance confirmations
receivables based on management estimates.
with books of account, testing subsequent receipts and testing
Timing of collection of dues from customers
sales transactions on a sample basis.
may differ from the contractual credit period.
• Evaluated the assumptions used by management to calculate
Significant judgment is involved in management
the expected credit loss for trade receivables through audit
estimates of the amounts unlikely to beprocedures which included analysis of ageing, past trend of bad
ultimately collected.
debts write-off.
• Assessed the disclosures in the standalone financial statements
for compliance with disclosure requirements.
Annual Report 2022 | 61Independent Auditor’s Report contd.

Key audit matters (continued)

How our audit addressed the key audit matter

Tax contingencies and provisions(as described in Note 2.1(v), 17 and 35(b) of the standalone financial statements)
The Company has received income tax demand Our procedures included the following:orders and notices relating to transfer pricing, • Obtained an understanding of the Company’s process withdisallowance of certain expenses, etc. and has
respect to completeness and recognition of tax contingencies
also received indirect tax demand orders andand provisions.
notices, which are under litigation.
• Read the confirmations, on sample basis, from the Company’s
The Company is contesting these demands
external legal counsel on tax litigations and evaluated theand has made provision where the outflow
independence, objectivity and competency of the Company’sof resources embodying economic benefits is
specialists involved.
considered to be probable.
• Read relevant tax laws and discussed with the management,
Significant judgement and estimates are required
to understand the underlying matters in the demand orders /to assess uncertain income tax/other indirect tax
notices and basis for management judgement and estimates.
positions and impact of these litigations on the• Included tax specialists in our team to perform an evaluation offinancial position, results of operations and cash
assumptions used by the management and relevant judgements
flows.
passed by the authorities, including the interpretation of therelevant tax laws.
• Assessed the related disclosures in the standalone financial
statements for compliance with disclosure requirements.
Other Information
The Company’s Board of Directors is responsible for the other information. The other information comprises theinformation included in the director’s report and the corporate governance report but does not include the standalone
financial statements and our auditor’s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information
and, in doing so, consider whether such other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report thatfact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the
preparation of these standalone financial statements that give a true and fair view of the financial position, financial
performance including other comprehensive income, cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified
under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This
responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act forsafeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent;
and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively
for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentationof the standalone financial statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
62 | United Breweries Limited

Independent Auditor’s Report contd.
In preparing the standalone financial statements, management is responsible for assessing the Company’s ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our
opinion on whether the Company has adequate internal financial controls with reference to financial statements inplace and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company tocease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial statements, including thedisclosures, and whether the standalone financial statements represent the underlying transactions and events in amanner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timingof the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of mostsignificance in the audit of the standalone financial statements for the financial year ended March 31, 2022 and are
Annual Report 2022 | 63

Independent Auditor’s Report contd.
therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to outweighthe public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government ofIndia in terms of sub-section (11) of section 143 of the Act, we give in the “Annexure 1” a statement on the mattersspecified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:(a) We have sought and obtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit;(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears
from our examination of those books;(c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss including the Standalone Statementof Other Comprehensive Income, the Standalone Cash Flow Statement and the Standalone Statement of
Changes in Equity dealt with by this report are in agreement with the books of account;(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified
under section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;(e) The matter described in paragraph (a) of Emphasis of Matter paragraph above, in our opinion, may have an
adverse effect on the functioning of the Company;(f) On the basis of the written representations received from the directors as on March 31, 2022 taken on recordby the Board of Directors, none of the directors is disqualified as on March 31, 2022 from being appointed as adirector in terms of section 164(2) of the Act;(g) With respect to the adequacy of the internal financial controls with reference to these standalone financial
statements and the operating effectiveness of such controls, refer to our separate report in “Annexure 2” to thisreport;(h) In our opinion, the managerial remuneration for the year ended March 31, 2022 has been paid / provided by theCompany to its directors in accordance with the provisions of section 197 read with Schedule V to the Act; and(i) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information andaccording to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial
statements – Refer Note 17, 35 and 42 to the standalone financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses;iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education andProtection Fund by the Company;
iv. (a) The management has represented that, to the best of its knowledge and belief, no funds have been
advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kindof funds) by the Company to or in any other person or entity, including foreign entity (“Intermediary”),
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether,
directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever byor on behalf of the Company (“Ultimate Beneficiary”) or provide any guarantee, security or the like onbehalf of the Ultimate Beneficiary;
64 | United Breweries Limited

Independent Auditor’s Report contd.
(b) The management has represented that, to the best of its knowledge and belief, no funds have been
received by the Company from any person or entity, including foreign entity (“Funding Party”), with theunderstanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or
indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalfof the Funding Party (“Ultimate Beneficiary”) or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiary; and(c) Based on such audit procedures that were considered reasonable and appropriate in the circumstances,nothing has come to our notice that has caused us to believe that the representations under sub-clause(a) and (b) contain any material misstatement.
v. The final dividend paid by the Company during the year pertaining to dividend declared for the previous year
is in accordance with section 123 of the Act to the extent it applies to payment of dividend.
As stated in Note 14 to the standalone financial statements, the Board of Directors of the Company haveproposed final dividend for the year which is subject to the approval of the members at the ensuing Annual
General Meeting. The amount of dividend declared is in accordance with section 123 of the Act to the extent
it applies to declaration of dividend.

For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Aditya Vikram BhauwalaPartnerMembership Number: 208382
Unique Document Identification Number (UDIN): 22208382AHUZLC2609
Bengaluru
April 26, 2022

Annual Report 2022 | 65Independent Auditor’s Report contd.
ANNEXURE ‘1’ REFERRED TO IN PARAGRAPH UNDER THE HEADING “REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS” OF OUR REPORT OF EVEN DATE
Re: United Breweries Limited (“the Company”)
In terms of the information and explanations sought by us and given by the Company and the books of account andrecords examined by us in the normal course of audit and to the best of our knowledge and belief, we state that:(i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details andsituation of property, plant and equipment.
		(B) The Company has maintained proper records showing full particulars of intangible assets.

(b) Property, plant and equipment have been physically verified by the management during the year and no material
discrepancies were identified on such verification.
(c) The title deeds of immovable properties (other than properties where the Company is the lessee, and the leaseagreements are duly executed in favour of the lessee) disclosed in Note 3 to the standalone financial statements
are held in the name of the Company, as per title deeds available with the Company and per confirmation
received from bank where applicable, except for immovable properties as below:
Description ofpropertyGrosscarrying
value(Rs. inLakhs)

Held inname of

Whetherpromoter,director or
their relative
or employee

Periodheld
since

Reason for not being
held in the name ofCompany

Freehold land
(9.04 acres at
Kutthambakkam,
Tamil Nadu)

80

Tamil Nadu
State Marketing
Corporation Ltd.

No

2010-11 Application for registrationof title deed is pending
with the state government
for approval

Freehold land (63.07
acres at Kothlapur,
Telangana)654

UB Nizam
Breweries Pvt.
Ltd.*

No

2010-11 Application for registrationof name change is pending
with the state government
for approval

Freehold land (0.533
acres at Nanjangud,
Karnataka)

22

United Breweries
LimitedNo

Freehold land
(0.006 acres at
Nelamangala,
Karnataka)

1

United Breweries
LimitedNo

2009-10 Title deeds are under
dispute and pending
resolution at the Courts as
2006-07 at March 31, 2022

Freehold land (0.002
acres at Mallepally,
Telangana)-^

United Breweries
LimitedNo

2010-11

Leasehold land
(25.71 acres atAurangabad,
Maharashtra)

1,189

Inertia Industries
Limited*No

Leasehold land
(18.02 acres atAurangabad,
Maharashtra)

66

Aurangabad
Breweries
Limited*No

2010-11 Application for
adjudication of stamp duty
for name change in thelease deed is pending with
2011-12 the concerned authorities^Rounded off to nearest Lakhs *Erstwhile entity which merged with the Company
66 | United Breweries Limited

Independent Auditor’s Report contd.
(d) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets during the year ended March 31, 2022.
(e) There are no proceedings initiated or are pending against the Company for holding any benami property under
the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
(ii) (a) The inventory has been physically verified by the management during the year, except for inventories lying withthird parties. In our opinion, the frequency of verification by the management is reasonable and the coverageand procedure for such verification is appropriate. Inventories lying with third parties have been confirmed bythem as at March 31, 2022. There were no discrepancies of 10% or more in aggregate that were noted for eachclass of inventory in respect of such physical verification and third party confirmations.
(b) As disclosed in Note 18 to the standalone financial statements, the Company has been sanctioned working
capital limits in excess of Rupees five crores in aggregate from banks during the year on the basis of security ofcurrent assets of the Company. The quarterly returns/statements filed by the Company with such banks are inagreement with the books of accounts of the Company, except in instances as below:(Rs. in Lakhs)
Quarter ended

Value as perbooks ofaccount

Value as perquarterly return/statement

Discrepancy*

June 30, 2021 - Inventories (Work-in-progress)

25,524

27,468(1,944)

December 31, 2021 - Inventories (Finished goods)

25,07024,388682*Updated for book closure entries recorded post submission of returns/statements to banks.
(iii) (a) During the year the Company has provided loans or advances in the nature of loans aggregating to Rs. 303
Lakhs to other parties (employees) and the balance outstanding as at March 31, 2022 in respect of above cases
is Rs. 258 Lakhs. Other than above, the Company has not provided any other loans, advances in the natureof loans, stood guarantee or provided security to companies, firms, Limited Liability Partnerships or any otherparties.
(b) The investments made during the year and loans or advances in the nature of loans provided to other parties(employees) are not prejudicial to the Company’s interest.
(c) The Company has granted interest-free loans or advances in the nature of loans during the year to other parties(employees) where the schedule of repayment of principal has been stipulated and the repayment or receipts
are regular.
(d) There are no amounts of loans or advances in the nature of loans granted to other parties (employees) which
are overdue for more than ninety days.
(e) There were no loans or advances in the nature of loans granted to other parties (employees) which was fallen
due during the year, that have been renewed or extended or fresh loans granted to settle the overdues ofexisting loans or advances given to the same parties.
(f) The Company has not granted any loans or advances in the nature of loans, either repayable on demand or
without specifying any terms or period of repayment to other parties (employees). Accordingly, the requirement
to report on clause 3(iii)(f) of the Order is not applicable to the Company.
(iv) Investments made during the year in respect of which provisions of section 186 of the Companies Act, 2013 (“theAct”) are applicable have been complied with by the Company. There are no loans, guarantees, and securities inrespect of which provisions of sections 185 and 186 of the Act are applicable.
(v) The Company has neither accepted any deposits from the public nor accepted any amounts which are deemed to bedeposits within the meaning of sections 73 to 76 of the Act and the rules made thereunder, to the extent applicable.
Accordingly, the requirement to report on clause 3(v) of the Order is not applicable to the Company.
Annual Report 2022 | 67

Independent Auditor’s Report contd.
(vi) The Central Government has not specified the maintenance of cost records under section 148(1) of the Act, for the
products/services of the Company.
(vii) (a) Undisputed statutory dues including provident fund, employees’ state insurance, income-tax, sales-tax, goods
and services tax, duty of customs, duty of excise, value added tax, cess and other statutory dues have generally
been regularly deposited with the appropriate authorities. According to the information and explanations given
to us and based on audit procedures performed by us, no undisputed amounts payable in respect of thesestatutory dues were outstanding, at the year end, for a period of more than six months from the date they
became payable.
(b) The dues of goods and services tax, provident fund, employees’ state insurance, income-tax, sales-tax, service
tax, duty of custom, duty of excise, value added tax, cess, and other statutory dues which have not been
deposited on account of any dispute, are as follows:
Name of thestatuteThe Income
Tax Act,
1961

Nature ofthe dues

Income tax /tax deductedat source

Amount(includinginterest andpenalty)(Rs. in Lakhs)
30,696

Payment Period to which
Forum where theunder
the amountdispute is pending
protestrelates(Rs. inLakhs)
1,567
FY 2002-03 to
Commissioner of
2006-07,
Income Tax (Appeals)
2008-09 to 201112 and 2015-16
to 2017-18

24,7947,679

FY 2001-02 to
2014-15

Income Tax Appellate
Tribunal

22,045664

FY 2003-04 to
2008-09,
2012-13 and2013-14High Court of Karnataka

3,599

458

FY 2001-02 to
2009-10High Court of Madras

69

46

FY 2009-10

High Court of Andhra
Pradesh and Telangana20—

FY 2007-08 to
2017-18

Commissioner ofIncome Tax (TDS)The Central
Goods andServices Tax
Act, 2017

Goods andServices Tax

133

133

2017-18 to
2018-19High Court of Telangana

The Finance
Act, 1994

Service tax

2,192

96

2009-10 to
2011-12

Commissioner ofCustoms and Central
Excise, Aurangabad401—

2008-09 to
2010-11

Customs, Excise andService Tax Appellate
Tribunal

6—

2014-15

The Commissioner
GST & Central Excise,
Bhubaneswar

68 | United Breweries Limited

Independent Auditor’s Report contd.

Name of thestatuteThe Central
Excise Act,
1944

Nature ofthe dues

Excise duty/
disallowanceof cenvat
creditAmount(includinginterest andpenalty)(Rs. in Lakhs)
82

Payment Period to which
Forum where theunder
the amountdispute is pending
protestrelates(Rs. inLakhs)—
2010-11 toCommissioner of
2015-16
Customs, Central Excise& Service tax Appellate
Tribunal

67

92005-06 to
2007-08,
2013-14 and2014-15

Customs, Excise andService Tax Appellate
Tribunal

49—

2014-15 and2015-16

Commissioner (Appeals),
Central Excise

322

2017-18

Assistant Commissionerof Central Excise,
Sadashivpet Division29—

2009-10 to
2016-17

Commissioner ofCustoms, Central Excise& Service tax (Appeals)

18—

2016-17

Assistant Commissioner,
Appeals, Jaipur

11

1

2015-16 and2017-18

Assistant Commissioner
of Goods and Services
Tax (Appeals)

1—2007-08

Commissioner (Appeals)
Central Excise,
Chandigarh

67

9

2005-06 to
2007-08,
2013-14 and2014-15

Customs, Excise andService Tax Appellate
Tribunal

49—

2014-15 and2015-16

Commissioner (Appeals),
Central Excise

322

2017-18

Assistant Commissionerof Central Excise,
Sadashivpet Division29—

2009-10 to
2016-17

Commissioner ofCustoms, Central Excise& Service tax (Appeals)

18—

2016-17

Assistant Commissioner,
Appeals, Jaipur

11

1

2015-16 and2017-18

Assistant Commissioner
of Goods and Services
Tax (Appeals)

1—2007-08

Commissioner (Appeals)
Central Excise,
Chandigarh

Annual Report 2022 | 69

Independent Auditor’s Report contd.
Name of thestatuteState Excise(various
statutes)

Sales Tax(various
statutes)

70 | United Breweries Limited

Nature ofthe dues

Excise duty,
Storage andprivilege fee,
etc.

Sales tax/
Value added
tax/ Entry tax

Amount(includinginterest andpenalty)(Rs. in Lakhs)
10,929Payment Period to which
Forum where theunder
the amountdispute is pending
protestrelates(Rs. inLakhs)—
2015-16
Deputy Commissioner(Excise), Bangalore Rural
District, Beerasandra

2,322

2,299

2013-14,2017-18,
2020-21 and2021-22High Court of Rajasthan

619

613

2019-20

Excise Commissioner,
Aligarh, Uttar Pradesh

350

50

2007-08 to
2011-12High Court of Bombay

218

150

1999-00 to
2005-06

High Court of Karnataka

56—

2015-16

Deputy Commissioner,
Guwahati

43

13

1988-89

High Court of Calcutta

38

38

2011-12 to
2015-16

High Court of Bombay
at Goa19

5

2008-09 to
2012-13High Court of Madhya
Pradesh3—

2000-01 to
2003-04

Excise Commissioner,
Karnataka

5,890

2,400 2001-02 to 2013- Rajasthan Tax Board,
14
Ajmer

2,979

535

2008-09, 201213, 2013-14 and2017-18

Joint Commissionerof Commercial Taxes(Appeal), Maharashtra

447—

2006-07 and2007-08

The West Bengal Sales
Tax Appellate andRevisional Board

326

5

2012-13

Tax Board, Ajmer

314—

2017-18

Joint Commissioner ofSales tax, West Bengal

184

172

2009-10, 201011 and 2015-16

Joint Commissionerof Commercial Taxes(Appeal), Patna

166

2

2014-15 and2015-16Additional Commissioner
of Sales Tax, West
Bengal129—

2016-17

Joint Commissioner ofSales Tax, West Bengal

63—

2002-03

Jt. Excise and Taxation
Commissioner (Appeals),
FaridabadIndependent Auditor’s Report contd.
Name of thestatuteNature ofthe dues

Amount(includinginterest andpenalty)(Rs. in Lakhs)
58

Payment Period to which
Forum where theunder
the amountdispute is pending
protestrelates(Rs. inLakhs)
58
2007-08 to
Additional Commissioner
2014-15of Commercial tax, Tamil
Nadu

28

—

2015-16Additional Commissioner
of Sales tax, Bihar

26

7

2011-12 and2013-14

Commissioner ofCommercial Taxes, Bihar

17

12011-12 to
2016-17

Deputy Commissioner
Appeals, Alwar

16

1

2016-17

Assistant Commercial
Tax Officer, Ponda

158

2003-04

Maharashtra Sales Tax
Tribunal

13

1

2008-09 and2011-12

Commercial Taxes
Tribunal, Bihar

7—

2013-14 and2014-15Additional
Commissioner ofCommercial taxes(Appeal), Berhampur(viii) The Company has not surrendered or disclosed any transaction, previously unrecorded in the books of account, inthe tax assessments under the Income Tax Act, 1961 as income during the year. Accordingly, the requirement toreport on clause 3(viii) of the Order is not applicable to the Company.
(ix)(a) The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest
thereon to any lender.
(b) The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.
(c) Term loans were applied for the purpose for which the loans were obtained.
(d) On an overall examination of the financial statements of the Company, no funds raised on short-term basis
have been used for long-term purposes by the Company.
(e) On an overall examination of the financial statements of the Company, the Company has not taken any funds
from any entity or person on account of or to meet the obligations of its subsidiary or associate. The Company
does not have any joint venture.
(f) The Company has not raised loans during the year on the pledge of securities held in its subsidiary or associatecompanies and the Company does not have any joint venture. Hence, the requirement to report on clause(ix) (f) of the Order is not applicable to the Company.

(x)(a) The Company has not raised any money during the year by way of initial public offer / further public offer(including debt instruments) hence, the requirement to report on clause 3(x)(a) of the Order is not applicable to
the Company.
(b) The Company has not made any preferential allotment or private placement of shares / fully or partially or
optionally convertible debentures during the year under audit and hence, the requirement to report on clause
3(x)(b) of the Order is not applicable to the Company.
Annual Report 2022 | 71

Independent Auditor’s Report contd.
(xi)(a) No fraud by the Company or no material fraud on the Company has been noticed or reported during the year.
(b) During the year, no report under sub-section (12) of section 143 of the Act has been filed by cost auditor /secretarial auditor or by us in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules,
2014 with the Central Government.
(c) We have taken into consideration the whistle blower complaints received by the Company during the year
while determining the nature, timing and extent of audit procedures.

(xii) The Company is not a nidhi company as per the provisions of the Act. Therefore, the requirement to report on
clause 3(xii)(a) to (c) of the Order is not applicable to the Company.
(xiii) Transactions with the related parties are in compliance with sections 177 and 188 of Act where applicable andthe details have been disclosed in the notes to the standalone financial statements, as required by the applicableaccounting standards.
(xiv) (a) The Company has an internal audit system commensurate with the size and nature of its business.
(b) The internal audit reports of the Company issued till the date of the audit report, for the year under audit havebeen considered by us.
(xv) The Company has not entered into any non-cash transactions with its directors or persons connected with its
directors and hence requirement to report on clause 3(xv) of the Order is not applicable to the Company.
(xvi) (a) The provisions of section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934) are not applicable to
the Company. Accordingly, the requirement to report on clause (xvi)(a) of the Order is not applicable to theCompany.
(b) The Company has not conducted any Non-Banking Financial or Housing Finance activities without obtaining avalid Certificate of Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India Act, 1934.
(c) The Company is not a Core Investment Company as defined in the regulations made by Reserve Bank of India.
Accordingly, the requirement to report on clause 3(xvi) of the Order is not applicable to the Company.
(d) There is no Core Investment Company as a part of the Group, hence, the requirement to report on clause 3(xvi)of the Order is not applicable to the Company.
(xvii) The Company has not incurred any cash losses in the current and immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year and accordingly requirement to report on
Clause 3(xviii) of the Order is not applicable to the Company.
(xix) On the basis of the financial ratios disclosed in Note 43 to the standalone financial statements, ageing and expected
dates of realization of financial assets and payment of financial liabilities, other information accompanying thestandalone financial statements, our knowledge of the Board of Directors and management plans and based on
our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us
to believe that any material uncertainty exists as on the date of the audit report that Company is not capable ofmeeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year
from the balance sheet date.
We, however, state that this is not an assurance as to the future viability of the Company. We further state that
our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any
assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged
by the Company as and when they fall due.
(xx) (a) In respect of other than ongoing projects, there are no unspent amounts that are required to be transferred
to a fund specified in Schedule VII of the Act, for the year ended March 31, 2022 in compliance with second
proviso to sub section 5 of section 135 of the Act. This matter has been disclosed in Note 29 to the standalone
financial statements.
72 | United Breweries Limited

Independent Auditor’s Report contd.
(b) The Company has not transferred the amount remaining unspent in respect of ongoing projects for the year
ended March 31, 2022 to a Special Account, till the date of the report. However, the period for such transfer
i.e., thirty days from the end of the financial year as permitted under sub section (6) of section 135 of the Act,has not elapsed till the date of our report. This matter has been disclosed in Note 29 to the standalone financial
statements.
For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Aditya Vikram BhauwalaPartnerMembership Number: 208382
Unique Document Identification Number (UDIN): 22208382AHUZLC2609
Bengaluru
April 26, 2022

Annual Report 2022 | 73

Independent Auditor’s Report contd.
ANNEXURE ‘2’ REFERRED TO IN PARAGRAPH UNDER THE HEADING “REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS” OF OUR REPORT OF EVEN DATE
Report on the Internal Financial Controls under clause (i) of sub-section 3 of section 143 of the Companies
Act, 2013 (“the Act”)
We have audited the internal financial controls with reference to standalone financial statements of United Breweries
Limited (“the Company”) as of March 31, 2022, in conjunction with our audit of the standalone financial statements of
the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal financial controls based on the internalfinancial controls over financial reporting criteria established by the Company considering the essential components
of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the“Guidance Note”) issued by the Institute of Chartered Accountants of India (the “ICAI”). These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that were operating effectively
for ensuring the orderly and efficient conduct of its business, including adherence to the Company’s policies, thesafeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of theaccounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls with reference to these standalone
financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and theStandards on Auditing as specified under section 143(10) of the Act, to the extent applicable to an audit of internalfinancial controls, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial
controls with reference to these standalone financial statements was established and maintained and if such controls
operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
with reference to these standalone financial statements and their operating effectiveness. Our audit of internal financial
controls with reference to standalone financial statements included obtaining an understanding of internal financial
controls with reference to these standalone financial statements, assessing the risk that a material weakness exists,
and testing and evaluating the design and operating effectiveness of internal controls based on the assessed risk. The
procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatementof the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion on the Company’s internal financial controls with reference to these standalone financial statements.
Meaning of Internal Financial Controls with Reference to Standalone Financial Statements
A company’s internal financial controls with reference to standalone financial statements is a process designed toprovide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles.
A company’s internal financial controls with reference to standalone financial statements includes those policies andprocedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions arerecorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in accordance with authorisationsof management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely
74 | United Breweries Limited

Independent Auditor’s Report contd.
detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on
the financial statements.
Inherent Limitations of Internal Financial Controls with Reference to Standalone Financial Statements
Because of the inherent limitations of internal financial controls with reference to standalone financial statements,
including the possibility of collusion or improper management override of controls, material misstatements due toerror or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls withreference to standalone financial statements to future periods are subject to the risk that the internal financial controls
with reference to standalone financial statements may become inadequate because of changes in conditions, or thatthe degree of compliance with the policies or procedures may deteriorate.
OpinionIn our opinion, the Company has, in all material respects, adequate internal financial controls with reference to thesestandalone financial statements and such internal financial controls with reference to these standalone financial
statements were operating effectively as at March 31, 2022, based on the internal controls over financial reporting
criteria established by the Company considering the essential components of internal control stated in the GuidanceNote issued by the ICAI.
For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Aditya Vikram BhauwalaPartnerMembership Number: 208382
Unique Document Identification Number (UDIN): 22208382AHUZLC2609
Bengaluru
April 26, 2022

Annual Report 2022 | 75

Standalone Balance Sheet as at March 31, 2022
(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Notes

As at
March 31, 2022

As at
March 31, 2021

3
3(c)
4

1,88,838
10,989
1,638

1,92,106
12,799
2,098

5
6
7
7
8

1,600
4,417
20,195
3,843
25,012
2,56,532

1,371
4,260
20,396
3,492
15,792
2,52,314

ASSETS
Non-current assets
Property, plant and equipment
Capital work-in-progress
Intangible assets
Financial assets(i) Investments(ii) Other financial assets
Income tax assets (net)Deferred tax asset (net)Other non-current assets
Current assets
Inventories
Financial assets(i) Trade receivables(ii) Cash and cash equivalents(iii) Bank balances other than (ii) above(iv) Other financial assets
Other current assets

993,441

1,13,529

10
11
12
6
8

Assets held for sale3(d)1,25,450
86,2384,536
115
27,271
3,37,051
488
3,37,539
5,94,071

1,39,482
40,9405,865
8431,751
3,31,651
488
3,32,139
5,84,453

Total assets
EQUITY AND LIABILITIES
EquityEquity share capital
Other equity

13
14

Liabilities
Non-current liabilities
Financial liabilities(i) Borrowings(ia) Lease liabilities(ii) Other financial liabilities
Provisions

2,644
3,90,557
3,93,201

2,644
3,55,318
3,57,962

15
33
16
17

—
606
2,497
441
3,544

10,750
774
1,109
160
12,793

18
33
19

—
368

14,267406

9,144
54,62555,71967,256
10,214
1,97,326
5,94,071

6,332
56,57252,31574,706
9,100
2,13,698
5,84,453

Current liabilities
Financial liabilities(i) Borrowings(ia) Lease liabilities(ii) Trade payables- Total outstanding dues of micro and small enterprises- Total outstanding dues of creditors other than micro and small enterprises(iii) Other financial liabilities
Other current liabilities
Provisions

16
20
17

Total equity and liabilities
Summary of significant accounting policies

2.1

The accompanying notes are an integral part of the standalone financial statements.
As per our report of even date
For and on behalf of the Board of Directors ofUnited Breweries Limited
For S.R. Batliboi & Associates LLP
Rishi Pardal
Berend Cornelis Roelof Odink
Chartered Accountants
Managing Director
Director and Chief Financial Officer
ICAI Firm Registration Number: 101049W/E300004
DIN: 02470061
DIN: 09138421
per Aditya Vikram BhauwalaPartnerMembership Number: 208382

Madhav Bhatkuly
Director
DIN: 00796367

Place: Bengaluru
Date: April 26, 2022

Place: Bengaluru
Date: April 26, 2022

76 | United Breweries Limited

Govind Iyengar
Senior Vice-President Legal andCompany Secretary

Standalone Statement of Profit and Loss for the year ended March 31, 2022
(All amounts in Indian Rupees Lakhs, except as otherwise stated)
Notes
INCOME
Revenue from contracts with customers (including excise duty)
Other income
Total Income

March 31,2022

March 31,
2021

21
22

13,11,741
2,966
13,14,707

10,18,340
5,020
10,23,360

23
24
25

2,71,394
19,582
2,289

1,97,256
7,371
(995)

26
27
28
29

7,28,548
51,936
1,478
21,691
1,68,500

5,94,267
48,2292,267
23,185
1,34,262

12,65,418

10,05,842

49,28917,518—(722)

49,28916,796

13,159

6,733

(371)

(1,222)

Total tax expense

12,788

5,511

Profit for the year

36,501

11,28580(20)
60
36,561

1,991
(501)
1,490
12,775

13.81
13.81

4.27
4.27

EXPENSES
Cost of materials consumed
Purchase of stock-in-trade
Changes in inventories of finished goods, work-in-progress andstock-in-trade
Excise duty on sale of goods
Employee benefits expense
Finance costs
Depreciation and amortisation expense
Other expenses
Total
Profit before exceptional items and tax
Exceptional items

30

Profit before tax
Tax expense

31

Current tax
Deferred tax (credit)

Other comprehensive income (OCI)
Items that will not be reclassified to the statement of profit and loss
in subsequent periods
Re-measurement gains on defined benefit plans
Income tax effect on above
Total comprehensive income for the year (net of tax)
Earnings per share in Rs.
[nominal value per share Re.1 (Previous year: Re.1)]
Basic
Diluted32

Summary of significant accounting policies

2.1

The accompanying notes are an integral part of the standalone financial statements.
As per our report of even date
For and on behalf of the Board of Directors ofUnited Breweries Limited
For S.R. Batliboi & Associates LLP
Rishi Pardal
Berend Cornelis Roelof Odink
Chartered Accountants
Managing Director
Director and Chief Financial Officer
ICAI Firm Registration Number: 101049W/E300004
DIN: 02470061
DIN: 09138421
per Aditya Vikram BhauwalaPartnerMembership Number: 208382

Madhav Bhatkuly
Director
DIN: 00796367

Place: Bengaluru
Date: April 26, 2022

Place: Bengaluru
Date: April 26, 2022

Govind Iyengar
Senior Vice-President Legal andCompany Secretary

Annual Report 2022 | 77

Standalone Cash Flow Statement for the year ended March 31, 2022
(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Notes
A Cash flow from operating activities
Profit before tax
Adjustments for:
Depreciation and amortisation expense
Bad debts/advances written off
Loss allowance for trade receivables
Provision for doubtful advances/deposits
Unrealised foreign exchange differences (net)Net (gain) on disposal of property, plant and equipment
Profit on sale of investments
Liabilities no longer required written back
Loss allowance for trade receivables, no longer required written backImpairment loss on property, plant and equipment(included under exceptional items)
Impairment loss on investment in subsidiary company(included under exceptional items)(Gain) on sale of property, plant and equipment(included under exceptional items)
Interest expense
Interest income
Dividend income
Operating profits before working capital changes
Movement in working capital:(Increase)/decrease in Inventories(Increase)/decrease in Trade receivables(Increase)/decrease in Other financial assets(Increase)/decrease in Other assets
Increase/(decrease) in Trade payables
Increase/(decrease) in Other financial liabilities
Increase/(decrease) in Other current liabilities and provisions
Cash generated from operations
Direct taxes paid (net of refund)Net cash flow from operating activities (A)B

Cash flow from investing activities
Purchase of property, plant and equipment including capital
work-in-progress, intangible assets and capital advances
Proceeds from sale of property, plant and equipment
Investments in equity and debt securities
Proceeds from sale of investments
Investments in bank deposits (having original maturity of more than
three months)
Redemption/maturity of bank deposits (having original maturity ofmore than three months)
Interest received
Dividend received from subsidiary company
Net cash (used in) investing activities (B)78 | United Breweries Limited

March 31,2022

March 31,2021

49,28916,796

21,691
301
1,720
620
48
(11)
(54)
(479)
(217)
—

23,185
28
479
966
(33)
(4)
—
(205)
(3,380)
4,446

—

1,776

—

(5,500)1,464(1,499)(23)
72,850

2,244
(434)
(23)
40,341

20,08812,188(77)(4,510)1,689
6,612(5,975)
1,02,865(12,958)
89,907(4,300)(1,614)
862
9,247
7,540
4,782
13,24370,101(8,184)
61,917(17,333)(19,986)

79
(300)
125
(150)

5,091
(579)
—
(47)

122

9

1,468
23

430
23

(15,966)(15,059)

Cash Flow Statement contd.
(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Notes
C

Cash flow from financing activities
Proceeds from long-term borrowings
Repayment of long-term borrowings
Payment of principal portion of lease liabilities(Repayment of)/Proceeds from short-term borrowings (net)
Interest paid
Dividend paid to equity shareholders*
Net cash flow (used in) financing activities (C)*Includes amount transferred to separate bank accounts earmarked for
unpaid dividend

Net increase in cash and cash equivalents (A+B+C)
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Components of cash and cash equivalents
Cash on handBank balances on current accounts
Bank balances on deposit accounts with original maturity of three months
or less
Total cash and cash equivalents

March 31,2021—
(25,000)(492)(17)(1,812)(1,322)25,000(7,543)(853)(15,998)(2,813)(6,610)(28,643)(8,817)45,29840,94086,23838,041
2,899
40,9402
14,736
71,5009
8,431
32,50086,23840,94025,000—(25,000)—

7,543
25,000(7,543)25,000

1,180
(492)
286
974

1,659
(853)
374
1,180

17
(17)
—

16,015(15,998)
17

11

The summary of cash flow and non-cash flow changes in respect offinancial liabilities is as below:
Long-term borrowings (including current maturities)
At beginning of the year
Proceeds from borrowings
Repayment of borrowings
At end of the year
Lease liabilities
At beginning of the year
Cash outflows - Payment of principal portion
Non-cash changes - Addition of right-of-use assets
At end of the year
Short-term borrowings
At beginning of the year
Cash outflows - Repayment
At end of the year
Summary of significant accounting policies

March 31,
2022

2.1

As per our report of even date

For and on behalf of the Board of Directors ofUnited Breweries Limited

For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004

Rishi Pardal
Managing Director
DIN: 02470061

Berend Cornelis Roelof Odink
Director and Chief Financial Officer
DIN: 09138421

per Aditya Vikram BhauwalaPartnerMembership Number: 208382

Madhav Bhatkuly
Director
DIN: 00796367

Govind Iyengar
Senior Vice-President Legal andCompany Secretary

Place: Bengaluru
Date: April 26, 2022

Place: Bengaluru
Date: April 26, 2022
Annual Report 2022 | 79

Standalone Statement of Changes in Equity for the year ended March 31, 2022
(All amounts in Indian Rupees Lakhs, except as otherwise stated)a) Equity share capital
Equity shares of Re. 1 each issued, subscribed and fully paid
As at March 31, 2022
As at March 31, 2021
Numbers
Rs. in Lakhs
Numbers
Rs. in Lakhs
26,44,05,149
2,644 26,44,05,149
2,644
—
—
—
—
26,44,05,149
2,644 26,44,05,149
2,644

Balance at the beginning of the year
Changes during the year
Balance at the end of the yearb) Other equity

Balance as at April 1, 2020
Profit for the year
Other comprehensive income
Transfer from retained earnings
Cash dividends (Refer Note 14)
Balance as at March 31, 2021

Reserves and surplus
CapitalSecurities
Generalredemption
premium
reserve
reserve
Note 14
Note 14
Note 14
24,69062,93841,201
—
—
—
—
—
—
—
—
1,129
—
—
—
24,69062,93842,330

Balance as at April 1, 2021
Profit for the year
Other comprehensive income
Cash dividends (Refer Note 14)
Balance as at March 31, 2022

24,690———24,69062,938———62,93842,330———42,330Total
Retainedearnings
Note 14
2,20,324
11,285
1,490(1,129)(6,610)2,25,360

3,49,153
11,285
1,490—(6,610)3,55,318

2,25,360
36,50160(1,322)
2,60,599

3,55,318
36,50160(1,322)
3,90,557

Capital redemption reserve - The said reserve was created by transfer from general reserve on redemption ofpreference shares. This reserve account can be applied in paying up unissued shares to be issued to members of theCompany as fully paid bonus shares in accordance with the provisions of the Companies Act, 2013.
Securities premium - The reserve is used to record the premium on issue of shares. The reserve can be utilised only forlimited purposes such as issuance of bonus shares etc., in accordance with the provisions of the Companies Act, 2013.
General reserve - Under the erstwhile Companies Act 1956, general reserve was created through an annual transferof net income at a specified percentage in accordance with applicable regulations. Consequent to introduction ofCompanies Act, 2013, the requirement to mandatorily transfer a specified percentage of the net profit to generalreserve has been withdrawn. The Company has made voluntarily transfer of net income to general reserve. The amounttransferred to the general reserve can be utilised only in accordance with the specific requirements of the Companies
Act, 2013.
There are no changes in equity share capital and other equity due to accounting policy changes or prior period errors.
As per our report of even date

For and on behalf of the Board of Directors ofUnited Breweries Limited

For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004

Rishi Pardal
Managing Director
DIN: 02470061

Berend Cornelis Roelof Odink
Director and Chief Financial Officer
DIN: 09138421

per Aditya Vikram BhauwalaPartnerMembership Number: 208382

Madhav Bhatkuly
Director
DIN: 00796367

Govind Iyengar
Senior Vice-President Legal andCompany Secretary

Place: Bengaluru
Date: April 26, 2022

Place: Bengaluru
Date: April 26, 2022

80 | United Breweries Limited

Notes to standalone financial statements for the year ended March 31, 2022
(All amounts in Indian Rupees Lakhs, except as otherwise stated)
1.

Corporate information
United Breweries Limited (“UBL” or “the Company”) is a public limited company domiciled in India andincorporated under the provisions of the Indian Companies Act. Its shares are listed on Bombay Stock Exchange(BSE) and National Stock Exchange (NSE). The registered office of the Company is located at UB Tower, UB City, 24,
Vittal Mallya Road, Bengaluru 560001, Karnataka, India. The Company is primarily engaged in the manufacture,purchase and sale of beer and non-alcoholic beverages. The Company has manufacturing facilities in India. The
standalone financial statements were approved by the Board of Directors of the Company on April 26, 2022.

2.

Basis of preparation of standalone financial statements
The standalone financial statements of the Company have been prepared in accordance with Indian AccountingStandards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended fromtime to time) and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS
compliant Schedule III), as applicable. The standalone financial statements have been prepared on a historical costbasis, except for assets and liabilities which are required to be measured at fair value. The standalone financial
statements are presented in Indian Rupees (“INR”) and all values are rounded to the nearest lakhs (INR 00,000),
except when otherwise indicated.
The significant accounting policies adopted for preparation and presentation of financial statements have been
applied consistently.

2.1 Summary of significant accounting policies(a) Current versus non-current classification
The Company presents assets and liabilities in the balance sheet based on current/non-current classification.
An asset is treated as current when it is:• expected to be realized or intended to be sold or consumed in normal operating cycle;• held primarily for the purpose of trading;• expected to be realized within twelve months after the reporting period; or• cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:• expected to be settled in normal operating cycle;• held primarily for the purpose of trading;• due to be settled within twelve months after the reporting period; or• there is no unconditional right to defer the settlement of the liability for at least twelve months after thereporting period.
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities. The operating cycle is thetime between the acquisition of assets for processing and their realisation in cash and cash equivalents. The
Company has identified twelve months as its operating cycle.
(b) Foreign currencies
The standalone financial statements are presented in INR, which is also the Company’s functional currency.
Transactions in foreign currencies are initially recorded by the Company at their respective functional currency
spot rates at the date, the transaction first qualifies for recognition. However, for practical reasons, theCompany uses monthly average rate, if the average approximates the actual rate at the date of the transaction.

Annual Report 2022 | 81

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot
rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary
items are recognised in the statement of profit and loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using theexchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value is determined. The gain orloss arising on translation of non-monetary items measured at fair value is treated in line with the recognitionof the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value
gain or loss is recognized in other comprehensive income (“OCI”) or the statement of profit and loss are also
recognised in OCI or the statement of profit and loss, respectively).
In determining the spot exchange rate for initial recognition of the related asset, expense or income (or partof it) on derecognition of a non-monetary asset or non-monetary liability relating to advance consideration,
the date of the transaction is the date on which the Company initially recognises the non-monetary asset or
non-monetary liability arising from the advance consideration. If there are multiple payments or receipts inadvance, the Company determines the transaction date for each payment or receipt of advance consideration.
(c) Fair value measurement
The Company measures financial instruments at fair value at each balance sheet date. Fair value is the pricethat would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement is based on the presumption that thetransaction to sell the asset or transfer the liability takes place either in the principal market for the asset or
liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. The
principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participantthat would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data is available to measure fair value, maximising the use of relevant observable inputs and minimising
the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in thestandalone financial statements are categorised within the fair value hierarchy, described as follows, based on
the lowest level input that is significant to the fair value measurement as a whole:• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable
For assets and liabilities that are recognised in the standalone financial statements on a recurring basis,
the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorisation (based on the lowest level input that is significant to the fair value measurement as a whole)at the end of each reporting period.
The Company’s management determines the policies and procedures for both recurring fair value measurement,such as derivative instruments and unquoted financial assets measured at fair value, and for non-recurring
82 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)measurement, such as assets held for distribution in discontinued operations. External valuers are involved,
wherever considered necessary.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on thebasis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy,
as explained above. This note summarizes accounting policy for fair value and the other fair value related
disclosures are given in the relevant notes.
(d) Revenue recognition
Revenue from contracts with customers is recognised when control of the goods or services are transferredto the customer at an amount that reflects the consideration to which the Company expects to be entitled in
exchange for those goods or services.
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company andthe revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured
at the fair value of the consideration received or receivable, taking into account contractually defined terms of
payment and excluding taxes or duties collected on behalf of the government. The Company has concluded
that it is the principal in all of its revenue arrangements, except in certain contract manufacturing arrangements
as explained below, since it is the primary obligor in all the revenue arrangements as it has pricing latitude andis also exposed to inventory and credit risks.
Based on the Educational Material on Ind AS 115 issued by the Institute of Chartered Accountants of India(“ICAI”), the recovery of excise duty flows to the Company on its own account and hence is a liability of the
manufacturer which forms part of the cost of production, irrespective of whether the goods are sold or not.
Since the recovery of excise duty flows to the Company on its own account, revenue includes excise duty.
However, sales tax/value added tax (VAT), goods and services tax are not received by the Company on its own
account and are taxes collected on value added to the commodity by the seller on behalf of the government.
Accordingly, these are excluded from revenue.
The following specific recognition criteria must also be met before revenue is recognized:
Sale of products
Revenue from the sale of products is recognised at a point in time when control of the products is transferredto the customer and there is no unfulfilled obligation that could affect the customer’s acceptance of the
products. Revenue from the sale of products is measured at the fair value of the consideration received or
receivable, net of returns and allowances, discounts and incentives.
If the consideration in a contract includes a variable amount (discounts and incentives), the Company estimates
the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer
and such discounts and incentives are estimated at contract inception.
Generally, the Company receives short-term advances from its customers. Using the practical expedient in Ind
AS 115, the Company does not adjust the promised amount of consideration for the effects of a significant
financing component if it expects, at contract inception, that the period between the transfer of the promised
good or service to the customer and when the customer pays for that good or service will be one year or less.
Sale of services
Royalty income is recognized, on an accrual basis, at agreed rate on sale of branded products by the licensee,
in accordance with the terms of the agreement. The Company provides license to the parties to manufacture,sell and distribute its goods in exchange of royalty fee which is based on the sales made to the end customer.
The Company recognises revenue from sales-based royalty promised in exchange for a license of intellectual
property only when (or as) the later of the events occurs - (a) the sale occurs; and (b) the performanceobligation for sales has been satisfied (or partially satisfied).
Annual Report 2022 | 83

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Income from contract manufacturing units
The Company evaluates its revenue arrangements with Contract Manufacturing Units (“CMUs”) to identify
agency relationship.
The Company is regarded as a principal if it controls promised good or service before it transfers the good orservice to customer. In case if the Company is a principal in a contract, it may satisfy a performance obligation
by itself or may engage CMU to satisfy some or all of a performance obligation on its behalf. In this case,
the Company recognises revenue at the gross amount of consideration to which it expects to be entitled in
exchange for those goods or services transferred. Revenue is recognized on sale of products to customers andthe related cost of sales is also recognized by the Company, as and when incurred.
The Company is regarded as an agent if its performance obligation is to arrange for the provision of goods
or services by CMU. In this case CMU is primarily responsible for fulfilling the contract and the Company
does not have discretion in establishing prices and is also not exposed to inventory and credit risks for theamount receivable from the customer. In this case, the Company recognises revenue at the net amount ofconsideration the Company is eligible under the contract. This net consideration is recognized as income, as
per the terms of respective agreement and on the basis of information provided by respective CMU. Suchincome is included under the head “other operating revenues” in the statement of profit and loss.
Interest
Interest income is recognized using the effective interest rate method. The effective interest rate is the ratethat discounts estimated future cash receipts through the expected life of the financial asset to the grosscarrying amount of the financial asset. Interest income is included under the head “other income” in thestatement of profit and loss.
Dividends
Dividend income is recognized when the Company’s right to receive the payment is established, which is
generally when the shareholders approve the dividend.
Contract balances
Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If
the Company performs by transferring goods or services to a customer before the customer pays consideration
or before payment is due, a contract asset is recognised for the earned consideration that is conditional.
Trade receivables
A trade receivable is recognised if an amount of consideration is unconditional (i.e., only the passage of timeis required before payment of the consideration is due). Refer to accounting policies of financial assets.
Contract liabilities
A contract liability is recognised if a payment is received or a payment is due (whichever is earlier) from thecustomer before the Company transfers the related goods or services. Contract liabilities are recognised
as revenue when the Company performs under the contract (i.e., transfers control of the related goods orservices to the customer).
(e) Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received, andall attached conditions will be complied with. When the grant relates to an expense item, it is recognised asincome on a systematic basis over the periods that the related costs, for which it is intended to compensate,
are expensed. When the grant relates to an asset, it is recognised as income in equal amounts over the
expected useful life of the related asset.
84 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)(f) Taxes
Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted
or substantively enacted, at the reporting date.
Current income tax relating to items recognised outside the statement of profit and loss is recognised outside
the statement of profit and loss (either in OCI or in equity in correlation to the underlying transaction).
Management periodically evaluates whether it is probable that the relevant taxation authority would accept
an uncertain tax treatment that the Company has used or plan to use in its income tax filings, including
with respect to situations in which applicable tax regulations are subject to interpretation and establishes
provisions, where appropriate.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax
liabilities and assets are recognized for all taxable temporary differences and deductible temporary differences,
except:• when the deferred tax liability or asset arises from the initial recognition of goodwill or an asset or liability
in a transaction that is not a business combination and, at the time of the transaction, affects neither theaccounting profit nor taxable profit or loss; and• in respect of taxable temporary differences and deductible temporary differences associated withinvestments in subsidiary and associate, when the timing of the reversal of the temporary differences canbe controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets are recognised to the extent it is probable that taxable profit will be available against which
the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses canbe utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to theextent that it is no longer probable that sufficient taxable profit will be available to allow all or part of thedeferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date andare recognised to the extent it has become probable that future taxable profits will allow the deferred tax
asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date. Deferred tax relating to items recognised outside the statementof profit and loss is recognised outside the statement of profit and loss (either in OCI or in equity in correlation
to the underlying transaction).
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.
Sales/value added tax/goods and services tax paid on acquisition of assets or on incurring expenses
When the tax incurred on purchase of assets or services is not recoverable from the taxation authority, the tax
paid is recognised as part of the cost of acquisition of the asset or as part of the expense item, as applicable.
Otherwise, expenses and assets are recognized net of the amount of sales/value added taxes/goods andservices tax paid. The net amount of tax recoverable from, or payable to, the taxation authority is included aspart of receivables or payables in the balance sheet.
Annual Report 2022 | 85

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)(g) Non-current assets held for sale
The Company classifies non-current assets as held for sale if their carrying amounts will be recovered principally
through a sale rather than through continuing use. Non-current assets classified as held for sale are measured
at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the incremental costs
directly attributable to the disposal of an asset, excluding finance costs and income tax expense.
The criteria for held for sale classification is regarded as met only when the sale is highly probable, and theasset is available for immediate sale in its present condition. Actions required to complete the sale should
indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will bewithdrawn. Management must be committed to the sale and the sale expected within one year from the dateof classification.
Property, plant and equipment and intangibles are not depreciated or amortised once classified as held for sale.
Assets and liabilities classified as held for sale are presented separately from other items in the balance sheet.
(h) Property, plant and equipment
Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment
losses, if any. Capital work-in-progress is stated at cost. Such cost includes the cost of replacing part of the plantand equipment and borrowing costs for long-term construction projects, if the recognition criteria is met.
When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates
them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost isrecognised in the carrying amount of the plant and equipment as a replacement, if the recognition criteria issatisfied. All other repair and maintenance costs are recognised in the statement of profit and loss as incurred.
Depreciation is calculated on a straight-line basis over the useful lives of the assets, estimated by the
management, as follows:
Factory buildings
Other buildings (RCC)
Other buildings (Non-RCC)
Roads (RCC)
Roads (Non-RCC), Fences, etc
Plant and equipment
Electrical installations
Office equipments
Computers
Servers and networks
Furniture and fixtures
Laboratory equipments
VehiclesUseful life (years)
30
60
30
10
5
15*
10
5
3
6
10
10
8 and 10

*In respect of assets (excluding pipelines) used at any time during the year on double shift or triple shift basis,the depreciation for that period is increased by 50% or 100%, respectively.
For the purpose of depreciation calculation, residual value is determined as 5% of the original cost for all
the assets, as estimated by the management basis independent assessment by an expert. The Company,
based on technical assessment made by an expert and management estimate, depreciates following assets,
not included above, over the estimated useful lives which are different from the useful life prescribed in
Schedule II to the Companies Act, 2013. The management believes that these estimated useful lives reflect
fair approximation of the period over which the assets are likely to be used.
86 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)(i) Assets acquired on amalgamation, etc. (where original dates of acquisition are not readily available), aredepreciated over the remaining useful life of the assets, as certified by an expert.
(ii) Beer dispensers and coolers (included under furniture and fixtures) and Kegs (included under plant andequipment) are depreciated on a straight-line basis over a period of 3 years being useful life, as estimatedby the management considering nature of these assets.
An item of property, plant and equipment and any significant part initially recognised is derecognised upon
disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on
de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) is included in the statement of profit and loss when the asset is derecognised.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed
at each financial year end and adjusted prospectively, if appropriate.
(i)Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets
acquired in a business combination is their fair value at the date of acquisition. Following initial recognition,
intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses.
Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related
expenditure is reflected in the statement of profit and loss in the period in which the expenditure is incurred.
The useful lives of intangible assets are assessed as finite.
Intangible assets are amortized over the useful economic life and assessed for impairment, whenever there isan indication that the intangible asset may be impaired. The amortisation period and the amortisation method
for an intangible asset are reviewed at least at the end of each reporting period. Changes in the expected
useful life or the expected pattern of consumption of future economic benefits embodied in the asset areconsidered to modify the amortisation period or method, as appropriate, and are treated as changes inaccounting estimates. The amortisation expense on intangible assets is recognized in the statement of profit
and loss, unless such expenditure forms part of carrying value of another asset.
An intangible asset is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no
future economic benefits are expected from its use or disposal. Gains or losses arising from de-recognitionof an intangible asset are measured as the difference between the net disposal proceeds and the carrying
amount of the asset and are recognised in the statement of profit and loss when the asset is derecognised.
Licenses and rights are amortised on a straight-line basis over useful life of 10 years, as estimated by the
management.

(j)Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of
the asset. All other borrowing costs are expensed in the period in which they occur.
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowingof funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to theborrowing costs.

(k) Leases
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Annual Report 2022 | 87

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

The Company as a lessee
The Company applies a single recognition and measurement approach for all leases, except for short-termleases and leases of low-value assets. The Company recognises lease liabilities to make lease payments andright-of-use assets representing the right to use the underlying assets.
Right-of-use assets
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the datethe underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost ofright-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease
payments made at or before the commencement date less any lease incentives received.
Right-of-use assets (disclosed under property, plant and equipment) are depreciated on a straight-line basis
over the shorter of the lease term and the estimated useful lives of the assets, as follows:
Leasehold land
Buildings
Plant and equipment
Furniture and fixtures
VehiclesUseful life (years)
90-99
2-9
2
3
4 and 5

If ownership of the leased asset is transferred to the Company at the end of the lease term or the cost reflects
the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.
The right-of-use assets are also subject to impairment. Refer to the accounting policy on impairment of
non-financial assets.
Lease liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present
value of lease payments to be made over the lease term. The lease payments include fixed payments (including
in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on
an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments
also include the exercise price of a purchase option reasonably certain to be exercised by the Company andpayments of penalties for terminating the lease, if the lease term reflects exercising of the option to terminate.
Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they
are incurred to produce inventories) in the period in which the event or condition that triggers the payment
occurs.
In calculating the present value of lease payments, the Company uses its incremental borrowing rate at
the lease commencement date because the interest rate implicit in the lease is not readily determinable.
The Company has applied practical expedient of using a single discount rate to a portfolio of leases withsimilar characteristics. After the commencement date, the amount of lease liabilities is increased to reflect
the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of leaseliabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments(e.g., changes to future payments resulting from a change in an index or rate used to determine such lease
payments) or a change in the assessment of an option to purchase the underlying asset. The Company’s leaseliabilities are included under Interest-bearing borrowings.
Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases
that have a lease term of 12 months or less from the commencement date and do not contain a purchase88 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

option). It also applies the lease of low-value assets recognition exemption to leases that are considered to be
low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on
a straight-line basis over the lease term.
The Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownershipof an asset are classified as operating leases. Rental income is accounted for on a straight-line basis overthe lease term. Initial direct costs incurred in negotiating and arranging an operating lease are added to thecarrying amount of the leased asset and recognised over the lease term on the same basis as rental income.
Contingent rents are recognised as revenue in the period in which they are earned.
(l)Inventories
Inventories are valued at the lower of cost and net realisable value. Costs incurred in bringing each product toits present location and condition are accounted for as follows:
Raw materials, Packing materials and bottles, Stores and spares: Cost includes cost of purchase and othercosts incurred in bringing the inventories to their present location and condition.
Finished goods and Work-in-progress: Cost includes cost of direct materials and labour and a proportion of
manufacturing overheads based on the normal operating capacity but excludes borrowing costs. Excise duty,
as applicable, is included in the valuation.
Stock-in-trade: Cost includes cost of purchase and other costs incurred in bringing the inventories to theirpresent location and condition.
Cost is determined on a weighted average basis. Net realizable value is the estimated selling price in theordinary course of business, less estimated costs of completion and the estimated costs necessary to makethe sale.

(m) Impairment of non-financial assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired.
If any indication exists, or when annual impairment testing for an asset is required, the Company estimates
the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating
unit’s (“CGU”) fair value less costs of disposal and its value in use. Recoverable amount is determined for
an individual asset, unless the asset does not generate cash inflows that are largely independent of thosefrom other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable
amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to
the asset. In determining fair value less costs of disposal, recent market transactions are taken into account.
If no such transactions can be identified, an appropriate valuation model is used. These calculations arecorroborated by valuation multiples, quoted share prices for publicly traded companies or other available fairvalue indicators.
The Company bases its impairment calculation on detailed budgets and forecast calculations, which areprepared separately for each of the Company’s CGUs to which the individual assets are allocated. Thesebudgets and forecast calculations generally cover a period of five years. For longer periods, a long-term
growth rate is calculated and applied to project future cash flows after the fifth year. To estimate cash flow
projections beyond periods covered by the most recent budgets/forecasts, the Company extrapolates cash
flow projections in the budget using a steady or declining growth rate for subsequent years, unless anincreasing rate can be justified. In any case, this growth rate does not exceed the long-term average growth
Annual Report 2022 | 89

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

rate for the products, industries, or country in which the entity operates, or for the market in which the asset
is used. Impairment losses of continuing operations, including impairment on inventories, are recognised in
the statement of profit and loss.
For assets, an assessment is made at each reporting date to determine whether there is an indication that
previously recognised impairment losses no longer exist or have decreased. If such indication exists, theCompany estimates the asset’s or CGU’s recoverable amount. A previously recognised impairment loss isreversed only if there has been a change in the assumptions used to determine the asset’s recoverable amountsince the last impairment loss was recognised.
The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor
exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss
been recognised for the asset in prior years. Such reversal is recognised in the statement of profit and loss,
unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.
(n) Provisions
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of apast event, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation. When the Company
expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset,
but only when the reimbursement is virtually certain. The expense relating to a provision is presented in thestatement of profit and loss, net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax ratethat reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in theprovision due to the passage of time is recognised as a finance cost.
(o) Retirement and other employee benefits
Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no
obligation, other than the contribution payable to the provident fund. The Company recognizes contribution
payable to the provident fund scheme as an expense, when an employee renders the related service. If thecontribution payable to the scheme for service received before the balance sheet date exceeds the contribution
already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution
already paid. If the contribution already paid exceeds the contribution due for services received before thebalance sheet date, then excess is recognized as an asset to the extent that the pre-payment will lead to a
reduction in future payment or a cash refund.
In respect of certain employees, the Company had established a Provident Fund Trust, which was a defined
benefit plan, to which contributions towards provident fund were made each month. The Provident Fund
Trust guaranteed a specified rate of return on such contributions on a periodical basis as per the government
notification. The Company would meet the shortfall in the return, if any, which was determined based onan actuarial valuation carried out, as per projected unit credit method, as at the date of balance sheet.
The contributions to provident fund were charged to the statement of profit and loss on an accrual basis.
During the year, the Company has surrendered the Provident Fund Trust to the Employee’s Provident Fund
Organisation, Government of India and transferred the funds from Provident Fund Trust to the funds
maintained by the Regional Provident Fund Commissioner (RPFC). Effective January 1, 2022, the Provident
Fund Benefit is a defined benefit contribution scheme and the Company recognizes contribution payable tothe fund as expenditure, when an employee renders the related service.
Retirement benefit in the form of superannuation fund is a defined contribution scheme. The Company
has established a Superannuation Fund Trust to which contributions are made each month. The Company
90 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)recognizes contribution payable to the superannuation fund scheme as expenditure, when an employee
renders the related service. The Company has no other obligations beyond its monthly contributions.
The Company operates a defined benefit gratuity plan in India, which requires contributions to be made to
a separately administered fund. The cost of providing benefits under the defined benefit plan is determinedusing the projected unit credit method.
Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts
included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts
included in net interest on the net defined benefit liability), are recognised immediately in the balance sheetwith a corresponding debit or credit to retained earnings through OCI in the period in which they occur.
Re-measurements are not reclassified to the statement of profit and loss in subsequent periods.
Past service costs are recognized in the statement of profit and loss on the earlier of the date of the planamendment or curtailment, and the date that the Company recognizes related restructuring costs. Net interestis calculated by applying the discount rate to the net defined benefit liability or asset. The Company recognizeschanges in the net defined benefit obligation which includes service costs comprising current service costs,
past-service costs, gains and losses on curtailments and non-routine settlements; and net interest expense or
income, as an expense in the statement of profit and loss.
Accumulated leave, which is expected to be utilized within the next twelve months, is treated as short-term
employee benefit. The Company measures the expected cost of such absences as the additional amountthat it expects to pay as a result of the unused entitlement that has accumulated at the reporting date. The
Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term
employee benefit for measurement purposes. Such long-term compensated absences are provided for basedon the actuarial valuation using the projected unit credit method at the year-end. The Company presents theleave as a current liability in the balance sheet, to the extent it does not have an unconditional right to defer
its settlement for twelve months after the reporting date. Where the Company has the unconditional legal
and contractual right to defer the settlement for a period beyond twelve months, the same is presented as
non-current liability.
(p) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
Financial assets
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded atfair value through profit or loss, transaction costs that are attributable to the acquisition of the financial
asset. Purchases or sales of financial assets that require delivery of assets within a time frame established byregulation or convention in the market place (regular way trades) are recognised on the trade date, i.e. thedate that the Company commits to purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:• Debt instruments at amortised cost
• Debt instruments at fair value through other comprehensive income (FVTOCI)• Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)• Equity instruments measured at fair value through other comprehensive income (FVTOCI)Annual Report 2022 | 91

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)A ‘debt instrument’ is measured at the amortised cost, if both of the following conditions are met:(i) The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows; and(ii) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments ofprincipal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using theeffective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is includedin finance income in the statement of profit and loss. The losses arising from impairment are recognised in thestatement of profit and loss. This category generally applies to trade and other receivables.
A ‘debt instrument’ is classified as FVTOCI, if both of the following criteria are met:(i) The objective of the business model is achieved both by collecting contractual cash flows and selling thefinancial assets; and(ii) The asset’s contractual cash flows represent SPPI.
Debt instruments included within the FVTOCI category are measured initially as well as at each reporting dateat fair value. Fair value movements are recognized in OCI. However, the Company recognizes interest income,
impairment losses and foreign exchange gain or loss in the statement of profit and loss. On de-recognition of
the asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity to the statementof profit and loss. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using
the EIR method.
FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria forcategorization as at amortized cost or as FVTOCI, is classified as at FVTPL. Debt instruments included within
the FVTPL category are measured at fair value with all changes recognized in the statement of profit and loss.
All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held
for trading are classified as at FVTPL. If the Company decides to classify an equity instrument as at FVTOCI,
then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no
recycling of the amounts from OCI to the statement of profit and loss, even on sale of the investments. Equity
instruments included within the FVTPL category are measured at fair value with all changes recognized in thestatement of profit and loss.
Investment in subsidiary and associate
Investments in subsidiary and associate are carried at cost less allowance for impairment, if any. Wherean indication of impairment exists, the carrying amount of the investment is assessed and written down
immediately to its recoverable amount. The recoverable amount is the higher of fair value less cost of disposal
and value in use.
De-recognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets)
is primarily derecognised (i.e. removed from the balance sheet) when:• The rights to receive cash flows from the asset have expired; or• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation
to pay the received cash flows in full without material delay to a third party under a ‘pass-through’arrangement; and either (a) the Company has transferred substantially all the risks and rewards of theasset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of theasset, but has transferred control of the asset.
92 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

The transferred asset and the associated liability are measured on a basis that reflects the rights andobligations that the Company has retained. Continuing involvement that takes the form of a guarantee over
the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum
amount of consideration that the Company could be required to repay.
Impairment of financial assets
In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement
and recognition of impairment loss on the financial assets and credit risk exposure. The Company follows‘simplified approach’ for recognition of impairment loss allowance on Trade receivables. The applicationof simplified approach does not require the Company to track changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
For recognition of impairment loss on other financial assets and risk exposure, the Company determinesthat whether there has been a significant increase in the credit risk since initial recognition. If credit risk has
not increased significantly, twelve-month ECL is used to provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument
improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity
reverts to recognising impairment loss allowance based on twelve-month ECL.
Lifetime ECL are the expected credit losses resulting from all possible default events over the expected lifeof a financial instrument. The twelve-month ECL is a portion of the lifetime ECL which results from default
events that are possible within twelve months after the reporting date. ECL is the difference between allcontractual cash flows that are due to the Company in accordance with the contract and all the cash flowsthat the Company expects to receive (i.e., all cash shortfalls), discounted at the original EIR. ECL impairment
loss allowance (or reversal) recognized during the year is recognized as income/ expense in the statement of
profit and loss. This amount is reflected under the head ‘other expenses’ in the statement of profit and loss.
For assessing increase in credit risk and impairment loss, the Company combines financial instruments on thebasis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enablesignificant increases in credit risk to be identified on a timely basis.
Financial liabilities
Initial recognition and measurement
All financial liabilities are recognised initially at fair value and, in the case of borrowings and payables, net of
directly attributable transaction costs. The Company’s financial liabilities include borrowings, trade and otherpayables, and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their classification. Financial liabilities at fair value
through profit or loss include financial liabilities held for trading and financial liabilities designated upon
initial recognition as fair value through profit or loss. Financial liabilities are classified as held for trading if
they are incurred for the purpose of repurchasing in the near term. This category also includes derivative
financial instruments entered into by the Company that are not designated as hedging instruments in hedge
relationships as defined by Ind AS 109. Separated embedded derivatives are also classified as held for trading,unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading arerecognised in the statement of profit and loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as suchat the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designatedas FVTPL, fair value gains/losses attributable to changes in own credit risk are recognized in OCI. These gains/losses are not subsequently transferred to the statement of profit and loss. However, the Company may
Annual Report 2022 | 93

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognisedin the statement of profit and loss.
After initial recognition, interest-bearing borrowings are subsequently measured at amortised cost using theEIR method. Gains and losses are recognised in the statement of profit and loss when the liabilities are
derecognised as well as through the EIR amortization process. Amortized cost is calculated by taking into
account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortisation is included as finance costs in the statement of profit and loss.
De-recognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expired.
When an existing financial liability is replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially modified, such an exchange or modification istreated as the de-recognition of the original liability and the recognition of a new liability. The difference inthe respective carrying amounts is recognised in the statement of profit and loss.
Reclassification of financial assets and liabilities
The Company determines classification of financial assets and liabilities on initial recognition. After initialrecognition, no re-classification is made for financial assets which are equity instruments and financial liabilities.
For financial assets which are debt instruments, a re-classification is made only if there is a change in thebusiness model for managing those assets. A change in the business model occurs when the Company either
begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial
assets, it applies the re-classification prospectively from the re-classification date, which is the first day of theimmediately next reporting period following the change in business model. The Company does not restate
any previously recognised gains, losses (including impairment gains or losses) or interest.
Offsetting of financial instruments
Financial assets and financial liabilities are offset, and the net amount is reported in the balance sheet, if there
is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a
net basis, to realise the assets and settle the liabilities simultaneously.
(q) Cash and cash equivalents
Cash and cash equivalents in the balance sheet and cash flow statement comprise cash at banks and on handand short-term deposits with an original maturity of three months or less, which are subject to an insignificant
risk of changes in value.
(r) Dividend to equity holders
The Company recognises a liability to pay dividend to equity holders when the distribution is authorised, andthe distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution
is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.
(s) Contingent liabilities
A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the controlof the Company; or a present obligation that arises from past events but is not recognized because it is notprobable that an outflow of resources embodying economic benefits will be required to settle the obligation;or the amount of obligation cannot be measured with sufficient reliability. The Company does not recognize
a contingent liability but discloses its existence in the standalone financial statements.
(t) Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders (after deducting preference dividends and attributable taxes) by the weighted average number
94 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)of equity shares outstanding during the period. The weighted average number of equity shares outstanding
during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, andreverse share split (consolidation of shares) that have changed the number of equity shares outstanding,
without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable toequity shareholders and the weighted average number of shares outstanding during the period are adjusted
for the effects of all dilutive potential equity shares.
(u) Segment reporting
An operating segment is a component of the Company that engages in business activities from which
it may earn revenues and incur expenses (including revenues and expenses relating to transactions withother components of the Company), whose operating results are regularly reviewed by the Company’s chief
operating decision maker to make decisions about resources to be allocated to the segment and assess its
performance, and for which discrete financial information is available. Operating segments of the Company
are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
(v) Significant accounting judgements, estimates and assumptions
The preparation of the standalone financial statements require management to make judgements, estimatesand assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and theaccompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions
and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or
liabilities affected in future periods.
The Company bases its assumptions and estimates on parameters available when the standalone financial
statements are prepared. Existing circumstances and assumptions about future developments, however, maychange due to market changes or circumstances arising that are beyond the control of the Company. Suchchanges are reflected in the assumptions when they occur. The judgements, estimates and assumptions
management has made which have the most significant effect on the amounts recognized in the standalone
financial statements are as below. Also refer Note 45 in respect of the assessment of impact of the Coronavirus(COVID-19) pandemic.
Revenue from contracts with customers
The Company determines and updates its assessment of expected discounts and incentives periodically andthe accruals are adjusted accordingly. Estimates of expected discount and incentives are sensitive to changes
in circumstances and the Company’s past experience regarding these amounts may not be representative of
actual amounts in the future.
LeasesThe Company determines the lease term as non-cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods coveredby an option to terminate the lease, if it is reasonably certain not to be exercised. The Company applies
judgement and considers all relevant factors that create an economic incentive in evaluating whether it isreasonably certain to exercise the option to renew or terminate the lease. After the commencement date, theCompany reassesses the lease term if there is a significant event or change in circumstances that is within its
control and affects its ability to exercise or not to exercise the option to renew or terminate.
The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would haveto pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of asimilar value to the right-of-use asset in a similar economic environment. The IBR requires estimation when
Annual Report 2022 | 95

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

no observable rates are available or when they need to be adjusted to reflect the terms and conditions of thelease. The Company estimates the IBR using observable inputs (such as market interest rates), when available
and makes entity-specific estimates, wherever required.
Property, plant and equipment
The depreciation of property, plant and equipment is derived on determining an estimate of an asset’s
expected useful life and the expected residual value at the end of its life. The useful lives and residual values of
the Company’s assets are determined by the management at the time of acquisition of asset and is reviewed
periodically, including at each financial year end. The lives are based on historical experience with similar assets
as well as anticipation of future events, which may impact their life.
Impairment of investments carried at cost and non-financial assets
Investments carried at cost and non-financial assets such as property, plant and equipment are evaluated forrecoverability whenever events or changes in circumstances indicate that their carrying amounts may not
be recoverable. Significant management judgement is required to determine recoverable amount and the
impairment loss, if any. These calculations are sensitive to underlying assumptions.
Provision for expected credit loss on trade receivables
The measurement of expected credit loss reflects a probability-weighted outcome, the time value of money
and the best available forward-looking information. The correlation between historical observed default rates,
forecast economic conditions and expected credit loss is a significant estimate. The amount of expected credit
loss is sensitive to changes in circumstances and forecasted economic conditions. The Company’s historicalcredit loss experience and forecast of economic conditions may not be representative of the actual default in
the future.
Tax contingencies and provisions
Significant management judgement is required to determine the amounts of tax contingencies and provisions,
including amount expected to be paid/recovered for uncertain tax positions and the amount of deferred tax
assets that can be recognised, based upon the likely timing and the level of future taxable profits together
with future tax planning strategies.
Defined benefit plans
The cost of the defined benefit plan and the present value of the obligation are determined using actuarial
valuation. An actuarial valuation involves various assumptions that may differ from actual developments in the
future. These include the determination of the discount rate, expected return, future salary increases and mortality
rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation ishighly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate forplans operated in India, the management considers the interest rates of government bonds where remaining
maturity of such bond correspond to expected term of defined benefit obligation. The mortality rate is basedon publicly available mortality tables. Those mortality tables tend to change only at interval in response todemographic changes. Future salary increases are based on expected future inflation rates.
2.2 Changes in accounting policies and disclosures
The Company applied for the first-time certain standards and amendments, which are effective for annual periods
beginning on or after April 1, 2021. The Company has not early adopted any other standard or amendment thathas been issued but is not yet effective:(a) Ind AS 116: COVID-19 related rent concessions
The Ministry of Corporate Affairs (MCA) issued an amendment to Ind AS 116 Covid-19-Related Rent
Concessions beyond June 30, 2021 to update the condition for lessees to apply the relief to a reduction in
96 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)lease payments originally due on or before June 30, 2022 from June 30, 2021. The amendment applies toannual reporting periods beginning on or after April 1, 2021. These amendments had no material impact on
the standalone financial statements of the Company.
(b) Amendment to Ind AS 105, Ind AS 16 and Ind AS 28
The definition of “Recoverable amount” is amended such that the words “the higher of an asset’s fair valueless costs to sell and its value in use” are replaced with “higher of an asset’s fair value less costs of disposal
and its value in use”. The consequential amendments are made in Ind AS 105, Ind AS 16 and Ind AS 28. These
amendments had no impact on the standalone financial statements of the Company.
2.3 Standards issued but not yet effective
The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standard) Amendment Rules 2022
dated March 23, 2022 to amend the following Ind AS which are effective from April 1, 2022.
(a) Onerous Contracts – Costs of Fulfilling a Contract – Amendments to Ind AS 37
The amendments to Ind AS 37 specify which costs an entity needs to include when assessing whether acontract is onerous or loss-making. The amendments apply a “directly related cost approach”. The costs
that relate directly to a contract to provide goods or services include both incremental costs, for example
direct labour and materials and an allocation of other costs directly related to contract activities, for example
an allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling that
contract. General and administrative costs do not relate directly to a contract and are excluded unless they
are explicitly chargeable to the counterparty under the contract. The amendments are effective for annual
reporting periods beginning on or after April 1, 2022. The Company is currently assessing the impact of theamendments to determine the impact they may have on the Company’s accounting policy disclosures.
(b) Reference to the Conceptual Framework – Amendments to Ind AS 103
The amendments replaced the reference to the ICAI’s “Framework for the Preparation and Presentation of
Financial Statements under Indian Accounting Standards” with the reference to the “Conceptual Framework
for Financial Reporting under Indian Accounting Standard” without significantly changing its requirements.
The amendments also added an exception to the recognition principle of Ind AS 103 Business Combinations
to avoid the issue of potential ‘day 2’ gains or losses arising for liabilities and contingent liabilities that would
be within the scope of Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets or Appendix C,
Levies, of Ind AS 37, if incurred separately. It has also been clarified that the existing guidance in Ind AS 103
for contingent assets would not be affected by replacing the reference to the Framework for the Preparation
and Presentation of Financial Statements under Indian Accounting Standards. The amendments are effective
for annual reporting periods beginning on or after April 1, 2022. The amendments are not expected to havea material impact on the Company.
(c) Property, Plant and Equipment: Proceeds before Intended Use – Amendments to Ind AS 16
The amendments modified paragraph 17(e) of Ind AS 16 to clarify that excess of net sale proceeds of items
produced over the cost of testing, if any, shall not be recognised in the profit or loss but deducted fromthe directly attributable costs considered as part of cost of an item of property, plant, and equipment. The
amendments are effective for annual reporting periods beginning on or after April 1, 2022. The amendments
are not expected to have a material impact on the Company.
(d) Ind AS 109 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities
The amendment clarifies the fees that an entity includes when assessing whether the terms of a new or
modified financial liability are substantially different from the terms of the original financial liability. These
fees include only those paid or received between the borrower and the lender, including fees paid or received
by either the borrower or lender on the other’s behalf. The amendments are effective for annual reporting
periods beginning on or after April 1, 2022. The amendments are not expected to have a material impact on
the Company.
Annual Report 2022 | 97

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)
3. PROPERTY, PLANT AND EQUIPMENT
Cost

Depreciation / Amortisation

19,71776,551
3,14,601
2,593
1,937
24,676
4,555
974
4,45,604

183
4,494
11,548
297
49
914
164
28
17,677

—
—
853
7
17
43
92
379
1,391

19,90081,045
3,25,296
2,883
1,969
25,547
4,627
623
4,61,890

Net book
value
As at
For the Impairment
On
As at
As at
April 1,year
deletions March 31, March 31,
2021
2022
2022
—
—
—
—
—
19,90026,4592,575——
29,03452,011
2,17,340 14,713—
826 2,31,227
94,069
1,664
267
—
7
1,924
959
1,335
185
—
15
1,505
464
20,1192,351—
26
22,444
3,103
2,676
322
—
88
2,910
1,717
838
31
—
361
508
115
2,70,431 20,444—
1,323 2,89,552 1,72,338

17,148
1,727
—
36
93
19,004
4,64,608

—
283
3
—
—
286
17,963—420

17,148
1,590
3
36
93
18,8704,80,760

1,307
724
—
22
18
2,071
2,72,502

As at Additions Deletions As at
April 1,March 31,2021
2022
Freehold land (refer note a)
Buildings (refer note b)
Plant and equipment
Office equipments
Computer equipments
Furniture and fixtures
Laboratory equipments
VehiclesRight-of-use assets(also refer Note 33)
Leasehold land (refer note a)
Buildings
Plant and equipment
Furniture and fixtures
Vehicles
Total

—
—
420
1,811

200
485
1
12
21
719
21,163

—
—
—
—
—
—
—

—
420
—
—
—
420
1,743

1,507
789
1
34
39
2,370
2,91,922

15,641801
2
2
54
16,500
1,88,838

Previous year
Cost

Freehold land (refer note a)
Buildings (refer note b)
Plant and equipment
Office equipments
Computer equipments
Furniture and fixtures
Laboratory equipments
VehiclesRight-of-use assets (alsorefer Note 33)
Leasehold land (refer note a)
Buildings
Furniture and fixtures
VehiclesTotal

98 | United Breweries Limited

Depreciation / Amortisation

As at Additions Deletions As at
April 1,March 31,
2020
2021

As at
April 1,2020

For the Impairment
On
As at
year
(refer note deletions March 31,
42)
2021

19,717
68,637
2,97,254
2,217
2,210
23,485
4,482
1,062
4,19,064—
8,203
20,879
464
81
1,449
199
—
31,275

—
289
3,532
88
354
258
126
88
4,735

19,71776,551
3,14,601
2,593
1,937
24,676
4,555
974
4,45,604—
22,133
2,02,883
1,516
1,491
17,735
2,418
835
2,49,011—
2,461
15,837
227
178
2,523
324
41
21,591

—
2,153
2,112
8
2
111
60
—
4,446

—
288
3,492
87
336
250
126
38
4,617

—
26,4592,17,340
1,664
1,335
20,1192,676
838
2,70,431

Net book
value
As at
March 31,2021
19,71750,092
97,261
929
602
4,557
1,879
136
1,75,173

17,1482,354
36
30
19,568
4,38,632

—
311
—
63
374
31,649

—
938
—
—
938
5,673

17,1481,727
36
93
19,004
4,64,608

1,107
820
10
2
1,939
2,50,950

200
842
12
16
1,070
22,661

—
—
—
—
—
4,446

—
938
—
—
938
5,555

1,307
724
22
18
2,071
2,72,502

15,8411,003
14
75
16,933
1,92,106Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)(a) Detail of immovable properties (included under property, plant and equipment) whose title deeds are not held in thename of the Company or disputed
Description of Property

Grosscarrying
value

Title deeds held in Whether title deed Property
the name ofholder is a promoter,held
directors or relative
sinceof promoter/director
or employee ofpromoter/director

Reason for not being
held in the name of theCompany

Freehold land
(9.04 acres at
Kuthumbakkam,
Tamil Nadu)

80

Tamil Nadu
State Marketing
Corporation Ltd.

No

2010-11 Application for registrationof title deed is pending withthe state government for
approval

Freehold land
(63.07 acres at Kothlapur,
Telangana)654

UB Nizam Breweries
Pvt Ltd.*No

2010-11 Application for registrationof name change is pending
with the state government
for approval

Freehold land
(0.533 acres at Nanjangud,
Karnataka)

22

United Breweries
LimitedNo

2009-10 Title deed is in dispute andpending resolution in court
as at March 31, 2022.

Freehold land
(0.006 acres at
Nelamangala, Karnataka)

1

United Breweries
LimitedNo

2006-07 Title deed is in dispute andpending resolution in court
as at March 31, 2022.

Freehold land
(0.002 acres at Mallepally,
Telangana)_^

United Breweries
LimitedNo

2010-11 Title deed is in dispute andpending resolution in court
as at March 31, 2022.

Leasehold land
(25.71 acres atAurangabad, Maharashtra)

1,189

Inertia Industries
Limited*No

2010-11 Application for adjudicationof stamp duty for namechange in the lease deed is
pending with the concerned
authorities

Leasehold land
(18.02 acres atAurangabad, Maharashtra)

66

Aurangabad
Breweries Limited*No

2011-12 Application for adjudicationof stamp duty for namechange in the lease deed is
pending with the concerned
authorities^ Rounded off to nearest lakhs. * Erstwhile entity which merged with the Company.

(b) Buildings include those constructed on leasehold land as follows:
March 31,2022

March 31,2021

Gross block

33,11031,806

Depreciation charge for the year*

1,067

1,041

Accumulated depreciation*

11,08910,022Net block

22,021

21,784*Net of depreciation on deletions

Annual Report 2022 | 99

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)(c) Capital work-in-progress
Capital work-in-progress as at March 31, 2022 and March 31, 2021 comprises of capital expenditure relating toplant and equipment and buildings which are in the course of construction. The ageing of capital work-in-progress
is as below:
Amount in capital work-in-progress for a period ofLess than 1year

1–2 years

2–3 years

Total

More than
3 years

As at March 31, 2022
Projects in progress
Projects temporarily suspended
Total

8,148

1,154

757

24

10,083

16

519

222

149

906

8,164

1,673

979

173

10,989

8,294

3,637

131

25

12,087

355

208

­—

149

712

8,649

3,845

131

174

12,799As at March 31, 2021
Projects in progress
Projects temporarily suspended
Total

The details of capital work in progress whose completion is overdue are as below:
March 31, 2022
To be completed inLess than 1year

1–2 years

2–3 years

More than 3
years

Total

Projects in progress
Effluent/water treatment

2,317

—

—

—

2,317

Infrastructure development*

2,174

—

—

—

2,174

Capacity expansion

775

—

—

—

775

Health, safety and environment

569

—

—

—

569

Quality improvement

434

—

—

—

434

Others

848

—

—

—

848

Total

7,117

—

—

—

7,117

Infrastructure development*

581

—

—

—

581

Capacity expansion

177

—

—

—

177

Effluent/water treatment

148

—

—

—

148

Total

906

—

—

—

906

Projects temporarily suspended[This space has been intentionally left blank]

100 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

March 31, 2021
To be completed inLess than 1year

1–2 years

Total

2–3 years

More than 3
years

Projects in progress
Effluent/water treatment

1,537

972

—

—

2,509

Infrastructure development*

1,608

1,209

—

—

2,817

Capacity expansion

415

3,752

—

—

4,167

Health, safety and environment

65

67

—

—

132

Quality improvement

85

395

—

—

480

Others

727

1,040

—

—

1,767

Total

4,437

7,435

—

—

11,872

Infrastructure development*

—

564

—

—

564

Effluent/water treatment

—

148

—

—

148

Total

—

712

—

—

712

Projects temporarily suspended* Infrastructure development includes factory buildings, warehouses and roads.
There are no projects which exceeded cost compared to original plan as on March 31 2022 and March 31, 2021.
For the purpose of aforesaid disclosure, considering voluminous details, projects have been grouped under the
relevant category.
(d) Assets held for sale:
March 31, 2022

March 31, 2021

Balance at the beginning of the year

488

714

Transfer/sale [Refer Note 30(b)]

—

(226)

Balance at the end of the year

488

488

(e) Refer Note 15 for details of property, plant and equipment pledged as security against borrowings.
4. INTANGIBLE ASSETS
Cost
As at
April 1,
2021

Amortisation

Additions Deletions

As atMarch 31,
2022

As at
April 1,2021

Forthe yearNet book
value

Impairment Deletions

As atMarch 31,
2022

As at
March 31,2022

Licenses and rights

11,60968—

11,677

9,511

528

—

—

10,039

1,638

Total

11,60968—

11,677

9,511

528

—

—

10,039

1,638

Previous year
Cost
As at
April 1,
2020

Amortisation

Additions

Deletions

As atMarch 31,
2021

As at
April 1,2020

Forthe yearNet book
value

Impairment Deletions

As at
As at
March 31, March, 2021
2021

Licenses and rights

11,380229—

11,609

8,987

524

—

—

9,511

2,098

Total

11,380229—

11,609

8,987

524

—

—

9,511

2,098

Annual Report 2022 | 101

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)
As at
March 31, 2022

As at
March 31, 2021

4,500

4,500

5. FINANCIAL ASSETS - INVESTMENTS (NON-CURRENT)
Trade investments
Equity instruments at cost (fully paid-up) (Unquoted)
Investments in subsidiary company
Maltex Malsters Limited (‘MML’)[22,950 (March 31, 2021: 22,950) equity shares of Rs. 100 each]Less: Provision for impairment in value of investments*
Investment in associate
Kingfisher East Bengal Football Team Private Limited[4,999 (March 31, 2021: 4,999) equity shares of Rs. 10 each]Non-trade investments
Equity instruments at fair value through profit or loss (fully paid-up) (Unquoted)
The Zoroastrian Co-operative Bank Limited[2,000 (March 31, 2021: 2,000) equity shares of Rs. 25 each]
SABMiller India Limited (Formerly, Skol Breweries Limited)[300 (March 31, 2021: 300) equity shares of Rs. 10 each]**Castle Breweries Ltd. (Formerly, Jupiter Breweries Industries Limited)[50 (March 31, 2021: 50) equity shares of Rs. 10 each]**Mohan Meakin Limited [100 (March 31, 2021: 100) equity shares of Rs. 5 each]**Blossom Industries Limited [100 (March 31, 2021: 100) equity shares of Rs. 3 each]**Renew Wind Energy (Karnataka) Private Limited[10,400 (March 31, 2021: 10,400) equity shares of Rs. 100 each]
Mytrah Vayu (Manjira) Private Limited[1,44,000 (March 31, 2021: 1,44,000) equity shares of Rs. 10 each]
Capsol Sunray Private Limited [27,20,035 (March 31, 2021: 27,20,035) equity shares of Rs. 10 each]
FPEL Maha 2 Pvt Ltd [13,26,984 (March 31, 2021: Nil) equity shares of Rs. 10 each]

3,735

765

3,735

765

1

1

1

1

—

—

—

—

—
—
15

—
—
15

14

14

272
251

272
—

17

17

49

—

—

14

—

70

—

188

—

11

212

—

Debt instruments at fair value through other comprehensive income (fully paid-up) (Quoted)
IL&FS Financial Services Limited[9.55%, 5,000 (March 31, 2021: 5,000) non-convertible debentures of Rs. 1,000 each]***IL&FS Financial Services Limited[8.80%, 17,000 (March 31, 2021: Nil) non-convertible debentures of Rs. 1,000 each]***Dewan Housing Finance Corporation Limited[9.15%, Nil (March 31, 2021: 4) non-convertible debentures of Rs. 10,00,000 each]***Dewan Housing Finance Corporation Limited[9.30%, Nil (March 31, 2021: 20) non-convertible debentures of Rs. 10,00,000 each]***Dewan Housing Finance Corporation Limited[9.25%, Nil (March 31, 2021: 53,500) non-convertible debentures of Rs. 1,000 each]***Dewan Housing Finance Corporation Limited[9.30%, Nil (March 31, 2021: 3,100) non-convertible debentures of Rs. 1,000 each]***Piramal Capital & Housing Finance Limited[6.75%, 21,217 (March 31, 2021: Nil) non- convertible debtentures of Rs. 1,000 each]
In government securities (Unquoted)
National Savings Certificate
1818
Less: Provision for impairment in value of investments
15
3
15
3
Total
1,600
1,371
*The fair value for the purpose of determination of impairment loss has been estimated by the management based on fair value of assets byan independent expert. The impairment in value of investment in MML is due to continued delay in obtaining necessary approvals to expand
malting facility at MML, leading to high overhead costs incurred on operating at its current level of capacity. Also refer Note 30(a).
**Rounded off.
***Purchased from United Breweries Limited Provident Fund Trust (Refer Note 38).
Aggregate cost of quoted investments
278
300
Aggregate market value of quoted investments
278
300
Aggregate value of unquoted investments (gross)
5,072
4,821
Aggregate amount of impairment in value of investments(3,750)(3,750)102 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Non-current
As at
As at
March 31, March 31,
2022
2021
6. FINANCIAL ASSETS - OTHERS
Unsecured, considered good
Financial assets at amortised cost
Security deposits
Bank deposits with remaining maturity of more than twelve months
Margin money deposits towards bank guarantees
Interest accrued on bank and other deposits
Unsecured, credit impaired
Security deposits
Less: Loss allowance
Total

Current
As at
As at
March 31, March 31,
2022
2021

4,181
134
102
—
4,417

4,105
43
112
—
4,260

—
—
—
115
115

—
—
—
84
84

94
94
—
4,417

93
93
—
4,260

—
—
—
115

—
—
—
84

As at
March 31,
2022

As at
March 31,2021

7. TAX ASSET/(LIABILITY) (NET)(a) Income tax assets (net)
Balance at the beginning of the year
20,396
18,945
Less: Provision for the year
13,1596,733
Add: Taxes paid (net of refund)
12,958
8,184
Closing balance (net)20,195
20,396
The above amounts include amounts paid under protest against various income tax demands under appeal,
which are included under contingent liabilities.
Balance sheet
As atMarch 31,2022

Statement of profit and loss

As at
March 31,2021

For the year
ended
March 31,2022

For the year
ended
March 31,2021(b) Deferred tax asset/(liability) (net)Deferred tax assets
Provision/allowance for receivables and advances

2,376

1,843

(533)

487

Provision for employee benefits

1,879

1,443

(436)

340

Other provisions

1,708
5,963

1,758
5,044

50
(919)

(432)
395

2,120

1,552

568

(1,116)

2,120
3,843

1,552
3,492

568

(1,116)

(351)

(721)

Deferred tax liabilities
Property, plant and equipment: Impact of difference
between tax depreciation and depreciation/amortisation charged for the financial reporting
Net deferred tax asset
Deferred tax (credit)

Annual Report 2022 | 103

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

As at
March 31,
2022

As at
March 31,2021

7. TAX ASSET/(LIABILITY) (NET) (continued)
Reconciliation of movement in deferred tax asset
Balance at the beginning of the year
Tax credit/(charge) during the year
Recognised in the statement of profit and loss
Recognised in OCI
Balance at the end of the year

3,492

2,771

371
(20)
351
3,843

1,222
(501)
721
3,492

The Company has not recognised deferred tax asset on provision for impairment in value of investments
amounting to Rs. 3,750 Lakhs (March 31, 2021: Rs. 3,750 Lakhs), considering uncertainty that sufficient futuretaxable capital gains would be available against which such tax credits can be utilised.
Non-current
As atMarch 31,2022

Current
As at
March 31,
2022

As at
March 31,
2021

As at
March 31,2021

8. OTHER ASSETS
Unsecured, considered good
Capital advances

1,517

663

—

—

3,793
—
71
1,882
17,188
561

3,697
—
70
2,855
7,868
639

1,744
—
361
7,975
17,191
—

1,009
75
203
7,849
22,615—25,012

15,792

27,271

31,751

82

82

—

—

613
1,363
2,058
—
25,012

532
825
1,439
—
15,792————
27,271————
31,751

Advances other than capital advances
Advance to suppliers*
Advance to a related party (Refer Note 38)
Employees and other advances
Prepaid expenses
Balance with statutory/government authorities**
Government grant receivable***Unsecured, considered doubtful
Capital advances
Advances other than capital advances
Advance to suppliers
Balance with statutory/government authorities
Less: Provision for doubtful advances
Total*Non-current advance to suppliers includes an amount of Rs. 3,271 Lakhs (March 31, 2021: Rs. 3,197 Lakhs) paid underprotest to Maharashtra Industrial Development Corporation (“MIDC”) towards increased charges for water supplies. The
Company has filed a special leave petition before the Supreme Court in respect of this matter and the management, basis alegal advice, believes that the Company’s position will be upheld in the appellate process and accordingly, the same has been
considered as a contingent liability as at year end.
**Non-current portion includes amount paid under protest against various tax demands under appeal, which are included
under contingent liabilities in Note 35.
***Relates to Industrial promotion subsidy. There are no unfulfilled conditions or other contingencies attached to these grants.
There are no advances to directors or other officers of the Company or any of them either severally or jointly with any otherperson or advances to firms or private companies, respectively, in which any director is a partner or a director or a member.
Further there are no loans or advances in the nature of loan to promoters, directors or key management personnel.
104 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

As at
March 31,
2022

As at
March 31,2021

9. INVENTORIES(valued at lower of cost and net realisable value)
Raw materials[Includes in transit: Rs. 970 Lakhs (March 31, 2021: Rs. 719 Lakhs)]
Packing materials and bottles[Includes in transit: Rs. 1,432 Lakhs (March 31, 2021: Rs. 1,059 Lakhs)]
Work-in-progress
Finished goods[Includes in transit: Rs. 5,237 Lakhs (March 31, 2021: Rs. 6,103 Lakhs)]^
Stock-in-trade[Includes in transit: Rs. 151 Lakhs (March 31, 2021: Rs. 24 Lakhs)]
Stores and spares[Includes in transit: Rs. 5 Lakhs (March 31, 2021: Rs. 21 Lakhs)]
Total

15,89425,453

16,543

16,252

36,08818,87539,56026,344

231

457

5,810

5,463

93,441

1,13,529^Net of provision for obsolete stock Rs. 1,702 Lakhs (March 31, 2021: Rs. 2,331 Lakhs).
During the year, an amount of Rs. 1,386 Lakhs (March 31, 2021: Rs. 1,771 Lakhs) was recognised as an expense forinventories carried at net realisable values.
10. TRADE RECEIVABLES(Financial assets at amortised cost)
Considered good
SecuredUnsecuredCredit impaired
Unsecured
Less: Loss allowance
Total

1,571
1,23,879
1,25,450

2,226
1,37,256
1,39,482

7,295
7,295
—
1,25,450

5,792
5,792
—
1,39,482(a) Trade receivables are non-interest bearing and are generally on terms of 0 to 90 days. Balances disclosed as
secured are secured by security deposits received from customers or amounts payable to commission agents.
(b) No debts are due from directors or other officers of the Company or any of them either severally or jointly withany other person. Also, no debts are due from firms or private companies, respectively, in which any director is apartner or a director or a member.
(c) The above balances includes dues from related parties (Refer Note 38).
(d) Trade receivables ageing schedule
Current Outstanding for the following periods from due date of payment
but not Less than 6 6 months - 1-2 years
2-3 years More thanduemonhts1 year
3 years

Total

As at March 31, 2022
Undisputed Trade ReceivablesConsidered good*

1,02,916

19,605

393

1,554

—

—

1,24,468

Undisputed Trade ReceivablesCredit impaired

—

—

156

102

101

213

572

Disputed Trade ReceivablesCredit impaired**

—

—

83

1,076

363

6,183

7,705

1,02,916

19,605

632

2,732

464

6,396

1,32,745

Total

Annual Report 2022 | 105

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Current Outstanding for the following periods from due date of payment
but not Less than 6 6 months - 1-2 years 2-3 years More thanduemonhts1 year
3 years

Total

Undisputed Trade ReceivablesConsidered good*

1,10,334

23,312

3,138

1,716

—

—

1,38,500

Undisputed Trade ReceivablesCredit impaired

—

—

27

269

26

187

509

Disputed Trade ReceivablesCredit impaired**

—

—

—

—

4,099

2,166

6,265

1,10,334

23,312

3,165

1,985

4,125

2,353

1,45,274

As at March 31, 2021

Total

* Includes unbilled receivables not due of Rs. 10 Lakhs (March 31, 2021: Rs. 55 Lakhs)**Includes Rs. 982 Lakhs (March 31, 2021: Rs. 982 Lakhs) relating to dispute with a customer which is fully provided
for and for which provision is included under provision for litigations in Note 17.
As atMarch 31,
2022

As at
March 31,2021

11.CASH AND CASH EQUIVALENTS
Bank balances on current accounts^

14,736

8,431Bank deposits with original maturity of three months or less

71,50032,5002

986,23840,940Cash on hand
Total

^Includes balances in exchange earners foreign currency accounts of Rs. 5,856 Lakhs (March 31, 2021: Rs. 4,692 Lakhs)
12. OTHER BANK BALANCES
3,870

5,147

1

­—

Less than twelve months but more than three months

624

613

Greater than twelve months

41

105

4,536

5,865

Bank balances on current accounts towards unpaid dividend
Bank balances on current account towards CSR expense
Bank deposits with original maturity of:

Total

Bank balances towards unpaid dividend and CSR expense can be utilised only towards payment of dividend and CSR
expense, respectively. Other bank balances excludes bank deposits with remaining maturity of more than twelve
months and margin money deposits (Refer Note 6). Bank deposits include balances where fixed deposits receipts arepledged with statutory/government authorities.
13. EQUITY SHARE CAPITAL
Authorised share capital
4,12,98,00,000 (March 31, 2021: 4,12,98,00,000) equity shares of Re. 1 each

41,29841,298

5,86,00,000 (March 31, 2021: 5,86,00,000) preference shares of Rs. 100 each58,60058,60099,89899,898

2,644

2,644

2,644

2,644

Issued, subscribed and fully paid-up shares
26,44,05,149 (March 31, 2021: 26,44,05,149) equity shares of Re. 1 each106 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)(a) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

At the beginning of the year

As at March 31, 2022

As at March 31, 2021

Nos.

Nos.

Rs.in Lakhs

26,44,05,149

2,644

26,44,05,149

2,644

—

—

—

—

26,44,05,149

2,644

26,44,05,149

2,644

Changes during the year
Outstanding at the end of the year

Rs. in Lakhs(b) Terms/rights attached to equity shares
The Company has only one class of equity shares having a par value of Re. 1 per share. Each holder of equity
share is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to theapproval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining
assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to thenumber of equity shares held by the shareholders.
(c) Equity shares held by holding/ultimate holding company and/or their subsidiaries/associates
As at March 31, 2022*
Nos.

Value

Scottish & Newcastle India Limited

8,99,94,960

900

Heineken International B.V.

6,41,69,921

642

84,89,270

85

16,26,54,151

1,627

Heineken UK Limited
Total*Comparatives not applicable as these entities became holding/ultimate holding company with effect from
July 29, 2021.
(d) Details of shareholders holding more than 5% of the shares in the Company
Name of the shareholder

As at March 31, 2022

As at March 31, 2021

Nos.

Nos.

%

%

Equity shares of Re.1 each fully paid
8,99,94,960

34.04%

8,99,94,960

34.04%——

4,27,04,758

16.15%

Heineken International B.V.

6,41,69,921

24.27%

2,45,25,575

9.28%

Dr. Vijay Mallya (including joint holdings)

2,13,53,620

8.08%

2,13,53,620

8.08%

Scottish & Newcastle India Limited
Deputy Director, Directorate of Enforcement

As per records of the Company, the above shareholding represents legal ownership of shares.
(e) There are no equity shares issued as bonus, shares issued for consideration other than cash or sharesbought back during the period of five years immediately preceding the reporting date.

[This space has been intentionally left blank]

Annual Report 2022 | 107

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)(f) Details of equity shares (of Re.1 each fully paid up) held by promoters
March 31, 2022
Promoter Name

No. of sharesat thebeginning of
the year

Changeduring theyear

No. of sharesat the end of
the year

% of
Total
shares% changeduring theyear

Scottish & Newcastle India Limited

8,99,94,960—

8,99,94,960

34.04

—

Heineken International B.V.

2,45,25,575

3,96,44,346

6,41,69,921

24.27

14.99

Heineken UK Limited

84,89,270—

84,89,270

3.21—

Dr.Vijay Mallya

4,02,666—

4,02,666

0.15—

Dr.Vijay Mallya & Sidhartha Mallya,
joint holding

1,04,86,666—

1,04,86,666

3.97

—

Dr.Vijay Mallya & Ritu Mallya, joint
holding

1,04,64,288—

1,04,64,288

3.96

—

McDowell Holdings Ltd.

45,51,000—

45,51,000

1.72—

Kamsco Industries Pvt. Ltd.

32,74,000—

32,74,000

1.24—

UB Overseas Ltd.

4,27,740—

4,27,740

0.16

—

620

—

620

0.00

—

15,26,16,785

3,96,44,346

19,22,61,131

72.72

14.99

Pharma Trading Company Pvt. Ltd.
Total
March 31, 2021
Promoter Name

No. of sharesat thebeginning of
the year

Changeduring theyear

No. of sharesat the end of
the year

% of
Total
shares% changeduring theyear

Scottish & Newcastle India Limited

8,99,94,960—

8,99,94,960

34.04

—

Heineken International B.V.

2,45,25,575—

2,45,25,575

9.28

—

Heineken UK Limited

84,89,270—

84,89,270

3.21—

Dr.Vijay Mallya

4,02,666—

4,02,666

0.15—

Dr.Vijay Mallya & Sidhartha Mallya,
joint holding

1,04,86,666—

1,04,86,666

3.97

—

Dr.Vijay Mallya & Ritu Mallya, joint
holding

1,04,64,288—

1,04,64,288

3.96

—

McDowell Holdings Ltd.

45,51,000—

45,51,000

1.72—

Kamsco Industries Pvt. Ltd.

32,74,000—

32,74,000

1.24—

UB Overseas Ltd.

4,27,740—

4,27,740

0.16

—

620

—

620

0.00

—

15,26,16,785—

15,26,16,785

57.73

—

Pharma Trading Company Pvt. Ltd.
Total

108 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

As at
March 31,
2022

As at
March 31,2021

14. OTHER EQUITY
Capital redemption reserve
Balance as per last standalone financial statements

24,69024,690

Securities premium
Balance as per last standalone financial statements

62,93862,938General reserve
Balance as per last standalone financial statements

42,33041,201—

1,129

42,33042,3302,25,360

2,20,324

36,501

11,28560

1,490(1,322)(6,610)—(1,129)

Closing balance

2,60,599

2,25,360

Total reserves and surplus

3,90,557

3,55,318

1,322

6,610

1,322

6,610

27,763

1,322

27,763

1,322

Transfer from the statement of profit and loss
Closing balance
Retained earnings
Balance as per last standalone financial statements
Profit for the year
Other comprehensive income
Appropriations
Final equity dividend
Transfer to general reserve

Distribution made and proposed
Cash dividends on equity shares declared and paid:
Dividend for the year ended March 31, 2021: Rs. 0.50 per share(March 31, 2020: Rs. 2.50 per share)
Proposed dividends on equity shares:
Dividend for the year ended on March 31, 2022: Rs. 10.50 per share (March 31,
2021: Rs. 0.50 per share)

Proposed dividend on equity shares are subject to approval at the annual general meeting and are not recognised
as a liability as at year end.
Non-current portion
As at
March 31,2022

Current portion
As at
March 31,
2022

As at
March 31,
2021

As at
March 31,2021

15. FINANCIAL LIABILITIES BORROWINGS (NON-CURRENT)(at amortised cost)
SecuredIndian currency term loans from banks—

10,750—14,250Less: Amount disclosed under the head
“Financial liabilities- Borrowings (Current)”

—

—

—

14,250—10,750——

Annual Report 2022 | 109

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)(a) Nature of security and terms are as below:
Nature of security

Repayment and other terms

Indian currency term loans
Axis Bank: Rs. Nil (March 31, 2021: Rs. 25,000 Lakhs)
secured by first pari-passu charge on all present andfuture movable property, plant and equipment of theCompany, excluding those which are exclusively undercharge of other lenders and with negative lien on
immovable fixed assets of the Company.

Repayable in 5 equal quarterly instalments of
Rs. 4,750 Lakhs each and one instalment of Rs. 1,250
Lakhs starting from September 2021. The loan carried
floating interest rate, which was in the range of
5.4% to 7.5% per annum during the year and waspayable on monthly basis. The loan was pre-paid by
the Company during the year ended March 31, 2022.

(b) The Company is in compliance with the applicable debt covenants prescribed in the terms of borrowings. Also
there has been no default in repayment of borrowings and payment of interest during the year.
Non-current
As atMarch 31,2022

Current
As at
March 31,
2022

As at
March 31,
2021

As at
March 31,2021

16. OTHER FINANCIAL LIABILITIES(at amortised cost)
Liability for capital goods

—

—

5,230

5,774

Security deposits

—

—

2,572

3,693

Unpaid dividends*

—

—

3,870

5,147

2,497

1,109

5,992

4,697

Freight expenses payable

—

—

7,756

7,046

Other expenses payable——

30,29925,958

2,497

1,109

55,71952,315

Salaries and bonus payable

Total*There are no amounts due for payment to the Investor Education and Protection Fund under the Companies Act,
2013 as at year end.
17. PROVISIONS
Provision for employee benefits
Gratuity
Provident fundCompensated absences
Other provisions
Provision for litigations
Total

441
—
—
441

160
—
—
160

500
—
4,026
4,526

1,000
265
4,308
5,573

—
—
441

—
—
160

5,688
5,688
10,214

3,527
3,527
9,100

At thebeginning of
the year

Additions
during theyear

Utilisedduring theyear

Unusedamounts
reversed

3,527

2,161

—

—

5,688

(3,552)

(8)

—

(33)

(3,527)

Provision for litigations

At theend of theyear

Figures in brackets are of previous year.
Provision for litigations relates to matters which are sub-judice and the Company continues to contest these cases.
110 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

As at
March 31,
2022

As at
March 31,2021

18. FINANCIAL LIABILITIES - BORROWINGS (CURRENT)(at amortised cost)
SecuredCurrent maturities of long-term borrowings (Refer Note 15)—

14,250Indian currency cash credit from banks

—

17

Total

­—

14,267(a) Indian currency cash credit and working capital demand loans are part of consortium facility and are secured byfirst pari-passu charge on all current assets of the Company namely stock of raw materials, semi finished andfinished goods, stores and spares and not relating to plant & machinery (consumables, stores & spares), bills
receivable and book debt of the present and the future. These facilities are repayable within 360 days and carryinterest in the range of 4% to 7% per annum.
(b) The quarterly returns/statements filed by the Company with banks are in the agreement with the books of theCompany, except in instances as below:
Quarter ended

Value as per books ofaccounts

Value as per Quarterly
returns/statements

Discrepancy^

June 30, 2021 - Inventories(Work in progress)

25,524

27,468(1,944)

December 31, 2021 - Inventories(Finished goods)

25,07024,388682^Updated for book closure entries recorded post submission of returns/statements to banks.
(c) The Company is in compliance with the applicable financial debt covenants prescribed in the terms of borrowings.
Also there has been no default in repayment of borrowings and payment of interest during the year.
As at
March 31,
2022

As at
March 31,2021

19. FINANCIAL LIABILITIES - TRADE PAYABLES(at amortised cost)
Total outstanding dues of micro and small enterprises (Refer Note 36 for details)

9,144

6,332

Total outstanding dues of creditors other than micro and small enterprises(including acceptances)

54,62556,572

Total

63,76962,904(a) Trade payables are non-interest bearing and are normally settled on 30 to 130 days.
(b) The above disclosure includes dues to related parties (Refer Note 38).

[This space has been intentionally left blank]

Annual Report 2022 | 111

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)(c) Trade payables ageing schedule
Outstanding for the following periods from due date of payment
Unbilleddues

Less than
1 year

1-2 years

2-3 years

More than
3 years

Total

As at March 31, 2022
Total outstanding dues of
micro and small enterprises

—

8,478

345

298

23

9,144

Total outstanding dues ofcreditors other than microand small enterprises

6,911

46,921

108

58

575

54,573

Disputed dues of micro andsmall enterprises

—

—

—

—

—

—

Disputed dues of creditors
other than micro and small
enterprises

—

—

—

—

52

52

6,911

55,399

453

356

650

63,769Total outstanding dues of
micro and small enterprises

—

5,487

302

543

—

6,332

Total outstanding dues ofcreditors other than microand small enterprises

2,035

53,110

381

98

736

56,360

Disputed dues of micro andsmall enterprises

—

—

—

—

—

—

Disputed dues of creditors
other than micro and small
enterprises

—

45

73

—

94

212

2,035

58,642

756

641

830

62,904As at
March 31,
2022

As at
March 31,
2021

Total
As at March 31, 2021

Total

20. OTHER CURRENT LIABILITIESStatutory dues payable*

62,671

71,842Contract liabilities - Advances from customers**

4,335

2,614

250

250

67,25674,706

Advance from commission agents
Total*Includes liability for excise duty on closing stock of work-in-progress and finished goods, value added tax, goods andservices tax, etc.
**Revenue recognised from amounts included in contract liabilities at the beginning of the year is Rs. 2,209 Lakhs(March 31, 2021: Rs. 2,583 Lakhs)[This space has been intentionally left blank]

112 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

March 31,2022

March 31,2021

21. REVENUE FROM CONTRACTS WITH CUSTOMERS(INCLUDING EXCISE DUTY)
Revenue from operations
12,85,718

9,98,509

Sale of services

2,775

1,426

Other operating revenues

23,24818,405

13,11,741

10,18,340

12,73,211

9,89,774

Non-alcoholic beverages

2,988

2,891

Others (Input materials)

9,519

5,844

12,85,718

9,98,509

Sale of services

2,775

1,426

Royalty income

2,775

1,426

Income from contract manufacturing units

13,835

11,921

Scrap sales

9,100

6,403

313

81

23,24818,405

Products transferred at a point in time

12,95,131

10,04,993

Services rendered at a point in time

16,61013,347

13,11,741

10,18,340

13,59,036

10,55,904

Adjustments (Variable consideration, etc.)(47,295)(37,564)

Revenue from contracts with customers

13,11,741

10,18,340

Sale of products (including excise duty)

Total(a) Disaggregated revenue information
Sale of products (including excise duty)
Beer

Other operating revenues

Others(b) Timing of revenue recognition(c) Reconciliation of amount of revenue recognised with contract price
Revenue as per contracted price(d) Performance obligations for sale of products is satisfied upon delivery of the goods and that for sale of services issatisfied upon rendering of respective services.
(e) Sale of products for the year ended March 31, 2022 is adjusted for reversals in variable consideration ofRs. 753 Lakhs (Previous year: Rs. 1,528 Lakhs).
(f) Also refer Note 10 for Trade receivables, Note 20 for Contract liabilities and Note 37 for Segment information.

Annual Report 2022 | 113

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

March 31,2022
22. OTHER INCOME
Interest income on bank and other deposits
Dividend income on investment in subsidiary company
Net gain on disposal of property, plant and equipment
Profit on sale of investments classified as fair value through profit or loss
Exchange differences (net)
Liabilities no longer required written back
Loss allowance for trade receivables, no longer required written back
Other non-operating income
Total
23. COST OF MATERIALS CONSUMED
Raw materials
Inventories at the beginning of the year
Add: Purchases
Less: Inventories at the end of the year
Consumption
Packing materials and bottles
Inventories at the beginning of the year
Add: Purchases
Less: Inventories at the end of the year
Consumption
Total
24. PURCHASES OF STOCK-IN-TRADE
Beer
Non-alcoholic beverages

March 31,
2021

1,499
23
11
54
352
479
217
331

434
23
4
—
356
205
3,380
618

2,966

5,020

25,45382,416
15,89423,29470,38225,453

91,97568,223

16,252
1,79,710
16,543
1,79,419
2,71,394

18,962
1,26,323
16,252
1,29,033
1,97,256

18,501
1,081
19,582

6,220
1,151
7,371

25. CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK-IN-TRADE
Inventories at the beginning of the year
Finished goods*

28,67526,718Work-in-progress

39,56037,118Stock-in-trade

457

690

68,69264,526

Finished goods*

20,57728,675Work-in-progress

36,08839,560Less: Inventories at the end of the year

231

457

56,896

68,692

Decrease/(increase) in inventories

11,796(4,166)(lncrease)/decrease in excise duty on inventories(9,507)

3,171

Total

2,289

(995)

Stock-in-trade*Before provision for obsolete stock. Refer Note 9.
114 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

March 31,2022
26. EMPLOYEE BENEFITS EXPENSE
Salaries, wages and bonus**
Gratuity expense [refer note (i) below]
Contribution to provident and other funds [refer notes (i) and (ii) below]
Staff welfare expenses
Total

46,293
860
1,835
2,948
51,936

March 31,2021
42,135
1,067
2,250
2,777
48,229**Includes severance pay of Rs. 1,748 Lakhs (Previous year: Nil) paid to certain employees of the Company on separation.
(i) The Company operates two defined benefit plans i.e., gratuity and provident fund for its employees. Under
the tiered gratuity plan, every employee who has completed at least five years of service gets a gratuity on
departure as per the Company policy subject to minimum of 15 days of last drawn salary for each completed
year of service. The gratuity fund is managed by external agencies. Under the provident fund benefit plan, till
Decmeber 31, 2021 the Company contributed to the provident fund trust which guaranteed a specified rate of
return on such contributions on a periodical basis as per the government notification. The shortfall in the return,if any, was borne by the Company. The aforesaid funds are set up as trusts and are governed by the Boardof Trustees who is responsible for the administration of plan assets and for deciding the investment strategy.
Effective January 1, 2022, the provident fund trust has transferred the funds to the Regional Provident Fund
(RPFC). Henceforth the provident fund and returns on the contribution would be managed by the RPFC andthe Company’s obligation is restricted to payment of the contribution made by employees and the employer’s
contribution on a monthly basis. As such, effective January 1, 2022 the provident fund benefit is a defined
contribution plan. The following table summarises the components of net benefits expense and the funded
status of the respective plans.
Gratuity(a) Changes in the present value of the defined
benefit obligation
Obligations at beginning of the year
Current service cost - employer contribution
Employee contribution
Interest cost
Benefits paid**
Actuarial (gain)/loss
Obligations at end of the year(b) Change in fair value of plan assets
Plan assets at the beginning of the year
Return on plan assets
Contributions during the year*
Benefits paid**
Actuarial gain/(loss)
Plan assets at end of the year

Provident fundMarch 31,2022

March 31,2021

March 31,2022

March 31,2021

10,401851—
615(1,572)(46)
10,24911,569961—
667(1,953)(843)
10,401

19,060
673
1,139
286
(21,158)——

17,100
863
1,724
1,454
(2,201)
120
19,060

9,241
606

9,884
561

18,795551

16,1271,404

1,000(1,572)
33
9,308—(1,953)
749
9,241

1,812
(21,158)——

2,946(2,201)519
18,795*Provident fund includes contribution by the employer towards loss on sale of investments by the provident
fund trust.
**Provident fund benefits paid during the year ended March 31, 2022 includes Rs. 17,002 Lakhs (March 31,
2021: Nil) transferred to the Employee’s Provident Fund Organisation, Government of India on surrender of
exempted Provident Fund Trust.
Annual Report 2022 | 115

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Gratuity

Provident fundMarch 31,2022

March 31,2021

March 31,2022

March 31,2021

Fair value of plan assets

9,308

9,241

—

18,795

Less: Present value of the defined benefit
obligations

10,24910,401(941)(1,160)—(265)(c) Benefit asset/(liability)

Benefit asset/(liability)—

19,060(d) Cost charged to the statement of profit and loss under employee cost
Current service cost - employer contribution

851

961

673

863

Interest cost

615

667

286

1,454

Return on plan assets

(606)

(561)

(551)

(1,404)Net employee benefit expense***

860

1,067

408

913

***In respect of provident fund trust, the amount recognised in the statement of profit and loss is theamount contributed to provident fund by the Company and the amount of shortfall in defined benefit
obligations (excluding the remeasurment gain/loss which is recognised in other comprehensive income).
(e) Re-measurement (gain)/loss recognised in other comprehensive income
Actuarial (gain)/loss
Change in financial assumption

(437)

(289)

—

182

Experience variance (actual vs assumption)

390

(554)

—

(62)

Return on plan assets (excluding amountrecognised in net interest expense)

(33)

(749)

—

(519)

Net actuarial (gain)/loss(80)(1,592)—(399)(f) Major category of plan assets included in percentage of fair value of plan assets
Government securities

—

—

—

11,177

Corporate bonds

—

—

—

5,796

9,308

9,241

—

—

Others

—

—

—

1,822

Total

9,308

9,241

—

18,795Fund balance with insurance companies(g) The principal assumptions used in determining gratuity and provident fund obligations for the Company
plans are as shown below:
Gratuity
Provident fundMarch 31,
March 31,
March 31,
March 31,
2022
2021
2022
2021
Discount rate
6.70%
6.40%
—
6.40%
Salary increase rate
8.00%-10.50% 8.00%-10.50%— 8.00%-10.50%
Employee turnover
5.00%-15.00% 5.00%-15.00%— 5.00%-15.00%
Expected return on exempt fundNot applicable—
7.65%
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market. The overall
rate of return on assets is determined based on the market price prevailing on that date, applicable to theperiod over which the obligation is to be settled.

116 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)(h) A quantitative sensitivity analysis for significant assumptions is as below:
March 31, 2022

March 31, 2021

1% increase 1% decrease 1% increase

1% decrease

Impact on defined benefit obligation (Gratuity) Increase/(decrease) in liability
Discount rate

(704)

799

(735)

836

Salary increase rate

787

(705)

812

(730)

Employee turnover

(148)

161

(165)

183

—

—

(564)

627

Impact on defined benefit obligation(Provident fund) - Increase/(decrease) in liability
Expected return on exempt fundThe sensitivity analysis above have been determined based on a method that extrapolates the impact on
defined benefit obligation as a result of reasonable change in key assumptions occurring at the end of thereporting period.
(i) The Company expects to contribute Rs. 500 Lakhs (March 31, 2021: Rs. 1,000 Lakhs) to gratuity fundduring the next financial year. The maturity profile of the benefit payments under the defined benefit
plans in future years is a under:
Gratuity

Provident fundMarch 31,2022

March 31,2021

March 31,2022

March 31,2021

Within next 12 months

691

686

—

3,930

Between 2 to 5 years

4,683

4,356

—

6,425

Between 5 to 10 years

7,431

7,605

—

3,979

Total

12,805

12,647—

14,334

The average duration of the defined benefit plan obligations at the end of the reporting period is 7 years(Previous year: 7 years)(ii) Contribution to provident and other funds include the following:
March 31,2022

March 31,
2021

1,225

1,548

Superannuation fund

586

669

Employees state insurance fund

24

33

1,835

2,250

1,464

2,244

14

23

1,478

2,267

21,163

22,661528

524

21,691

23,185

Provident fund (includes defined benefit obligation)

Total
27. FINANCE COSTS
Interest expense (including on lease liabilities)
Other borrowing costs
Total
28. DEPRECIATION AND AMORTISATION EXPENSE
Depreciation of property, plant and equipment (including right-of-use assets)
Amortisation of intangible assets
Total

Annual Report 2022 | 117

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

March 31,2022
29. OTHER EXPENSES
Consumption of stores and spares
Power and fuelRent
Repairs and maintenance
Plant and machinery
Buildings
OthersInsurance
Rates and taxes
Legal and professional charges
Auditor's remuneration*
Statutory audit fee
Limited review fee
Tax audit fee
Certifications
Other audit related services
OthersSales promotion expenses [net of reversal of Rs.213 Lakhs (Previous year: Rs. 186 Lakhs)]
Outward freight, halting and breakage expenses
Distribution expenses [net of reversal of Rs. 754 Lakhs (Previous year: Rs. 145 Lakhs)]
CSR expenditure (refer details below)
Bad debts/advances written off
Loss allowance for trade receivables
Provision for doubtful advances/deposits
Miscellaneous expenses
Total*Includes goods and service tax and reimbursement of expenses

148
29
19
5
99
23

March 31,2021

11,22914,202
3,939

7,946
11,451
3,892

4,444
225
2,060
2,324
30,854
6,379

2,656
121
1,348
2,223
22,866
3,933

323
27,60630,246
16,490
1,080
301
1,720
620
14,458
1,68,500

141
27
19
15
15
8

225
21,09523,09816,451
1,383
28
479
966
14,101
1,34,262

Details of CSR expenditure(a) Gross amount required to be spent by the Company during the year
1,080
1,368
(b) Amount approved by the Board to be spent during the year
1,080
1,368
(c) Amount spent during the year
Construction/acquisition of any asset——
Other than construction/acquisition of any asset
736
1,383
Total
736
1,383
(d) Details related to spent/unspent obligations
Amount spent during the year
736
1,383
Unspent amount in relation to ongoing project344
47
Unspent amount in relation to other than ongoing project
—
—
Total
1,080
1,430
(e) Details of ongoing projects
Balance at the beginning of the year (with the Company)**
47
62
Amount required to be spent during the year
1,080
1,368
Less: Amount spent during the year (from the Company's bank account)
736
1,383
Less: Amount spent during the year (from unspent CSR account)
46—
Balance at the end of the year (with the Company)***345
47**Balance at the beginning of the year (i.e.,as at April 1, 2021) was transferred to a separate unspent CSR accountduring the year.
***The Company is in the process of transferring unspent amount to a separate unspent CSR account.
118 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

March 31,2022

March 31,2021

30. EXCEPTIONAL ITEMS
Impairment (loss) on property, plant and equipment (Refer Note 42)—(4,446)

Impairment (loss) on investment in subsidiary company (see note (a) below)—(1,776)

Gain on transfer of rights and interest in a leasehold land (see note (b) below)

—

5,500

Total

—

(722)

(a) As at March 31, 2021, the Company carried out impairment assessment of its investment in a subsidiary company
with carrying value of Rs. 2,541 Lakhs. The recoverable amount for this investment is determined by an external
valuer to be Rs. 765 Lakhs based on a fair value less cost of disposal calculation and accordingly an impairment
loss of Rs. 1,776 Lakhs was recognized during the year ended March 31, 2021. No further impairment wasnoted during the year.
(b) The Company executed a deed for assignment cum transfer of its rights and interest in a leasehold land property(disclosed as assets held for sale) and accordingly a profit of Rs. 5,500 Lakhs realised on such transfer wasrecognized during the year ended March 31, 2021.
31. TAX EXPENSES
Income tax related to items charged or credited to the statement of
profit and loss during the year:
Profit and loss section
Current tax
Deferred tax (credit)Total

13,159(371)
12,788

6,733(1,222)
5,511

Other comprehensive income
Deferred tax charge on
Re-measurement of defined benefit plans

20

501

Total

20

501

49,28912,406

16,796
4,228

272
—
110
12,788

348
447
488
5,511

Reconciliation of tax expense with accounting profit multiplied by statutory
income tax rate:
Accounting profit before income tax
Tax as per statutory income tax rate of 25.17% (Previous year: 25.17%)
Non-deductible expenses for tax purposes
CSR expenditure
Impairment loss on investment
OthersIncome tax expense reported in statement of profit and loss account[This space has been intentionally left blank]

Annual Report 2022 | 119

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

March 31,2022
32. EARNINGS PER SHARE (EPS)The following reflects the profit and share data used in the basic anddiluted EPS computation:
Net profit attributable to equity shareholders
Weighted average number of equity shares considered for
calculating basic /diluted EPS
Earnings per share (Basic/Diluted) (Rs.)

March 31,2021

36,501

11,28526,44,05,149

26,44,05,149

13.81

4.27

33. LEASESThe Company has lease contracts for land, office premises, employee residential premises, computers, plant andequipment, furniture and vehicles. Leasehold land arrangements are for 90-99 years with various government
authorities. Other leases are for a period upto 9 years with options of renewal and premature termination with
notice, except in certain leases with lock-in period of 6 to 36 months. The Company’s obligations under its leases are
secured by the lessor’s title to the leased assets. Generally, the Company is restricted from assigning and sub-leasing
the leased assets. There are certain lease contracts that include extension and termination options. The Company
also has certain leases with lease terms of twelve months or less and leases with low value. The Company applies
the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases. There are no leasearrangements with variable lease payments.
Refer Note 3 for details of carrying amounts of right-of-use assets recognised and the movements during the year.
Set out below are the carrying amounts of lease liabilities and the movements during the year:
At the beginning of the year
Additions
Accretion of interest
Payments (including interest)
At the end of the year
Current
Non-current
Total

1,180
286
91
(583)
974

1,659
374
113
(966)
1,180

368
606
974

406
774
1,180

The Company has applied weighted average incremental borrowing rate of 8% per annum to lease liabilities
recognised in the balance sheet. The maturity analysis of lease liabilities is disclosed in Note 40(c). The following are
the amounts recognised in the statement of profit and loss:
Depreciation expense of right-of-use assets
719
1,070
Interest expense on lease liabilities
91
113
Expense relating to short-term leases (included in rent expense)
3,760
3,646
Expense relating to leases of low-value assets (included in rent expense)
179
246
Total amount recognised in the statement of profit and loss
4,749
5,075
The Company had total cash outflows for leases of Rs. 4,522 Lakhs (Previous year: Rs. 4,858 Lakhs) for the year
ended March 31, 2022. The Company also had non-cash additions to right-of-use assets and lease liabilities of Rs.
286 Lakhs (Previous year: Rs. 374 Lakhs) during the year ended March 31, 2022. There are no leases that have beenentered into but not yet commenced as at year end.
The undiscounted potential future rental payment relating to periods following the exercise date of extension optionthat are not included in the lease term is Rs. 151 Lakhs (Previous Year: Rs. 159 Lakhs). There are no termination
options which are expected to be exercised but not included in lease term.
120 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

March 31,2022

March 31,2021

34. CAPITAL AND OTHER COMMITMENTS(a) Estimated amount of contracts remaining to be executed (net of capital
advances) on capital account and not provided for

6,507

5,070

(b) Commitments under contracts for malt conversion

1,404

2,808

(c) Commitments under power purchase agreements

6,706

6,700

(d) Other contractual commitments

1,949

2,430

Total

16,56617,008For commitments relating to lease arrangements, refer Note 33.
35. CONTINGENT LIABILITIES(a) The Company received an order dated September 24, 2021 under Section 27 of the Competition Act, 2002
from the Competition Commission of India (“CCI”) (‘the CCI Order’), wherein the CCI concluded that theCompany and certain executives (including former executives) of the Company contravened the provisions ofSection 3 of the Competition Act, 2002. The CCI levied a penalty of Rs. 75,183 Lakhs on the Company. On
December 8, 2021, the Company filed an appeal against the aforesaid CCI Order before the National Company
Law Appellate Tribunal (‘NCLAT’). The NCLAT vide its order dated December 22, 2021 granted a stay of the
CCI Order during the pendency of the appeal, including recovery of the penalty imposed by the CCI, subject
to deposit of 10% of the penalty amount by the Company. The Company has accordingly deposited Rs. 7,518
Lakhs with the Registrar, NCLAT.
Based on the advice of the external legal experts, the Company is of the view that the Director General andthe CCI has not considered all aspects of its submissions particularly considering the nature of the regulations
governing the manufacture, distribution and sale of beer in India. As advised by the Company’s external legal
experts, the Company has a strong case on merits, there exists uncertainty relating to the final outcome in thismatter, which is dependent on judicial proceedings; and that it is not in a position to reliably estimate the final
obligation relating to penalties, if any. Accordingly, no provision has been recorded in the books of account andthe same has been considered as a contingent liability in accordance with Ind AS 37 – Provisions, Contingent
Liabilities and Contingent Assets.
(b) On January 5, 2022, a party has filed a claim of Rs. 2,877 Lakhs against the Company before the Arbitral
Tribunal, which includes claims towards loss of profit, certain reimbursement claims and damages towards
breach of contract, etc. On February 12, 2022, the Company filed a counter claim against the party before the
Arbitral Tribunal, which includes claim towards loss of business and other recoverables. Management based ona legal opinion, believes that the claims made by the party are not sustainable and no liability would arise fromthe same. Accordingly, no liability/provision is recognised in this regard.
(c) Others
Claims against the Company not acknowledged as debts^
Income tax
Excise duty
Sales tax
Service tax
Water charges
Employee state insurance/provident fund
OthersOther money for which the Company is contingently liable
Bank guarantees
Letter of credit
Total

77,95914,845
11,410
2,599
3,271
104
9,941

45,166
14,551
9,820
2,599
3,197
84
9,614

1,891
—
1,22,020

3,809
1,176
90,016

Annual Report 2022 | 121

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)^The Company is contesting these demands / notices and the management, based on advice of its legal/tax
consultants, believes that its position will likely be upheld in the appellate process. No expense has been accrued in
the standalone financial statements for these demands raised. The management believes that the ultimate outcomeof these proceedings will not have a material adverse effect on the Company's financial position and results ofoperations. The Company does not expect any reimbursements in respect of these contingent liabilities. The amounts
disclosed as contingent liabilities above are based on the demands stated in the orders /notices received from the tax
authorities. These do not include amounts for similar matters for periods subsequent to periods covered by thesedemands / notices and interest or penalty which are not included in these demands / notices.
During the financial year 2006-07 relating to assessment year 2007-08, pursuant to acquisition of a subsidiaryand its subsequent merger in the same financial year, the Company recognized goodwill of Rs. 6,230 Lakhs
and has claimed depreciation thereon under the Income Tax Act. The claim of depreciation on goodwill has
been litigated by the tax authorities and the Company’s appeal in this regard is pending before the Honorable
High Court of Karnataka. The Company has relied on the Honorable Supreme Court’s (SC) judgement on
depreciation claim and other rulings of High Courts relying on the aforesaid SC order which supports claim for
depreciation on goodwill. Based on advice of its tax consultants and senior counsel, the Company believes that
it is probable that its position will be upheld in the appellate process and hence tax thereupon is considered asa contingent liability.
In addition, the Company is subject to legal proceedings and claims, which have arisen in the ordinary courseof business. The management reasonably does not expect that these legal actions, when ultimately concluded
and determined, will have material effect on the Company's results of operations or financial condition.
(d) The Supreme Court of India in a judgement on Provident Fund dated February 28, 2019 addressed the principle
for determining salary components that form part of Basic Salary for individuals below a prescribed salarythreshold. It is however unclear as to whether the clarified definition of Basic Salary would be applicableprospectively or retrospectively. The Component has complied with the aforesaid judgement on a prospective
basis from the date of the judgement and will continue to monitor and evaluate retrospective application, if
applicable, based on future events and developments.
March 31,2022
36. Details of dues to micro and small enterprises as defined under the Micro,
Small and Medium Enterprises Development (MSMED) Act, 2006
The principal amount and the interest due thereon remaining unpaid to any
supplier as at the end of each accounting year
- Principal amount due to micro and small enterprises- Interest due on above

8,353
791

March 31,
2021

5,193
1,139

- Total
9,144
6,332
The amount of interest paid by the buyer in terms of section 16 of the MSMED
Act 2006 along with the amounts of the payment made to the supplier150—
beyond the appointed day during each accounting year
The amount of interest due and payable for the period of delay in making
payment (which have been paid but beyond the appointed day during the192268year) but without adding the interest specified under the MSMED Act, 2006
The amount of interest accrued and remaining unpaid at the end of each
791
1,139
accounting year
The amount of further interest remaining due and payable even in the
succeeding years, until such date when the interest dues as above are actually
791
1,139
paid to the small enterprise for the purpose of disallowance as a deductible
expenditure under section 23 of the MSMED Act 2006
The information given above is to the extent such parties have been identified by the Company on the basis of
information disclosed by the suppliers.
122 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

37. Segment reporting					As per Ind AS 108, operating segment is a component of the Company that engages in business activities, whose
operating results are regularly reviewed by the Company’s Chief Operating Decision Maker (‘CODM’) to makedecisions about resources to be allocated to the segment and assess its performance; and for which discrete
financial information is available. Accordingly, the Company has identified its operating segments, as below:(a) Beer - This segment includes manufacture, purchase and sale of beer including licensing of brands(b) Non-alcoholic beverages - This segment includes manufacture, purchase and sale of non-alcoholic beverages
The Company’s CODM does not review assets and liabilities for each operating segment separately, hence segment
disclosures relating to total assets and liabilities have not been furnished.
March 31,2022

March 31,
2021

Segment revenue
Beer
Non-alcoholic beverages
Total revenue

13,08,753
2,988
13,11,741

10,15,449
2,891
10,18,340

Segment results
Beer
Non-alcoholic beverages
Total segment results

83,938(6,510)77,42850,114(3,841)
46,273

Other income
Finance costs
Other unallocable expenses
Profit before exceptional items and tax
Exceptional items (refer Note 30)

2,966(1,478)(29,627)
49,289—5,020(2,267)(31,508)
17,518(722)

Profit before tax

49,28916,796

12,96,041
15,70013,11,741

10,10,662
7,678
10,18,340

2,01,465—
2,01,465

2,07,003—
2,07,003

Information about geographical areas is as below:
Revenue from external customers (including excise duty)
India
Outside India
Total
The above information is based on the location of customers.
Non-current operating assets
India
Outside India
Total

Non-current assets for this purpose consists of property, plant and equipment, capital work-in-progress andintangible assets.
Revenue (including excise duty) from customers individually contributing more than 10% of the Company’s revenue
aggregates to Rs. 438,084 Lakhs (Previous year: Rs. 256,556 Lakhs) from 2 customers (Previous year: 1 customer).

Annual Report 2022 | 123

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

38. RELATED PARTY DISCLOSURES
A. Name of related parties and related party relationships
Related party where control or significant influence exists:
Ultimate holding company: Heineken N.V. (effective July 29, 2021)

Subsidiary

Maltex Malsters Limited ('MML')

Associate: Kingfisher East Bengal Football Team Private Limited ('KEBFTPL')

Related parties under Ind AS 24 with whom transactions have taken place:Enterprises having significant influence : Scottish & Newcastle India Limited, UK ('SNIL')
Heineken International B.V. (‘HIBV’) (effective June 23, 2021)
Key management personnel (KMP): Mr. Rishi Pardal, Managing Director (effective August 1, 2020)
Mr. Berend Cornelis Roelof Odink, Chief Financial Officer and Director(Director effective June 29, 2021*)
Mr. Shekhar Ramamurthy, Managing Director (till July 31, 2020)*During the year ended March 31, 2022, the Company appointed Mr. Berend Cornelis Roelof Odink, a Non-resident
as whole-time director of the Company. The Company has filed an application with the Central Government
seeking approval for appointment of Mr. Berend Cornelis Roelof Odink as a director, as per Rule 7 of the Companies(Appointment and Remuneration of Managerial Personnel) Rules, 2014 and the same is presently awaited. The
Company obtained shareholders’ approval in this regard at the Annual General Meeting of the Company held on
July 29, 2021.
Enterprises over which investing parties : Heineken UK Limited (‘HUL’), holding company of SNIL
have significant influence/Fellow
Heineken International B.V. (‘HIBV’) (till June 22, 2021)
subsidiaries (effective July 29, 2021)
Heineken Brouwerijen B.V. (‘HBBV’)
Heineken Supply Chain B.V. (‘HSCBV’)
Heineken Asia Pacific Pte. Ltd. (‘HAPPL’)
Heineken Asia Pacific Export Pte. Ltd. (‘HAPEP’)
Heineken Asia Pacific Beverages Pte. Ltd. (‘HAPBPL’)
Amstel Brouwerijen B.V. (‘Amstel’)DB Breweries Limited (‘DBL’)
DBG (Australia) Pty Limited (‘DBG’)
Sirocco FZCO, United Arab Emirates (‘SIRC’)
Asia Pacific Breweries (Singapore) Pte. Ltd. (‘APBS’)
Employee benefits trusts(included in ‘Others’ below): UBL Gratuity Fund Trust
United Breweries Limited Provident Fund Trust (“UBL Provident Fund Trust”)**
United Breweries Superannuation Fund (“UBL Superannuation Fund”)**During the year ended March 31, 2022, the Company has surrendered the trust to the Employees Provident Fund
Organisation, Government of India.
Additional related parties as per the Companies Act, 2013 with whom transactions have taken place

124 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Directors: Mr. A K Ravi Nedungadi (till July 29, 2021)
Mr. Stephan Gerlich
Mrs. Kiran Majumdar Shaw
Mr. Madhav Bhatkuly
Mr. Sunil Alagh
Mr. Christiaan August J Van Steenbergen
Mr. Jan Cornelis Van Der Linden (effective June 1, 2020)
Mr. Rudolf Gijsbert Servaas Van Den Brink (till May 31, 2020)

The Securities and Exchange Board of India vide its order dated January 25, 2017 restrained Dr. Vijay Mallya fromholding position as Director or Key Managerial Person of any listed company. Pursuant to the decision of the Board
at its meeting held on July 4, 2017, the Company had communicated on July 6, 2017 to Dr. Mallya and his associatecompanies (promoters of the Company) to nominate a director on the Board in his place in terms of the Articles of
Association of the Company. Further, pursuant to the decision of the Board at its meeting held on August 10, 2017,
the Company carried out necessary filings with the Registrar of Companies, Karnataka (ROC) and Stock Exchanges
notifying Dr. Mallya’s cessation from holding the position of director in the Company. The applicable form relating
to cessation of directorship has since been approved by the ROC. Effective July 29,2021, Mr.Vijay Mallya is not a
related party.
Key management personnel (KMP):: Mr. Govind Iyengar, Senior Vice-President Legal and Company Secretary: United Breweries (Holdings) Limited (‘UBHL’)^ (till March 31, 2021)
Body corporate/Private companies
whose Board of directors is accustomed H. Parson Private Limited (‘HPPL’) (till March 31, 2021)
to act in accordance with advise,
Kingfisher Beer Europe Limited (‘KBE’) (till March 31, 2021)
directions or instructions of directors/
members (included in ‘Others’ below)^The Karnataka High Court has ordered winding up of UBHL on February 7, 2017.

[This space has been intentionally left blank]

Annual Report 2022 | 125

126 | United Breweries Limited

HIBV

Technical service fees

UBHL

Rent expense

HPPL

Sales promotion expenses

MML

Processing charges paid

Purchase of materials
MML
HAPBPL
HAPEP
HSCBV

APBS
DBL
DBG
KBE

Royalty income

MML
SIRC
APBS
HPPL

Transactions during the year
Sale of products (net)

Associate

Directors and KMPEnterprises over whichinvesting parties havesignificant influence/
Fellow subsidiaries
Others

–
–

–
–

–
–

697
697

–
–
–
–
–

–
–
–
–
–

–
–
–
–
–

–
–

–
–

–
–

656
656

115
–
–
–
115

–
–
–
–
–

114
–
–
–
114

–
–

–
–

–
–

–
–

–
–
–
–
–

–
–
–
–
–

–
–
–
–
–

–
–

–
–

–
–

–
–

–
–
–
–
–

–
–
–
–
–

–
–
–
–
–

600
600

–
–

–
–

–
–

–
–
–
–
–

–
–
–
–
–

–
–
–
–
–

–
–

–
–

–
–

–
–

–
–
–
–
–

–
–
–
–
–

–
–
–
–
–

–
–

–
–

–
–

–
–

–
–
–
–
–

–
–
–
–
–

–
–
–
–
–

–
–

–
–

–
–

–
–

–
–
–
–
–

–
–
–
–
–

–
–
–
–
–

–
–

–
–

–
–

–
–

–
1,201
–
5
1,206

1,760
542
101
–
2,403

–
11,826392–
12,218

600
600

–
–

–
–

–
–

–
727
127
18
872

613
451
114
–
1,178

–
5,401
331
–
5,732

–
–

–
–

–
–

–
–

–
–
–
–
–

–
–
–
–
–

–
–
–
–
–

–
–

101
101

5
5

–
–

–
–
–
–
–

–
–
–
43
43

–
–
–
2,788
2,788

March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021

SubsidiaryEnterprises having
significant influence

B. Transactions with related parties during the year along with balances as at year end:

Notes to standalone Financial Statements contd.
(All amounts in Indian Rupees Lakhs, except as otherwise stated)Sitting fee paid
Mr. A K Ravi Nedungadi
Mr. Stephan Gerlich
Mrs. Kiran Majumdar Shaw

Remuneration paid
[Refer (b) below]
Mr. Rishi Pardal
Mr. Berend Cornelis Roelof
Odink
Mr. Shekhar Ramamurthy
Mr. Govind Iyengar

MML
HIBV
HAPBPL
HPPL

Reimbursements paid

HAPPL
HAPEP
HIBV

Reimbursements received

HSCBV
HIBV
KBE

Consultancy fees paid

Royalty paid
HBBV
AmstelAssociate

Enterprises having
significant influence
Directors and KMPEnterprises over whichinvesting parties havesignificant influence/
Fellow subsidiaries
Others

–
–
–

–
–
–

–
–
–

–
–
–

–
–
–
–
–
–

–
–

–
–
–
–
–

–
–
–
–

–
–
–
–

–
–
–

–
–

1
–
–
–
1

–
–
–
–

–
–
–
–

–
–
–

–
–

–
–
–
–
–

–
–
–
–

–
–
–
–

–
–
–

–
–
–

–
–
–

–
–

–
–
–
–
–

–
–
–
–

–
–
–
–

–
–
–

–
–
–

–
–
–

–
–

–
352
–
–
352

–
–
99
99

–
361
–
361

–
–
–

–
–
–

–
–
–

–
–

–
–
–
–
–

–
–
–
–

–
–
–
–

–
–
–

8
12
12

214
244
1,913

1,024
431

–
–
–
–
–

–
–
–
–

–
–
–
–

–
–
–

16
13
15

931
258
2,118

478
451

–
–
–
–
–

–
–
–
–

–
–
–
–

–
–
–

–
–
–

–
–
–

–
–

–
–
–
–
–

–
–
–
–

131
–
–
131

395
217
612

–
–
–

–
–
–

–
–

–
319
1
–
320

60
16
–
76

137
25
–
162

278
177
455

–
–
–

–
–
–

–
–

–
–
–
–
–

–
–
–
–

–
–
–
–

–
–
–

–
–
–

–
–
–

–
–

–
–
–
55
55

–
–
–
–

–
–
25
25

–
–
–

March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021

Subsidiary(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Notes to standalone Financial Statements contd.

Annual Report 2022 | 127

128 | United Breweries Limited

Contributions madeUBL Gratuity Fund TrustUBL Provident Fund Trust**
UBL Superannuation FundUBL Provident Fund Trust

Purchase of investments

Dividend received
MML

Dividend accrued/paid on
equity shares
SNIL
HIBV
HUL
Dr. Vijay Mallya (including joint
holdings) [Refer (c) below]

Director Commission accrued*
Mr. A K Ravi Nedungadi
Mr. Stephan Gerlich
Mrs. Kiran Majumdar Shaw
Mr. Madhav Bhatkuly
Mr. Sunil Alagh

Sitting fee paid
Mr. Madhav Bhatkuly
Mr. Sunil Alagh
Mr. Christiaan August J Van
Steenbergen
Mr. Jan Cornelis Van Der
LindenAssociate

Enterprises having
significant influence
Directors and KMPEnterprises over whichinvesting parties havesignificant influence/
Fellow subsidiaries
Others

–
–
–
–

–
–
–
–
–
–

–
–

23
23

–
–
–
–

–
–

–
–

–
–

–
–

–
–
23
23

–
–
–

–
–
–

–
–
–

–
–
–
–
–
–

–

–

–
–
–
–
–
–
–

–

–

–

–
–
–
–
–
–

–
–
–

–
–
–

–
–
–

–
–
–
–

–
–

–
–

–
–

–
–
–

–
–
–
–
–
–

–

–

–
–
–

–
–
–
–

–
–

–
–

–
771

450
321
–

–
–
–
–
–
–

–

–

–
–
–

–
–
–
–

–
–

–
–

–
2,250

2,250
–
–

–
–
–
–
–
–

–

–

–
–
–

–
–
–
–

–
–

–
–

–
–

–
–
–

–
–
–
–

–
–

–
–

–
–

–
–
–

57
57
57
57
57
285

124

91
28
99
99
99
99
424

16

23
26
15

11

16
18
14

–
–
–
–

–
–

–
–

–
42

–
–
42

–
–
–
–
–
–

–

–

–
–
–

–
–
–
–

–
–

–
–

–
825

–
613
212

–
–
–
–
–
–

–

–

–
–
–

1,000
1,812
586
3,398

49
49

–
–

–
–

–
–
–

–
–
–
–
–
–

–

–

–
–
–

–
2,946
669
3,615

300
300

–
–

534
534

–
–
–

–
–
–
–
–
–

–

–

–
–
–

March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021

Subsidiary

Notes to standalone Financial Statements contd.
(All amounts in Indian Rupees Lakhs, except as otherwise stated)–

Share-based payment transactions

Associate

Directors and KMP

3,395

–

–

1,277

2,118

March 31, 2021

Enterprises over whichinvesting parties havesignificant influence/
Fellow subsidiaries

OthersBalances outstanding as at year end
Investment in equity shares
MML
4,500
KEBFTPL–
4,500
Provision for diminution invalue of investments
MML
3,735
3,735
Trade receivables
SIRC
–
APBS
–
DBL
–
HIBV
–
DBG
–
KBE
–
HPPL (net of security deposit)––
Security deposits (asset)
UBHL––
Advance to supplier
MML
–
–
–
1
1

–
–
–
–
–
–
–
–
–
–
–
–
–
–

4,500
–
4,500

3,735
3,735
–
–
–
–
–
–
–
–
–
–
75
75

–
–

–
–

–
–
–
–
–
–
–
–

–
–

–
1
1

–
–

–
–

–
–
–
99
–
–
–
99

–
–

–
–
–

–
–

–
–

–
–
–
–
–
–
–
–

–
–

–
–
–

–
–

–
–

–
–
–
–
–
–
–
–

–
–

–
–
–

–
–

–
–

–
–
–
–
–
–
–
–

–
–

–
–
–

–
–

–
–

1,994
999
125
–
30
–
–
3,148

–
–

–
–
–

–
–

–
–

522
297
141
–
49
–
–
1,009

–
–

–
–
–

–
–

–
–

–
–
–
–
–
–
–
–

–
–

–
–
–

–
–

65
65

–
–
–
–
–
6
9
15

–
–

–
–
–

March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021

SubsidiaryEnterprises having
significant influence*Excludes Goods and Services Tax (GST) paid by the Company under reverse charge mechanism.
**Includes both employer and employee contributions to the fund.

1,913

–

Termination benefits

Total compensation paid to key management personnel

–

1,913

March 31, 2022

Post-employment gratuity (Paid by UBL Gratuity Fund Trust)Compensation of key management personnel
Short-term employee benefits(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Notes to standalone Financial Statements contd.

Annual Report 2022 | 129

130 | United Breweries Limited
Enterprises having
significant influence
Directors and KMPEnterprises over whichinvesting parties havesignificant influence/
Fellow subsidiaries
Others

–

–
–

–
–

–

–

–

–

–
–
–
–
–
–
–
–
–
–
–
–
–

–
–
–
–
–
–
–
–
–
–
–
–
–

–
–
–
–
–

–
–
–
–
–
39
–
39

–

–

–

–
–
–
–
–

–
–
–
–
–
–
–
–

–

–

–

–
–
–
–
–

888
–
–
–
–
–
–
888

–

–

–

–
–
–
–
–

–
–
–
–
–
–
–
–

366

–

1

26
65
92
91
91

–
–
–
–
–
–
–
–

249

1

1

52
38
52
52
53

–
–
–
–
–
–
–
–

–

–

–

–
–
–
–
–

–
116
58
33
205
–
–
412

–

–

–

–
–
–
–
–

629
124
66
30
13
–
–
862

–

–

–

–
–
–
–
–

–
–
–
–
–
–
–
–

–

–

–

–
–
–
–
–

–
–
–
–
–
–
209
209

Terms and conditions of transactions with related parties
The transactions with related parties are made on terms equivalent to those prevailing in arm’s length transaction. The outstanding receivables/payables balances are generally
unsecured and interest free. There have been no guarantees provided to or received from any related party.

(a) Property, plant and equipment with gross block of Rs. 343 Lakhs (Previous year : Rs. 343 Lakhs) are lying with MML.
(b) The remuneration to key managerial personnel includes reimbursements and excludes the provisions made for gratuity and compensated absences, as they are determinedon an actuarial basis for the Company as a whole. Also, for Mr. Rishi Pardal, the remuneration disclosed in March 31, 2021 is for the period he has been designated as
Managing Director of the Company.
(c) The Company had received orders from the Debt Recovery Tribunal, Karnataka, Bangalore (DRT), whereby the Company has been directed not to pay/release amounts that
may be payable with respect to shares in the Company held by an erstwhile director (including his joint holdings) and certain other shareholders without its prior permission;accordingly, the Company has withheld payment of Rs. 2,099 Lakhs (net of taxes) relating to dividend on aforesaid shares. The Company would also withhold payment ofproposed dividend for the year ended March 31, 2022 on aforesaid shares, which is subject to approval by the shareholders in the ensuing annual general meeting. Further,
the Company had received various orders from tax and provident fund authorities prohibiting the Company from making any payment to an erstwhile director; accordingly
the Company has withheld payment of Rs. 45 Lakhs (net of TDS), relating to director commission and sitting fees payable to the aforesaid erstwhile director.

Mr. Christiaan August J Van
Steenbergen
Mr. Jan Cornelis Van Der
LindenOther Payables
Mr. A K Ravi Nedungadi
Mr. Stephan Gerlich
Mrs. Kiran Majumdar Shaw
Mr. Madhav Bhatkuly
Mr. Sunil Alagh

Trade payables
HIBV
HBBV
AmstelHSCBV
HAPBPLMML
UBHL

Associate

March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021

Subsidiary

Notes to standalone Financial Statements contd.
(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

39. FINANCIAL INSTRUMENTS FAIR VALUE MEASUREMENT
All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are
categorised within the fair value hierarchy, as below, based on the lowest level input that is significant to the fairvalue measurement as a whole:
Level 1 : Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 : Valuation techniques for which the lowest level input that is significant to the fair value measurement isdirectly or indirectly observable
Level 3 : Valuation techniques for which the lowest level input that is significant to the fair value measurement isunobservable
The fair value measurement hierarchy of the Company’s assets and liabilities is as below:
Carrying
amount
As at March 31, 2022
Financial assets measured at fair value through profit or loss
Investments in equity instruments
Financial assets measured at fair value through othercomprehensive income
Investments in debt instruments
Financial assets measured at cost less impairment
Investments in subsidiary and associate
As at March 31, 2021
Financial assets measured at fair value through profit or loss
Investments in equity instruments
Financial assets measured at fair value through othercomprehensive income
Investments in debt instruments
Financial assets measured at cost less impairment
Investments in subsidiary and associate

Fair values
Level 1

Level 2

Level 3

553

—

—

553

278

212

66

—

766

—

—

766

302

—

—

302

300

—

300

—

766

—

—

766

There has been no transfers between levels during the year.
Considering that the amounts involved for investment in equity instruments are not significant, fair value fluctuations
are not expected to be material and hence no further disclosure has been made. The fair values of investment inquoted debt instruments are based on price quotations and available market information at the reporting date areclassified as Level 1.
The fair value of investment in subsidiary for the purpose of impairment assessment is determined based on fairvaluation of the underlying assets. The key assumptions used in the valuation includes marketability discount of
10% and cost to sell of 2%. The sensitivity of 5% increase/(decrease) in the marketability discount and cost of sell
would have an immaterial impact on the valuation. Also refer Note 30(a).
The management assessed that the carrying values of trade and other receivables, cash and short-term deposits,
other assets, borrowings, trade and other payables and balances with related parties, based on their notionalamounts, reasonably approximate their fair values because these instruments have short-term maturities.
40. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIESThe Company’s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of
these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include
investments, trade and other receivables, cash and cash equivalents, bank balances and security deposits that areout of regular business operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees
the management of these risks. The Company’s senior management is supported by a risk management committeethat advises on financial risks and the appropriate financial risk governance framework for the Company.
Annual Report 2022 | 131

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

The risk management committee provides assurance to the Company’s senior management that the Company’s
financial risk activities are governed by appropriate policies and procedures and that financial risks are identified,measured and managed in accordance with the Company’s policies and risk objectives. All derivative activities forrisk management purposes are carried out by specialist teams that have the appropriate skills, experience andsupervision. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken.
The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.
(a) Market risk
		 Market risk is the risk that the fair value of future cash flows of a financial instrument that will fluctuate becauseof changes in market prices. Market risk comprises of three types of risk i.e. interest rate risk, currency risk andother price risk, such as commodity risk. Financial instruments affected by market risk include borrowings andtrade payables.
i. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Company’s financial instruments willfluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market
interest rate relates primarily to the Company’s borrowings with floating interest rates.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on borrowings
affected. With all other variables held constant, the Company’s profit before tax is affected through the impact
on floating rate borrowings, as follows:
March 31, 2022
Impact on profit before tax

March 31, 2021

1% increase

1% decrease

1% increase

1% decrease

—

—

(250)

250

ii. Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because ofchanges in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates
relates primarily to the Company’s foreign currency borrowings, trade payable and trade receivables.
The Company did not hedge any exposure as at March 31, 2022 and March 31, 2021. The unhedged foreign
currency exposure (gross amounts in Indian rupees lakhs) as at the reporting date is as below:
As atMarch 31,
2022

As at
March 31,
2021

3,326

1,450

311

165

5,856

4,692

Capital advances55

72

Trade payables

2,022

2,384

724

779

Trade receivables
Advances to suppliers
Balance in exchange earners foreign currency bank accounts

Liability for capital goods

The following table demonstrate the sensitivity to a reasonably possible change in foreign exchange rates, withall other variables held constant:March 31, 2022
Impact on profit before tax

132 | United Breweries Limited

March 31, 2021

1% increase

1% decrease

1% increase

1% decrease

68

(68)

31

(31)

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)iii. Commodity price risk
The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoingpurchase and manufacture of Beer and therefore require a continuous supply of Barley. The Company’s Boardof Directors has developed and enacted a risk management strategy regarding commodity price risk and its
mitigation.
The following table shows the effect of price changes in Barley:
March 31, 2022

Impact on profit before tax

March 31, 2021

1% increase

1% decrease

1% increase

1% decrease

(271)

271

(193)

193

(b) Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its
obligations. The Company’s exposure to credit risk arises majorly from trade/other receivables and investment
in debt instruments. Other financial assets like security deposits and bank deposits are mostly with government
authorities and nationalised banks and hence, the Company does not expect any significant credit risk withrespect to these financial assets. With respect to trade receivables, significant portion (68% at March 31,
2022 and 70% as at March 31, 2021) includes dues from state government corporations, where probabilityof default is remote. The Company has constituted regional and corporate credit committees to review tradereceivables on periodic basis and to take necessary mitigations, wherever required.
The Company creates provision for all unsecured trade receivables based on lifetime expected credit loss. The
summary of changes in loss allowance for trade receivables is as below:
March 31,2022

March 31,2021

Balance at the beginning of the year

5,792

8,693

Provision recognised/(reversed) during the year, net

1,503(2,901)

Balance at the end of the year

7,295

5,792

The Company has considered the possible effects of the COVID-19 pandemic on the carrying amounts of tradeand other receivables, by using available internal and external sources of information.
(c) Liquidity risk
The Company’s objective is to maintain a balance between continuity of funding and flexibility through the useof bank borrowings. The table below summarises the undiscounted maturity profile of the Company’s financial
liabilities:
Maturities
Upto 1 year

1-2 years

2-3 years

Total>3 Years

March 31, 2022
Lease liabilities

432

236

120

367

1,155

Trade payables

63,769———63,769Other financial liabilities

55,719

2,497

—

—

58,216

1,19,920

2,733

120

367

1,23,140

Total

Annual Report 2022 | 133

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Maturities
Upto 1 year

1-2 years

2-3 years

Total>3 Years

March 31, 2021
Lease liabilities

484

288

170

481

1,423

14,25010,750——25,000

17

—

—

—

17

Trade payables

62,904———62,904

Other financial liabilities

52,315

1,109

—

—

53,424

1,29,970

12,147170481

1,42,768

Non-current borrowings
Current borrowings

Total

The Company has utilised the existing borrowing limits based on requirements and has unutilised borrowing
limits at the year end which is available for utilisation.
41. CAPITAL MANAGEMENT
For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium
and all other equity reserves attributable to the equity shareholders. The primary objective of the Company’s capitalmanagement is to ensure that it maintains a strong credit rating and capital ratios in order to support its businessand maximise shareholder value.
The Company monitors capital using a gearing ratio, which is net debt divided by total capital. The Company
includes within net debt, all non-current and current borrowings reduced by cash and cash equivalents and otherbank balances.
Notes

As at
March 31,
2022

As at
March 31,2021

Non-current borrowings

15—

10,750Current borrowings

18—

14,267

Lease liabilities

33

974

1,180

Less: Cash and cash equivalents

11

86,23840,940Less: Other bank balances (excluding unpaid dividend and unspent
CSR amounts)

12

665

718

—

—

Net debt
Equity share capital

13

2,644

2,644

Other equity

14

3,90,557

3,55,318

Total capital

3,93,201

3,57,962

Gearing ratio——

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims toensure that it meets financial covenants attached to the interest-bearing borrowings that define capital structure
requirements. The breaches in meeting the financial covenants would permit the bank to immediately callborrowings. There have been no breaches in the financial covenants of any interest-bearing borrowings in thecurrent year or previous year.
No changes were made in the objectives, policies or processes for managing capital during the years ended
March 31, 2022 and March 31, 2021.

134 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

42. The Bihar State Government (“the Government”) vide its notification dated April 5, 2016 had imposed ban on
trade and consumption of alcoholic beverages in the State of Bihar. The Company had filed a writ petition with
the High Court at Patna, requesting remedies and compensation for losses incurred on account of such abrupt
notification, against which the Government preferred a special leave petition before the Supreme Court of India.
Further, the Government did not renew brewery licenses for the financial year 2017-18 onwards and consequently
the Company discontinued production of beer at Bihar. The matter is currently pending before the Supreme Court
for final conclusion.
During the financial year 2018-19, in order to maintain the assets in running condition, the Company commenced
manufacture of non-alcoholic beverages at its existing manufacturing facility at Bihar using its existing property,
plant and equipment. The Company carried out an impairment assessment of its property, plant and equipment at
Bihar and the recoverable amount of these property, plant and equipment was determined by an external valuer
based on a fair value less cost of disposal calculation, considering uncertainity in the alcoholic beverages and thechange in plan for use of these assets. An impairment loss of Rs. 4,446 Lakhs was recognized during the year
ended March 31, 2021. As at March 31, 2022, the carrying value of property, plant and equipment at Bihar isRs. 10,031 Lakhs (net of impairment) and no further impairment is considered necessary by the management basedon annual impariment assessment.
43. RATIO’S AND IT’S ELEMENTS
Ratio

Numerator

Denominator

March 31, March 31, % Change
2022
2021

Reason for variance exceeding
25% as compared topreceeding period

Current ratio

Current Assets

Current Liabilities

1.77

1.55

10%

Debt-Equity
Ratio

Total Debt (Includes
lease liabilities)

Shareholder’s Equity

—

0.07

-100%

Reduction is due to repayment of debt
during the year ended March 31, 2022

Debt Service
Coverage ratio

Earnings for debt
service = Net profit
after taxes + Noncash operating
expenses

Debt service =Interest & Lease
Payments + Principal
Repayments

2.21

1.61

37%

Increase in sales leading to increase inprofits as compared to previous year
which was impacted by the pandemic
and repayment of debt in the current
year.

Net Profits after taxes Average
Return on
Equity ratio (%) - Preference Dividend Shareholder’s Equity

9.72

3.18

206%

Increase in sales leading to increase inprofits as compared to previous year
which was impacted by the pandemic.

Inventory
Turnover ratio

Average Inventory

9.87

7.16

38%

Increase in sales as compared toprevious year which was impacted by
the pandemic and reduction in inventory
levels in certain categories considering
the timing of purchases.

Average Trade
Receivable

9.90

7.42

33%

Increase in sales as compared toprevious year which was impacted by
the pandemic and recoveries as percredit terms.

Trade Payable
Turnover Ratio

Net credit purchases Average Trade= Gross credit
Payablespurchases - purchase
return

5.23

4.32

21%

Net Capital
Turnover Ratio

Net sales = Total sales Working capital =- sales return
Current assets –Current liabilities

9.36

8.60

9%

Net Profit ratio(%)

Net Profit

2.78

1.11

151%

Cost of goods soldTrade Receivable Net credit sales =Turnover Ratio Gross credit sales sales return

Net sales = Total
sales - sales return

Increase in sales leading to increase inprofits as compared to previous year
which was impacted by the pandemic.

Annual Report 2022 | 135

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)
Ratio

Numerator

Denominator

March 31, March 31, % Change
2022
2021

Return on
Capital
Employed (%)

Earnings before
interest and taxes

Capital Employed= Tangible Net
Worth + Total Debt Deferred Tax Asset

13.06

5.22

150%

Return on
Interest Income +Investment (%) Dividend income

Average investment
in Equity and debt
securities and fixeddeposits with banks

2.80

2.40

17%

Reason for variance exceeding
25% as compared topreceeding period
Increase in sales leading to increase inprofits as compared to previous year
which was impacted by the pandemic.

44. OTHER STATUTORY INFORMATION(i)

The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 andrules made thereunder.

(ii) The Company did not have any transactions with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of the Companies Act, 1956.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyod thestatutory period, except for Rs. 50 Lakhs in relation to loan repaid in the past.
(iv) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
(v) The Company has not advanced or loaned or invested funds (either from borrowed funds or share premiumor any other sources or kind of funds) to or in any other persons(s) or entity(ies), including foreign entities(Intermediaries) with the understanding whether recorded in writing or otherwise, that the Intermediary shall:(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries) or(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwsie) that the Company shall:(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by oron behalf of the Funding Party (Ultimate Beneficiaries) or(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries(vii) The Company did not have any such transaction which is not recorded in the books of accounts that has beensurrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
such as, search or survey or any other relevant provisions of the Income tax Act, 1961.
45. The Code on Social Security, 2020 (the “Code”) relating to employee benefits during employment andpost-employment benefits, received Presidential assent in September 2020. The Code has been published in theGazette of India. However, the date on which the Code will come into effect is yet to be notified and the final
rules / interpretation are yet to be issued. The Company will assess the impact of the Code when it comes into effectand will record any related impact accordingly.

136 | United Breweries Limited

Notes to standalone Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

46. The Company has assessed the impact of Coronavirus (COVID-19) pandemic on its business operations and has
considered all relevant internal and external information available upto the date of approval of these standalone
financial statements in determining the recoverability and carrying values of property, plant and equipment,right-of-use assets, intangible assets, investments, trade and other receivables, inventories and other financial
information captions. The impact of COVID-19 pandemic on the overall economic environment being uncertain
may affect the underlying assumptions / estimates used in preparation of these standalone financial statements,
whereby actual outcome may differ from those assumptions / estimates considered at the date of approval of thesestandalone financial statements. The Company will continue to closely monitor the situation and any materialchanges to future economic conditions.
47. The comparative figures have been regrouped/reclassified, where necessary, to confine to this year’s classification.

As per our report of even date

For and on behalf of the Board of Directors ofUnited Breweries Limited

For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004

Rishi Pardal
Managing Director
DIN: 02470061

Berend Cornelis Roelof Odink
Director and Chief Financial Officer
DIN: 09138421

per Aditya Vikram BhauwalaPartnerMembership Number: 208382

Madhav Bhatkuly
Director
DIN: 00796367

Govind Iyengar
Senior Vice-President Legal andCompany Secretary

Place: Bengaluru
Date: April 26, 2022

Place: Bengaluru
Date: April 26, 2022

Annual Report 2022 | 137

Independent Auditor’s Report
To the Members of United Breweries Limited
Report on the Audit of the Consolidated Financial Statements
OpinionWe have audited the accompanying consolidated financial statements of United Breweries Limited (hereinafter referred
to as “the Holding Company”), its subsidiary (the Holding Company and its subsidiary together referred to as “theGroup”) and its associate comprising of the Consolidated Balance Sheet as at March 31, 2022, the Consolidated
Statement of Profit and Loss, including the Consolidated Statement of Other Comprehensive Income, the Consolidated
Cash Flow Statement and the Consolidated Statement of Changes in Equity for the year then ended, and notes tothe consolidated financial statements, including a summary of significant accounting policies and other explanatory
information (hereinafter referred to as “the consolidated financial statements”).
In our opinion and to the best of our information and according to the explanations given to us and based on theconsideration of the report of other auditors on separate financial statements and on the other financial informationof the subsidiary, the aforesaid consolidated financial statements give the information required by the Companies
Act, 2013, as amended (“the Act”) in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India, of the consolidated state of affairs of the Group and its associate as
at March 31, 2022, their consolidated profit including other comprehensive income, their consolidated cash flows andthe consolidated changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the consolidated financial statements in accordance with the Standards on Auditing (SAs),
as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described inthe ‘Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements’ section of our report. We are
independent of the Group and its associate in accordance with the ‘Code of Ethics’ issued by the Institute of Chartered
Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements
under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements.
Emphasis of Matter
We draw attention to below mentioned notes to the accompanying consolidated financial statements:(a) Note 35(a) which more fully describes the matter pertaining to the levy of a penalty of Rs 75,183 Lakhs on theHolding Company, vide Order issued by the Competition Commission of India (CCI) for alleged contravention of
the provisions of section 3 of the Competition Act, 2002. Based on advice of external legal experts, the Holding
Company is of the view that it has strong case on merits, there exists uncertainty relating to the final outcome inthis matter, which is dependent on judicial proceedings; and that it is not in a position to reliably estimate the final
obligation relating to penalties, if any. Accordingly, no provision has been recorded in the books of account; and(b) Note 43 which more fully describes the uncertainty relating to the outcome of special leave petition filed by the Bihar
State Government before the Honourable Supreme Court of India and the consequential impact thereof.
Our opinion is not modified in respect of aforesaid matters.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of theconsolidated financial statements for the financial year ended March 31, 2022. These matters were addressed in thecontext of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed
the matter is provided in that context.
138 | United Breweries Limited

Independent Auditor’s Report on the Consolidated Financial Statements contd.
We have determined the matters described below to be the key audit matters to be communicated in our report. We
have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the consolidated financial
statements section of our report, including in relation to these matters. Accordingly, our audit included the performanceof procedures designed to respond to our assessment of the risks of material misstatement of the consolidated financial
statements. The results of audit procedures performed by us, including those procedures performed to address thematters below, provide the basis for our audit opinion on the accompanying consolidated financial statements.
Key audit matters

How our audit addressed the key audit matter

Revenue from sale of products(as described in Note 2.1(f), (x) and 21 of the consolidated financial statements)
Revenue from sale of products is recognised whencontrol of products has been transferred to thecustomer and there is no unfulfilled obligationthat could affect the customer’s acceptance ofthe products. Revenue from sale of products ismeasured at the fair value of the consideration
received or receivable, net of returns andallowances, discounts and incentives.
At year end, amounts of discounts and incentives
that have been incurred and not yet issued tocustomers are estimated and accrued. Significant
judgement is required in estimating accruals
relating to discounts and incentives recognised
in relation to sales made during the year.

Our procedures included the following:• Assessed the Group’s revenue recognition accounting policy
for sale of products, including those relating to discounts andincentives.
• Understood, evaluated and tested on sample basis the design andoperating effectiveness of key internal controls over recognition
and measurement of revenue, discounts, and incentives.
• Performed test of details on a sample basis and inspected theunderlying accounting documents relating to sales and accrualof discounts and incentives.
• Tested on a sample basis, sales transactions near year end dateas well as credit notes issued to customers after the year end
date.
• Obtained an understanding of and evaluated underlying data
used in management assessment of estimates relating todiscounts and incentives.
• Performed analytical procedures on revenue, discounts andincentives.
• Assessed the disclosures in the consolidated financial statements
in respect of revenue, discounts and incentives for compliancewith disclosure requirements.

Provision for trade receivables(as described in Note 2.1(x), 10 and 41(b) of the consolidated financial statements)
Trade receivable balances represent significant Our procedures included the following:
portion of the total assets as at March 31, • Understood, evaluated and tested on sample basis the design2022. Trade receivables include dues from stateand operating effectiveness of internal controls over trade
government corporations, distributors, retailers
receivables.
and contract manufacturing units. The Group • Performed audit procedures on existence of trade receivables,
records expected credit loss for unsecured trade
which included reading and comparing balance confirmations
receivables based on management estimates.
with books of account, testing subsequent receipts and testingsales transactions on a sample basis.
Timing of collection of dues from customers
may differ from the contractual credit period. • Evaluated the assumptions used by management to calculate
Significant judgment is involved in management
the expected credit loss for trade receivables through audit
estimates of the amounts unlikely to beprocedures which included analysis of ageing, past trend of bad
ultimately collected.
debts write-off.
• Assessed the disclosures in the consolidated financial statements
for compliance with disclosure requirements.
Annual Report 2022 | 139

Independent Auditor’s Report on the Consolidated Financial Statements contd.

Key audit matters

How our audit addressed the key audit matter

Tax contingencies and provisions(as described in Note 2.1(x), 17 and 35(b) of the consolidated financial statements)
The Group has received income tax demand Our procedures included the following:orders and notices relating to transfer pricing, • Obtained an understanding of the Holding Company’s processdisallowance of certain expenses, etc. and haswith respect to completeness and recognition of tax contingencies
also received indirect tax demand orders andand provisions.
notices, which are under litigation.
• Read the confirmations, on sample basis, from the Holding
Company’s external legal counsel on tax litigations and evaluated
The Group is contesting these demands and has
the independence, objectivity and competency of the Holding
made provision where the outflow of resources
Company’s specialists involved.
embodying economic benefits is considered to
be probable.
• Read relevant tax laws and discussed with the management,
to understand the underlying matters in the demand orders /Significant judgement and estimates are required
notices and basis for management judgement and estimates.
to assess uncertain income tax/other indirect tax
positions and impact of these litigations on the • Included tax specialists in our team to perform an evaluation ofassumptions used by the management and relevant judgements
consolidated financial position, consolidated
passed by the authorities, including the interpretation of theresults of operations and consolidated cash
relevant tax laws.
flows.
• Assessed the related disclosures in the consolidated financial
statements for compliance with disclosure requirements.
Other Information
The Holding Company’s Board of Directors is responsible for the other information. The other information comprises theinformation included in the director’s report and the corporate governance report but does not include the consolidated
financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
and, in doing so, consider whether such other information is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on thework we have performed, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements
The Holding Company’s Board of Directors is responsible for the preparation and presentation of these consolidated
financial statements in terms of the requirements of the Act that give a true and fair view of the consolidated financial
position, consolidated financial performance including other comprehensive income, consolidated cash flows andconsolidated statement of changes in equity of the Group including its associate in accordance with the accounting
principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. The respective Board of
Directors of the companies included in the Group and of its associate are responsible for maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group and of
its associate and for preventing and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementationand maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and
140 | United Breweries Limited

Independent Auditor’s Report on the Consolidated Financial Statements contd.
completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial
statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, whichhave been used for the purpose of preparation of the consolidated financial statements by the Directors of the Holding
Company, as aforesaid.
In preparing the consolidated financial statements, the respective Board of Directors of the companies included in
the Group and of its associate are responsible for assessing the ability of the Group and of its associate to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basisof accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
The respective Board of Directors of the companies included in the Group and of its associate are also responsible foroverseeing the financial reporting process of the Group and of its associate.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our
opinion on whether the Holding Company has adequate internal financial controls with reference to financial
statements in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the ability of the Group and its associate to continue as a going concern. If we conclude that amaterial uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group and its associate to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including thedisclosures, and whether the consolidated financial statements represent the underlying transactions and events in amanner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Group and its associate of which we are the independent auditors, to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performance of the audit of the financial
Annual Report 2022 | 141

Independent Auditor’s Report on the Consolidated Financial Statements contd.
statements of such entities included in the consolidated financial statements of which we are the independent
auditors. For the other entities included in the consolidated financial statements, which have been audited by otherauditors, such other auditors remain responsible for the direction, supervision and performance of the audits carriedout by them. We remain solely responsible for our audit opinion.
We communicate with those charged with governance of the Holding Company and such other entities included in
the consolidated financial statements of which we are the independent auditors regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of mostsignificance in the audit of the consolidated financial statements for the financial year ended March 31, 2022 and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to outweighthe public interest benefits of such communication.
Other Matter(a) We did not audit the financial statements and other financial information, in respect of a subsidiary, whose financial
statements include total assets of Rs. 1,023 Lakhs as at March 31, 2022, and total revenues of Rs. 1,316 Lakhs andnet cash outflows of Rs. 6 Lakhs for the year ended on that date. These financial statements and other financial
information have been audited by other auditors, which financial statements, other financial information and auditor’sreport have been furnished to us by the management. Our opinion on the consolidated financial statements, in so
far as it relates to the amounts and disclosures included in respect of this subsidiary and our report in terms of subsection (3) of section 143 of the Act, in so far as it relates to the aforesaid subsidiary is based solely on the report ofsuch other auditors.
(b) The accompanying consolidated financial statements does not include the Holding Company’s share of net loss forthe year ended March 31, 2022 in respect of Kingfisher East Bengal Football Team Private Limited, an associate,
which is considered as not material to the Group.
Our opinion above on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements
below, is not modified in respect of the above matters with respect to our reliance on the work done and the report ofthe other auditors and the financial statements and other financial information certified by the Management.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government ofIndia in terms of sub-section (11) of section 143 of the Act, based on our audit and on the consideration of reportof the other auditors on separate financial statements and the other financial information of the subsidiary company
incorporated in India, as noted in the ‘Other Matter’ paragraph we give in the “Annexure 1” a statement on thematters specified in paragraph 3(xxi) of the Order.
2. As required by section 143(3) of the Act, based on our audit and on the consideration of report of the other auditors
on separate financial statements and the other financial information of subsidiary, as noted in the ‘Other Matter’
paragraph we report, to the extent applicable, that:(a) We/the other auditors whose report we have relied upon, have sought and obtained all the information andexplanations which to the best of our knowledge and belief were necessary for the purposes of our audit of theaforesaid consolidated financial statements;
142 | United Breweries Limited

Independent Auditor’s Report on the Consolidated Financial Statements contd.
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidationof the financial statements have been kept so far as it appears from our examination of those books and reportof the other auditors;(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including the Consolidated
Statement of Other Comprehensive Income, the Consolidated Cash Flow Statement and Consolidated Statementof Changes in Equity dealt with by this report are in agreement with the books of account maintained for the
purpose of preparation of the consolidated financial statements;(d) In our opinion, the aforesaid consolidated financial statements comply with the Accounting Standards specified
under section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;(e) The matter described in paragraph (a) of Emphasis of Matter paragraph above, in our opinion, may have an
adverse effect on the functioning of the Group;(f) On the basis of the written representations received from the directors of the Holding Company as on March 31,
2022 taken on record by the Board of Directors of the Holding Company and the report of the statutory auditors
who are appointed under section 139 of the Act, of its subsidiary company, none of the directors of the Group
companies, incorporated in India, is disqualified as on March 31, 2022 from being appointed as a director interms of section 164(2) of the Act;(g) With respect to the adequacy and the operating effectiveness of the internal financial controls with reference
to these consolidated financial statements of the Holding Company and its subsidiary company incorporated inIndia, refer to our separate report in “Annexure 2” to this report;(h) In our opinion and based on the consideration of report of the statutory auditors of the subsidiary, the managerial
remuneration for the year ended March 31, 2022 has been paid / provided by the Holding Company and its
subsidiary incorporated in India to their directors in accordance with the provisions of section 197 read with
Schedule V to the Act; and(i) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information andaccording to the explanations given to us and based on the consideration of the report of the other auditors on
separate financial statements and also the other financial information of the subsidiary, as noted in the ‘Other
Matter’ paragraph:i. The Group has disclosed the impact of pending litigations on its consolidated financial position in its
consolidated financial statements – Refer Note 17, 35 and 43 to the consolidated financial statements;
ii. The Group did not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses;iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education andProtection Fund by the Holding Company and its subsidiary incorporated in India during the year ended
March 31, 2022;
		

iv. (a) The respective managements of the Holding Company and its subsidiary which is company incorporated
in India whose financial statements have been audited under the Act have represented to us and theother auditors of such subsidiary, respectively, that to the best of its knowledge and belief, no funds havebeen advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Holding Company or subsidiary to or in any other person or entity, including
foreign entity (“Intermediary”), with the understanding, whether recorded in writing or otherwise, that
the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the respective Holding Company or such subsidiary (“Ultimate
Beneficiary”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiary;
Annual Report 2022 | 143

Independent Auditor’s Report on the Consolidated Financial Statements contd.
			(b) The respective managements of the Holding Company and its subsidiary which is company incorporated
in India whose financial statements have been audited under the Act have represented to us and theother auditors of such subsidiary, respectively, that to the best of its knowledge and belief, no funds
have been received by the respective Holding Company or subsidiary from any person or entity, including
foreign entity (“Funding Party”), with the understanding, whether recorded in writing or otherwise,that the Holding Company or such subsidiary shall, whether, directly or indirectly, lend or invest in otherpersons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate
Beneficiary”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiary; and			(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances
performed by us and those performed by the auditors of the subsidiary which is company incorporated
in India whose financial statements have been audited under the Act, nothing has come to our or otherauditor’s notice that has caused us or the other auditors to believe that the representations under subclause (a) and (b) contain any material mis-statement.

v. The final dividend paid by the Holding Company and its subsidiary company incorporated in India during theyear pertaining to dividend declared for the previous year is in accordance with section 123 of the Act to theextent it applies to payment of dividend.
As stated in Note 14 to the consolidated financial statements, the respective Board of Directors of the Holding
Company and its subsidiary company, incorporated in India have proposed final dividend for the year which
is subject to the approval of the members of the respective companies at the respective ensuing Annual
General Meeting. The amount of dividend declared is in accordance with section 123 of the Act to the extent
it applies to declaration of dividend.

For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Aditya Vikram BhauwalaPartnerMembership Number: 208382
Unique Document Identification Number (UDIN): 22208382AHUZZP4205
Bengaluru
April 26, 2022

144 | United Breweries Limited

Independent Auditor’s Report on the Consolidated Financial Statements contd.
ANNEXURE ‘1’ REFERRED TO IN PARAGRAPH UNDER THE HEADING “REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS” OF OUR REPORT OF EVEN DATE
Re: United Breweries Limited (“the Holding Company”), its subsidiary (the Holding Company and its subsidiary
together referred to as “the Group”) and its associate
Based on our audit and on the consideration of report of the other auditors on separate financial statements and theother financial information of the subsidiary company incorporated in India, we state that:(xxi) Qualifications or adverse remarks by the respective auditors in the Companies (Auditors Report) Order (CARO)
reports of the companies included in the consolidated financial statements are:
S.
No.

Name

CIN

Holding Company/
Subsidiary

Clause number of the
CARO report which isqualified or is adverse

1.

United Breweries Limited

L36999KA1999PLC025195

Holding Company

i(c)

2.

United Breweries Limited

L36999KA1999PLC025195

Holding Companyii(b)The report of the following component included in the consolidated financial statements has not been issued by
its auditor till the date of our auditor’s report:
S.
No.
1.

Name
Kingfisher East Bengal Football Team
Private Limited

CIN

Subsidiary/ Associate

U91990WB1998PTC086852

Associate

For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Aditya Vikram BhauwalaPartnerMembership Number: 208382
Unique Document Identification Number (UDIN): 22208382AHUZZP4205
Bengaluru
April 26, 2022

Annual Report 2022 | 145

Independent Auditor’s Report on the Consolidated Financial Statements contd.
ANNEXURE ‘2’ REFERRED TO IN PARAGRAPH UNDER THE HEADING “REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS” OF OUR REPORT OF EVEN DATE
Report on the Internal Financial Controls under clause (i) of sub-section 3 of section 143 of the Companies
Act, 2013 (“the Act”)
In conjunction with our audit of the consolidated financial statements of United Breweries Limited (hereinafter referred
to as “the Holding Company”), its subsidiary (the Holding Company and its subsidiary together referred to as “theGroup”) and its associate as of and for the year ended March 31, 2022, we have audited the internal financial controls
with reference to consolidated financial statements of the Holding Company and its subsidiary company, which is acompany incorporated in India, as of that date.
Management’s Responsibility for Internal Financial Controls
The respective Board of Directors of the Holding Company, its subsidiary and associate, which are companies incorporated
in India, are responsible for establishing and maintaining internal financial controls based on the internal financial controls
over financial reporting criteria established by the Group considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) issued by
the Institute of Chartered Accountants of India (the “ICAI”). These responsibilities include the design, implementationand maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business, including adherence to the respective company’s policies, the safeguarding of its assets,
the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and thetimely preparation of reliable financial information, as required under the Act.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Holding Company’s internal financial controls with reference to these
consolidated financial statements based on our audit. We conducted our audit in accordance with the Guidance Noteand the Standards on Auditing, specified under section 143(10) of the Act, to the extent applicable to an audit ofinternal financial controls, both issued by the ICAI. Those Standards and the Guidance Note require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate
internal financial controls with reference to consolidated financial statements was established and maintained and if
such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
with reference to consolidated financial statements and their operating effectiveness. Our audit of internal financial
controls with reference to consolidated financial statements included obtaining an understanding of internal financial
controls with reference to consolidated financial statements, assessing the risk that a material weakness exists, andtesting and evaluating the design and operating effectiveness of internal controls based on the assessed risk. The
procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatementof the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained, and the audit evidence obtained by the other auditors in termsof their report referred to in the Other Matter paragraph below, is sufficient and appropriate to provide a basis for our
audit opinion on the internal financial controls with reference to these consolidated financial statements.
Meaning of Internal Financial Controls with Reference to Consolidated Financial Statements
A company’s internal financial controls with reference to consolidated financial statements is a process designed toprovide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles.
A company’s internal financial controls with reference to consolidated financial statements includes those policies andprocedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
146 | United Breweries Limited

Independent Auditor’s Report on the Consolidated Financial Statements contd.
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions arerecorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in accordance with authorisationsof management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on
the financial statements.
Inherent Limitations of Internal Financial Controls with Reference to Consolidated Financial Statements
Because of the inherent limitations of internal financial controls with reference to consolidated financial statements,
including the possibility of collusion or improper management override of controls, material misstatements due toerror or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls withreference to consolidated financial statements to future periods are subject to the risk that the internal financial controls
with reference to consolidated financial statements may become inadequate because of changes in conditions, or thatthe degree of compliance with the policies or procedures may deteriorate.
OpinionIn our opinion, the Holding Company and its subsidiary company, which are companies incorporated in India, havemaintained in all material respects, adequate internal financial controls with reference to these consolidated financial
statements and such internal financial controls with reference to these consolidated financial statements were operating
effectively as at March 31, 2022, based on the internal controls over financial reporting criteria established by theHolding Company considering the essential components of internal control stated in the Guidance Note issued by the
ICAI.
Other Matter
Our report under section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial
controls with reference to these consolidated financial statements insofar as it relates to subsidiary company, which is
a company incorporated in India, is based on the corresponding report of the auditors of such company incorporated
in India.
The accompanying consolidated financial statements does not include the Holding Company’s share of net loss for theyear ended March 31, 2022 in respect of an associate, which is considered as not material to the Group.
For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Aditya Vikram BhauwalaPartnerMembership Number: 208382
Unique Document Identification Number (UDIN): 22208382AHUZZP4205
Bengaluru
April 26, 2022

Annual Report 2022 | 147

Consolidated Balance Sheet as at March 31, 2022
(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Notes

As at
March 31, 2022

3
3(c)
4(a)
4(b)

1,89,008
10,989
1,638
645

1,92,203
12,879
2,098
645

5
6
7
7
8

835
4,816
20,1993,844
25,044
2,57,018

606
4,711
20,395
3,497
15,826
2,52,860

ASSETS
Non-current assets
Property, plant and equipment
Capital work-in-progress
Intangible assets
Goodwill on consolidation
Financial assets(i) Investments(ii) Other financial assets
Income tax assets (net)Deferred tax asset (net)Other non-current assets

As at
March 31, 2021

Current assets
Inventories
Financial assets(i) Trade receivables(ii) Cash and cash equivalents(iii) Bank balances other than (ii) above(iv) Other financial assets
Other current assets

993,581

1,13,668

10
11
12
6
8

Assets held for sale3(d)1,25,486
86,2604,708
115
27,275
3,37,425
488
3,37,913
5,94,931

1,39,499
40,9705,958
84
31,6893,31,868
488
3,32,356
5,85,216

2,644
3,90,868
3,93,512
414
3,93,926

2,644
3,55,584
3,58,228
375
3,58,603

15
33
16
17

—
606
2,497
441
3,544

10,750
774
1,109
160
12,793

18
33
19

—
368

14,267406

9,158
54,64255,81067,261
10,222
1,97,461
5,94,931

6,344
56,60352,382
74,7109,108
2,13,820
5,85,216

Total assets
EQUITY AND LIABILITIES
EquityEquity share capital
Other equity
Equity attributable to equity holders of parent company
Non-controlling interest
Liabilities
Non-current liabilities
Financial liabilities(i) Borrowings(ia) Lease liabilities(ii) Other financial liabilities
Provisions

13
14
14

Current liabilities
Financial liabilities(i) Borrowings(ia) Lease liabilities(ii) Trade payables- Total outstanding dues of micro and small enterprises- Total outstanding dues of creditors other than micro and small enterprises(iii) Other financial liabilities
Other current liabilities
Provisions

16
20
17

Total equity and liabilities
Summary of significant accounting policies

2.1

The accompanying notes are an integral part of the consolidated financial statements.
As per our report of even date
For and on behalf of the Board of Directors ofUnited Breweries Limited
For S.R. Batliboi & Associates LLP
Rishi Pardal
Berend Cornelis Roelof Odink
Chartered Accountants
Managing Director
Director and Chief Financial Officer
ICAI Firm Registration Number: 101049W/E300004
DIN: 02470061
DIN: 09138421
per Aditya Vikram BhauwalaPartnerMembership Number: 208382

Madhav Bhatkuly
Director
DIN: 00796367

Place: Bengaluru
Date: April 26, 2022

Place: Bengaluru
Date: April 26, 2022

148 | United Breweries Limited

Govind Iyengar
Senior Vice-President Legal andCompany Secretary

Consolidated Statement of Profit and Loss for the year ended March 31, 2022
(All amounts in Indian Rupees Lakhs, except as otherwise stated)
Notes
INCOME
Revenue from contracts with customers (including excise duty)
Other income
Total Income
EXPENSES
Cost of materials consumed
Purchase of stock-in-trade
Changes in inventories of finished goods, work-in-progress andstock-in-trade
Excise duty on sale of goods
Employee benefits expense
Finance costs
Depreciation and amortisation expense
Other expenses
Total
Profit before exceptional items and tax
Exceptional items
Profit before tax
Tax expense
Current tax
Deferred tax (credit)
Total tax expense
Profit for the year
Other comprehensive income (OCI)
Items that will not be reclassified to the consolidated statement of
profit and loss in subsequent periods
Re-measurement gains on defined benefit plans
Income tax effect on above

March 31,
2021

21
22

13,12,392
2,979
13,15,371

10,18,576
5,025
10,23,601

23
24
25

2,70,729
19,582
2,301
7,28,548
52,312
1,478
21,719
1,69,258
12,65,927
49,444—49,444

1,96,516
7,371
(950)
5,94,267
48,5492,267
23,201
1,34,717
10,05,938
17,663(722)
16,941

13,203(367)
12,83636,608

6,779(1,221)
5,558
11,38380(20)
60
36,668

1,991
(501)
1,490
12,87336,54662
36,608

11,322
61
11,383

60
—
60

1,490
—
1,490

36,60662
36,66812,812
61
12,873

13.82
13.82

4.28
4.28

26
27
28
29

30
31

Total comprehensive income for the year (net of tax)
Profit for the year attributable to:Equity shareholders of the Holding Company
Non-controlling interest
Other comprehensive income (OCI) attributable to:Equity shareholders of the Holding Company
Non-controlling interest
Total comprehensive income for the year attributable to:Equity shareholders of the Holding Company
Non-controlling interest
Earnings per share in Rs.
[nominal value per share Re.1 (Previous year: Re.1)]
Basic
Diluted
Summary of significant accounting policies

March 31,
2022

32

2.1

The accompanying notes are an integral part of the consolidated financial statements.
As per our report of even date
For and on behalf of the Board of Directors ofUnited Breweries Limited
For S.R. Batliboi & Associates LLP
Rishi Pardal
Berend Cornelis Roelof Odink
Chartered Accountants
Managing Director
Director and Chief Financial Officer
ICAI Firm Registration Number: 101049W/E300004
DIN: 02470061
DIN: 09138421
per Aditya Vikram BhauwalaPartnerMembership Number: 208382

Madhav Bhatkuly
Director
DIN: 00796367

Place: Bengaluru
Date: April 26, 2022

Place: Bengaluru
Date: April 26, 2022

Govind Iyengar
Senior Vice-President Legal andCompany Secretary

Annual Report 2022 | 149

Consolidated Cash Flow Statement for the year ended March 31, 2022
(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Notes

March 31,2022

March 31,
2021

A Cash flow from operating activities
49,444

16,941

21,719
301
1,720
620
48
(8)
(54)
(479)
(217)
—

23,201
28
479
966
(33)
(4)
—
(205)
(3,380)
4,446

—
—

1,776
(5,500)1,464(1,528)73,0302,244(462)
40,49720,087
12,169(76)(4,574)
1,676
6,631(5,974)
1,02,969(13,007)
89,962(4,275)(1,570)
862
9,198
7,546
4,756
13,24270,256(8,228)62,028(17,355)(20,066)

77

5,091

Investments in equity and debt securities

(300)

(579)

Proceeds from sale of equity and debt securities

125—

Investments in bank deposits (having original maturity of more than
three months)

(173)

(394)

Redemption/maturity of bank deposits (having original maturity ofmore than three months)

122

335

1,497

458

(16,007)(15,155)

Profit before tax
Adjustments for:
Depreciation and amortisation expense
Bad debts/advances written off
Loss allowance for trade receivables
Provision for doubtful advances/deposits
Unrealised exchange differences (net)Net (gain) on disposal of property, plant and equipment
Profit on sale of investments
Liabilities no longer required written back
Loss allowance for trade receivables, no longer required written backImpairment loss on property, plant and equipment (included under
exceptional items)
Impairment loss on goodwill (included under exceptional items)(Gain) on sale of property, plant and equipment (included under
exceptional items)
Interest expense
Interest income
Operating profits before working capital changes
Movement in working capital:(Increase)/decrease in Inventories(Increase)/decrease in Trade receivables(Increase)/decrease in Other financial assets(Increase)/decrease in Other assets
Increase/(decrease) in Trade payables
Increase/(decrease) in Other financial liabilities
Increase/(decrease) in Other current liabilities and provisions
Cash generated from operations
Direct taxes paid (net of refund)Net cash flow from operating activities (A)B Cash flow from investing activities
Purchase of property, plant and equipment including capital
work-in-progress, intangible assets and capital advances
Proceeds from sale of property, plant and equipment

Interest received
Net cash (used in) investing activities (B)
150 | United Breweries Limited

Consolidated Cash Flow Statement contd.
(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Notes

March 31,2022

March 31,
2021

C Cash flow from financing activities
Proceeds from long-term borrowings—
25,000
Repayment of long-term borrowings(25,000)(7,543)
Payment of principal portion of lease liabilities
(492)
(853)
(Repayment of)/Proceeds from short-term borrowings (net)(17)(15,998)
Interest paid
(1,812)(2,813)
Dividend paid*(1,344)(6,632)
Net cash flow (used in) financing activities (C)(28,665)(8,839)*Includes amount transferred to separate bank accounts earmarked for unpaid dividend and also includes dividend
paid for non-controlling interest.
Net increase in cash and cash equivalents (A+B+C)
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Components of cash and cash equivalents
Cash on handBank balances on current accounts
Bank balances on deposit accounts with original maturity of threemonths or lessTotal cash and cash equivalents

45,29040,97086,26038,034
2,936
40,9702
14,7589
8,461

71,50086,26032,50040,97011

The summary of cash flow and non-cash flow changes in respect of financial liabilities is as below:
Long-term borrowings (including current maturities)
At beginning of the year
Proceeds from borrowings
Repayment of borrowings
At end of the year

25,000—(25,000)—

7,543
25,000(7,543)25,000

Lease liabilities
At beginning of the year
Cash outflows – Payment of principal portion
Non-cash changes – Addition of right-of-use assets
At end of the year

1,180
(492)
286
974

1,659
(853)
374
1,180

17
(17)
—

16,015(15,998)
17

Short-term borrowings
At beginning of the year
Cash outflows – Repayment
At end of the year
Summary of significant accounting policies
As per our report of even date

2.1

For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004

For and on behalf of the Board of Directors ofUnited Breweries Limited
Rishi Pardal
Berend Cornelis Roelof Odink
Managing Director
Director and Chief Financial Officer
DIN: 02470061
DIN: 09138421

per Aditya Vikram BhauwalaPartnerMembership Number: 208382

Madhav Bhatkuly
Director
DIN: 00796367

Place: Bengaluru
Date: April 26, 2022

Place: Bengaluru
Date: April 26, 2022

Govind Iyengar
Senior Vice-President Legal andCompany Secretary

Annual Report 2022 | 151

Consolidated Statement of Changes in Equity for the year ended March 31, 2022
(All amounts in Indian Rupees Lakhs, except as otherwise stated)a) Equity share capital
Equity shares of Re. 1 each issued, subscribed and fully paid
As at March 31, 2022

As at March 31, 2021

Numbers
Rs. in Lakhs
26,44,05,149
2,644
—
—
26,44,05,149
2,644

Balance at the beginning of the year
Changes during the year
Balance at the end of the year

Numbers
Rs. in Lakhs
26,44,05,149
2,644
—
—
26,44,05,149
2,644b) Other equity

Balance as at April 1, 2020
Profit for the year
Other comprehensive income
Transfer from retained earnings
Cash dividends (Refer Note 14)
Balance as at March 31, 2021
Balance as at April 1, 2021
Profit for the year
Other comprehensive income
Transfer from retained earnings
Cash dividends (Refer Note 14)
Balance as at March 31, 2022

Attributable to the equity shareholders of the Holding Company
Reserves and surplus
Noncontrolling
Capital
Total
Securities
GeneralRetainedinterest
redemption
premium
reserveearnings
reserve
Note 14
Note 14
Note 14
Note 14
Note 14
24,69062,93841,543
2,20,211
3,49,382
334———
11,322
11,322
61
—
—
—
1,490
1,490
—
—
—
1,149
(1,149)—————(6,610)(6,610)(20)
24,69062,93842,692
2,25,264
3,55,584
375
24,690————24,69062,938————62,93842,692——40—
42,732

2,25,264
36,54660(40)(1,322)
2,60,508

3,55,584
36,54660—(1,322)
3,90,868

375
62
—
—
(23)
414

Capital redemption reserve - The said reserve was created by transfer from general reserve on redemption ofpreference shares. This reserve account can be applied in paying up unissued shares to be issued to members of theHolding Company as fully paid bonus shares etc., in accordance with the provisions of the Companies Act, 2013.
Securities premium - The reserve is used to record the premium on issue of shares. The reserve can be utilised only forlimited purposes such as issuance of bonus shares, etc. in accordance with the provisions of the Companies Act, 2013.
General reserve - Under the erstwhile Companies Act 1956, general reserve was created through an annual transferof net income at a specified percentage in accordance with applicable regulations. Consequent to introduction ofCompanies Act, 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve
has been withdrawn. The Group has made voluntarily transfer of net income to general reserve. The amount transferredto the general reserve can be utilised only in accordance with the specific requirements of the Companies Act, 2013.
There are no changes in equity share capital and other equity due to accounting policy changes or prior period errors.
As per our report of even date
For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004

For and on behalf of the Board of Directors ofUnited Breweries Limited
Rishi Pardal
Berend Cornelis Roelof Odink
Managing Director
Director and Chief Financial Officer
DIN: 02470061
DIN: 09138421

per Aditya Vikram BhauwalaPartnerMembership Number: 208382

Madhav Bhatkuly
Director
DIN: 00796367

Place: Bengaluru
Date: April 26, 2022

Place: Bengaluru
Date: April 26, 2022

152 | United Breweries Limited

Govind Iyengar
Senior Vice-President Legal andCompany Secretary

Notes to consolidated financial statements for the year ended March 31, 2022
(All amounts in Indian Rupees Lakhs, except as otherwise stated)
1.

Corporate information
The consolidated financial statements comprise financial statements of United Breweries Limited (“UBL” or “theHolding Company” or “the Parent Company”), its subsidiary (collectively, “the Group”) and its associate. UBL is a
public limited company domiciled in India and incorporated under the provisions of the Indian Companies Act. Its
shares are listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The registered office of theHolding Company is located at UB Tower, UB City, 24, Vittal Mallya Road, Bengaluru 560001, Karnataka, India.
The Group is primarily engaged in the manufacture, purchase and sale of beer and non-alcoholic beverages. The
Group has manufacturing facilities in India. The consolidated financial statements were approved by the Board of
Directors of the Holding Company on April 26, 2022.

2.

Basis of preparation of consolidated financial statements
The consolidated financial statements of the Group have been prepared in accordance with Indian AccountingStandards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended fromtime to time) and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS
compliant Schedule III), as applicable. The consolidated financial statements have been prepared on a historicalcost basis, except for assets and liabilities which are required to be measured at fair value. The consolidated
financial statements are presented in Indian Rupees (“INR”) and all values are rounded to the nearest lakhs(INR 00,000), except when otherwise indicated.
The significant accounting policies adopted for preparation and presentation of the consolidated financial
statements have been applied consistently.
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Holding Company, its subsidiary
and associate as below:
Name of the company

RelationshipMaltex Malsters Limited
Subsidiary(“MML”)
Kingfisher East Bengal
Football Team Private Limited Associate(“KEBFTPL”)*

Principal activities

Country ofincorporation

Processing of Barley
into Malt

India% of Ownership
Interest
As at
As at
March 31, March 31,
2022
2021
51%
51%

Promotion of sports

India

49.99%

49.99%*The Group’s interest in KEBFTPL has not been included in the consolidated financial statements, as the same has
been considered as not material to the Group, by the management of the Holding Company.
The control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with
the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group
controls an investee if and only if the Group has:
• Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of theinvestee);• Exposure, or rights, to variable returns from its involvement with the investee; and• The ability to use its power over the investee to affect its returns.
Generally, there is a presumption that a majority of voting rights result in control. The Group re-assesses whether
or not it controls an investee, if facts and circumstances indicate that there are changes to one or more of theAnnual Report 2022 | 153

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiaryand ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiaryacquired or disposed of during the year are included in the consolidated financial statements from the date theGroup gains control until the date the Group ceases to control the subsidiary.
The consolidated financial statements are prepared using uniform accounting policies for like transactions and otherevents in similar circumstances. The financial statements of the subsidiary used for the purpose of consolidation isdrawn up to same reporting date as that of the parent/holding company, i.e., year ended on March 31st.
Consolidation procedure(i) Combine like items of assets, liabilities, equity, income, expenses and cash flows of the parent with those of its
subsidiary.
(ii) Offset the carrying amount of the parent’s investment in subsidiary and the parent’s portion of equity ofsubsidiary.
(iii) Eliminate in full intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions
between entities of the Group (profits or losses resulting from intragroup transactions that are recognized in
assets, such as inventory and fixed assets, are eliminated in full).
The consolidated statement of profit and loss and each component of consolidated other comprehensive income(“OCI”) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even
if this results in the non-controlling interests having a deficit balance.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.
If the Group loses control over a subsidiary, it derecognizes the assets (including goodwill) and liabilities of thesubsidiary as on date when control is lost, the carrying amount of any non-controlling interests; recognizes thefair value of the consideration received, the fair value of any investment retained and any surplus or deficit in the
consolidated statement of profit and loss; and reclassifies the parent’s share of components previously recognizedin OCI to the consolidated statement of profit and loss or retained earnings, as appropriate, as would be required
if the Group had directly disposed of the related assets or liabilities.
2 .1 Summary of significant accounting policies(a) Business combinations and goodwill
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred andthe amount recognised for non-controlling interests, and any previous interest held, over the net identifiable
assets acquired and liabilities assumed. After initial recognition, goodwill is measured at cost less any
accumulated impairment losses. For impairment testing, goodwill acquired in a business combination is, fromthe acquisition date, allocated to each of the Group’s cash-generating units that are expected to benefit fromthe combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.
A cash generating unit to which goodwill has been allocated is tested for impairment annually, or more
frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash
generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying
amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata based on the
carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised in the consolidated
statement of profit and loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.
(b) Investment in associate
An associate is an entity over which the Group has significant influence. Significant influence is the power toparticipate in the financial and operating policy decisions of the investee, but is not control or joint control
over those policies. The considerations made in determining whether significant influence are similar to thosenecessary to determine control over the subsidiary.
154 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

The Group’s interest in associate has been considered as not material to the Group and hence the investment
in associate has been recognized at cost.
At each reporting date, the Group determines whether there is objective evidence that the investment in
the associate is impaired. If there is such evidence, the Group calculates the amount of impairment as thedifference between the recoverable amount of the associate and its carrying value, and then recognises theloss in the consolidated statement of profit and loss.
(c) Current versus non-current classification
The Group presents assets and liabilities in the consolidated balance sheet based on current/non-current
classification. An asset is treated as current when it is:• expected to be realized or intended to be sold or consumed in normal operating cycle;• held primarily for the purpose of trading;• expected to be realized within twelve months after the reporting period; or• cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.
All other assets are classified as non-current.
A liability is current when:• expected to be settled in normal operating cycle;• held primarily for the purpose of trading;• due to be settled within twelve months after the reporting period; or• there is no unconditional right to defer the settlement of the liability for at least twelve months after thereporting period.
The Group classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities. The operating cycle is thetime between the acquisition of assets for processing and their realisation in cash and cash equivalents. The
Group has identified twelve months as its operating cycle.
(d) Foreign currencies
The consolidated financial statements are presented in INR, which is also the Holding Company’s functional
currency. Transactions in foreign currencies are initially recorded by the Group at their respective functional
currency spot rates at the date, the transaction first qualifies for recognition. However, for practical reasons, theGroup uses monthly average rate, if the average approximates the actual rate at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot
rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary
items are recognised in the consolidated statement of profit and loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using theexchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value is determined. The gain orloss arising on translation of non-monetary items measured at fair value is treated in line with the recognitionof the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value
gain or loss is recognized in OCI or the consolidated statement of profit and loss are also recognised in OCI or
the consolidated statement of profit and loss, respectively).
In determining the spot exchange rate for initial recognition of the related asset, expense or income (or partof it) on derecognition of a non-monetary asset or non-monetary liability relating to advance consideration,
Annual Report 2022 | 155

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)the date of the transaction is the date on which the Group initially recognises the non-monetary asset or
non-monetary liability arising from the advance consideration. If there are multiple payments or receipts inadvance, the Group determines the transaction date for each payment or receipt of advance consideration.
(e) Fair value measurement
The Group measures financial instruments at fair value at each balance sheet date. Fair value is the pricethat would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date.
The fair value measurement is based on the presumption that the transaction to sell the asset or transfer
the liability takes place either in the principal market for the asset or liability, or in the absence of a principal
market, in the most advantageous market for the asset or liability. The principal or the most advantageous
market must be accessible by the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest. A
fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participantthat would use the asset in its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data
is available to measure fair value, maximising the use of relevant observable inputs and minimising the use ofunobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the consolidated
financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest
level input that is significant to the fair value measurement as a whole:• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable
For assets and liabilities that are recognized in the consolidated financial statements on a recurring basis,the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorisation (based on the lowest level input that is significant to the fair value measurement as a whole)at the end of each reporting period.
The Group’s management determines the policies and procedures for both recurring fair value measurement,such as derivative instruments and unquoted financial assets measured at fair value, and for non-recurring
measurement, such as assets held for distribution in discontinued operations. External valuers are involved,
wherever considered necessary.
For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on thebasis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy,
as explained above. This note summarizes accounting policy for fair value and the other fair value related
disclosures are given in the relevant notes.
(f) Revenue recognition
Revenue from contracts with customers is recognised when control of the goods or services are transferredto the customer at an amount that reflects the consideration to which the Group expects to be entitled in
exchange for those goods or services.
156 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Revenue is recognized to the extent it is probable that the economic benefits will flow to the Group and therevenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at
the fair value of the consideration received or receivable, taking into account contractually defined terms of
payment and excluding taxes or duties collected on behalf of the government. The Group has concluded that
it is the principal in all of its revenue arrangements, except in certain contract manufacturing arrangements asmentioned below, since it is the primary obligor in all the revenue arrangements as it has pricing latitude andis also exposed to inventory and credit risks.
Based on the Educational Material on Ind AS 115 issued by the Institute of Chartered Accountants of India(“ICAI”), the recovery of excise duty flows to the Group on its own account and hence is a liability of the
manufacturer which forms part of the cost of production, irrespective of whether the goods are sold ornot. Since the recovery of excise duty flows to the Group on its own account, revenue includes excise duty.
However, sales tax/value added tax (VAT)/goods and services tax are not received by the Group on its own
account and are taxes collected on value added to the commodity by the seller on behalf of the government.
Accordingly, these are excluded from revenue.
The following specific recognition criteria must also be met before revenue is recognized:
Sale of products
Revenue from the sale of products is recognized at a point in time when control of the products is transferredto the customer and there is no unfulfilled obligation that could affect the customer’s acceptance of the
products. Revenue from the sale of products is measured at the fair value of the consideration received or
receivable, net of returns and allowances, discounts and incentives.
If the consideration in a contract includes a variable amount (discounts and incentives), the Group estimates
the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer
and such discounts and incentives are estimated at contract inception.
Generally, the Group receives short-term advances from its customers. Using the practical expedient in Ind AS
115, the Group does not adjust the promised amount of consideration for the effects of a significant financing
component if it expects, at contract inception, that the period between the transfer of the promised good orservice to the customer and when the customer pays for that good or service will be one year or less.
Sale of services
Royalty income is recognized, on an accrual basis, at agreed rate on sale of branded products by the licensee,
in accordance with the terms of the agreement. The Group provides license to the parties to manufacture,sell and distribute its goods in exchange of royalty fee which is based on the sales made to the end customer.
The Group recognises revenue from sales-based royalty promised in exchange for a license of intellectual
property only when (or as) the later of the events occurs - (a) the sale occurs; and (b) the performanceobligation for sales has been satisfied (or partially satisfied).
Income from contract manufacturing units
The Group evaluates its revenue arrangements with Contract Manufacturing Units (“CMUs”) to identify
agency relationship.
The Group is regarded as a principal if it controls promised good or service before it transfers the good orservice to customer. In case if the Group is a principal in a contract, it may satisfy a performance obligation
by itself or may engage CMU to satisfy some or all of a performance obligation on its behalf. In this case, theGroup recognises revenue at the gross amount of consideration to which it expects to be entitled in exchange
for those goods or services transferred. Revenue is recognized on sale of products to customers and therelated cost of sales is also recognized by the Group, as and when incurred.
Annual Report 2022 | 157

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

The Group is regarded as an agent if its performance obligation is to arrange for the provision of goods orservices by CMU. In this case CMU is primarily responsible for fulfilling the contract and the Group does nothave discretion in establishing prices and is also not exposed to inventory and credit risks for the amountreceivable from the customer. In this case, the Group recognises revenue at the net amount of consideration
the Group is eligible under the contract. This net consideration is recognized as income, as per the terms ofrespective agreement and on the basis of information provided by respective CMU. Such income is included
under the head “other operating revenues” in the consolidated statement of profit and loss.
Interest
Interest income is recognized using the effective interest rate method. The effective interest rate is the ratethat discounts estimated future cash receipts through the expected life of the financial asset to the grosscarrying amount of the financial asset. Interest income is included under the head “other income” in the
consolidated statement of profit and loss.
Dividends
Dividend income is recognized when the Group’s right to receive the payment is established, which is generally
when the shareholders approve the dividend.
Contract balances
Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If
the Group performs by transferring goods or services to a customer before the customer pays consideration
or before payment is due, a contract asset is recognised for the earned consideration that is conditional.
Trade receivables
A trade receivable is recognised if an amount of consideration is unconditional (i.e., only the passage of timeis required before payment of the consideration is due). Refer to accounting policies of financial assets.
Contract liabilities
A contract liability is recognised if a payment is received or a payment is due (whichever is earlier) from thecustomer before the related goods or services are transferred. Contract liabilities are recognised as revenue
when the Group performs under the contract (i.e., transfers control of the related goods or services to thecustomer).
(g) Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received andall attached conditions will be complied with. When the grant relates to an expense item, it is recognised asincome on a systematic basis over the periods that the related costs, for which it is intended to compensate,
are expensed. When the grant relates to an asset, it is recognised as income in equal amounts over the
expected useful life of the related asset.
(h) Taxes
Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted
or substantively enacted, at the reporting date.
Current income tax relating to items recognised outside the consolidated statement of profit and loss isrecognised outside the consolidated statement of profit and loss (either in OCI or in equity in correlation to theunderlying transaction). Management periodically evaluates whether it is probable that the relevant taxation
authority would accept an uncertain tax treatment that the Group has used or plan to use in its income tax
158 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)filings, including with respect to situations in which applicable tax regulations are subject to interpretation andestablishes provisions, where appropriate.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax
liabilities and assets are recognized for all taxable temporary differences and deductible temporary differences,
except:• when the deferred tax liability or asset arises from the initial recognition of goodwill or an asset or liability
in a transaction that is not a business combination and, at the time of the transaction, affects neither theaccounting profit nor taxable profit or loss; and• in respect of taxable temporary differences and deductible temporary differences associated withinvestments in subsidiary and associate, when the timing of the reversal of the temporary differences canbe controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets are recognised to the extent it is probable that taxable profit will be available against which
the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses canbe utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to theextent that it is no longer probable that sufficient taxable profit will be available to allow all or part of thedeferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date andare recognised to the extent it has become probable that future taxable profits will allow the deferred tax
asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date. Deferred tax relating to items recognised outside the consolidated
statement of profit and loss is recognised outside the consolidated statement of profit and loss (either in OCI
or in equity in correlation to the underlying transaction).
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.
Sales/value added tax/goods and services tax paid on acquisition of assets or on incurring expenses
When the tax incurred on purchase of assets or services is not recoverable from the taxation authority, the tax
paid is recognised as part of the cost of acquisition of the asset or as part of the expense item, as applicable.
Otherwise, expenses and assets are recognized net of the amount of sales/ value added tax/goods and services
tax paid. The net amount of tax recoverable from, or payable to, the taxation authority is included as part ofreceivables or payables in the consolidated balance sheet.
(i)

Non-current assets held for sale
The Group classifies non-current assets as held for sale if their carrying amounts will be recovered principally
through a sale rather than through continuing use. Non-current assets classified as held for sale are measured
at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the incremental costs
directly attributable to the disposal of an asset, excluding finance costs and income tax expense.
The criteria for held for sale classification is regarded as met only when the sale is highly probable, and theasset is available for immediate sale in its present condition. Actions required to complete the sale should
indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will bewithdrawn. Management must be committed to the sale and the sale expected within one year from the dateof classification.
Annual Report 2022 | 159

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Property, plant and equipment and intangibles are not depreciated or amortised once classified as held for sale.
Assets and liabilities classified as held for sale are presented separately from other items in the consolidatedbalance sheet.
(j)

Property, plant and equipment
Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment
losses, if any. Capital work-in-progress is stated at cost. Such cost includes the cost of replacing part of theplant and equipment and borrowing costs for long-term construction projects, if the recognition criteria is met.
When significant parts of plant and equipment are required to be replaced at intervals, the Group depreciates
them separately based on their specific useful lives. Likewise, when a major inspection is performed, its costis recognised in the carrying amount of the plant and equipment as a replacement, if the recognition criteria
is satisfied. All other repair and maintenance costs are recognised in the consolidated statement of profit andloss as incurred.
Depreciation is calculated on a straight-line basis over the useful lives of the assets, estimated by the
management, as follows:
Useful life (years)
Factory buildings

30

Other buildings (RCC)60

Other buildings (Non-RCC)

30

Roads (RCC)

10

Roads (Non-RCC), Fences, etc

5Plant and equipment

15*

Electrical installations

10

Office equipments

5Computers

3

Servers and networks

6

Furniture and fixtures

10

Laboratory equipments

10

Vehicles8 and 10

*In respect of assets (excluding pipelines) used at any time during the year on double shift or triple shift basis,the depreciation for that period is increased by 50% or 100%, respectively.
For the purpose of depreciation calculation, residual value is determined as 5% of the original cost for all theassets, as estimated by the management basis independent assessment by an expert. The Group, based ontechnical assessment made by an expert and management estimate, depreciates following assets, not included
above, over the estimated useful lives which are different from the useful life prescribed in Schedule II to theCompanies Act, 2013. The management believes that these estimated useful lives reflect fair approximationof the period over which the assets are likely to be used.
(i) Assets acquired on amalgamation, etc. (where original dates of acquisition are not readily available), aredepreciated over the remaining useful life of the assets, as certified by an expert.
(ii) Beer dispensers and coolers (included under furniture and fixtures) and Kegs (included under plant andequipment) are depreciated on a straight-line basis over a period of 3 years being useful life, as estimatedby the management considering nature of these assets.
An item of property, plant and equipment and any significant part initially recognised is derecognised upon
disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising
160 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)on de-recognition of the asset (calculated as the difference between the net disposal proceeds and thecarrying amount of the asset) is included in the consolidated statement of profit and loss, when the asset isderecognised.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed
at each financial year end and adjusted prospectively, if appropriate.
(k) Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets
acquired in a business combination is their fair value at the date of acquisition. Following initial recognition,
intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses.
Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related
expenditure is reflected in the consolidated statement of profit and loss in the period in which the expenditureis incurred. The useful lives of intangible assets are assessed as finite.
Intangible assets are amortized over the useful economic life and assessed for impairment, whenever there
is an indication that the intangible asset may be impaired. The amortisation period and the amortisation
method for an intangible asset are reviewed at least at the end of each reporting period. Changes in the
expected useful life or the expected pattern of consumption of future economic benefits embodied in theasset are considered to modify the amortisation period or method, as appropriate, and are treated as changes
in accounting estimates. The amortisation expense on intangible assets is recognized in the consolidated
statement of profit and loss, unless such expenditure forms part of carrying value of another asset.
An intangible asset is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no
future economic benefits are expected from its use or disposal. Gains or losses arising from de-recognitionof an intangible asset are measured as the difference between the net disposal proceeds and the carrying
amount of the asset and are recognised in the statement of the consolidated profit and loss when the asset
is derecognised.
Licenses and rights are amortised on a straight-line basis over useful life of 10 years, as estimated by the
management.
(l)Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of
the asset. All other borrowing costs are expensed in the period in which they occur.
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowingof funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to theborrowing costs.

(m) Leases
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The Group as a lessee
The Group applies a single recognition and measurement approach for all leases, except for short-term leases
and leases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use
assets representing the right to use the underlying assets.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying
asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and
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(All amounts in Indian Rupees Lakhs, except as otherwise stated)

impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets
includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or
before the commencement date less any lease incentives received.
Right-of-use assets (disclosed under property, plant and equipment) are depreciated on a straight-line basis
over the shorter of the lease term and the estimated useful lives of the assets, as follows:
Useful life (years)
Leasehold land

90-99

Buildings

2-9

Plant and equipment

2

Furniture and fixtures
Vehicles3
4 and 5

If ownership of the leased asset is transferred to the Group at the end of the lease term or the cost reflects
the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.
The right-of-use assets are also subject to impairment. Refer to the accounting policy on impairment of
non-financial assets.
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present valueof lease payments to be made over the lease term. The lease payments include fixed payments (including insubstance fixed payments) less any lease incentives receivable, variable lease payments that depend on anindex or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also
include the exercise price of a purchase option reasonably certain to be exercised by the Group and paymentsof penalties for terminating the lease, if the lease term reflects exercising of the option to terminate. Variable
lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurredto produce inventories) in the period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the leasecommencement date because the interest rate implicit in the lease is not readily determinable. The Group has
applied practical expedient by using a single discount rate to a portfolio of leases with similar characteristics.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest
and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured
if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate used to determine such lease payments) or a change in
the assessment of an option to purchase the underlying asset. The Group’s lease liabilities are included underInterest-bearing borrowings.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases (i.e., those leases thathave a lease term of 12 months or less from the commencement date and do not contain a purchase option).
It also applies the lease of low-value assets recognition exemption to leases that are considered to be low
value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on astraight-line basis over the lease term.
The Group as a lessor
Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownershipof an asset are classified as operating leases. Rental income is accounted for on a straight-line basis overthe lease term. Initial direct costs incurred in negotiating and arranging an operating lease are added to the
162 | United Breweries Limited

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(All amounts in Indian Rupees Lakhs, except as otherwise stated)carrying amount of the leased asset and recognised over the lease term on the same basis as rental income.
Contingent rents are recognised as revenue in the period in which they are earned.
(n) Inventories
Inventories are valued at the lower of cost and net realisable value. Costs incurred in bringing each product toits present location and condition are accounted for as follows:
Raw materials, Packing materials and bottles, Stores and spares: Cost includes cost of purchase and othercosts incurred in bringing the inventories to their present location and condition.
Finished goods and Work-in-progress: Cost includes cost of direct materials and labour and a proportion of
manufacturing overheads based on the normal operating capacity but excludes borrowing costs. Excise duty,
as applicable, is included in the valuation.
Stock-in-trade: Cost includes cost of purchase and other costs incurred in bringing the inventories to theirpresent location and condition.
Cost is determined on a weighted average basis. Net realizable value is the estimated selling price in theordinary course of business, less estimated costs of completion and the estimated costs necessary to makethe sale.
(o) Impairment of non-financial assets
The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired.
If any indication exists, or when annual impairment testing for an asset is required, the Group estimates theasset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating
unit’s (“CGU”) fair value less costs of disposal and its value in use. Recoverable amount is determined for
an individual asset, unless the asset does not generate cash inflows that are largely independent of thosefrom other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable
amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to
the asset. In determining fair value less costs of disposal, recent market transactions are taken into account.
If no such transactions can be identified, an appropriate valuation model is used. These calculations arecorroborated by valuation multiples, quoted share prices for publicly traded companies or other available fairvalue indicators.
The Group bases its impairment calculation on detailed budgets and forecast calculations, which are preparedseparately for each of the Group’s CGUs to which the individual assets are allocated. These budgets andforecast calculations generally cover a period of five years. For longer periods, a long-term growth rate is
calculated and applied to project future cash flows after the fifth year.
To estimate cash flow projections beyond periods covered by the most recent budgets/forecasts, the Groupextrapolates cash flow projections in the budget using a steady or declining growth rate for subsequent
years, unless an increasing rate can be justified. In any case, this growth rate does not exceed the long-term
average growth rate for the products, industries, or country in which the entity operates, or for the market inwhich the asset is used. Impairment losses of continuing operations, including impairment on inventories, arerecognised in the consolidated statement of profit and loss.
For assets, an assessment is made at each reporting date to determine whether there is an indication that
previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Groupestimates the asset’s or CGU’s recoverable amount. A previously recognised impairment loss is reversed only
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(All amounts in Indian Rupees Lakhs, except as otherwise stated)

if there has been a change in the assumptions used to determine the asset’s recoverable amount since thelast impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does notexceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognisedin the consolidated statement of profit and loss unless the asset is carried at a revalued amount, in which case,the reversal is treated as a revaluation increase.
(p) Provisions
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of apast event, it is probable that an outflow of resources embodying economic benefits will be required tosettle the obligation and a reliable estimate can be made of the amount of the obligation. When the Group
expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset,
but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the
consolidated statement of profit and loss, net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax ratethat reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in theprovision due to the passage of time is recognised as a finance cost.
(q) Retirement and other employee benefits
Retirement benefit in the form of provident fund is a defined contribution scheme. The Group has no
obligation, other than the contribution payable to the provident fund. The Group recognizes contribution
payable to the provident fund scheme as an expense, when an employee renders the related service.
If the contribution payable to the scheme for service received before the balance sheet date exceeds thecontribution already paid, the deficit payable to the scheme is recognized as a liability after deducting thecontribution already paid. If the contribution already paid exceeds the contribution due for services received
before the balance sheet date, then excess is recognized as an asset to the extent that the pre-payment willlead to a reduction in future payment or a cash refund.
In respect of certain employees, the Group had established a Provident Fund Trust, which was a defined
benefit plan, to which contributions towards provident fund were made each month. The Provident Fund
Trust guaranteed a specified rate of return on such contributions on a periodical basis as per the government
notification. The Group would meet the shortfall in the return, if any, which was determined based on an
actuarial valuation carried out, as per projected unit credit method, as at the date of balance sheet. The
contributions to provident fund were charged to the consolidated statement of profit and loss on an accrualbasis. During the year, the Group has surrendered the Provident Fund Trust to the Employee’s Provident
Fund Organisation, Government of India and transferred the funds from Provident Fund Trust to the funds
maintained by the Regional Provident Fund Commissioner (RPFC). Effective January 1, 2022, the Provident
Fund Benefit is a defined benefit contribution scheme and the Group recognises contribution payable to thefund as expenditure, when an employee renders the related service.
Retirement benefit in the form of superannuation fund is a defined contribution scheme. The Group has
established a Superannuation Fund Trust to which contributions are made each month. The Group recognizes
contribution payable to the superannuation fund scheme as expenditure, when an employee renders therelated service. The Group has no other obligations beyond its monthly contributions.
The Group operates a defined benefit gratuity plan in India, which requires contributions to be made to a
separately administered fund. The cost of providing benefits under the defined benefit plan is determined using
the projected unit credit method. Re-measurements, comprising of actuarial gains and losses, the effect of

164 | United Breweries Limited

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(All amounts in Indian Rupees Lakhs, except as otherwise stated)

the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the returnon plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised
immediately in the consolidated balance sheet with a corresponding debit or credit to retained earnings
through OCI in the period in which they occur. Re-measurements are not reclassified to the consolidated
statement of profit and loss in subsequent periods.
Past service costs are recognized in the consolidated statement of profit and loss on the earlier of the dateof the plan amendment or curtailment, and the date that the Group recognizes related restructuring costs.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group
recognizes the changes in the net defined benefit obligation which includes service costs comprising current
service costs, past-service costs, gains and losses on curtailments and non-routine settlements; and net interest
expense or income, as an expense in the consolidated statement of profit and loss.
Accumulated leave, which is expected to be utilized within the next twelve months, is treated as short-term
employee benefit. The Group measures the expected cost of such absences as the additional amount that it
expects to pay as a result of the unused entitlement that has accumulated at the reporting date. The Group
treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee
benefit for measurement purposes. Such long-term compensated absences are provided for based on theactuarial valuation using the projected unit credit method at the year-end. The Group presents the leave as
a current liability in the consolidated balance sheet, to the extent it does not have an unconditional right todefer its settlement for twelve months after the reporting date. Where the Group has the unconditional legal
and contractual right to defer the settlement for a period beyond twelve months, the same is presented as
non-current liability.
(r) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
Financial assets
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded atfair value through profit or loss, transaction costs that are attributable to the acquisition of the financial
asset. Purchases or sales of financial assets that require delivery of assets within a time frame established byregulation or convention in the market place (regular way trades) are recognised on the trade date, i.e. thedate that the Group commits to purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:• Debt instruments at amortised cost
• Debt instruments at fair value through other comprehensive income (FVTOCI)• Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)• Equity instruments measured at fair value through other comprehensive income (FVTOCI)A ‘debt instrument’ is measured at the amortised cost, if both the following conditions are met:(i) The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows; and(ii) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments ofprincipal and interest (SPPI) on the principal amount outstanding.

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(All amounts in Indian Rupees Lakhs, except as otherwise stated)

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective
interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in financeincome in the consolidated statement of profit and loss. The losses arising from impairment are recognised in
the consolidated statement of profit and loss. This category generally applies to trade and other receivables.
A ‘debt instrument’ is classified as FVTOCI, if both of the following criteria are met:(i) The objective of the business model is achieved both by collecting contractual cash flows and selling thefinancial assets; and(ii) The asset’s contractual cash flows represent SPPI.
Debt instruments included within the FVTOCI category are measured initially as well as at each reporting dateat fair value. Fair value movements are recognized in OCI. However, the Group recognizes interest income,
impairment losses and foreign exchange gain or loss in the consolidated statement of profit and loss. On
de-recognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity
to the consolidated statement of profit and loss. Interest earned whilst holding FVTOCI debt instrument isreported as interest income using the EIR method.
FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria forcategorization as at amortized cost or as FVTOCI, is classified as at FVTPL. Debt instruments included within
the FVTPL category are measured at fair value with all changes recognized in the consolidated statement of
profit and loss.
All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held
for trading are classified as FVTPL. If the Group decides to classify an equity instrument as FVTOCI, then all
fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of
the amount from OCI to the consolidated statement of profit and loss even on the sale of investments. Equity
instruments included within the FVTPL category are measured at fair value with all changes recognized in the
consolidated statement of profit and loss.
De-recognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets)
is primarily derecognised (i.e. removed from the consolidated balance sheet) when:• The rights to receive cash flows from the asset have expired; or• The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement
and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group
has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred
control of the asset.
The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations
that the Group has retained. Continuing involvement that takes the form of a guarantee over the transferredasset is measured at the lower of the original carrying amount of the asset and the maximum amount ofconsideration that the Group could be required to repay.
Impairment of financial assets
In accordance with Ind AS 109, the Group applies expected credit loss (ECL) model for measurement andrecognition of impairment loss on the financial assets and credit risk exposure. The Group follows ‘simplified
approach’ for recognition of impairment loss allowance on Trade receivables. The application of simplified
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(All amounts in Indian Rupees Lakhs, except as otherwise stated)

approach does not require the Group to track changes in credit risk. Rather, it recognises impairment loss
allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
For recognition of impairment loss on other financial assets and risk exposure, the Group determines thatwhether there has been a significant increase in the credit risk since initial recognition. If credit risk has
not increased significantly, twelve-month ECL is used to provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument
improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity
reverts to recognising impairment loss allowance based on twelve-month ECL.
Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of afinancial instrument. The twelve-month ECL is a portion of the lifetime ECL which results from default events
that are possible within twelve months after the reporting date. ECL is the difference between all contractual
cash flows that are due to the Group in accordance with the contract and all the cash flows that the Group
expects to receive (i.e., all cash shortfalls), discounted at the original EIR. ECL impairment loss allowance (orreversal) recognized during the year is recognized as income/ expense in the consolidated statement of profit
and loss. This amount is reflected under the head ‘other expenses’ in the consolidated statement of profit
and loss.
For assessing increase in credit risk and impairment loss, the Group combines financial instruments on thebasis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enablesignificant increases in credit risk to be identified on a timely basis.
Financial liabilities
Initial recognition and measurement
All financial liabilities are recognised initially at fair value and, in the case of borrowings and payables, netof directly attributable transaction costs. The Group’s financial liabilities include borrowings, trade and otherpayables, and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their classification. Financial liabilities at fair value
through profit or loss include financial liabilities held for trading and financial liabilities designated upon initialrecognition as fair value through profit or loss. Financial liabilities are classified as held for trading if they are
incurred for the purpose of repurchasing in the near term.
This category also includes derivative financial instruments entered into by the Group that are not designatedas hedging instruments in hedge relationships as defined by Ind AS 109. Separated embedded derivatives arealso classified as held for trading, unless they are designated as effective hedging instruments. Gains or losses
on liabilities held for trading are recognised in the consolidated statement of profit and loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as suchat the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designatedas FVTPL, fair value gains/losses attributable to changes in own credit risk are recognized in OCI. These gains/losses are not subsequently transferred to the consolidated statement of profit and loss. However, the Groupmay transfer the cumulative gain or loss within equity. All other changes in fair value of such liability arerecognised in the consolidated statement of profit and loss.
After initial recognition, interest-bearing borrowings are subsequently measured at amortised cost using theEIR method. Gains and losses are recognised in the consolidated statement of profit and loss when theliabilities are derecognised as well as through the EIR amortization process. Amortized cost is calculated bytaking into account any discount or premium on acquisition and fees or costs that are an integral part of the
EIR. The EIR amortisation is included as finance costs in the consolidated statement of profit and loss.
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(All amounts in Indian Rupees Lakhs, except as otherwise stated)

De-recognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expired.
When an existing financial liability is replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially modified, such an exchange or modification istreated as the de-recognition of the original liability and the recognition of a new liability. The difference inthe respective carrying amounts is recognised in the consolidated statement of profit and loss.
Reclassification of financial assets and liabilities
The Group determines classification of financial assets and liabilities on initial recognition. After initialrecognition, no re-classification is made for financial assets which are equity instruments and financial
liabilities. For financial assets which are debt instruments, a re-classification is made only if there is a change inthe business model for managing those assets. A change in the business model occurs when the Group either
begins or ceases to perform an activity that is significant to its operations.
If the Group reclassifies financial assets, it applies the re-classification prospectively from the re-classification
date, which is the first day of the immediately next reporting period following the change in business model.
The Group does not restate any previously recognised gains, losses (including impairment gains or losses) orinterest.
Offsetting of financial instruments
Financial assets and financial liabilities are offset, and the net amount is reported in the consolidated balance
sheet, if there is a currently enforceable legal right to offset the recognised amounts and there is an intention
to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
(s) Cash and cash equivalents
Cash and cash equivalents in the consolidated balance sheet and consolidated cash flow statement comprise
cash at banks and on hand and short-term deposits with an original maturity of three months or less, which
are subject to an insignificant risk of changes in value.
(t) Dividend to equity holders
The Group recognises a liability to pay dividend to equity holders when the distribution is authorised and the
distribution is no longer at the discretion of the Group. As per the corporate laws in India, a distribution is
authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.
(u) Contingent liabilities
A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within thecontrol of the Group; or a present obligation that arises from past events but is not recognized because it
is not probable that an outflow of resources embodying economic benefits will be required to settle theobligation; or the amount of the obligation cannot be measured with sufficient reliability. The Group does notrecognize a contingent liability but discloses its existence in the consolidated financial statements.
(v) Earnings per share
Basic earnings per share is calculated by dividing the net consolidated profit or loss for the period attributable
to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average
number of equity shares outstanding during the period. The weighted average number of equity shares
outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue,
share split, and reverse share split (consolidation of shares) that have changed the number of equity shares
outstanding, without a corresponding change in resources.
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(All amounts in Indian Rupees Lakhs, except as otherwise stated)

For the purpose of calculating diluted earnings per share, the net consolidated profit or loss for the period
attributable to equity shareholders and the weighted average number of shares outstanding during the period
are adjusted for the effects of all dilutive potential equity shares.
(w) Segment reporting
An operating segment is a component of the Group that engages in business activities from which it may
earn revenues and incur expenses (including revenues and expenses relating to transactions with othercomponents of the Group), whose operating results are regularly reviewed by the Group’s chief operating
decision maker to make decisions about resources to be allocated to the segment and assess its performance,
and for which discrete financial information is available. Operating segments of the Group are reported in amanner consistent with the internal reporting provided to the chief operating decision maker.
(x) Significant accounting judgements, estimates and assumptions
The preparation of the consolidated financial statements requires management to make judgements, estimatesand assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and theaccompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions
and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or
liabilities affected in future periods.
The Group bases its assumptions and estimates on parameters available when the consolidated financial
statements are prepared. Existing circumstances and assumptions about future developments, however, maychange due to market changes or circumstances arising that are beyond the control of the Group. Suchchanges are reflected in the assumptions when they occur. The judgements, estimates and assumptions
management has made which have the most significant effect on the amounts recognized in the consolidated
financial statements are as below. Also refer Note 47 in respect of the assessment of impact of the Coronavirus(COVID-19) pandemic.
Revenue from contracts with customers
The Group determines and updates its assessment of expected discounts and incentives periodically and theaccruals are adjusted accordingly. Estimates of expected discount and incentives are sensitive to changes incircumstances and the Group’s past experience regarding these amounts may not be representative of actual
amounts in the future.
LeasesThe Group determines the lease term as non-cancellable term of the lease, together with any periods coveredby an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by anoption to terminate the lease, if it is reasonably certain not to be exercised. The Group applies judgement andconsiders all relevant factors that create an economic incentive in evaluating whether it is reasonably certain
to exercise the option to renew or terminate the lease. After the commencement date, the Group reassesses
the lease term if there is a significant event or change in circumstances that is within its control and affects its
ability to exercise or not to exercise the option to renew or terminate.
The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Group would have to
pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of asimilar value to the right-of-use asset in a similar economic environment. The IBR requires estimation whenno observable rates are available or when they need to be adjusted to reflect the terms and conditions of thelease. The Group estimates the IBR using observable inputs (such as market interest rates), when available andmakes entity-specific estimates, wherever required.
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Property, plant and equipment
The depreciation of property, plant and equipment is derived on determining an estimate of an asset’s
expected useful life and the expected residual value at the end of its life. The useful lives and residual valuesof the Group’s assets are determined by the management at the time of acquisition of asset and is reviewed
periodically, including at each financial year end. The lives are based on historical experience with similar assets
as well as anticipation of future events, which may impact their life.
Impairment of investment carried at cost and non-financial assets
Investment carried at cost and non-financial assets such as property, plant and equipment are evaluated forrecoverability whenever events or changes in circumstances indicate that their carrying amounts may not
be recoverable. Significant management judgement is required to determine recoverable amount and the
impairment loss, if any. These calculations are sensitive to underlying assumptions.
Provision for expected credit loss on trade receivables
The measurement of expected credit loss reflects a probability-weighted outcome, the time value of money
and the best available forward-looking information. The correlation between historical observed default rates,
forecast economic conditions and expected credit loss is a significant estimate. The amount of expected credit
loss is sensitive to changes in circumstances and forecasted economic conditions. The Group’s historical credit
loss experience and forecast of economic conditions may not be representative of the actual default in the
future.
Tax contingencies and provisions
Significant management judgement is required to determine the amounts of tax contingencies and provisions,
including amount expected to be paid/recovered for uncertain tax positions and the amount of deferred tax
assets that can be recognised, based upon the likely timing and the level of future taxable profits together
with future tax planning strategies.
Defined benefit plans
The cost of the defined benefit plan and the present value of the obligation are determined using actuarial
valuation. An actuarial valuation involves various assumptions that may differ from actual developments inthe future. These include the determination of the discount rate, expected return, future salary increases andmortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reportingdate.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate forplans operated in India, the management considers the interest rates of government bonds where remaining
maturity of such bond correspond to expected term of defined benefit obligation. The mortality rate is basedon publicly available mortality tables. Those mortality tables tend to change only at interval in response todemographic changes. Future salary increases are based on expected future inflation rates.
2.2 Changes in accounting policies and disclosures
The Group applied for the first-time certain standards and amendments, which are effective for annual periods
beginning on or after April 1, 2021. The Group has not early adopted any other standard or amendment that has
been issued but is not yet effective:(a) Ind AS 116: COVID-19 related rent concessions
The Ministry of Corporate Affairs (MCA) issued an amendment to Ind AS 116 Covid-19-Related Rent
Concessions beyond June 30, 2021 to update the condition for lessees to apply the relief to a reduction inlease payments originally due on or before June 30, 2022 from June 30, 2021. The amendment applies to170 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)annual reporting periods beginning on or after April 1, 2021. These amendments had no material impact on
the consolidated financial statements of the Group.
(b) Amendment to Ind AS 105, Ind AS 16 and Ind AS 28
The definition of “Recoverable amount” is amended such that the words “the higher of an asset’s fair valueless costs to sell and its value in use” are replaced with “higher of an asset’s fair value less costs of disposal
and its value in use”. The consequential amendments are made in Ind AS 105, Ind AS 16 and Ind AS 28. These
amendments had no impact on the consolidated financial statements of the Group.
2.3 Standards issued but not yet effective
The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standard) Amendment Rules 2022
dated March 23, 2022 to amend the following Ind AS which are effective from April 1, 2022.
(a) Onerous Contracts – Costs of Fulfilling a Contract – Amendments to Ind AS 37
The amendments to Ind AS 37 specify which costs an entity needs to include when assessing whether acontract is onerous or loss-making. The amendments apply a “directly related cost approach”. The costs
that relate directly to a contract to provide goods or services include both incremental costs, for example
direct labour and materials and an allocation of other costs directly related to contract activities, for example
an allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling that
contract. General and administrative costs do not relate directly to a contract and are excluded unless they
are explicitly chargeable to the counterparty under the contract. The amendments are effective for annual
reporting periods beginning on or after April 1, 2022. The Group is currently assessing the impact of theamendments to determine the impact they may have on the Group’s accounting policy disclosures.
(b) Reference to the Conceptual Framework – Amendments to Ind AS 103
The amendments replaced the reference to the ICAI’s “Framework for the Preparation and Presentation of
Financial Statements under Indian Accounting Standards” with the reference to the “Conceptual Framework
for Financial Reporting under Indian Accounting Standard” without significantly changing its requirements.
The amendments also added an exception to the recognition principle of Ind AS 103 Business Combinations
to avoid the issue of potential ‘day 2’ gains or losses arising for liabilities and contingent liabilities that would
be within the scope of Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets or Appendix C,
Levies, of Ind AS 37, if incurred separately. It has also been clarified that the existing guidance in Ind AS 103
for contingent assets would not be affected by replacing the reference to the Framework for the Preparation
and Presentation of Financial Statements under Indian Accounting Standards. The amendments are effective
for annual reporting periods beginning on or after April 1, 2022. The amendments are not expected to havea material impact on the Group.
(c) Property, Plant and Equipment: Proceeds before Intended Use – Amendments to Ind AS 16
The amendments modified paragraph 17(e) of Ind AS 16 to clarify that excess of net sale proceeds of items
produced over the cost of testing, if any, shall not be recognised in the profit or loss but deducted fromthe directly attributable costs considered as part of cost of an item of property, plant, and equipment. The
amendments are effective for annual reporting periods beginning on or after April 1, 2022. The amendments
are not expected to have a material impact on the Group.
(d) Ind AS 109 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities
The amendment clarifies the fees that an entity includes when assessing whether the terms of a new or
modified financial liability are substantially different from the terms of the original financial liability. These
fees include only those paid or received between the borrower and the lender, including fees paid or received
by either the borrower or lender on the other’s behalf. The amendments are effective for annual reporting
periods beginning on or after April 1, 2022. The amendments are not expected to have a material impact on
the Group.
Annual Report 2022 | 171

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)
3. PROPERTY, PLANT AND EQUIPMENT
Cost
As at
April 1,2021

Net book
value

Depreciation/Amortisation

Additions Deletions

As atMarch 31,
2022

As at
April 1,
2021

On
As at
As at
For the Impairment
Deletions March 31, March 31,
year
2022
2022

Freehold land (refer note a)

19,718183—

19,901

—

—

—

—

—

19,901

Buildings (refer note b)

76,706

4,497—

81,203

26,584

2,578

—

—

29,162

52,041

Plant and equipment

3,15,162

11,647854

3,25,955

2,17,842

14,736—826

2,31,752

94,203

Office equipments

2,595

297

7

2,885

1,667

267

—

7

1,927

958

Computer equipments

1,937

49

17

1,969

1,335

185

—

15

1,505

464

Furniture and fixtures

24,681914

43

25,552

20,124

2,351

—

26

22,4493,103

Laboratory equipments

4,555

164

92

4,627

2,676

322

—

88

2,910

1,717

Vehicles

1,008

28

379

657

864

33

—

361

536

121

4,46,362

17,779

1,392

4,62,749

2,71,092

20,472—

1,323

2,90,241

1,72,508

Leasehold land
(refer note a)17,148——17,148

1,307

200

—

—

1,507

15,641

Buildings

1,727

283

420

1,590

724

485

—

420

789

801

Right-of-use assets(refer Note 33)

Plant and equipment

—

3

—

3

—

1

—

—

1

2

Furniture and fixtures

36

—

—

36

22

12

—

—

34

2

93

—

—

93

18

21

—

—

39

54

19,004286

420

18,870

2,071

719

—

420

2,370

16,5004,65,366

18,065

1,812

4,81,619

2,73,163

21,191—

1,743

2,92,611

1,89,008

Vehicles
Total

Previous year
Cost
As at
April 1,
2020

Net book
value

Depreciation/Amortisation

Additions

Deletions

As atMarch 31,
2021

As at
April 1,
2020

For
Impairment On Deletions
As atthe year (refer note
March 31,
43)
2021

As at
March 31,2021

Freehold land (refer note a)

19,718——19,718

—

—

—

—

—

19,718

Buildings (refer note b)
Plant and equipment
Office equipments
Computer equipments
Furniture and fixtures
Laboratory equipments
VehiclesTotal

68,7902,97,815
2,220
2,210
23,4904,482
1,096
4,19,821

8,205
20,879
464
81
1,449
199
—
31,277

289
3,532
89
354
258
126
88
4,736

76,706
3,15,162
2,595
1,937
24,6814,555
1,008
4,46,362

22,255
2,03,376
1,519
1,491
17,7402,418
857
2,49,656

2,464
15,846
227
178
2,523
324
45
21,607

2,153
2,112
8
2
111
60
—
4,446

288
3,492
87
336
250
126
38
4,617

26,584
2,17,842
1,667
1,335
20,124
2,676
864
2,71,092

50,122
97,320
928
602
4,557
1,879
144
1,75,270

17,148——17,148

1,107

200

—

—

1,307

15,841

2,354
36
30
19,568
4,39,389

311
—
63
374
31,651

938
—
—
938
5,674

1,727
36
93
19,004
4,65,366

820
10
2
1,939
2,51,595

842
12
16
1,070
22,677

—
—
—
—
4,446

938
—
—
938
5,555

724
22
18
2,071
2,73,163

1,003
14
75
16,933
1,92,203

Right-of-use assets(refer Note 33)
Leasehold land
(refer note a)
Buildings
Furniture and fixtures
VehiclesTotal

172 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)(a) Detail of immovable properties (included under property, plant and equipment) whose title deeds are not held in thename of the Holding Company or subsidiaries or disputed
Title deeds held in Whether title deed Property
held
the name ofholder is a promoter,since
directors or relativeof promoter/director
or employee ofpromoter/director

Reason for not being
held in the name of theHolding Company or its
Subsidiaries

80

Tamil Nadu
State Marketing
Corporation Ltd.

No

2010-11

Application for registrationof title deed is pending
with the state government
for approval

Freehold land (63.07 acres
at Kothlapur, Telangana)654

UB Nizam Breweries
Pvt Limited*No

2010-11

Application for registrationof name change is pending
with the state government
for approval

Freehold land (0.533 acresat Nanjangud, Karnataka)

22

United Breweries
LimitedNo

2009-10

Title deed is in dispute andpending resolution in court
as at March 31, 2022.

Freehold land (0.006 acres
at Nelamangala, Karnataka)

1

United Breweries
LimitedNo

2006-07

Title deed is in dispute andpending resolution in court
as at March 31, 2022.

Freehold land (0.002 acres
at Mallepally, Telangana)_^

United Breweries
LimitedNo

2010-11

Title deed is in dispute andpending resolution in court
as at March 31, 2022.

Leasehold land (25.71
acres at Aurangabad,
Maharashtra)

1,189

Inertia Industries
Limited*No

2010-11

Application for
adjudication of stamp duty
for name change in thelease deed is pending withthe concerned authorities

Leasehold land (18.02
acres at Aurangabad,
Maharashtra)

66

Aurangabad
Breweries Limited*No

2011-12

Application for
adjudication of stamp duty
for name change in thelease deed is pending withthe concerned authorities

Description of Property

Grosscarrying
value

Freehold land (9.04 acres
at Kuthumbakkam, Tamil
Nadu)^ Rounded off to nearest lakhs. * Erstwhile entity which merged with the Holding Company.

(b) Buildings include those constructed on leasehold land as follows:
March 31,2022
33,110
1,067
11,08922,021Gross block
Depreciation charge for the year*
Accumulated depreciation*
Net block*Net of depreciation on deletions

March 31,2021
31,806
1,041
10,022
21,784[This space has been intentionally left blank]

Annual Report 2022 | 173

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)(c) Capital work-in-progress
Capital work-in-progress as at March 31, 2022 and March 31, 2021 comprises of capital expenditure relating toplant and equipment and buildings which are in the course of construction. The ageing of capital work-in-progress
is as below:
Amount in capital work-in-progress for a period ofLess than 1year

1–2 years

2–3 years

More than
3 years

Total

As at March 31, 2022
Projects in progress
Projects temporarily suspended
Total

8,148

1,154

757

24

10,083

16

519

222

149

906

8,164

1,673

979

173

10,989

8,374

3,637

131

25

12,167

355

208

—

149

712

8,729

3,845

131

174

12,879As at March 31, 2021
Projects in progress
Projects temporarily suspended
Total

The details of capital work in progress whose completion is overdue are as below:
March 31, 2022
To be completed inLess than 1year

1–2 years

2–3 years

More than 3
years

Total

Projects in progress
Effluent/water treatment

2,317

—

—

—

2,317

Infrastructure development*

2,174

—

—

—

2,174

Capacity expansion

775

—

—

—

775

Health, safety and environment

569

—

—

—

569

Quality improvement

434

—

—

—

434

Others

848

—

—

—

848

Total

7,117

—

—

—

7,117

Infrastructure development*

581

—

—

—

581

Capacity expansion

177

—

—

—

177

Effluent/water treatment

148

—

—

—

148

Total

906

—

—

—

906

Projects temporarily suspended[This space has been intentionally left blank]

174 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

March 31, 2021
To be completed inLess than 1year

1–2 years

Total

2–3 years

More than 3
years

Projects in progress
Effluent/water treatment

1,537

972

—

—

2,509

Infrastructure development*

1,608

1,209

—

—

2,817

Capacity expansion

415

3,752

—

—

4,167

Health, safety and environment

65

67

—

—

132

Quality improvement

85

395

—

—

480

Others

727

1,040

—

—

1,767

Total

4,437

7,435

—

—

11,872

Infrastructure development*

—

564

—

—

564

Effluent/water treatment

—

148

—

—

148

Total

—

712

—

—

712

Projects temporarily suspended* Infrastructure development includes factory buildings, warehouses and roads.
There are no projects which exceeded cost compared to original plan as on March 31 2022 and March 31, 2021.
For the purpose of aforesaid disclosure, considering voluminous details, projects have been grouped under the
relevant category.
(d) Assets held for sale:
March 31,2022

March 31,2021

Balance at the beginning of the year

488

714

Transfer/sale [Refer Note 30(b)]

—

(226)

Balance at the end of the year

488

488

(e) Refer Note 15 for details of property, plant and equipment pledged as security against borrowings.

[This space has been intentionally left blank]

Annual Report 2022 | 175

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

4. INTANGIBLE ASSETS AND GOODWILL(a) Intangible assets
Cost
As at
April 1,
2021

Amortisation

Additions Deletions

As atMarch 31,
2022

As at
April 1,2021

Forthe yearNet book
value

Impairment Deletions

As atMarch 31,
2022

As at
March 31,2022

Licenses and rights

11,60968—

11,677

9,511

528

—

—

10,039

1,638

Total

11,60968—

11,677

9,511

528

—

—

10,039

1,638

Previous year
Cost
As at
April 1,
2020

Amortisation

Additions

Deletions

As atMarch 31,
2021

As at
April 1,
2020

Net book
value
As at
As at
March 31, March, 2021
2021

For the year Impairment Deletions

Licenses and rights

11,380229—

11,609

8,987

524

—

—

9,511

2,098

Total

11,380229—

11,609

8,987

524

—

—

9,511

2,098

(b) Goodwill on consolidation
As at
March 31,
2022

As at
March 31,2021

Gross amount

4,380

4,380

Less: Provision for impairment

3,735

3,735

645

645

Goodwill has arisen on consolidation of subsidiary. The fair values for the purpose of determination of impairment
loss have been estimated by an independent expert. The impairment loss has arisen due to continued delay inobtaining necessary approvals to expand malting facility at the subsidiary, leading to high overhead costs incurred on
operating at its current level of capacity.
The fair value of goodwill for the purpose of impairment assessment is determined based on fair valuation of theunderlying assets. The key assumptions used in the valuation includes marketability discount of 10% and cost tosell of 2%. The sensitivity of 5% increase/(decrease) in the marketability discount and cost of sell would have an
immaterial impact on the valuation. Also refer Note 30(a).

[This space has been intentionally left blank]

176 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)
As at
March 31, 2022

As at
March 31, 2021

5. FINANCIAL ASSETS - INVESTMENTS (NON-CURRENT)
Trade investments
Equity instruments at cost (fully paid-up) (Unquoted)
Investment in associate
1

1

The Zoroastrian Co-operative Bank Limited[2,000 (March 31, 2021: 2,000) equity shares of Rs. 25 each]1

1

SABMiller India Limited (Formerly, Skol Breweries Limited)[300 (March 31, 2021: 300) equity shares of Rs. 10 each]*——Castle Breweries Ltd. (Formerly, Jupiter Breweries Industries Limited)[50 (March 31, 2021: 50) equity shares of Rs. 10 each]*——Mohan Meakin Limited [100 (March 31, 2021: 100) equity shares of Rs. 5 each]*——

Blossom Industries Limited [100 (March 31, 2021: 100) equity shares of Rs. 3 each]*——

Renew Wind Energy (Karnataka) Private Limited[10,400 (March 31, 2021: 10,400) equity shares of Rs. 100 each]

15

15

Mytrah Vayu (Manjira) Private Limited[1,44,000 (March 31, 2021: 1,44,000) equity shares of Rs. 10 each]14

14

Capsol Sunray Private Limited[27,20,035 (March 31, 2021: 27,20,035) equity shares of Rs. 10 each]

272

272

FPEL Maha 2 Pvt Ltd [13,26,984 (March 31, 2021: Nil) equity shares of Rs. 10 each]251—

IL&FS Financial Services Limited[9.55%, 5,000 (March 31, 2021: 5,000) non-convertible debentures of Rs. 1,000 each]**17

17

IL&FS Financial Services Limited[8.80%, 17,000 (March 31, 2021: Nil) non-convertible debentures of Rs. 1,000 each]**49—

Dewan Housing Finance Corporation Limited[9.15%, Nil (March 31, 2021: 4) non-convertible debentures of Rs. 10,00,000 each]**—14

Dewan Housing Finance Corporation Limited[9.30%, Nil (March 31, 2021: 20) non-convertible debentures of Rs. 10,00,000 each]**—70

Dewan Housing Finance Corporation Limited[9.25%, Nil (March 31, 2021: 53,500) non-convertible debentures of Rs. 1,000 each]**—188

Dewan Housing Finance Corporation Limited[9.30%, Nil (March 31, 2021: 3,100) non-convertible debentures of Rs. 1,000 each]**—11

Piramal Capital & Housing Finance Limited[6.75%, 21,217 (March 31, 2021: Nil) non- convertible debtentures of Rs. 1,000 each]212—

Kingfisher East Bengal Football Team Private Limited[4,999 (March 31, 2021: 4,999) equity shares of Rs. 10 each]Non-trade investments
Equity instruments at fair value through profit or loss (fully paid-up) (Unquoted)

Debt instruments at fair value through other comprehensive income (fully paid-up) (Quoted)

In government securities (Unquoted)
National Savings Certificate

18

Less: Provision for impairment in value of investments

15

Total

18
3

15

3

835

606

Aggregate cost of quoted investments

278

300

Aggregate market value of quoted investments

278

300

Aggregate value of unquoted investments (gross)Aggregate amount of impairment in value of investments

572
(15)

321
(15)

*Rounded off.
**Purchased from United Breweries Limited Provident Fund Trust (Refer Note 38).

Annual Report 2022 | 177

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Non-current
As at
As at
March 31, March 31,
2022
2021

Current
As at
As at
March 31, March 31,
2022
2021

6. FINANCIAL ASSETS - OTHERS
Unsecured, considered good
Financial assets at amortised cost
Security deposits
Bank deposits with remaining maturity of more than twelve
monthsMargin money deposits towards bank guarantees
Interest accrued on bank and other deposits
Unsecured, credit impaired
Security deposits
Less: Loss allowance
Total

4,212
502

4,137
462

—
—

—
—

102
—
4,816

112
—
4,711

—
115
115

—
84
84

94
94
—
4,816

93
93
—
4,711

—
—
—
115

—
—
—
84

As at
March 31,
2022

As at
March 31,2021

7. TAX ASSET/(LIABILITY) (NET)(a) Income tax assets (net)
Balance at the beginning of the year
20,395
18,946
Less: Provision for the year
13,203
6,779
Add: Tax paid (net of refund)13,007
8,228
Closing balance
20,19920,395The above amounts include amounts paid under protest against various income tax demands under appeal,
which are included under contingent liabilities.
Consolidated
Balance sheet

Consolidated
Statement of profit
and loss

As at
March 31,
2022

As at
March 31,2021

March 31,2022

March 31,2021

Provision/allowance for receivables and advances

2,376

1,843

(533)

487

Provision for employee benefits

1,879

1,443

(436)

340

Other provisions

1,708
5,963

1,758
5,044

50
(919)

(432)
395

2,119

1,547

572

(1,115)

2,119

1,547

572

(1,115)

3,844

3,497
(347)

(720)

(b) Deferred tax asset/(liability) (net)Deferred tax assets

Deferred tax liabilities
Property, plant and equipment: Impact of difference
between tax depreciation and depreciation/ amortisation
charged for the financial reporting
Net deferred tax asset
Deferred tax (credit)
178 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

7. TAX ASSET/(LIABILITY) (NET) (continued)
Reconciliation of movement in deferred tax asset
Balance at the beginning of the year
Tax credit/(charge) during the year
Recognised in consolidated statement of profit and loss
Recognised in consolidated OCI

As atMarch 31,
2022

As at
March 31,
2021

3,497

2,777

367
1,221
(20)
(501)
347
720
Balance at the end of the year
3,844
3,497
The Group has not recognised deferred tax asset on provision for impairment in value of goodwill arising from
impairment in investment of subsidiary amounting to Rs. 3,735 Lakhs (March 31, 2021: Rs. 3,735 Lakhs), considering
uncertainty that sufficient future taxable capital gains would be available against which such tax credits can be utilised.
Further, the subsidiary declares dividend only out of profits for respective year and the Holding Company has determinedthat the accumulated profits will not be distributed in the foreseeable future. Hence deferred tax liability on undistributed
profits of the subsidiary has not been recognised as at year end.
Non-current

Current

As at
March 31,
2022

As at
March 31,
2021

As at
March 31,
2022

As at
March 31,
2021

1,517

663

—

—

3,793
71
1,882
17,220561
25,044

3,697
70
2,855
7,902
639
15,826

1,745
362
7,977
17,191—
27,275

1,018
204
7,852
22,615—31,689

82

82

—

—

613
1,363
2,058
—
25,044

532
825
1,439
—
15,826————27,275————31,689

8. OTHER ASSETS
Unsecured, considered good
Capital advances
Advances other than capital advances
Advance to suppliers*
Employees and other advances
Prepaid expenses
Balance with statutory / government authorities**
Government grant receivable***Unsecured, considered doubtful
Capital advances
Advances other than capital advances
Advance to suppliers
Balance with statutory/government authorities
Less: Provision for doubtful advances
Total*Non-current advance to suppliers includes an amount of Rs. 3,271 Lakhs (March 31, 2021: Rs. 3,197 Lakhs) paid
under protest to Maharashtra Industrial Development Corporation (“MIDC”) towards increased charges for watersupplies. The Group has filed a special leave petition before the Supreme Court in respect of this matter and the
management, basis a legal advice, believes that the Group’s position will be upheld in the appellate process andaccordingly, the same has been considered as a contingent liability as at year end.
**Non-current portion includes amounts paid under protest against various tax demands under appeal, which areincluded under contingent liabilities in Note 35.

Annual Report 2022 | 179

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)***Relates to Industrial promotion subsidy. There are no unfulfilled conditions or other contingencies attached tothese grants.
There are no advances to directors or other officers of the Group or any of them either severally or jointly with anyother person or advances to firms or private companies, respectively, in which any director is a partner or a director ora member. Further, there are no loans or advances in the nature of loan to promoters, directors or key management
personnel.
As atMarch 31,
2022

As at
March 31,2021

Raw materials[Includes in transit: Rs. 970 Lakhs (March 31, 2021: Rs. 719 Lakhs)]

15,89425,453

Packing materials and bottles[Includes in transit: Rs. 1,432 Lakhs (March 31, 2021: Rs. 1,059 Lakhs)]

16,543

16,252Work-in-progress

36,132

39,616

Finished goods[Includes in transit: Rs. 5,237 Lakhs (March 31, 2021: Rs. 6,103 Lakhs)]^

18,875

26,344

Stock-in-trade[Includes in transit: Rs. 151 Lakhs (March 31, 2021: Rs. 24 Lakhs)]

231

457

Stores and spares[Includes in transit: Rs. 5 Lakhs (March 31, 2021: Rs. 21 Lakhs)]

5,906

5,546

Total

93,581

1,13,668

9. INVENTORIES(valued at lower of cost and net realisable value)^Net of provision for obsolete stock Rs. 1,702 Lakhs (March 31, 2021: Rs. 2,331 Lakhs).
During the year, an amount of Rs. 1,386 Lakhs (March 31, 2021: Rs. 1,771 Lakhs) was recognised as an expense forinventories carried at net realisable values.
10. TRADE RECEIVABLES(Financial asset at amortised cost)
Considered good
SecuredUnsecuredCredit impaired
Unsecured
Less: Loss allowance
Total

1,571
1,23,915
1,25,486

2,226
1,37,273
1,39,499

7,295
7,295
—
1,25,486

5,792
5,792
—
1,39,499(a) Trade receivables are non-interest bearing and are generally on terms of 0 to 90 days. Balances disclosed as
secured are secured by security deposits received from customers or amounts payable to commission agents.
(b) No debts are due from directors or other officers of the Group or any of them either severally or jointly with anyother person. Also, no debts are due from firms or private companies, respectively, in which any director is apartner or a director or a member.
(c) The above balances includes dues from related parties (Refer Note 38).

180 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)(d) Trade receivables ageing schedule
Outstanding for the following periods fromdue date of payment
Current
but not Less than 6 months 1-2 years 2-3 years Moredue
6 monhts - 1 year
than 3
years

Total

Undisputed Trade ReceivablesConsidered good*

1,02,916

19,641

393

1,554

—

—

1,24,504

Undisputed Trade ReceivablesCredit impaired

—

—

156

102

101

213

572

Disputed Trade ReceivablesCredit impaired**

—

—

83

1,076

363

6,183

7,705

1,02,916

19,641

632

2,732

464

6,396

1,32,781

Undisputed Trade ReceivablesConsidered good*

1,10,334

23,329

3,138

1,716

—

—

—

Undisputed Trade ReceivablesCredit impaired

—

—

27

269

26

187

509

Disputed Trade Receivables- Credit
impaired**

—

—

—

—

4,099

2,166

6,265

1,10,334

23,329

3,165

1,985

4,125

2,353 1,45,291

As at March 31, 2022

Total
As at March 31, 2021

Total

* Includes unbilled receivables not due of Rs. 10 Lakhs (March 31, 2021: Rs. 55 Lakhs)**Includes Rs. 982 Lakhs (March 31, 2021: Rs. 982 Lakhs) relating to dispute with a customer which is fully provided
for and for which provision is included under provision for litigations in Note 17.
As atMarch 31,
2022

As at
March 31,2021

Bank balances on current accounts^

14,7588,461Bank deposits with original maturity of three months or less

71,50032,50011. CASH AND CASH EQUIVALENTS

Cash on hand
Total

2

9

86,26040,970^Includes balances in exchange earners foreign currency accounts of Rs. 5,856 Lakhs (March 31, 2021: Rs. 4,692 Lakhs)
12. OTHER BANK BALANCESBank balances on current accounts towards unpaid dividend
Bank balances on current account towards CSR expense

3,875

5,147

1

—

Bank deposits with original maturity of:Less than twelve months but more than three months

791

706

Greater than twelve months

41

105

4,708

5,958

Total

Bank balances towards unpaid dividend and CSR expense can be utilised only towards payment of dividend and CSR
expense, respectively. Other bank balances excludes bank deposits with remaining maturity of more than twelve months
and margin money deposits (Refer Note 6). Bank deposits include balances where fixed deposits receipts are pledged withstatutory/government authorities.
Annual Report 2022 | 181

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

13. EQUITY SHARE CAPITAL
Authorised share capital
4,12,98,00,000 (March 31, 2021: 4,12,98,00,000) equity shares of Re. 1 each
5,86,00,000 (March 31, 2021: 5,86,00,000) preference shares of Rs. 100 each

As atMarch 31,
2022

As at
March 31,2021

41,29858,60099,89841,29858,60099,898

2,644
2,644

2,644
2,644

Issued, subscribed and fully paid-up shares
26,44,05,149 (March 31, 2021: 26,44,05,149) equity shares of Re. 1 eacha) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

At the beginning of the year

As at March 31, 2022

As at March 31, 2021

Nos.

Nos.

Rs.in Lakhs

26,44,05,149

2,644

26,44,05,149

2,644

—

—

—

—

26,44,05,149

2,644

26,44,05,149

2,644

Changes during the year
Outstanding at the end of the year

Rs. in Lakhsb) Terms/rights attached to equity shares
The Holding Company has only one class of equity shares having a par value of Re. 1 per share. Each holder of
equity share is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to theapproval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Holding Company, the holders of equity shares will be entitled to receive
remaining assets of the Group, after distribution of all preferential amounts. The distribution will be in proportion
to the number of equity shares held by the shareholders.
c) Equity shares held by holding/ultimate holding company and/or their subsidiaries/associates
As at March 31, 2021

As at March 31, 2022*
Nos.
Value
Scottish & Newcastle India Limited
8,99,94,960
900
Heineken International B.V.
6,41,69,921
642
Heineken UK Limited
84,89,270
85
Total
16,26,54,151
1,627*Comparatives not applicable as these entities became holding/ultimate holding company with effect from
July 29, 2021.
d) Details of shareholders holding more than 5% of the shares in the Holding Company
Name of the shareholder

As at March 31, 2022

As at March 31, 2021

Nos.

Nos.

%

%

Equity shares of Re.1 each fully paid
Scottish & Newcastle India Limited

8,99,94,960

34.04%

8,99,94,960

34.04%——

4,27,04,758

16.15%

Heineken International B.V.

6,41,69,921

24.27%

2,45,25,575

9.28%

Dr. Vijay Mallya (including joint holdings)

2,13,53,620

8.08%

2,13,53,620

8.08%

Deputy Director, Directorate of Enforcement

As per records of the Holding Company, the above shareholding represents legal ownership of shares.
182 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)e) There are no equity shares issued as bonus, shares issued for consideration other than cash or shares bought backduring the period of five years immediately preceding the reporting date.
f) Details of equity shares (of Re.1 each fully paid up) held by promoters
March 31, 2022
Promoter Name

No. of sharesat thebeginning of
the year

Changeduring theyear

No. of sharesat the end of
the year

% of
Total
shares% changeduring theyear

Scottish & Newcastle India Limited

8,99,94,960—

8,99,94,960

34.04

—

Heineken International B.V.

2,45,25,575

3,96,44,346

6,41,69,921

24.27

14.99

Heineken UK Limited

84,89,270—

84,89,270

3.21—

Dr.Vijay Mallya

4,02,666—

4,02,666

0.15—

Dr.Vijay Mallya & Sidhartha Mallya,
joint holding

1,04,86,666—

1,04,86,666

3.97

—

Dr.Vijay Mallya & Ritu Mallya, joint
holding

1,04,64,288—

1,04,64,288

3.96

—

McDowell Holdings Ltd.

45,51,000—

45,51,000

1.72—

Kamsco Industries Pvt. Ltd.

32,74,000—

32,74,000

1.24—

UB Overseas Ltd.

4,27,740—

4,27,740

0.16

—

620

—

620

0.00

—

15,26,16,785

3,96,44,346

19,22,61,131

72.72

14.99

Pharma Trading Company Pvt. Ltd.
Total
March 31, 2021
Promoter Name

No. of sharesat thebeginning of
the year

Changeduring theyear

No. of sharesat the end of
the year

% of
Total
shares% changeduring theyear

Scottish & Newcastle India Limited

8,99,94,960—

8,99,94,960

34.04

—

Heineken International B.V.

2,45,25,575—

2,45,25,575

9.28

—

Heineken UK Limited

84,89,270—

84,89,270

3.21—

Dr.Vijay Mallya

4,02,666—

4,02,666

0.15—

Dr.Vijay Mallya & Sidhartha Mallya,
joint holding

1,04,86,666—

1,04,86,666

3.97

—

Dr.Vijay Mallya & Ritu Mallya, joint
holding

1,04,64,288—

1,04,64,288

3.96

—

McDowell Holdings Ltd.

45,51,000—

45,51,000

1.72—

Kamsco Industries Pvt. Ltd.

32,74,000—

32,74,000

1.24—

UB Overseas Ltd.

4,27,740—

4,27,740

0.16

—

620

—

620

0.00

—

15,26,16,785—

15,26,16,785

57.73

—

Pharma Trading Company Pvt. Ltd.
Total

Annual Report 2022 | 183

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

As at
March 31,
2022

As at
March 31,2021

Capital redemption reserve
Balance as per last consolidated financial statements

24,69024,690

Securities premium
Balance as per last consolidated financial statements

62,93862,938General reserve
Balance as per last consolidated financial statements

42,692

41,54340

1,149

42,732

42,692

2,25,264

2,20,211

36,546

11,32260

1,490(1,322)(6,610)(40)(1,149)

Closing balance

2,60,508

2,25,264

Total reserves and surplus

3,90,868

3,55,584

14. OTHER EQUITY

Transfer from the consolidated statement of profit and loss*
Closing balance
Retained earnings
Balance as per last consolidated financial statements
Consolidated profit for the year
Other comprehensive income
Appropriations
Final equity dividend
Transfer to general reserve**Transfer to general reserve for the year ended March 31, 2022 pertains to the subsidiary.			
Distribution made and proposed
Cash dividends on equity shares declared and paid:
Dividend for the year ended March 31, 2021: Rs. 0.50 per share(March 31, 2020: Rs. 2.50 per share)

1,322

6,610

1,322

6,610

27,763

1,322

27,763

1,322

Proposed dividends on equity shares:
Dividend for the year ended on March 31, 2022: Rs. 10.50 per share(March 31, 2021: Rs. 0.50 per share)

Proposed dividend on equity shares are subject to approval at the annual general meeting and are not recognised
as a liability as at year end.
Non-controlling interest
Balance as per last consolidated Ind AS financial statements

375

334

Profit for the year

62

61

Cash dividends paid by the subsidiary company

(23)

(20)

Closing balance

414

375

184 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Non-current portion

Current portion

As at
March 31,
2022

As at
March 31,
2021

As at
March 31,
2022

As at
March 31,2021

Indian currency term loans from banks—

10,750—14,250Less: Amount disclosed under the head “Financial
liabilities – Borrowings (Current)” (Refer Note 18)

—

—

—

14,250Total—

10,750——15. FINANCIAL LIABILITIES – BORROWINGS(NON-CURRENT)(at amortised cost)
Secured(a) Nature of security and terms are as below:
Nature of security

Repayment and other terms

Indian currency term loan
Axis Bank: Rs. NIL (March 31, 2021: Rs. 25,000 Lakhs)
secured by first pari-passu charge on all present andfuture movable property, plant and equipment of theHolding Company, excluding those which are exclusively
under charge of other lenders and with negative lien on
immovable fixed assets of the Holding Company.

Repayable in 5 equal quarterly instalments of Rs.
4,750 Lakhs each and one instalment of Rs. 1,250
Lakhs starting from September 2021. The loan carried
floating interest rate, which was in the range of 5.4%
to 7.5% per annum during the year and was payable
on monthly basis. The loan was pre-paid by the Holding
Company during the year ended March 31, 2022.

(b) The Group is in compliance with the applicable debt covenants prescribed in the terms of borrowings. Also there
has been no default in repayment of borrowings and payment of interest during the year.
Non-current portion

Current portion

As at
March 31,
2022

As at
March 31,
2021

As at
March 31,
2022

As at
March 31,2021

Liability for capital goods

—

—

5,230

5,774

Security deposits

—

—

2,573

3,694

Unpaid dividends*

—

—

3,875

5,147

2,497

1,109

6,011

4,726

Freight expenses payable

—

—

7,756

7,046

Other expenses payable——

30,36525,995

2,497

1,109

55,81052,382

16. OTHER FINANCIAL LIABILITIES(at amortised cost)

Salaries and bonus payable

Total*There are no amounts due for payment to the Investor Education and Protection Fund under the Companies Act,
2013 as at year end.

Annual Report 2022 | 185

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Non-current portion

Current portion

As at
March 31,
2022

As at
March 31,
2021

As at
March 31,
2022

As at
March 31,
2021

441
—
—
441

160
—
—
160

500
—
4,034
4,534

1,000
265
4,316
5,581

—
—
441

—
—
160

5,688
5,688
10,222

3,527
3,527
9,108

17. PROVISIONS
Provision for employee benefits
Gratuity
Provident fundCompensated absences
Other provisions
Provision for litigations
Total

At the beginning
AdditionsUtilised during Unused amounts
At theof the year
during the year
the yearreversedend of the year
Provision for litigations

3,527

2,161

—

—

5,688

(3,552)

(8)

—

(33)

(3,527)

Figures in brackets are of previous year.
Provision for litigations relates to matters which are sub-judice and the Group continues to contest these cases.
As at
March 31,
2022

As at
March 31,2021

Current maturities of long-term borrowing (Refer Note 15)—

14,250Indian currency cash credit from banks

—

17

Total

—

14,267

18. FINANCIAL LIABILITIES - BORROWINGS (CURRENT)(at amortised cost)
Secured(a) Indian currency cash credit and working capital demand loans are part of consortium facility and are secured byfirst pari-passu charge on all current assets of the Holding Company namely stock of raw materials, semi finishedand finished goods, stores and spares and not relating to plant & machinery (consumables, stores & spares), bills
receivable and book debt of the present and the future. These facilities are repayable within 360 days and carryinterest in the range of 4% to 7% per annum.
(b) The quarterly returns/statements filed by the Holding Company with banks are in the agreement with the books of
the Holding Company, except in instances as below:
Quarter ended

Value as per books ofaccounts

Value as per Quarterly
returns/statements

Discrepancy^

June 30, 2021 Inventories (Work in progress)

25,524

27,468(1,944)

December 31, 2021 Inventories (Finished goods)

25,07024,388682^Updated for book closure entries recorded post submission of returns/statements to banks.
(c) The Group is in compliance with applicable financial debt covenants prescribed in the terms of borrowings. Also,
there has been no default in repayment of borrowings and payment of interest during the year.
186 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

As at
March 31,
2022

As at
March 31,
2021

9,158
54,64263,8006,344
56,60362,947

19. FINANCIAL LIABILITIES - TRADE PAYABLES(at amortised cost)
Total outstanding dues of micro and small enterprises (Refer Note 36 for details)
Total outstanding dues of creditors other than micro and small enterprises (including acceptances)
Total(a) Trade payables are non-interest bearing and are normally settled on 30 to 130 days(b) The above disclosure includes dues to related parties (Refer Note 38)(c) Trade payables ageing schedule

Outstanding for the following periods from due date of payment
Unbilleddues

Less than
1 year

1-2 years

2-3 years

More than
3 years

Total

As at March 31, 2022
Total outstanding dues of micro andsmall enterprises

—

8,492

345

298

23

Total outstanding dues of creditors
other than micro and small enterprises

6,911

46,93810858

575 54,590

Disputed dues of micro and small
enterprises

—

—

—

—

—

—

Disputed dues of creditors other than
micro and small enterprises

—

—

—

—

52

52

6,911

55,430453

356

650 63,800

Total outstanding dues of micro andsmall enterprises

—

5,499

302

543

—

Total outstanding dues of creditors
other than micro and small enterprises

2,035

53,141381

98

736 56,391

Disputed dues of micro and small
enterprises

—

—

—

—

—

—

Disputed dues of creditors other than
micro and small enterprises

—

45

73

—

94

212

2,035

58,685756

641

830 62,947

As atMarch 31,
2022

As at
March 31,
2021

Total

9,158

As at March 31, 2021

Total

6,344

20. OTHER CURRENT LIABILITIESStatutory dues payable*

62,676

71,846

Contract liabilities - Advances from customers**

4,335

2,614

250

250

67,261

74,710

Advance from commission agents
Total*Includes liability for excise duty on closing stock of work-in-progress and finished goods, value added tax, goods
and services tax, etc.
**Revenue recognised from amounts included in contract liabilities at the beginning of the year is Rs. 2,209 Lakhs(March 31, 2021: Rs. 2,584 Lakhs)

Annual Report 2022 | 187

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

March 31,2022

March 31,2021

12,85,979

9,98,541

Sale of services

3,068

1,584

Other operating revenues

23,34518,451

13,12,392

10,18,576

12,73,211

9,89,774

Non-alcoholic beverages

2,988

2,891

Others (Input materials)

9,780

5,876

12,85,979

9,98,541

2,775

1,426

293

158

3,068

1,584

Income from contract manufacturing units

13,835

11,921

Scrap sales

9,100

6,403

410

127

23,34518,451

Products transferred at a point in time

12,95,489

10,05,071

Services rendered at a point in time

16,903

13,505

13,12,392

10,18,576

13,59,687

10,56,140

Adjustments (Variable consideration, etc.)(47,295)(37,564)

Revenue from contracts with customers

13,12,392

10,18,576

21. REVENUE FROM CONTRACTS WITH CUSTOMERS (INCLUDING EXCISE DUTY)
Revenue from operations
Sale of products (including excise duty)

Total(a) Disaggregated revenue information
Sale of products (including excise duty)
Beer

Sale of services
Royalty income
OthersOther operating revenues

Others(b) Timing of revenue recognition(c) Reconciliation of amount of revenue recognisedwith contract price
Revenue as per contracted price(d) Performance obligations for sale of products is satisfied upon delivery of the goods and that for sale of services issatisfied upon rendering of respective services.
(e) Sale of products for the year ended March 31, 2022 is adjusted for reversals in variable consideration of Rs. 753
Lakhs (Previous year: Rs. 1,528 Lakhs).
(f) Also refer Note 10 for Trade receivables, Note 20 for Contract liabilities and Note 37 for Segment information.

188 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

22. OTHER INCOME
Interest income on bank and other deposits
Net gain on disposal of property, plant and equipment
Profit on sale of investments classified as fair value through profit or loss
Exchange differences (net)
Liabilities no longer required written back
Loss allowance for receivables, no longer required written back
Other non-operating income
Total
23. COST OF MATERIALS CONSUMED
Raw materials
Inventories at the beginning of the year
Add: Purchases
Less: Inventories at the end of the year
Consumption
Packing materials and bottles
Inventories at the beginning of the year
Add: Purchases
Less: Inventories at the end of the year
Consumption
Total

March 31,2022

March 31,
2021

1,528
8
54
352
479
217
341

462
4
—
356
205
3,380
618

2,979

5,025

25,45381,751
15,89423,294
69,64225,45391,31067,483

16,252
1,79,710
16,543
1,79,419
2,70,729

18,962
1,26,323
16,252
1,29,033
1,96,516

18,501
1,081

6,220
1,151

19,582

7,371

24. PURCHASES OF STOCK-IN-TRADE
Beer
Non-alcoholic beverages

25. CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK-IN-TRADE
Inventories at the beginning of the year
Finished goods*

28,67526,718Work-in-progress

39,616

37,219Stock-in-trade

457

690

68,74864,627

Finished goods*

20,57728,675Work-in-progress

36,132

39,616

Stock-in-trade

231

457

56,94068,748Decrease/(increase) in inventories

11,808(4,121)(Increase)/decrease in excise duty on inventories(9,507)

3,171

Total

2,301

(950)

Less: Inventories at the end of the year

*Before provision for obsolete stock. Refer Note 9.
Annual Report 2022 | 189

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

26. EMPLOYEE BENEFITS EXPENSE
Salaries, wages and bonus*
Gratuity expense [refer note (i) below]
Contribution to provident and other funds [refer note (i) and (ii) below]
Staff welfare expenses
Total

March 31,2022

March 31,2021

46,657
860
1,846
2,949
52,31242,444
1,067
2,260
2,778
48,549*Includes severance pay of Rs. 1,748 Lakhs (Previous year: Nil) paid to certain employees of the Holding Company
on separation.
(i) The Group operates two defined benefit plans i.e., gratuity and provident fund for its employees. Under thetiered gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure
as per the Group policy subject to minimum of 15 days of last drawn salary for each completed year of service.
The gratuity fund is managed by external agencies. Under the provident fund benefit plan till December 31,
2021, the Group contributed to the provident fund trust which guaranteed a specified rate of return on suchcontributions on a periodical basis as per the government notification. The shortfall in the return, if any, wasborne by the Group. The aforesaid funds are set up as trusts and are governed by the Board of Trustees who is
responsible for the administration of the plan assets and for deciding the investment strategy. Effective January
1, 2022, the provident fund trust has transferred the funds to the Regional Provident Fund (RPFC). Henceforth
the provident fund and returns on the contribution would be managed by the RPFC and the Group’s obligationis restricted to payment of the contribution made by employees and the employer’s contribution on a monthly
basis. As such, effective January 1, 2022, provident fund benefit is a defined contribution plan. The following
table summarises the components of net benefit expenses and the funded status for respective plans:
Gratuitya) Changes in the present value of the defined
benefit obligation
Obligations at beginning of the year
Current service cost - employer contribution
Employee contribution
Interest cost
Benefits paid**
Actuarial (gain)/loss
Obligations at end of the yearb) Change in fair value of plan assets
Plan assets at the beginning of the year
Return on plan assets
Contributions during the year*
Benefits paid**
Actuarial gain/(loss)
Plan assets at end of the year

Provident fundMarch 31,2022

March 31,2021

March 31,2022

March 31,2021

10,401851—
615(1,572)(46)
10,24911,569961—
667(1,953)(843)
10,401

19,060
673
1,139
286
(21,158)——

17,100
863
1,724
1,454
(2,201)
120
19,060

9,241
606

9,884
561

18,795551

16,1271,404

1,000(1,572)
33
9,308—(1,953)
749
9,241

1,812
(21,158)——

2,946(2,201)519
18,795*Provident fund includes contribution by the employer towards loss on sale of investments by the provident
fund trust.
**Provident fund benefits paid during the year ended March 31, 2022 includes Rs. 17,002 Lakhs (March 31,
2021: Nil) transferred to the Employee’s Provident Fund Organisation, Government of India on surrender of
exempted Provident Fund Trust by the Holding company.
190 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Gratuity

Provident fundMarch 31,2022

March 31,2021

March 31,2022

March 31,2021

Fair value of plan assets

9,308

9,241

—

18,795

Less: Present value of the defined benefit
obligations

10,24910,401(941)(1,160)—(265)

Current service cost - employer contribution

851

961

673

863

Interest cost

615

667

286

1,454

Return on plan assets

(606)

(561)

(551)

(1,404)Net employee benefit expense**

860

1,067

408

913

c) Benefit asset/(liability)

Benefit asset/(liability)—

19,060d) Cost charged to the consolidated statement of
profit and loss under employee cost**In respect of provident fund trust, the amount recognised in the consolidated statement of profit and loss
is the amount contributed to provident fund by the Group and the amount of shortfall in defined benefit
obligations (excluding the re-measurement gain/loss which is recognised in other comprehensive income).
e) Re-measurement (gain)/loss recognised in othercomprehensive income
Actuarial (gain)/loss
Change in financial assumption

(437)

(289)

—

182

Experience variance (actual vs assumption)

390

(554)

—

(62)

Return on plan assets (excluding amountrecognised in net interest expense)

(33)

(749)

—

(519)

Net actuarial (gain)/loss(80)(1,592)—(399)

Government securities

—

—

—

11,177

Corporate bonds

—

—

—

5,796

9,308

9,241

—

—

Others

—

—

—

1,822

Total

9,308

9,241

—

18,795f) Major category of plan assets included inpercentage of fair value of plan assets

Fund balance with insurance companies[This space has been intentionally left blank]

Annual Report 2022 | 191

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)g) The principal assumptions used in determining gratuity and provident fund obligations for the Group plans
are as shown below:
Gratuity
March 31,2022

Provident fundMarch 31,2022

March 31,2021

March 31,
2021

6.70%

6.40%

—

6.40%

Salary increase rate

8.00%-10.50%

8.00%-10.50%—

8.00%-10.50%

Employee turnover

5.00%-15.00%

5.00%-15.00%—

5.00%-15.00%

—

7.65%

Discount rate

Expected return on exempt fundNot applicable

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market. The overall
rate of return on assets is determined based on the market price prevailing on that date, applicable to theperiod over which the obligation is to be settled.
h) A quantitative sensitivity analysis for significant assumptions is as below:
March 31, 2022

March 31, 2021

1% increase

1% decrease

1% increase

1% decrease

Discount rate

(704)

799

(735)

836

Salary increase rate

787

(705)

812

(730)

Employee turnover

(148)

161

(165)

183

—

—

(564)

627

Impact on defined benefit obligation (Gratuity) Increase/(decrease) in liability

Impact on defined benefit obligation(Provident fund) - Increase/(decrease) in liability
Expected return on exempt fundThe sensitivity analysis above have been determined based on a method that extrapolates the impact on
defined benefit obligation as a result of reasonable change in key assumptions occurring at the end of thereporting period.
(i) The Group expects to contribute Rs. 500 Lakhs (March 31, 2021: Rs. 1,000 Lakhs) to gratuity fund during
the next financial year. The maturity profile of the defined benefit payments under the defined benefit
plans in future years is as below.
Gratuity

Provident fundMarch 31,2022

March 31,2021

March 31,2022

March 31,2021

Within next 12 months

691

686

—

3,930

Between 2 to 5 years

4,683

4,356

—

6,425

Between 5 to 10 years

7,431

7,605

—

3,979

Total

12,805

12,647—

14,334

The average duration of the defined benefit plan obligations at the end of the reporting period is 7 years(Previous year: 7 years)

192 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)(ii) Contribution to provident and other funds include the following:
March 31,2022

March 31,
2021

1,236

1,558

Superannuation fund

586

669

Employees state insurance fund

24

33

1,846

2,260

1,464

2,244

14

23

1,478

2,267

21,191

22,677528

524

21,71923,201

11,30014,7793,948

7,980
11,774
3,900

4,495
240
2,060
2,328
30,855
6,379

2,689
133
1,348
2,227
22,8703,933

Provident fund (includes defined benefit obligation)

Total
27. FINANCE COSTS
Interest expense (including on lease liabilities)
Other borrowing costs
Total
28. DEPRECIATION AND AMORTISATION EXPENSE
Depreciation of property, plant and equipment (including right-of-use assets)
Amortisation of intangible assets
Total
29. OTHER EXPENSES
Consumption of stores and spares
Power and fuelRent
Repairs and maintenance
Plant and machinery
Buildings
OthersInsurance
Rates and taxes
Legal and professional charges
Auditor’s remuneration*
Statutory audit fee
Limited review fee
Tax audit fee
Certifications
Other audit related services
OthersSales promotion expenses [net of reversal of Rs. 213 Lakhs(Previous year: Rs. 186 Lakhs)]
Outward freight, halting and breakage expenses
Distribution expenses [net of reversal of Rs. 754 Lakhs(Previous year: Rs. 145 Lakhs)]
CSR expenditure (refer details below)
Bad debts/advances written off
Loss allowance for trade receivables
Provision for doubtful advances/deposits
Miscellaneous expenses
Total*Includes goods and service tax and reimbursement of expenses

151
30
19
5
99
23

327

144
27
19
15
15
8

228

27,60621,09530,24623,09816,49016,451

1,080
301
1,720
620
14,484
1,69,258

1,383
28
479
966
14,135
1,34,717

Annual Report 2022 | 193

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

March 31,2022

March 31,2021

OTHER EXPENSES (contd.)
Details of CSR expenditure(a) Gross amount required to be spent by the Holding Company during the year

1,080

1,368

(b) Amount approved by the Board to be spent during the year

1,080

1,368

—

—

736
736

1,383
1,383

736

1,383

344

47

—
1,080

—
1,430

(c) Amount spent during the year
Construction/acquisition of any asset
Other than construction/acquisition of any asset
Total(d) Details related to spent/unspent obligations
Amount spent during the year
Unspent amount in relation to ongoing project
Unspent amount in relation to other than ongoing project
Total(e) Details of ongoing projects
Balance at the beginning of the year (with the Holding Company)**
Amount required to be spent during the year
Less: Amount spent during the year (from the Holding Company's bank account)Less: Amount spent during the year (from unspent CSR account)
Balance at the end of the year (with the Holding Company)***

47
62
1,080
1,368
736
1,383
46
—
345
47
**Balance at the beginning of the year (i.e.,as at April 1, 2021) was transferred to a separate unspent CSR
account during the year.
***The Holding Company is in the process of transferring unspent amount to a separate unspent CSR account.
March 31,2022

30. EXCEPTIONAL ITEMS
Impairment (loss) on property, plant and equipment (Refer Note 43)
Impairment (loss) on goodwill (see note (a) below)
Gain on transfer of rights and interest in a leasehold land (see note (b) below)
Total

March 31,
2021
—
—
—
—

(4,446)(1,776)
5,500
(722)

(a) As at March 31, 2021, the Holding Company carried out impairment assessment of goodwill with carrying valueof Rs. 2,421 Lakhs arising from consolidation of subsidiary company. The recoverable amount for the underlying
assets of the subsidiary company is determined by an external valuer to be Rs. 645 Lakhs based on a fair valueless cost of disposal calculation and accordingly an impairment loss of Rs. 1,776 Lakhs was recognized in respectof goodwill attributed to such subsidiary company during the year ended March 31, 2021. No futher impairment
was noted during the year.
(b) The Holding Company executed a deed for assignment cum transfer of its rights and interest in a leasehold land
property (disclosed as assets held for sale) and accordingly a profit of Rs. 5,500 Lakhs realised on such transfer
was recognized during the year ended March 31, 2021.

194 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

March 31,2022

March 31,2021

31. TAX EXPENSES
Income tax related to items charged or credited to the consolidated statementof profit and loss during the year:
Consolidated profit and loss section
13,203

6,779

(367)

(1,221)

12,836

5,558

20

501

20

501

Accounting profit before income tax

49,444

16,941

Tax as per statutory income tax rate of 25.17% (Previous year: 25.17%)

12,4454,264

CSR expenditure

272

348

Impairment loss on goodwill

—

447

119

499

12,836

5,558

Current tax
Deferred tax (credit)
Total
Other comprehensive income
Deferred tax charge
Re-measurement of defined benefit plans
Total
Reconciliation of tax expense with accounting profit multiplied by statutory
income tax rate:

Non-deductible expenses for tax purposes

OthersIncome tax expense reported in consolidated statement of
profit and loss account
32. EARNINGS PER SHARE (EPS)The following reflects the profit and share data used in the basic and diluted EPS computation:
Net profit attributable to equity shareholders of the parent
Weighted average number of equity shares considered for calculating basic/
diluted EPS
Earnings per share (Basic/Diluted) (Rs.)

36,546

11,322

26,44,05,149

26,44,05,149

13.82

4.28

33. LEASESThe Group has lease contracts for land, office premises, employee residential premises, computers, plant andequipment, furniture and vehicles. Leasehold land arrangements are for 90-99 years with various government
authorities. Other leases are for a period of upto 9 years with options of renewal and premature termination with
notice, except in certain leases with lock-in period of 6 to 36 months. The Group’s obligations under its leases are
secured by the lessor’s title to the leased assets. Generally, the Group is restricted from assigning and sub-leasing
the leased assets. There are certain lease contracts that include extension and termination options. The Group also
has certain leases with lease terms of twelve months or less and leases with low value. The Group applies the ‘shortterm lease’ and ‘lease of low-value assets’ recognition exemptions for these leases. There is no lease arrangementswith variable lease payments.
Refer Note 3 for details of carrying amounts of right-of-use assets recognised and the movements during the year.
Set out below are the carrying amounts of lease liabilities and the movements during the year:

Annual Report 2022 | 195

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

March 31,2022
At the beginning of the year

March 31,
2021

1,180

1,659

Additions

286

374

Accretion of interest

91

113

Payments

(583)

(966)

At the end of the year

974

1,180

Current

368

406

Non-current

606

774

Total

974

1,180

The Group has applied weighted average incremental borrowing rate of 8% per annum to lease liabilities recognisedin the consolidated balance sheet. The maturity analysis of lease liabilities is disclosed in Note 41(c). The following
are the amounts recognised in the consolidated statement of profit and loss:
Depreciation expense of right-of-use assets
Interest expense on lease liabilities
Expense relating to short-term leases (included in rent expense)
Expense relating to leases of low-value assets (included in rent expenses)
Total amount recognised in the consolidated statement of profit and loss

719
91
3,769
179
4,758

1,070
113
3,654
246
5,083

The Group had total cash outflows for leases of Rs. 4,531 Lakhs (Previous year: Rs. 4,866 Lakhs) for the year ended
March 31, 2022. The Holding Company also had non-cash additions to right-of-use assets and lease liabilities of
Rs. 286 Lakhs (Previous year: Rs. 374 Lakhs) during the year ended March 31, 2022. There are no leases that havebeen entered into but not yet commenced as at year end.
The undiscounted potential future rental payment relating to periods following the exercise date of extension optionthat are not included in the lease term is Rs. 151 Lakhs (Previous Year: Rs. 159 Lakhs). There are no termination
options which are expected to be exercised but not included in lease term.
34. CAPITAL AND OTHER COMMITMENTS(a) Estimated amount of contracts remaining to be executed (net of capital
advances) on capital account and not provided for

6,507

5,070

(b) Commitment under contracts for malt conversion

1,404

2,808

(c) Commitments under power purchase agreements

6,706

6,700

(d) Other contractual commitments

1,949

2,430

Total

16,56617,008For commitments relating to lease arrangements, refer Note 33.
35. CONTINGENT LIABILITIES(a) The Holding Company received an order dated September 24, 2021 under Section 27 of the Competition Act,
2002 from the Competition Commission of India (“CCI”) (‘the CCI Order’), wherein the CCI concluded that theHolding Company and certain executives (including former executives) of the Holding Company contravened
the provisions of Section 3 of the Competition Act, 2002. The CCI levied a penalty of Rs.75,183 Lakhs on
the Holding Company. On December 8, 2021, the Holding Company filed an appeal against the aforesaid
CCI Order before the National Company Law Appellate Tribunal (‘NCLAT’). The NCLAT vide its order dated
December 22, 2021 granted a stay of the CCI Order during the pendency of the appeal, including recovery of
the penalty imposed by the CCI, subject to deposit of 10% of the penalty amount by the Holding Company.
The Holding Company has accordingly deposited Rs. 7,518 Lakhs with the Registrar, NCLAT.
196 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Based on the advice of the external legal experts, the Holding Company is of the view that the Director
General and the CCI has not considered all aspects of its submissions particularly considering the nature of
the regulations governing the manufacture, distribution and sale of beer in India. As advised by the Holding
Company’s external legal experts, the Holding Company has a strong case on merits, there exists uncertainty
relating to the final outcome in this matter, which is dependent on judicial proceedings; and that it is not in aposition to reliably estimate the final obligation relating to penalties, if any. Accordingly, no provision has beenrecorded in the books of account and the same has been considered as a contingent liability in accordance with
Ind AS 37 – Provisions, Contingent Liabilities and Contingent Assets.
(b) On January 5, 2022, a party has filed a claim of Rs. 2,877 Lakhs against the Holding Company before the
Arbitral Tribunal, which includes claims towards loss of profit, certain reimbursement claims and damages
towards breach of contract, etc. On February 12, 2022, the Holding Company filed a counter claim against
the party before the Arbitral Tribunal, which includes claim towards loss of business and other recoverables.
Management based on a legal opinion, believes that the claims made by the party are not sustainable and noliability would arise from the same. Accordingly, no liability/provision is recognised in this regard.
March 31,2022(c) Others
Claims against the Group not acknowledged as debts^
Income tax
Excise duty
Sales tax
Service tax
Water charges
Employee state insurance/provident fund
OthersOther money for which the Company is contingently liable
Bank guarantees
Letter of credit
Total

March 31,2021

77,95914,845
11,410
2,599
3,271
104
9,941

45,166
14,713
9,820
2,616
3,197
84
9,614

1,891
—
1,22,020

3,809
1,176
90,195^The Group is contesting these demands / notices and the management, based on advice of its legal/tax
consultants, believes that its position will likely be upheld in the appellate process. No expense has been accruedin the consolidated financial statements for these demands raised. The management believes that the ultimate
outcome of these proceedings will not have a material adverse effect on the Group’s financial position andresults of operations. The Group does not expect any reimbursements in respect of these contingent liabilities.
The amounts disclosed as contingent liabilities above are based on the demands stated in the orders /notices
received from the tax authorities. These do not include amounts for similar matters for periods subsequent toperiods covered by these demands / notices and interest or penalty which are not included in these demands /notices.
During the financial year 2006-07 relating to assessment year 2007-08, pursuant to acquisition of a subsidiaryand its subsequent merger in the same financial year, the Holding Company recognized goodwill of Rs. 6,230
Lakhs and has claimed depreciation thereon under the Income Tax Act. The claim of depreciation on goodwill
has been litigated by the tax authorities and the Holding Company’s appeal in this regard is pending before
the Honorable High Court of Karnataka. The Holding Company has relied on the Honorable Supreme Court’s(SC) judgement on depreciation claim and other rulings of High Courts relying on the aforesaid SC orderwhich supports claim for depreciation on goodwill. Based on advice of its tax consultants and senior counsel,

Annual Report 2022 | 197

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)the Holding Company believes that it is probable that its position will be upheld in the appellate process andhence tax thereupon is considered as a contingent liability.
In addition, the Group is subject to legal proceedings and claims, which have arisen in the ordinary course ofbusiness. The management reasonably does not expect that these legal actions, when ultimately concluded anddetermined, will have material effect on the Group’s results of operations or financial condition.
March 31,2022

March 31,2021

36. Details of dues of micro and small enterprises as defined under theMicro, Small and Medium Enterprises Development (MSMED) Act, 2006
The principal amount and the interest due thereon remaining unpaid to any
supplier as at the end of each accounting year
8,367

5,205

791

1,139

9,158

6,344

The amount of interest paid by the buyer in terms of section 16 of the MSMED
Act 2006 along with the amounts of the payment made to the supplier
beyond the appointed day during each accounting year

150—

The amount of interest due and payable for the period of delay in making
payment (which have been paid but beyond the appointed day during theyear) but without adding the interest specified under the MSMED Act 2006.

192

268

The amount of interest accrued and remaining unpaid at the end of eachaccounting year

791

1,139

The amount of further interest remaining due and payable even in the
succeeding years, until such date when the interest dues as above are actually
paid to the small enterprise for the purpose of disallowance as a deductible
expenditure under section 23 of the MSMED Act 2006

791

1,139

- Principal amount due to micro and small enterprises- Interest due on above- TotalThe information given above is to the extent such parties have been identified by the Group on the basis of
information disclosed by the suppliers.
37. SEGMENT REPORTING
As per Ind AS 108, operating segment is a component of the Group that engages in business activities, whose
operating results are regularly reviewed by the Group’s Chief Operating Decision Maker (‘CODM’) to make decisions
about resources to be allocated to the segment and assess its performance; and for which discrete financial
information is available. Accordingly, the Group has identified its operating segments, as below:(a) Beer - This segment includes manufacture, purchase and sale of beer including licensing of brands(b) Non-alcoholic beverages - This segment includes manufacture, purchase and sale of non-alcoholic beverages[This space has been intentionally left blank]

198 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

The Group’s CODM does not review assets and liabilities for each operating segment separately, hence segment
disclosures relating to total assets and liabilities have not been furnished.
March 31,2022

March 31,
2021

Segment revenue
13,09,404

10,15,685

2,988

2,891

13,12,392

10,18,576

Beer

84,08050,254Non-alcoholic beverages
Total segment results
Other income
Finance costs
Other unallocable expenses
Profit before exceptional items and tax
Exceptional items (Refer Note 30)(6,510)77,5702,979(1,478)(29,627)
49,444—(3,841)
46,413
5,025(2,267)(31,508)
17,663(722)

Profit before tax

49,444

16,941

12,96,692

10,10,898

15,700

7,678

13,12,392

10,18,576

2,01,635

2,07,180——

2,01,635

2,07,180

Beer
Non-alcoholic beverages
Total revenue
Segment results

Information about geographical areas is as below:
Revenue from external customers (including excise duty)
India
Outside India
Total
The above information is based on the location of customers.
Non-current operating assets
India
Outside India
Total

Non-current assets for this purpose consists of property, plant and equipment, capital work-in-progress andintangible assets.
Revenue (including excise duty) from customers individually contributing more than 10% of the Group’s revenue
aggregates to Rs. 438,084 Lakhs (Previous year: Rs. 256,556 Lakhs) from 2 customers (Previous year: 1 customer).

[This space has been intentionally left blank]

Annual Report 2022 | 199

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

38. RELATED PARTY DISCLOSURES
A. Name of related parties and related party relationships
Related party where control or significant influence exists:
Ultimate holding company: Heineken N.V. (effective July 29, 2021)

Associate: Kingfisher East Bengal Football Team Private Limited ('KEBFTPL')

Related parties under Ind AS 24 with whom transactions have taken place:Enterprises having significant influence: Scottish & Newcastle India Limited, UK (‘SNIL’)
Heineken International B.V. (‘HIBV’) (effective June 23, 2021)

Key management personnel (KMP): Mr. Rishi Pardal, Managing Director (effective August 1, 2020)
Mr. Berend Cornelis Roelof Odink, Chief Financial Officer and Director(Director effective June 29, 2021*)
Mr. Shekhar Ramamurthy, Managing Director (till July 31, 2020)
Mr. B.M. Labroo, CEO and Director of Subsidiary company*During the year ended March 31, 2022, the Holding Company appointed Mr. Berend Cornelis Roelof Odink,a Non-resident as whole-time director of the Holding Company. The Holding Company has filed an application with theCentral Government seeking approval for appointment of Mr. Berend Cornelis Roelof Odink as a director, as per Rule
7 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and the same is presently
awaited. The Holding Company has obtained shareholders’ approval in this regard, at the Annual General Meeting of
the Holding Company held on July 29, 2021.
Enterprises over which investing parties
have significant influence/Fellow
subsidiaries (effective July 29, 2021): Heineken UK Limited (‘HUL’), holding company of SNIL
Heineken International B.V. (‘HIBV’) (till June 22, 2021)
Heineken Brouwerijen B.V. (‘HBBV’)
Heineken Supply Chain B.V. (‘HSCBV’)
Heineken Asia Pacific Pte. Ltd. (‘HAPPL’)
Heineken Asia Pacific Export Pte. Ltd. (‘HAPEP’)
Heineken Asia Pacific Beverages Pte. Ltd. (‘HAPBPL’)
Amstel Brouwerijen B.V. (‘Amstel’)DB Breweries Limited (‘DBL’)
DBG (Australia) Pty Limited (‘DBG’)
Sirocco FZCO, United Arab Emirates (‘SIRC’)
Asia Pacific Breweries (Singapore) Pte. Ltd. (‘APBS’)

Employee benefits trusts(included in ‘Others’ below): UBL Gratuity Fund Trust
United Breweries Limited Provident Fund Trust (“UBL Provident Fund Trust”)**
United Breweries Super Annuation Fund (“UBL Super Annuation Fund”)**During the year ended March 31, 2022, the Holding Company has surrendered the trust to the Employees Provident
Fund Organisation, Government of India.

200 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Additional related parties as per the Companies Act, 2013 with whom transactions have taken place
Directors: Mr. A K Ravi Nedungadi (till July 29, 2021)
Mr. Stephan Gerlich
Mrs. Kiran Majumdar Shaw
Mr. Madhav Bhatkuly
Mr. Sunil Alagh
Mr. Christiaan August J Van Steenbergen
Mr. Jan Cornelis Van Der Linden (effective June 1, 2020)
Mr. Rudolf Gijsbert Servaas Van Den Brink (till May 31, 2020)

The Securities and Exchange Board of India vide its order dated January 25, 2017 restrained Dr. Vijay Mallya fromholding position as Director or Key Managerial Person of any listed company. Pursuant to the decision of the Board at its
meeting held on July 4, 2017, the Holding Company had communicated on July 6, 2017 to Dr. Mallya and his associatecompanies (promoters of the Holding Company) to nominate a director on the Board in his place in terms of the Articles
of Association of the Holding Company. Further, pursuant to the decision of the Board at its meeting held on August 10,
2017, the Holding Company carried out necessary filings with the Registrar of Companies, Karnataka (ROC) and Stock
Exchanges notifying Dr. Mallya’s cessation from holding the position of director in the Holding Company. The applicableform relating to cessation of directorship has since been approved by the ROC. Effective July 29, 2021, Dr. Vijay Mallya
is not a related party.
Key management personnel (KMP):: Mr. Govind Iyengar, Senior Vice-President Legal and Company Secretary

Body corporate/Private companies whose : United Breweries (Holdings) Limited (‘UBHL’)^ (till March 31, 2021)
Board of directors is accustomed to act
H. Parson Private Limited (‘HPPL’) (till March 31, 2021)
in accordance with advise, directions
Kingfisher Beer Europe Limited (‘KBE’) (till March 31, 2021)
or instructions of directors/members(included in ‘Others’ below)^The Karnataka High Court has ordered winding up of UBHL on February 7, 2017.

[This space has been intentionally left blank]

Annual Report 2022 | 201

202 | United Breweries Limited
–

–
–

–
–

–

Amstel
–

–

–

600

600

–

–

–

–

–

–

–

–

–
–

–
–

–
–

–

–

–

–

–

–

HBBV

Royalty paid

HIBV

Technical service fees

UBHL

Rent expense

HPPL

Sales promotion expenses

–
–

–
–

HSCBV

–

–
–

HAPBPL

HAPEP

Purchase of materials
–

–
–

–
–

–
–

KBE

–

–

–

DBG

–
–

–

–

–

–
–

APBS

DBL

Royalty income

–

–

–
–

–
–

–
–

APBS

HPPL

–

March 31,2022
March 31,2021

Enterprises having
significant influence––

March 31,
2021

SIRC

Sale of products (net)

Transactions during the year

March 31,2022

Associate

B. Transactions with related parties during the year along with balances as at year end:

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–
–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

March 31,2022
March 31,2021

Directors and KMP

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

612

217

395

–

–

–

–

–

–

1,206

5

–

1,201

2,403

–

101

542

1,760

12,218–392

11,826

March 31,
2022

455

177

278

600

600

–

–

–

–

872

18

127

727

1,178

–

114

451

613

5,732

–

331

5,401

March 31,2021

Enterprises over whichinvesting parties havesignificant influence/
Fellow Subsidiaries

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

March 31,
2022

–

–

–

–

–

–

–

101

101

5

5

–

–

–

–

43

43

–

–

–

2,788

2,788

March 31,2021

Others

Notes to consolidated Financial Statements contd.
(All amounts in Indian Rupees Lakhs, except as otherwise stated)Sitting fee paid
Mr. A K Ravi Nedungadi
Mr. Stephan Gerlich
Mrs. Kiran Majumdar Shaw
Mr. Madhav Bhatkuly
Mr. Sunil Alagh
Mr. Christiaan August J Van
Steenbergen
Mr. Jan Cornelis Van Der Linden

Mr. Rishi Pardal
Mr. Berend Cornelis Roelof Odink
Mr. Shekhar Ramamurthy
Mr. Govind Iyengar
Mr. B.M.Labroo

Remuneration paid [Refer (a) below]

Reimbursements paid
HIBV
HAPBPL
HPPL

HAPPL
HAPEP
HIBV

Reimbursements received

Consultancy fees paid
HSCBV
HIBV
KBE

–
–

–
–

–
–

–
–
–
–
–
–

352
–
–
352

–
–
99
99

–
361
–
361

–
–
–
–
–
–

–
–
–
–
–
–

–
–
–
–

–
–
–
–

–
–
–
–

March 31,
2022

–
–
–
–
–
–

March 31,
2021

–
–
–
–
–
–

–
–
–
–
–
–

–
–
–
–

–
–
–
–

–
–
–
–

March 31,2022

Associate
March 31,2021

Enterprises having
significant influence

–
–

–
–
–
–
–
–

–
–
–
–
–
–

–
–
–
–

–
–
–
–

–
–
–
–

11
91

8
12
12
16
18
14

1,024
431
214
244
26
1,939

–
–
–
–

–
–
–
–

–
–
–
–

March 31,
2022

–
–
–
–

–
–
–
–

–
–
–
–

16
124

16
13
15
23
26
15

478
451
931
258
17
2,135

March 31,2021

Directors and KMP

–
–

–
–
–
–
–
–

–
–
–
–
–
–

–
–
–
–

–
–
–
–

131
–
–
131

March 31,
2022

–
–

–
–
–
–
–
–

–
–
–
–
–
–

319
1
–
320

60
16
–
76

137
25
–
162

March 31,2021

Enterprises over whichinvesting parties havesignificant influence/
Fellow Subsidiaries

–
–

–
–
–
–
–
–

–
–
–
–
–
–

–
–
–
–

–
–
–
–

–
–
–
–

March 31,
2022

–
–

–
–
–
–
–
–

–
–
–
–
–
–

–
–
55
55

–
–
–
–

–
–
25
25

March 31,2021

Others(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Notes to consolidated Financial Statements contd.

Annual Report 2022 | 203

204 | United Breweries Limited
–
–
–
–

1,939
—
—
—
1,939

March 31,
2022

–
–
–
–

–
–

2,135
1,277
—
—
3,412

March 31,
2021

–
–
–
–

–
–

2,250

771

–
–
–
–
–
–
2,250
–
–
–

March 31,
2021

450
321
–
–

–
–
–
–
–
–

March 31,2022

Enterprises having
significant influence

–
–
–
–

–
–

–

–
–
–
–

28
99
99
99
99
424

–
–
–
–

–
–

–

–
–
–
–

57
57
57
57
57
285

March 31,2021

Directors and KMP
March 31,2022

*Excludes Goods and Services Tax (GST) paid by the Holding Company under reverse charge mechanism.
**Includes both employer and employee contributions to the fund.

–
–
–
–

–
–

–

–
–
–

–
–
–
–

–
–
–
–
–
–

–
–
–
–

–
–
–
–
–
–

March 31,
2021

Compensation of key management personnel
Short-term employee benefits
Post-employment gratuity (Paid by UBL Gratuity Fund Trust)
Termination benefits
Share-based payment transactions
Total compensation paid to key management personnel

Contributions madeUBL Gratuity Fund TrustUBL Provident Fund Trust**
UBL Superannuation Fund

Purchase of Investments
UBL Provident Fund Trust

Dividend accrued/paid on equity shares
SNIL
HIBV
HUL
Dr. Vijay Mallya (including joint
holdings) (Refer (b) below)

Mr. A K Ravi Nedungadi
Mr. Stephan Gerlich
Mrs. Kiran Majumdar Shaw
Mr. Madhav Bhatkuly
Mr. Sunil Alagh

Director Commission accrued*

March 31,2022

Associate

–
–
–
–

–
–

42

–
–
42
–

–
–
–
–
–
–

March 31,
2022
–
–
–
–
–
–

–
–
–
–

–
–

825

–
613
212
–

March 31,2021

Enterprises over whichinvesting parties havesignificant influence/
Fellow Subsidiaries

1,000
1,812
586
3,398

49
49

–

–
–
–
–

–
–
–
–
–
–

March 31,
2022
–
–
–
–
–
–

–
2,946
669
3,615

300
300

534

–
–
–
534

March 31,2021

Others

Notes to consolidated Financial Statements contd.
(All amounts in Indian Rupees Lakhs, except as otherwise stated)Other Payables
Mr. A K Ravi Nedungadi
Mr. Stephan Gerlich
Mrs. Kiran Majumdar Shaw
Mr. Madhav Bhatkuly
Mr. Sunil Alagh
Mr. Christiaan August J Van
Steenbergen
Mr. Jan Cornelis Van Der Linden

Trade payables
HIBV
HBBV
AmstelHSCBV
HAPBPLMML
UBHL

Security deposits (asset)
UBHL

Trade receivables
SIRC
APBS
DBL
HIBV
DBG
KBE
HPPL (net of security deposit)

Balances outstanding
as at year end
Investment in equity shares
KEBFTPL

–
–
–

–
–
–

–
–
–

888
–
–
–
–
–
–
888

–
–

–
–
–
99
–
–
–
99

–
–

–
–
–
–
–

–
–
–
–
–
–
–
–

–
–

–
–
–
–
–
–
–
–

1
1

March 31,
2022

–
–
–
–
–

March 31,
2021

–
–
–
–
–

–
–
–
–
–
–
–
–

–
–

–
–
–
–
–
–
–
–

1
1

March 31,2022

Associate
March 31,2021

Enterprises having
significant influence

–
–

–

–
–
–
–
–

–
–
–
–
–
–
–
–

–
–

–
–
–
–
–
–
–
–

–
–
–
–

–
366

1

26
65
92
91
91

–
–
–
–
–
–
–
–

–
–

–
–
–
–
–
–
–
–

March 31,
2022

–
–
–
–
–
–
–
–

–
–

–
–
–
–
–
–
–
–

–
–

1
249

1

52
38
52
52
53

March 31,2021

Directors and KMP

–
–

–
–

–

–
–
–
–
–

–
116
58
33
205
–
–
412

–
–

1,994
999
125
–
30
–
–
3,148

March 31,
2022

–
–

–
–

–

–
–
–
–
–

629
124
66
30
13
–
–
862

–
–

522
297
141
–
49
–
–
1,009

March 31,2021

Enterprises over whichinvesting parties havesignificant influence/
Fellow Subsidiaries

–
–

–
–

–

–
–
–
–
–

–
–
–
–
–
–
–
–

–
–

–
–
–
–
–
–
–
–

March 31,
2022

–
–

–
–

–

–
–
–
–
–

–
–
–
–
–
–
209
209

65
65

–
–
–
–
–
6
9
15

March 31,2021

Others(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Notes to consolidated Financial Statements contd.

Annual Report 2022 | 205

206 | United Breweries Limited[This space has been intentionally left blank]

Terms and conditions of transactions with related parties
The transactions with related parties are made on terms equivalent to those prevailing in arm’s length transaction. The outstanding receivables/payables balances are generally
unsecured and interest free. There have been no guarantees provided to or received from any related party.

(b) The Holding Company had received orders from the Debt Recovery Tribunal, Karnataka, Bangalore (DRT), whereby the Holding Company has been directed not to
pay/release amounts that may be payable with respect to shares in the Holding Company held by an erstwhile director (including his joint holdings) and certain othershareholders, without its prior permission; accordingly, the Holding Company has withheld payment of Rs. 2,099 Lakhs (net of taxes) relating to dividend on aforesaid
shares. The Holding Company would also withhold payment of proposed dividend for the year ended March 31, 2022 on aforesaid shares, which is subject to approval by
the shareholders in the ensuing annual general meeting. Further, the Holding Company had received various orders from tax and provident fund authorities prohibiting
the Holding Company from making any payment to an erstwhile director; accordingly the Holding Company has withheld payment of Rs. 45 Lakhs (net of TDS), relating
to director commission and sitting fees payable to the aforesaid erstwhile director.

(a) The remuneration to key managerial personnel includes reimbursements and excludes the provisions made for gratuity and compensated absences, as they are determinedon an actuarial basis. Also, for Mr. Rishi Pardal, the remuneration disclosed in March 31, 2021 is for the period he has been designated as Managing Director of the Holding
Company.									Notes to consolidated Financial Statements contd.
(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

39. SUMMARY OF NET ASSETS, SHARE IN CONSOLIDATED PROFIT AND SHARE IN CONSOLIDATED OTHERCOMPREHENSIVE INCOME/(LOSS)
March 31, 2022
Net assets i.e. total Share in consolidated Share in consolidated
Share in consolidated
assets minus total
profit or loss
other comprehensive
total comprehensive
liabilities
incomeincomeAs a % of Amount As a % of Amount
As a % ofAmountAs a % ofAmountconsolidated
consolidated
consolidated
consolidated
net assets
net profit
other
total
comprehensive
comprehensive
incomeincomeUnited Breweries
99.80% 3,93,125
99.65% 36,481
100.00%60
99.65% 36,541
Limited, Parent
Maltex Malsters Limited,
0.10%
387
0.18%
65
—
—
0.18%
65
Indian subsidiaryNon-controlling interest
0.10%
414
0.17%
62
—
—
0.17%
62
in subsidiary
Total
March 31, 2021
United Breweries
Limited, Parent
Maltex Malsters Limited,
Indian subsidiaryNon-controlling interestin subsidiary
Total

100.00% 3,93,926

100.00%36,608100.00%60

100.00% 36,668

99.81% 3,57,913

98.91%

11,259100.00%1,490

99.04% 12,749

0.09%

315

0.55%

63

—

—

0.49%

63

0.10%

375

0.54%

61

—

—

0.47%

61

100.00% 3,58,603

100.00%11,383100.00%1,490

100.00% 12,873

The amounts included above are net of eliminations of inter-company balances and transactions.
40. FINANCIAL INSTRUMENTS FAIR VALUE MEASUREMENT
All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are
categorised within the fair value hierarchy, as below, based on the lowest level input that is significant to the fairvalue measurement as a whole:
Level 1 : Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 : Valuation techniques for which the lowest level input that is significant to the fair value measurement isdirectly or indirectly observable
Level 3 : Valuation techniques for which the lowest level input that is significant to the fair value measurement isunobservable
The fair value measurement hierarchy of the Group’s assets and liabilities is as below:
Fair values
Carrying
amountLevel 1
Level 2
Level 3As at March 31, 2022
Financial assets measured at fair value through profit or loss
Investments in equity instruments
553
—
—
553
Financial assets measured at fair value through othercomprehensive income
Investments in debt instruments
278
212
66
—
As at March 31, 2021
Financial assets measured at fair value through profit or loss
Investments in equity instruments
302
—
—
302
Financial assets measured at fair value through othercomprehensive income
Investments in debt instruments
300
—
300
—
Annual Report 2022 | 207

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

There has been no transfers between levels during the year.
Considering that the amounts involved for investment in equity instruments are not significant, fair value fluctuations
are not expected to be material and hence no further disclosure has been made. The fair values of investment inquoted debt instruments are based on price quotations and available market information at the reporting date areclassified as Level 1.
The management assessed that the carrying values of trade and other receivables, cash and short term deposits,
other assets, borrowings, trade and other payables and balances with related parties, based on their notionalamounts, reasonably approximate their fair values because these instruments have short-term maturities.
41. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIESThe Group’s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of thesefinancial liabilities is to finance the Group’s operations. The Group’s principal financial assets include investments,
trade and other receivables, cash and cash equivalents, bank balances and security deposits that are out of regularbusiness operations.
The Group is exposed to market risk, credit risk and liquidity risk. The Group’s senior management oversees the
management of these risks. The Group’s senior management is supported by a risk management committee thatadvises on financial risks and the appropriate financial risk governance framework for the Group.
The risk management committee provides assurance to the Group’s senior management that the Group’s financial
risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured
and managed in accordance with the Group’s policies and risk objectives. All derivative activities for risk management
purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is theGroup’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors
reviews and agrees policies for managing each of these risks, which are summarised below.
(a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument that will fluctuate becauseof changes in market prices. Market risk comprises of three types of risk i.e. interest rate risk, currency risk andother price risk, such as commodity risk. Financial instruments affected by market risk include borrowings andtrade payables.											i. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Group’s financial instruments willfluctuate because of changes in market interest rates. The Group’s exposure to the risk of changes in market
interest rate relates primarily to the Group’s borrowings with floating interest rates.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on borrowings
affected. With all other variables held constant, the Group’s profit before tax is affected through the impact on
floating rate borrowings, as follows:
March 31, 2022

Impact on consolidated profit before tax

1% increase

1% decrease

1% increase

1% decrease

—

—

(250)

250

[This space has been intentionally left blank]

208 | United Breweries Limited

March 31, 2021

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

ii. Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because ofchanges in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates relates
primarily to the Group’s foreign currency borrowings, trade payables and trade receivables.
The Group did not hedge any exposure as at March 31, 2022 and March 31, 2021. The unhedged foreign
currency exposure (gross amounts in Indian rupees lakhs) as at the reporting date is as below:
As atMarch 31,
2022

As at
March 31,
2021

3,326

1,450

311

165

5,856

4,692

Capital advances55

72

Trade payables

2,022

2,384

724

779

Trade receivables
Advances to suppliers
Balance in exchange earners foreign currency bank accounts

Liability for capital goods

The following tables demonstrate the sensitivity to a reasonably possible change in foreign exchange rates, withall other variables held constant and after the impact of hedge accounting:March 31, 2022
Impact on consolidated profit before tax

March 31, 2021

1% increase

1% decrease

1% increase

1% decrease

68

(68)

31

(31)

iii. Commodity price risk
The Group is affected by the price volatility of certain commodities. Its operating activities require the ongoingpurchase and manufacture of Beer and therefore require a continuous supply of Barley. The Group’s Boardof Directors has developed and enacted a risk management strategy regarding commodity price risk and its
mitigation.										The following table shows the effect of price changes in Barley:
March 31, 2022
Impact on consolidated profit before tax

March 31, 2021

1% increase

1% decrease

1% increase

1% decrease

(271)

271

(193)

193

(b) Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its
obligations. The Group’s exposure to credit risk arises majorly from trade/other receivables and investments indebt instruments. Other financial assets like security deposits and bank deposits are mostly with government
authorities and nationalised banks and hence, the Group does not expect any significant credit risk with respect
to these financial assets. With respect to trade receivables, significant portion (68% at March 31, 2022 and 70%
as at March 31, 2021) includes dues from state government corporations, where probability of default is remote.
The Group has constituted regional and corporate credit committees to review trade receivables on periodic basis
and to take necessary mitigations, wherever required.			
The Group creates provision for all unsecured trade receivables based on lifetime expected credit loss. The
summary of changes in provision for impairment of trade receivables is as below:

Annual Report 2022 | 209Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

March 31,2022

March 31,2021

Balance at the beginning of the year

5,792

8,693

Provision recognised/(reversed) during the year, net

1,503(2,901)

Balance at the end of the year

7,295

5,792

The Group has considered the possible effect of the COVID-19 pandemic on the carrying amounts of trade andother receivables by using available internal and external sources of information.
(c) Liquidity risk
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the useof bank borrowings. The table below summarises the undiscounted maturity profile of the Group’s financial
liabilities:
Maturities
Total
Upto 1 year 1-2 years 2-3 years>3 years
March 31, 2022
Lease liabilities
432
236
120
367
1,155
Trade payables
63,800———63,800
Other financial liabilities
55,8102,497——
58,307
Total
1,20,042
2,733
120
367
1,23,262
March 31, 2021
Lease liabilities
484
288
170
481
1,423
Non-current borrowings
14,25010,750——25,000Current borrowings
17
—
—
—
17
Trade payables
62,947———
62,947
Other financial liabilities
52,382
1,109——
53,491
Total
1,30,080
12,147170481
1,42,878
The Group has utilised the existing borrowing limits based on requirements and has unutilised borrowing limits
available at the year end which is available for utilisation.
42. CAPITAL MANAGEMENT
For the purpose of the Group’s capital management, capital includes issued equity capital, securities premium
and all other equity reserves attributable to the equity shareholders. The primary objective of the Group’s capitalmanagement is to ensure that it maintains a strong credit rating and capital ratios in order to support its businessand maximise shareholder value.
The Group monitors capital using a gearing ratio, which is net debt divided by total capital. The Group includes
within net debt, all non-current and current borrowings reduced by cash and cash equivalents and other bankbalances.

[This space has been intentionally left blank]

210 | United Breweries Limited

Notes to consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)

Notes

As at
March 31,
2022

As at
March 31,2021

Non-current borrowings

15—

10,750Current borrowings

18—

14,267

Lease liabilities

33

974

1,180

Less: Cash and cash equivalents

11

86,26040,970Less: Other bank balances (excluding unpaid divided and unspent
CSR amounts)

12

832

811

—

—

Net debt
Equity share capital

13

2,644

2,644

Other equity

14

3,90,868

3,55,584

414

375

Total capital

3,93,926

3,58,603

Gearing ratio——

Non-controlling interest

In order to achieve this overall objective, the Group’s capital management, amongst other things, aims to ensure thatit meets financial covenants attached to the interest-bearing borrowings that define capital structure requirements.
The breaches in meeting the financial covenants would permit the bank to immediately call borrowings. There havebeen no breaches in the financial covenants of any interest-bearing borrowings in the current year or previous year.
No changes were made in the objectives, policies or processes for managing capital during the years ended
March 31, 2022 and March 31, 2021.
43. The Bihar State Government (“the Government”) vide its notification dated April 5, 2016 had imposed ban on trade andconsumption of alcoholic beverages in the State of Bihar. The Holding Company had filed a writ petition with the High
Court at Patna, requesting remedies and compensation for losses incurred on account of such abrupt notification, against
which the Government preferred a special leave petition before the Supreme Court of India. Further, the Government
did not renew brewery licenses for the financial year 2017-18 onwards and consequently the Holding Company
discontinued production of beer at Bihar. The matter is currently pending before the Supreme Court for final conclusion.
During the financial year 2018-19, in order to maintain the assets in running condition, the Holding Company
commenced manufacture of non-alcoholic beverages at its existing manufacturing facility at Bihar using its existing
property, plant and equipment. The Holding Company carried out an impairment assessment of its property, plantand equipment at Bihar and the recoverable amount of these property, plant and equipment was determined by
an external valuer based on a fair value less cost of disposal calculation, considering uncertainity in the alcoholic
beverages and the change in plan for use of these assets. Accordingly, an impairment loss of Rs. 4,446 Lakhs wasrecognized during the year ended March 31, 2021. As at March 31, 2022, the carrying value of property, plant andequipment at Bihar is Rs. 10,031 Lakhs (net of impairment) and no further impairment is considered necessary by
the management based on annual impariment assessment.
44. Ratios and its elements
The ratios have not been disclosed in the consolidated financial statements pursuant to the guidance under the
Revised Guidance Note on Division II - Ind AS Schedule III to the Companies Act, 2013 issued by the Institute ofChartered Accountants of India (”ICAI”)
45. Other Statutory Information(i) The Group does not have any Benami property, where any proceeding has been initiated or pending against theGroup for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules madethereunder.
Annual Report 2022 | 211

Notes to Consolidated Financial Statements contd.

(All amounts in Indian Rupees Lakhs, except as otherwise stated)(ii) The Group did not have any transactions with companies struck off under section 248 of the Companies Act,
2013 or section 560 of the Companies Act, 1956.
(iii) The Group does not have any charges or satisfaction which is yet to be registered with ROC beyod the statutory
period, except for Rs. 50 Lakhs in relation to loan repaid in the past.
(iv) The Group has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
(v) The Group has not advanced or loaned or invested funds (either from borrowed funds or share premiumor any other sources or kind of funds) to or in any other persons(s) or entity(ies), including foreign entities(Intermediaries) with the understanding whether recorded in writing or otherwise that the Intermediary shall:(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Group (Ultimate Beneficiaries) or(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries(vi) The Group has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwsie) that the Group shall:(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries(vii) The Group did not have any such transaction which is not recorded in the books of accounts that has beensurrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 suchas, search or survey or any other relevant provisions of the Income tax Act, 1961.
46. The Code on Social Security, 2020 (the “Code”) relating to employee benefits during employment andpost-employment benefits, received Presidential assent in September 2020. The Code has been published in theGazette of India. However, the date on which the Code will come into effect is yet to be notified and the final
rules/interpretation are yet to be issued. The Group will assess the impact of the Code when it comes into effectand will record any related impact accordingly.
47. The Group has assessed the impact of Coronavirus (Covid-19) pandemic on its business operations and has
considered all relevant internal and external information available upto the date of approval of these consolidated
financial statements in determining the recoverability and carrying values of property, plant and equipment,right-of-use assets, goodwill, intangible assets, investments, trade and other receivables, inventories and otherfinancial information captions. The impact of COVID-19 pandemic on the overall economic environment being
uncertain may affect the underlying assumptions / estimates used in preparation of these consolidated financial
statements, whereby actual outcome may differ from those assumptions / estimates considered at the date of
approval of these consolidated financial statements. The Group will continue to closely monitor the situation andany material changes to future economic conditions.
48. The comparative figures have been regrouped/reclassified, where necessary, to confine to this year’s classification.
As per our report of even date

For and on behalf of the Board of Directors ofUnited Breweries Limited

For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004

Rishi Pardal
Managing Director
DIN: 02470061

Berend Cornelis Roelof Odink
Director and Chief Financial Officer
DIN: 09138421

per Aditya Vikram BhauwalaPartnerMembership Number: 208382

Madhav Bhatkuly
Director
DIN: 00796367

Govind Iyengar
Senior Vice-President Legal andCompany Secretary

Place: Bengaluru
Date: April 26, 2022

Place: Bengaluru
Date: April 26, 2022

212 | United Breweries Limited

Annexures
ANNEXURE - A: BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT[Pursuant to Regulation 34 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015]

SECTION A: GENERAL DISCLOSURESI.

Details of the listed entity
1. Corporate Identity Number (CIN) of Listed Entity

L36999KA1999PLC025195

2. Name of the Listed Entity

UNITED BREWERIES LIMITED

3. Year of Incorporation

May 13, 1999

4. Registered office address

UB Tower, UB City, #24 Vittal Mallya Road,
Bengaluru - 560 001, Karnataka, INDIA

5. Corporate Address

Same As above

6. E-mailublinvestor@ubmail.com

7. Telephone+91 80 45655000

8. Website

www.unitedbreweries.com

9. Financial year (FY) for which reporting is being done

April 01, 2021 to March 31, 2022

10. Name of the Stock Exchange(s) where shares are listed (i) BSE Limited(ii) National Stock Exchange of India Limited
11. Paid-up Share Capital

264,405,149 Equity Shares

12. Name and contact details (telephone, email address) Mr. Bharani Kumar J – Head Projects & Engineeringof the person who may be contacted in case of any Telephone: +91 80 45655053
queries on the BRSR
Email: bharanikumar@ubmail.com
13. Reporting boundary – Are the disclosures under this On standalone basis
report made on a standalone basis (i.e., only for theentity) or on a consolidated basis (i.e., for the entityand all the entities which form a part of its consolidated
financial statements, taken together)II.

Products/Services
14. Details of business activities (accounting for 90% of the Turnover):Description of Main Activity
Manufacture and Supply

Description of Business Activity% of Turnover of the entity

Beer

99.77

Non-alcoholic beverages

0.23

15. Products / Services sold by the entity (accounting for 90% of the entity’s Turnover):Product/Services

NIC Code% of total Turnover contributed

Beer

11031

99.77

Non-alcoholic beverages

11049

0.23

Annual Report 2022 | 213

III. Operations
16. Number of locations where plants and/or operations/offices of the entity are situated:
Location

Number of plants

Number of offices

Total

National

20 (Twenty)*

48

68

International

05 (Licensing units)

Nil

05

*Non-Alcoholic beverage unit near Patna is proposed to be closed effective May 2022. Alternate production
arrangement through contract to derive economies in scale has been made.
17. Market served by the entity:
a. Number of locations
Location

NumberNational (No. of States)

28 States & 8 Union Territories

International (No. of Countries)

50 International Countries

b. What is the contribution of exports as a percentage of the total turnover of the entity?
		 – 1.11%
c. A brief on types of customers		 • State Government/ State owned Corporation in Government market.
		 • Distributors in open market
IV. Employees
18. Details as at the end of Financial Year:a. Employees and workers (including differently abled):
Sl.
No.

Total

Particulars

Male

(A)

FemaleNo. (B)% (B/A)

No. (C)% (C/A)

1225

1120

91%

105

9%

Nil

Nil

Nil

Nil

Nil

1225

1120

91%

105

9%

EMPLOYEES
1.

Permanent (D)2.

Other than Permanent (E)3.

Total Employees (D+E)

WORKERS
1.

Permanent (F)

1612

1569

97%

43

3%

2.

Other than Permanent (G)

163

159

98%

4

2.45%

3.

Total Employees (F+G)

1775

1728

97%

47

3%

b. Differently abled Employees and workers:
Sl.
No.

Total

Particulars

Male

(A)

No. (B)

Female% (B/A)

No. (C)% (C/A)

DIFFERENTLY ABLED EMPLOYEES
1.

Permanent (D)

1

1

100%

Nil

Nil

2.

Other than Permanent (E)

2

1

50%

1

50%

3.

Total differently abled employees (D+E)

3

2

67%

1

33%

1.

Permanent (F)

19

18

95%

1

5%

2.

Other than Permanent (G)

2

1

50%

1

50%

3.

Total differently abled workers (F+G)

21

19

90%

2

10%

DIFFERENTLY ABLED WORKERS214 | United Breweries Limited

19. Participation / Inclusion / Representation of women:
Total

Particulars

No. and percentage of Females(A)

No. (B)% (B/A)

Board of Directors

8

1

12.5

Key Management Personnel (including Directors)

3

Nil

Nil

20. Turnover rate for permanent employees and workers:
Particulars

V.

FY2021-2022(Turnover rate incurrent FY)

FY2020-2021(Turnover ratein previous FY)

FY2019-2020(Turnover rate in the year
prior to the previous FY)

Male

Female

Total

Male

Female

Total

Male

Female

Total

Permanent Employees

19%

3%

22%

9%

1%

10%

14%

2%

16%

Permanent Workers

3.6%

0.1%

3.7%

6%

0.2%

6.2%

9.8%

0.1%

9.9%

Holding, Subsidiary and Associate Companies (including joint ventures)
21. (a) Names of holding / subsidiary / associate companies / joint ventures
Sl. Name of theNo. Holding/ Subsidiary /Associate Companies /Joint Ventures (A)Indicate whether% of Shares
Holding / Subsidiary / held by
Associate /listed entity
Joint Venture

Does the entity indicatedat column A, participate
in the Business Responsibility
initiatives of the listed entity

1.

Maltex Malsters Limited

Subsidiary

51%

No

2.

Kingfisher East Bengal
Football Team Private Limited

Associate49.99%

No

VI. CSR Details
22. (i) Whether CSR is applicable as per Section 135 of Companies Act, 2013 : (Yes / No)		(ii) Turnover (in Rs.) : 58,319 Million		(iii) Net worth (in Rs.) : 39,156 Million[This space has been intentionally left blank]

Annual Report 2022 | 215

VII. Transparency and Disclosures Compliances
23. Complaints /Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible
Business Conduct:
Stakeholder group fromwhom complaint isreceived

Grievance
Redressal
Mechanism inPlace (Yes/No)(If Yes, thenprovideweb-link forgrievance
redress policy)

FY 2021-2022(Current Financial Year)

FY 2020-2021(Previous Financial Year)

Number ofcomplaints
filed during
the year

Number ofcomplaints
pending
resolution
at close of
the year

Remarks

Number ofcomplaints
filed during
the year

Number ofcomplaints
pending
resolution
at close of
the year

Remarks

Communities

NA

Nil

Nil

NA

Nil

Nil

NA

Investor (other thanshareholders)*

Yes

Nil

Nil

NA

Nil

Nil

NA

Shareholders

Yes

5

Nil

Resolved

13

Nil

Resolved

Employees and workers*

Yes

4

4

Resolved

2

2

Resolved

Customers/Consumers

Yes

903

Nil

Resolved

1653

Nil

Resolved

Value Chain Partners*

Yes

Nil

Nil

NA

Nil

Nil

NA

Others (Health & Safety)*

Yes

2

1

In process
to resolve

3

3

NA

*Grievance redressal mechanism is covered under ‘Speak up Policy’ available on Company’s Intranet portal, and;for business associates, the company has framed a policy ‘Guidance Note to Business Associates’, which can beviewed on Company’s website: www.unitedbreweries.com/investors.
24. Overview of the entity’s material responsible business conduct issues:
Please indicate material responsible business conduct and sustainability issues pertaining to environmental andsocial matters that present a risk or an opportunity to your business, rationale for identifying the same, approachto adapt or mitigate the risk along-with its financial implications, as per the following format:
Material issue
identified

Indicate
whether risk
or opportunity(R/O)

Fresh Water (i.e., Risk
Raw Material
for manufactureof Beer)

Rationale for
identifying
the risk /opportunity

In case of risk,
Financial implications ofapproach to adapt or the risk or opportunity
mitigate(Indicate positive or
negative implications)

Water availability
and Conservation(i) Reduce consumption Negative implicationsof fresh water;(ii) Reuse-recycle oftreated wastewater, and(iii) Tap & recharge
Rainwater[This space has been intentionally left blank]

216 | United Breweries Limited

SECTION B: MANAGEMENT AND PROCESS DISCLOSURESThis section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards
adopting the National Guidelines on Responsible Business Conduct (NGRBC) Principles and Core Elements.
Sl. Disclosure Questions
No.
Policy and management processes
1.

P1

P2

P3

P4

P5

P6

P7

P8

P9

a. Whether your entity’s policy  /  policies cover The Company has framed Policies to meet statutory
each principle and its core elements of the requirements. In a few areas internal guidelines have been
NGRBCs. (Yes  / No)framed which cover certain aspects of NGRBC.
b. Has the policy been approved by the Board?
(Yes / No)
c. Web Link of the Policies, if available

Y

Y

Y

Y

Y

Y

Y

Y

Y

Policies covering certain Stakeholders can be viewed on
Company’s website: www.unitedbreweries.com  /  investors.
Internal policies are restricted and can be viewed by employees
only on Company’s Intranet portal.

2.

Whether the entity has translated the policy
into procedures. (Yes  / No)

3.

Do the enlisted policies extend to your value Formalized Policies have been communicated to key internal
Stakeholders of the Company. The company has an inhousechain partners? (Yes / No)
structure for implementation. As we progress in this area, thesame will be strengthened suitably.
Name of the national and international Certain breweries of the Company are in conformance ofcodes / certifications / labels / standards(e.g., international standards and have been accredited with various
ForestStewardshipCouncil,
Fairtrade, certifications like ISO 9001:2015 (Quality Management System);Rainforest Alliance, Trustee) standards (e.g., SA ISO 14001:2004 (Environmental Management System); ISO
8000, OHSAS, ISO, BIS) adopted by your entity 22000:2005 (Food Safety Management System); OHSAS
and mapped to each principle.
18001:2007 (Occupational Health Safety Assessment System).

4.

Y

Y

Y

Y

Y

Y

Y

Y

Y

5.

Specific commitments, goals, and targets set by To adhere to the policies covering each principle and its core
the entity with defined timelines, if any.
elements of the NGRBC.

6.

Performance of the entity against the specific Overall, the Company’s performance is in line with its
commitments, goals, and targets along-with commitments.
reasons in case the same are not met.

Governance, leadership, and oversight
7.

Statement by director responsible for the business responsibility report, highlighting ESG related challenges,
targets, and achievements (listed entity has flexibility regarding the placement of this disclosure).
– We constantly strive to ensure maximum compliance in terms of governance, environment, and economic
strategies. We always strive to enhance our strategies and commitments towards being a responsible businesswhile we continue to transparently share our sustainability performance and goals moving forward. In ourefforts we maintain an honest accountability towards our communities, stakeholders, and shareholders.

8.

Details of the highest authority responsible for
implementation and oversight of the BusinessResponsibility Policy(ies).

Mr. Rishi Pardal, Managing Director & Chief Executive Officer

9.

Does the entity have a specified Committee of
the Board  /  Director responsible for decision
making on sustainability related issues?
(Yes  / No). If yes, provide details.

The Corporate Social Responsibility and Environment, Socialand Governance Committees are responsible for decision
making. The Board has framed various Committees whoserole includes formulation and implementation of Policies
within their terms of reference though a specified Committee
to oversee the implementation of Policies is not constituted.

Annual Report 2022 | 217

10. Details of Review of NGRBC by the Company:
Subject for Review

Indicate whether review wasundertaken by Director  /  Committee of the Board  /  Any other Committee
P
1

P
2

P
3

P
4

P
5

P
6

P
7

P
8

Frequency (Annually / Half
yearly / Quarterly / Any other –please specify)
P
9

P
1

P
2

P
3

P
4

P
5

P
6

P
7

P
8

P
9

Performance against above policies Responsible Business conduct is reviewed through Code of Businessand follow up action
Conduct, Environment, Social and Governance and Corporate Social
Responsibility engagements by the respective Committees at periodical
intervals i.e., half-yearly / Annual basis.
The Board of Directors assess CSR initiatives, Sustainability, Risk andStrategic initiatives. The CSR Head and the CXO / MD meet frequently
to oversee implementation of CSR projects / programmes / activities to beundertaken by the Company. The CSR Committee of the Board meetsannually to oversee the functioning of CSR activities and implementationof projects.
Compliancewith
statutory We comply with statutory requirements relevant to the principles inrequirements of relevance to the relation to Govt. Statutory requirements and in case of non-complianceprinciples, and rectification of any steps to rectify the same are taken immediately.
non-compliances11.

Has the entity carried out independent
P
P
P
P
P
P
P
P
P
assessment/ evaluation of the working
1
2
3
4
5
6
7
8
9
of its policies by an external agency? While these Policies are reviewed from time to time by the Management,(Yes/No). If yes, provide name of the Auditors and consultants in respective areas, a separate evaluation
agency.
exercise by an independent agency is yet to be carried out.

12. If answer to question (1) above is “No” i.e., not all Principles are covered by a policy, reasons to be stated:
Questions

P
1

P
2

P
3

P
4

P
5

P
6

P
7

P
8

The entity does not consider the
Principles material to its business(Yes / No)
The entity is not at a stage where
it is in a position to formulate andimplement the policies on specified
principles (Yes / No)
The entity does not have the financial
or/human and technical resources
available for the task (Yes / No)
It is planned to be done in the next
financial year (Yes / No)
Any other reason (please specify)

218 | United Breweries Limited

All Principles are covered by required policy/policies

P
9

SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE
PRINCIPLE 1 - Business should conduct and govern themselves with integrity, and in a manner that is Ethical,
Transparent, and Accountable.
Essential Indicators
1. Percentage coverage by training and awareness programmes on any of the Principles during the financial year:
Segment

Total numberof training
and awarenessprogrammes held

Topics/principles
covered under the training
and its impact% age of persons in
respective category
covered by theawareness programmes

Board of Directors

Nil

NA

NA

Key Managerial Personnel

03(i) Code of Business Conduct(ii) Information Technology(iii) Prevention of Sexual
Harassment

100%

Employees other than Boardof Directors and KMPs

04(i) Code of Business Conduct(ii) Information Technology(iii) Prevention of Sexual
Harassment(iv) Human Rights

100%

Workers02(i) Skill Development and(ii) Human Rights

100%

2. Details of fines / penalties / punishment / award / compounding fees/ settlement amount paid in proceedings (by theentity or by directors / KMPs) with regulators / law enforcement agencies/ judicial institutions, in the financial year,
in the following format (Note: the entity shall make disclosures on the basis of materiality as specified in Regulation
30 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):
Monetary
Particulars

NGRBC
Principle

Name of theregulatory/
enforcement
agencies/judicial
institutions

Amount (INR)

Brief of the Case

Has anappealbeen
preferred?
(Yes/No)

Penalty

P1

Competition
Commission ofIndia

Rs.751,83,00,000/- Alleged anti-competitive Yes
conduct in the Beer
Market in India

Penalty

P1

Stock Exchanges

Rs.1,85,000/-

Composition of
Independent Directors

Paid underprotestSettlement

NA

Nil

Nil

Nil

NA

Compounding
Fee

P1

Inspector of Legal
Metrology, Agra

Rs.50,000/-

No

P1

Foods Safety
and Standards
Inspector, Shimla

Rs.50,000/-

Compounding of caserelating to labelling ofproductNo

Non-Monetary
Imprisonment

NA

NA

NA

Nil

Nil

Punishment

NA

NA

NA

Nil

Nil
Annual Report 2022 | 219

3. Of the instances disclosed in Question 2 above, details of the Appeal/Revision preferred in cases were monetary on
non-monetary action has been appealed.
Case Details

Name of the regulatory / enforcement agencies /
judicial institutions

Alleged anti-competitive conduct, engaged in price Competition Commission of India
co-ordination and indulging cartelization
Compliance relating to composition of Independent The Stock Exchanges (i.e., BSE Ltd., and National Stock
Directors.
Exchange of India Limited)
4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide
a web-link to the policy– Yes. Policy implemented and covered as part of Business Conduct program. Also available on Company’s Website
www.unitedbreweries.com and on Company’s Intranet Portal.
5. Number of Directors / KMPs / employees / workers against whom disciplinary action was taken by any law
enforcement agency for the changes of bribery / corruption:
Particulars

FY 2021-2022(Current Financial Year)

FY 2020-2021(Previous Financial Year)

Directors

Nil

Nil

KMPs

Nil

Nil

Employees

Nil

Nil

Workers

Nil

Nil

6. Details of complaints with regard to conflict of interest:
Particulars

FY 2021-2022(Current Financial Year)

FY 2020-2021(Previous Financial Year)

NumberRemarks

NumberRemarks

Number of complaints received in relation toissues of Conflict of Interest of the Directors

Nil

Nil

Nil

Nil

Number of complaints received in relation toissues of Conflict of Interest of the KMPs

Nil

Nil

Nil

Nil

7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by
regulators/law enforcement agencies/judicial institutions, on cases of corruption and conflict of interest.
– Not Applicable
Essential Indicators
1. Awareness programmes conducted for value chain partners on any of the Principles during the financial year:
Total number of awareness Topics / principles covered % of value chain partners covered
programmes held
under the training(by value of business done with suchpartners) under the awareness programmes
Nil

NA

Nil

2. Does the entity have processes in place to avoid  /  manage conflict of interest involving members of the Board?
(Yes / No) If Yes, provide details of the same.
– Yes, Directors are covered under the Code of Business conduct.

220 | United Breweries Limited

PRINCIPLE 2 - Businesses should provide goods and services in a manner that is sustainable and safe
Essential Indicators
1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental
and social impacts of product and processes to total R&D and capex investments made by the entity, respectively.
Particulars

FY 2021-2022(Current Financial Year)

FY 2020-2021
Details of improvements in(Previous Financial Year) environmental and social impacts

Research &Development(R&D)

Rs.260 million

Rs.3.66 million

Developed two rows malting variety ofBarley (i.e., Raw material) and achieved‘Zero Liquid Discharge’ of water
through innovative New Water project.

Capex

Rs.336.6 million

Rs.330.85 million

Recycle and reuse of treated wastewaterfor conservation of fresh water.

2. a. Does the entity have procedures in place for sustainable sourcing? (Yes / No)		 – We initiated, data collection for Environment, Social and Governance (ESG). Sustainable sourcing is one of thegoals identified as part of ESG program.
b. If yes, what percentage of inputs were sourced sustainably?				
		 – 65% of inputs were sourced sustainably.
3. Describe the processes in place to safely reclaim your products for reusing, recycling, and disposing at the end oflife, for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.
a) Plastics (Including packaging) – Under Extended Producer Responsibility program, collect the plastic material forrecycling.
b) E-Waste – Computer and Printer (leased out on ‘Buy-back Policy’ of the Company with the OEMs.
c) Acid Batteries – Disposed under buy-back policy with OEMs.
d) Hazardous waste – Segregated at brewery and send to state pollution control board authorized TSDF (Treatment
Storage Disposal Facility) site for disposal.
e) Other Nonhazardous waste – Scrap & By-products sold to Vendors.
4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If yes, whether thewaste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control
Boards? If not, provide steps taken no address the same.
– The EPR is applicable for our operational management. Waste collection plan is in line with the Extended Producer
Responsibility plan as submitted to the Pollution Control Board.
Leadership Indicators
1. Has the entity conducted Life Cycle Perspective /Assessment (LCA) for any of its products (for manufacturing industry)or for its services (for service industry)? If yes, provide details in the following format?
– Life Cycle Perspective/Assessment is not applicable to Alcohol & Beverage Industries.
NIC code

Name of
Product /Service% of total
Turnovercontributed

Boundary forwhich theLife Cycle
Perspective /Assessment was
conducted

Whether
conducted byindependent
external
agency(Yes / No)

Results communicatedin public domain (Yes / No)
If yes, provide theweb-link

Not Applicable
Annual Report 2022 | 221

2. If there are any significant social or environmental concerns and / or risks arising from production or disposal of yourproducts / services, as identified in the Life Cycle Perspective / Assessment (LCA) or through any other means, briefly
describe the same along-with action taken to mitigate the same.
Name or Product / Service

Description of the risk / concern

Action Taken

Not Applicable
3. Percentage of recycled or reused input material to total material (by value) used in production (for manufacturingindustry) or providing services (for service industry).
Indicate input material

Recycled or re-used input material to total material
FY 2021-2022(Current Financial Year)

FY 2020-2021(Previous Financial Year)

63.2%

65%

Used Glass Bottles containing our
registered Trademarks.

4. Of the products and packaging reclaimed at end of lift of products, amount [in Metric Tonnes (MT)] reused, recycled,
and safely disposed, as per the following format:
FY 2021-2022(Current Financial Year)
Re-UsedFY 2020-2021(Previous Financial Year)

Recycled Safely Disposed Re-Used

Recycled

Safely Disposed

Plastics (including
packaging)

Nil

1318

Nil

Nil

1447

Nil

E-waste

Nil

Nil

4

Nil

Nil

6

Hazardous waste

109

12.1

5,718

391

1.3

4,639

Other waste

131

24,141

3,812

104

20,1793,093

5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category.
Indicate product category

Reclaimed products and their packaging materials as % of total products
sold in respective category

Beer Glass bottles>95% recycled (Out of 95%, 60% reclaimed by the company and balance 35%
recycled in the market as cullet’s (precursor for making glass)

Beer Cans>95% recycled[This space has been intentionally left blank]

222 | United Breweries Limited

PRINCIPLE 3 - Businesses should respect and promote the well-being of all employees, including those in
their value chains
Essential Indicators
1. a. Details of measures for the well-being of employees:

Category

Total
(A)

Male
Female
Total

1120
105
1225

% of employees covered byHealth Insurance
Accident
Maternity
Insurance
benefits
Number%Number%Number
%
(B)
(B/A)
(C)
(C/A)
(D)
D/A)
Permanent employees
1120
100
1120
100
NA
NA
105
100
105
100
5
4.76
1225
100
1225
100
5
0.41
Other than Permanent employees

MaleFemale
Total

Paternity
benefits
Number
%
(E)
(E/A)
Nil
Nil
Nil

Day Carefacilities*
Number
%
(F)
(F/A)

NA
NA
NA

Nil
Nil
Nil

NA
NA
NA

NIL

*Out of 105 female members, no members have availed day care facility.
b. Details of measures for the well-being of workers:

Category

Total
(A)

Male
Female
Total

1569
43
1612

% of employees covered byHealth Insurance
Accident
Maternity
Insurance
benefits
Number%Number%Number
%
(B)
(B/A)
(C)
(C/A)
(D)
D/A)
Permanent employees
1569 100%
758
48%
43
100%
40
93%
1612 100%
798
49%
Other than Permanent employees

MaleFemale
Total

Paternity
benefits
Number%(E)(E/A)

Day Carefacilities*
Number%(F)(F/A)

NOT APPLICABLE

NIL*Not Applicable
2. Details of retirement benefits, for Current FY and Previous Financial Year
Benefits

FY2021-2022(Current Financial Year)FY2020-2021(Previous Financial Year)

No. ofemployees
covered as
a % of total
employees

No. ofworkers
coveredas a % of
total workers

Deductedand deposited
with theauthority(Y/N/N.A.)

PF

100%

100%

Gratuity

100%
Nil

ESI
OthersNo. ofemployees
covered as
a % of total
employees

No. ofworkers
covered as
a % of total
workers

Deductedand deposited
with theauthority(Y/N/N.A.)

Yes

100%

100%

Yes

100%

Yes

100%

100%

Yes

22%

Yes

Nil

23%

Yes

NIL
Annual Report 2022 | 223

3. Accessibility of workplaces
Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirementsof the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in thisregard.
– Yes
4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so,
provide a web-link to the policy.
– No
5. Return to work & Retention rates of permanent employees and workers that took parental leave.
Gender

Permanent employees

Permanent workers

Return to work rate

Retention rate

Return to work rate

Retention rate

Male

Nil

Nil

Nil

Nil

Female

5

75%

Nil

Nil

Total

5

75%

Nil

Nil

6. Is there a mechanism available to receive and redress grievances for the following categories of employees andworker? If yes, give details of the mechanism in brief.
Particulars

Yes/No (If Yes, then give details of the mechanism in brief)

Permanent Workers
Other than Permanent Workers

Yes – Grievance Redressal Mechanism forum is available for reporting,by way of direct approach to immediate Head/Supervisor/Manager

Permanent Employees
Other than Permanent Employees

7. Membership of employees and worker in association(s) or Unions recognized by the listed entity:
Category

FY 2021-2022(Current Financial Year)
Total
employees/
workers in
respective
category (A)FY 2020-2021(Previous Financial Year)

No. of employees /%workers in respective (B/A)
category, who arepart of association(s)or Union (B)Totalemployees/
workers in
respective
category (C)%No. of employees /workers in respective (C /D)
category, who arepart of association(s)or Union (D)Total Permanent Employees
Male

Nil

Nil

NA

Nil

Nil

NA

Female

Nil

Nil

NA

Nil

Nil

NA

Total Permanent Workers
Male

1225

1150

94%

1247

1157

93%

Female

32

32

100%

33

33

100%

224 | United Breweries Limited

8. Details of training given to employees and workers:
Category

FY 2021-2022(Current Financial Year)
Total
(A)

On Health andsafety measures

FY 2020-2021(Previous Financial Year)On Skill
upgradation

No. (B) %(B/A) No. (C) %(C/A)

Total
(D)

On Health andsafety measures

On Skill
upgradation

No. (E)%(E/D)

No. (F)%(F/D)

1402

100%

1402

100%

Employees
Male

1120

1120

100%

1120

100%

1402

Female

105

105

100%

105

100%

102

102

100%

102

100%

Total

1225

1225

100%

1225

100%

1504

1504

100%

1504

100%

1247

1247

100%

985

79%

100%

33

33

100%

33

100%

1141 64.28%

1280

1280

100%

1018

80%

Workers
Male

1728

1728

100%

Female

47

47

100%

Total

1775

1775

100%

1094 63.32%
47

9. Details of performance and career development reviews of employees and worker:
Category

FY 2021-2022(Current Financial Year)
Total (A)No. (B)FY 2020-2021(Previous Financial Year)% (B/A)

Total (C)No. (D)% (D/C)

Employees
Male

1324

1212

91.54%

1402

1293

92%

Female

97

85

88%

102

96

94%

Total

1421

1297

91%

1504

1389

92%

Workers
Male
FemaleTotal

Performance and Career developments reviewed, as per the terms and conditions of Long-Term
Wage Settlement/Agreement entered between the company and Permanent Workers

10. Health and safety management system:
a. Whether an occupational health and safety management system has been implemented by the entity?
(Yes / No). If yes, the coverage such system?
• Tailor-made Safety Management System covers the length & breath of our operation.
• Environment, Health and Safety (EHS) policy is existence to focus both physical & mental well-being of theemployees and to protect the environment.
• Periodical training is imparted to develop a good safety work environment culture.
• Environment and Safety Risk Assessment is carried out periodically to evaluate the potentials risk andcontinuously work for risk reduction.
b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basisby the entity?
• Specialized tool used for assessing the risks associated with our nature of work.
• Hazard Identification and Risk Assessment (HIRA) is carried out for all risk activity and risk control are placedfor Human Safety.
• Process Hazard Analysis is carried out through HAZOP, HAZID and LOPA techniques to identify and control therisk related process, equipment and people engaged in the activities.

Annual Report 2022 | 225

c. Whether you have processes for workers to report the work-related hazards and to remove themselves fromsuch risks. (Yes / No)		 – Yes
d. Do the employees/worker of the entity have access to non-occupational medical and healthcare services?
(Yes / No)		 – Yes
11. Details of safety related incidents, in the following format:
Safety Incident/Number

Category

FY 2021-2022(Current Financial Year)FY2020-2021(Previous Financial Year)

Lost Time Injury Frequency Rate (LTIFR) Employees(per one million-person hours worked) Workers

0.25

0.07

NA

NA

Employees

41Workers

0

4

Employees

10Workers

Nil

Nil

Nil

Nil

Nil

Nil

Total recordable work-related injuries
No. of fatalities

High consequences work-related injury Employees
or ill-health (excluding fatalities)
Workers

12. Describe the measures taken by the entity to ensure a safe and healthy work place.
Step 1: High level risk assessment is conducted based on the past historic events and the potential hazards and risk
are identified.
Step 2: HIRA (Hazard Identification & Risk assessment) and PHA (Process Hazard Analysis) studies are conducted forevaluating the risk level.
Step 3: Control of risk
a. Elimination/substitution - Assessment to eliminate the activity/hazard which has potential to harm or injury theteam.
b. Engineering controls - Suitable engineering solution like placing guards, interlocks to reduce the risk level areprovided.
c. Administrative controls - Follow Safety Management System viz., issue permit to work, and provided work (Job)safety training.
d. PPE - Provided personal protective equipment to all employees exposed to the residual risks while performing
the activity.
13. Number of Complaints on the following made by employees and workers:
Particulars

FY 2021-2022(Current Financial Year)
Filed during Pending
the yearresolution
at the endof year

FY 2020-2021(Previous Financial Year)

Remarks

Filed during Pending
the yearresolution
at the endof year

Remarks

Working Conditions

01

Nil

Resolved

Nil

Nil

NA

Health & Safety

Nil

Nil

NA

Nil

Nil

NA

226 | United Breweries Limited

14. Assessments for the year:
Particulars% of your plants and offices that were assessed (by entity or statutory
authorities or third parties)

Health and safety practicesi) About 90% of breweries and its offices were assessed by third party; andWorking conditionsii) Fire Compliance Assessment of 48 offices of the Company and 8 contract
breweries, were assessed by the entity’s EHS team.

15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on
significant risks / concerns arising from assessments of health & safety practices and working conditions.
• Adherence to Permit to work with Risk Assessment for all non-routine activities in line with Company’s safety
guidelines.
• Ensured that all work / job shall be performed after complete understanding of all the risks associated / PTW
condition before carrying out the job.
• Major engineering control taken this tear based on past histories– Layers of Protection in the brew house.
– Fall protection system like roof lifeline and fragile protection in the roof.
– Upgradation of LOTO system to machine specific procedures.
• Reviewed and updated the Systematic Operating Procedure on maintenance work.
• Conducted Process Hazard Analysis (PHA) studies to identify risks in the process and severity mitigation andprobability reduction action plan in progress.
Leadership Indicators
1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees(Yes / No) (B) Workers (Yes / No)– Yes
2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by
the value chain partners.
– Regular Audit conducted by the Internal auditor and yearly audit by Statutory Auditors of the Company.
3. Provide the number of employees/workers having suffered high consequence work-related injury / ill-health /fatalities(as reported in Q11 of Essential Indicators above), who have been are rehabilitated and placed in suitable employment
or whose family members have been placed in suitable employment).
Particulars

Total no. of affected employees /workers

No. of employees/workers that are rehabilitatedand placed in suitable employment or whosefamily members have been placed in suitable
employment

FY 2021-2022
FY 2020-2021
FY 2021-2022
FY 2020-2021(Current Financial Year) (Previous Financial Year) (Current Financial Year) (Previous Financial Year)
Employees
Workers4.

Not Applicable

Does the entity provide transition assistance programs to facilitate continued employability and the managementof career endings resulting from retirement or termination of employment? (Yes / No)– Yes

Annual Report 2022 | 227

5.

Details of assessment of value chain partners:
Particulars

6.

% of value chain partners (by value of business done with suchpartners) that were assessed

Health and Safety Practices

Nil

Working Conditions

Nil

Provide details of any corrective actions taken or underway to address significant risks/concerns arising fromassessments of health and safety practices and working conditions of value chain partners.
– Proposed to be implemented after end of Financial Year 2024-2025.

PRINCIPLE 4 - Business should respect the interest of and be responsive to all its stakeholders
Essential Indicators
1.

Describe the processes for identifying key stakeholder groups of the entity.
Stakeholders play a vital role in the outcome of projects. Stakeholders’ identification, analysis, and selection canbe tricky areas to navigate. If at the end of the day, the appropriate stakeholders aren’t selected for a project,requirements and deliverables may not be successfully met, and the end goals can erroneously be sidestepped. There
are many different stakeholders (like Direct/Indirect internal stakeholders and External Stakeholders) throughout
the life of a projectAs a process, we first (i) identify stakeholders’, do research individuals and third-party organization that may
be relevant to your project. (ii) Categorize the stakeholders in terms of their influence, interest, and levels ofparticipation in project, (iii) Study potentiality of the Stakeholders, (iv) Communicate with identified stakeholders
about management process and communication plan.

2.

List stakeholder groups identified as key for your entity and the frequency or engagement with each stakeholder group.
Stakeholder Group

Whether identified
as Vulnerable &Marginalized Group(Yes / No)

Channels of communication(Email, SMS, Newspaper,
Pamphlets, Advertisement,
Community Meetings, Notice,
Board Website), Other

Purpose and scope ofFrequency ofengagement including key
engagement(Annually/Half yearly/ topics and concerns raised
during such engagement
Quarterly/
others-please specify)

Customers

No

Emails and Website

As and when required

Employees

No

Email, Notice, and Intranet Portal

Quarterly/Half-yearlyand Annually

Government Bodies

No

Newspapers, Community Meetings,
Notice and Website

RegularInvestors andStakeholders

No

Emails, Newspapers, Notice andWebsiteQuarterly/Half-yearlyand Annually

Local communities

Yes

Newspapers, Meetings, and others.

Regular

Suppliers and vendors

No

EmailsRegular

Purpose and scope ofengagement is communication
for attending queries /grievance / notice / complaints/ Suggestion concerns andproviding response, solutions,and assurance

Leadership Indicators
1.

Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social
topics or if consultation is delegated, how is feedback from such consultations provided to the Board.
– Periodical Reports on economic, environmental, and social topics shall be provided to stakeholders including
Govt. Bodies. No consultation between stakeholders & the Board.

2.

Whether stakeholder consultation is used to support the identification and management of environmental, andsocial topics (Yes/No), If so, provide details of instances as to how the inputs received from stakeholders on these
topics were incorporated into policies and activities or the entity.
– Yes. Internal guidance/Systematic Operation of Process have been formulated after consultation and keeping inview the interest of stakeholders only.

228 | United Breweries Limited

3.

Provide details of instances of engagement with and action taken to, address the concerns of vulnerable/marginalized
stakeholder groups.
– Not Applicable

PRINCIPLE 5 - Businesses should respect and promote human rights
Essential Indicators
1.

Employees and workers who have been provided training on human rights issued and policy(ies) of the entity, inthe following format:
Category

FY 2021-2022(Current Financial Year)

FY 2020-2021(Previous Financial Year)

Total (A) No. of employees %/ workers covered (B/A)
(B)

Total
(C)

No. of employees %/workers covered (D/C)(D)

Employees
Permanent

2837

1600

56.40%

2934

1514

51.60%

Nil

Nil

Nil

Nil

Nil

Nil

2837

1600

56.40%

2934

1514

51.60%

Other than permanent
Total Employees

Workers2.

Permanent

1612

1600

99.25%

1280

1280

100%

Other than permanent

163

Nil

Nil

4692

3000

63.93%

Total Workers

1775

1600

99.25%

5972

4280

71.67%

Details of Minimum wages paid to employees and workers, in the following format:
FY 2021-2022(Current Financial Year)
Category

Total
(A)

Equal toMinimum Wage
No. (B)FY 2020-2021(Previous Financial Year)

More than
Minimum Wage

% (B/A) No. (C)No. (C/A)

Total
(D)

Equal toMinimum Wage
No. (E)

More than
Minimum Wage

% (E/D) No. (F)% (F/D)

Employees
Permanent
Male
FemaleNot Applicable

Other than
Permanent
Male
FemaleWorkers
Permanent
Male

1720

67

4%

1653

96%

1753

76

4%

1677

96%

Female

47

Nil

Nil

47

100%

47

Nil

Nil

47

100%

Male

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Female

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Other than
Permanent

Annual Report 2022 | 229

3.

Details of remuneration/salary/wages, in the following format:
Particulars

Male
NumberBoard of Directors (BOD)

FemaleMedian remuneration/salary/wages ofrespective category

Number*1

Median remuneration/salary/wages ofrespective category

573,55,932

1,10,37,006

Key Managerial Personnel

34,30,93,846

Nil

NA

Employees other than BOD
and KMP

1,116

8,03,629

105

6,34,357

Workers

1,816

5,18,544

51

3,19,540* Sitting fees and Commission paid to one female director.
4.

Do you have a focal point (Individual / Committee) responsible for addressing human rights impacts or issues caused
or contributed to by the business? (Yes /No)
– Yes

5.

Describe the internal mechanism in place to redress grievances related to human rights issues.
– We have not received any complaints on human rights violations during the reporting period.

6.

Number of Complaints on the following made by employees and workers:
Particulars

FY 2021-2022(Current Financial Year)Filedduringthe year

7.

Pending
Remarks
resolution
at the endof year

FY 2020-2021(Previous Financial Year)Filedduringthe year

Pending
Remarks
resolution
at the endof yearSexual Harassment

3

Nil

Resolved

Nil

Nil

NA

Discrimination at workplace

Nil

Nil

NA

Nil

Nil

NA

Child Labor

Nil

Nil

NA

Nil

Nil

NA

Forced Labor/ Involuntary Labor

Nil

Nil

NA

Nil

Nil

NA

Wages

Nil

Nil

NA

Nil

Nil

NA

Other human rights related issued

Nil

Nil

NA

Nil

Nil

NA

Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
– Grievance mechanism with respect to Code of Business Conduct is in place.

8.

Do human rights requirements form part of your business agreements and contacts? (Yes / No)
– Yes

9.

Assessment for the year:
Particulars% of your plants and offices that were assessed (by entity or
statutory authorities or third parties)

Child labor

Nil

Forced/Involuntary labor

Nil

Sexual harassment

100%

Discrimination at workplace

100%

Wages

100%

OthersNil

230 | United Breweries Limited

10. Provide details of any corrective actions taken or underway to address significant risks/concerns arising from theassessments at Question 9 above.
– Corrective actions taken as per the Systematic Operation of Process/Internal Guidelines framed and Policies
formulated and implemented which are approved by the Board as per the guidelines of the Govt. Bodies.
Leadership Indicators
1.

Details of a business process being modified/introduced as a result of addressing human rights grievances/complaints.
– Not Applicable2.

Details of the scope and coverage of any Human rights due diligence conducted.
– Not Applicable3.

Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of
Persons with Disabilities Act, 2016?
– Yes

4.

Details on assessment of value chain partners:
Particulars% of value chain partners (by value of business done with suchpartners) that were assessed

Sexual Harassment
Discrimination at workplace
Child Labor
Forced Labor/Involuntary Labor

NIL

Wages
Others-please specify
5. Provide details of any corrective actions taken or underway to address significant risks/concerns arising from theassessments at Question 4 above.
– Not Applicable[This space has been intentionally left blank]

Annual Report 2022 | 231

PRINCIPLE 6 - Businesses should respect and make efforts to protect and restore the environment
Essential Indicators
1.

Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:
Parameter

FY 2021-2022(Current Financial Year)

FY 2020-2021(Previous Financial Year)

Total electricity consumption (A)

381

320

Total fuel consumption (B)

1264

1094

Nil

Nil

Total energy consumption (A+B+C)

1645

1414

Energy intensity per rupee of turnover (Totalenergy consumption/turnover in Rupees)

0.016

0.015

Energy intensity (optional) – the relevant metric
may be selected by the entity

158.1

162.8

Energy consumption through other sources (C)Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency?
(Yes / No) If yes, name of the external agency.
– No
2.

Does the entity have any sites/facilities identified as designated consumers (DCs) under the Performance, Achieve
and Trade (PAT) Scheme of the Government of India? (Yes / No) If yes, disclose whether targets set under the PAT
scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any.
– Not Applicable

3.

Provide details of the following disclosures related to water, in the following format:
Parameter

FY 2021-2022(Current Financial Year)

FY 2020-2021(Previous Financial Year)(i) Surface water

16,92,034

11,64,929(ii) Ground water

13,86,062

10,04,750(iii) Third party water

2,04,959

6,22,868(iv) Sea water/desalinated water

Nil

Nil

(v) Others

Nil

Nil

Total volume of water withdrawal (inkiloliters) (i+ii+iii+iv+v)

32,83,056

27,92,553

Total volume of water consumption(in kiloliters)

32,83,056

27,92,553

Water intensity per rupee of turnover(Water consumed/turnover)

25.03

27.42

Water intensity (optional) – the relevant
metric may be selected by the entity

3.44

3.61

Water withdrawal by source (in kiloliters)

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency?
(Yes / No) If yes, name of the external agency– No
4.

Has the entity implemented a mechanism for Zero Liquid Discharge (ZLD)? If yes, provide details of its coverage andimplementation.
Yes – Out of 19 operating breweries, 2 breweries located at Tamil Nadu (UB Chennai) and Rajasthan (Chopanki)
have implemented the mechanism of ZLD.

232 | United Breweries Limited

5.

Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:
Parameter

Unit

FY2021-2022(Current Financial YearFY2020-2021(Previous Financial Year)NOx

Ton / Year

220.5

93

Sox

Ton / Year

121.10351

Particulate matter (PM)Ton / Year

140.8057

Persistent organic pollutants (POP)Not Applicable

Nil

Nil

Volatile organic compounds (VOC)

Not Applicable

Nil

Nil

Hazardous air pollutants (HAP)

Not Applicable

Nil

Nil

Others – please specify

Not Applicable

Nil

Nil

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency?
(Yes / No) If yes, name of the external agency– No
6.

Provide details of greenhouse gas emission (Scope 1 and Scope 2 emissions) & its intensity, in the following format:
Parameter

Unit

FY2021-2022
FY2020-2021(Current Financial Year (Previous Financial Year)

Total Scope 1 emissions(Break-up of the GHG into CO2, CH2,
N2O, HFCs, PFCs, SF6, NF3, if available)

1,20,661

1,03,852

Total Scope 2 emissions(Break-up of the GHG into CO2, CH4,
N2O, HFCs, PFCs, SF6, NF3, if available)

56,60549,1421.35 Tons

1.5 Tons

0.019 Tons

0.020 Tons

Metric tonnesof CO2equivalent
Total Scope 1 and Scope 2 emissions
per rupee of turnover
Total Scope 1 and Scope 2 emission
intensity (optional) - the relevant
metric may be selected by the entity

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by external agency?
(Yes / No) If yes, name of the external agency.
– No
7.

Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details.
Yes – Developed Environment, Social and Governance (ESG) roadmap and identified potentials projects for achieving
targeting Net Carbon foots in both Electricity & Thermal Energy.

[This space has been intentionally left blank]

Annual Report 2022 | 233

8.

Provide details related to waste management by the entity, in the following format:
Parameter

FY2021-2022(Current Financial Year)FY2020-2021(Previous Financial Year)

Total Waste generated (in metric tons)
Plastic waste (A)

1,318

1,477

4

6

0.27

0.27

Not quantified

Not quantified

Buy back System

Buy back System

Not generated

Not generated

5,842

5,032

Other Non-hazardous waste generated(H). Please specify, if any. (Break-up bycomposition i.e., by materials relevant tothe sector)

28,09423,376

Total (A+B+C+D+E+F+G+H)

35,24829,893E-waste (B)Bio-medical waste (C)Construction and demolition waste (D)Battery waste (E)Radioactive waste (F)Other Hazardous waste. Please specify,
if any. (G)For each category of waste generated, total waste recovered through recycling,re-using or other recovery operations (in metric tonnes)
Category of waste(i) Recycled

25,471

21,658(ii) Re-used

241

496

(iii) Other recovery operations

NIL

NIL

25,711

22,154Total

For each category of waste generated, total waste disposed by nature of disposal method(in metric tonnes)
Category of waste(i) Incineration

2.0

1.1

(ii) Landfilling

9,531

7,733

Nil

Nil

9,533

7,734

(iii) Other disposal operations
Total

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency?
(Yes / No) If yes, name of the external agency.
– No
9.

Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted byyour company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices
adopted to manage such wastes.
– The Company has standardized the methodology to identify, segregate and quantify the waste generated.
Implemented 3Rs (Reduce-Reuse-Recycle) concept for the waste before disposing at landfill site.

234 | United Breweries Limited

10. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries,
biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental
approvals / clearances are required, please specify details in the following format:
– No
Sl.
No.

Location of operations/
offices

Type of operations

Whether the conditions of environmental
approval/clearance are being complied with?
(Y/N) If no, the reasons thereof and corrective
action taken, if any.

Not Applicable
11. Details of environmental impact assessment of projects undertaken by the entity bases on applicable laws, in thecurrent financial year:
Name and brief EIA
Datedetails of project Notification No.

Whether conducted byindependent external
agency (Yes/No)

Results communicated Relevantin public domain
Web link(Yes/No)

Not Applicable
12. Is the entity compliant with the applicable environmental law/regulations/guidelines in India, such as the Water(Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act
and rules thereunder (Yes / No). If not, provide details of all such non-compliance, in the following format:– Yes
Sl. Specify the law/regulation/
No. guidelines which was notcomplied with

ProvideAny fines /penalties / action
Correction action
detailstaken by regulatory agencies
taken if anyof the non- such as pollution control board
compliance or by courts
Not Applicable
Leadership Indicators

1.

Provide break-up of the total energy consumed (in Joules or multiples) form renewable and non-renewable sources,in the following format:
Parameter

FY 2021-2022(Current Financial Year)FY2020-2021(Previous Financial Year)

From renewable sources
Total electricity consumption (A)

123

96

Total fuel consumption (B)

1110

938

Energy consumption through other sources (C)

Nil

Nil

Total energy consumed from renewablesources (A+B+C)

1233

1034

Total electricity consumption (D)

258

224

Total fuel consumption (E)

154

156

Energy consumption through other sources (F)

Nil

Nil

Total energy consumed from non-renewablesources (D+E+F)

412

380

From non-renewable sources

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency?
(Yes / No) If yes, name of the external agency.
– No
Annual Report 2022 | 235

2.

Provide the following details related to water discharged:
Parameter

FY 2021-2022(Current Financial Year)
Water discharge by destination and level of treatment (in kiloliters)(i) To Surface water- No treatment
Nil- With treatment – please specify level of treatment
Not Applicable(ii) To Groundwater- No treatment
Nil- With treatments – please specify level of treatment
13,52,572(iii) To Seawater- No treatment
Nil- With treatment – please specify level of treatment
Not Applicable(iv) Sent to third parties- No treatment
Nil- With treatment – please specify level of treatment
3,73,430(v) Others- No treatment
Nil- With treatment – please specify level of treatment
Not Applicable
Total water discharged (in kilolitres)
17,26,002

FY2020-2021(Previous Financial Year)

Nil
Not Applicable
Nil
12,94,434
Nil
Not Applicable
Nil
2,66,332
Nil
Not Applicable
15,60,766

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency?
(Yes / No) If yes, name of the external agency.
– No
3.

Water withdrawal, consumption, and discharge in areas of water stress (in kilolitres):
For each facility/plant located in areas of water stress, provide the following information:(i) Name of the area - Ludhiana, Chennai, Nelamangala, Chopanki, Aravalli, Dharuhera, Palakkad & Srikakulam.
(ii) Nature of operations – Manufacturing of Beer(iii) Water withdrawal, consumption, and discharge in the following format:
Parameter
Water withdrawal by source (in kiloliters)(i) Surface water(ii) Groundwater(iii) Third party water(iv) Seawater/desalinated water(v) Others
Total volume of water withdrawal (in kilolitres)
Total volume of water consumption (in kilolitres)
Water intensity per rupee of turnover(Water consumed / turnover)
Water intensity (optional) – the relevant metric may
be selected by the entity

236 | United Breweries Limited

FY 2021-2022(Current Financial Year)FY2020-2021(Previous Financial Year)

1,17,523
8,20,448
3,10,650
Nil
Nil
12,48,621
12,48,621

1,15,137
7,07,544
2,65,109
Nil
Nil
10,87,790
10,87,790

12.26

8.29

3.6

3.4

Water discharge by destination and level of treatment (in kilolitres)(i) Into Surface water- No treatment
Nil
Nil- With treatment-please specify level of treatment
Not Applicable
Not Applicable(ii) Into Groundwater- No treatment
Nil
Nil- With treatment-please specify level of treatment
4,07,503
5,41,101(iii) Into Seawater- No treatment
Nil
Nil- With treatment-please specify level of treatment
Not Applicable
Not Applicable(iv) Sent to third parties- No treatment
Nil
Nil- With treatment-please specify level of treatment
Not Applicable
Not Applicable(v) Others- No treatment
Nil
Nil- With treatment-please specify level of treatment
Not Applicable
Not Applicable
Total water discharges (in kilolitres)
4,07,503
5,41,101
Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency?
(Yes / No) If yes, name of the external agency.
– No
4.

Please provide details of total Scope 3 emissions & its intensity, in the following format:
Parameter

Unit (Metrictonnes of CO2
equivalent)

FY 2021-2022(Current Financial
Year)

FY 2020-2021(Previous Financial
Year)

Total Scope 3 emissions (Break-up
of the GHG into CO2, CH4, N2O,
HFCs, PFCs, SF6, NF3, if available)
Total Scope 3 emissions per rupeeof turnoverAs per the manufacturing plan, Scope Assessment Plan will be
implemented in Financial Year 2023-2024.

Total Scope 3 emission intensity(optional) – the relevant metric may
be selected by the entity
Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency?
(Yes / No) If yes, name of the external agency.
– No
5.

With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above, provide
details of significant direct & indirect impact of the entity on biodiversity in such areas along-with prevention andremediation activities.
– Not Applicable

6.

If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource
efficiency, or reduce impact due to emissions/effluent discharge/waste generated, please provide details of thesame as well as outcome of such initiative, as per the following format:
Sl.
No.

Initiative
undertaken

Details of the initiative (Web-link, if any,
may be provided along-with summary)

Outcome of the initiative

Not Applicable
Annual Report 2022 | 237

7.

Does the entity have a business continuity and disaster management plan? Give details in 100 words/web link.
– Yes, the Company have Disaster management plan across the Breweries/Units.
Each of our brewery has an On-site emergency plan for Disaster management. This plan provides guidelines to
employees, contractors, transporters, etc., on actions to be carried out in the event of an Emergency. It not only
defines responsibilities but also informs about prompt rescue operations, evacuations, rehabilitation, coordination,and communication.

8.

Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What
mitigation or adaptation measures have been taken by the entity in this regard?
– No adverse impact to the environment.

9.

Percentage of value chain partners (by value of business done with such partners) that were assessed forenvironmental impacts.
– Nil

PRINCIPLE 7 - Businesses, when engaging in influencing public and regulatory policy, should do so ina manner that is responsible and transparent
Essential Indicators
1.

2.

a.

Number of affiliations with trade and industry chambers / associations – Four (4)b.

List the top 10 trade and industry chambers /association (determined based on the total members of suchbody) the entity is a member of/affiliated to.

Sl.
No.

Name of the trade and industry chambers/associations

Reach of trade and industry
chambers/associations(State/National)

1.

All India Brewers’ Association (AIBA)

National

2.

Federation of Indian Chambers of Commerce and Industry (FICCI)National

3.

Confederation of Indian Industry (CII)

National

4.

Federation of Karnataka Chambers of Commerce and Industry (FKCCI)State

Provide details of corrective action taken or underway on any issues related to anti-competitive conducted by theentity, based on adverse orders from regulatory authorities.
Name of authority

Brief of the case

Corrective action taken

Competition Commission of India

Pricing discussions

Stay obtained. Regular training andcompliance program in place.

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238 | United Breweries Limited

Annual Report 2022 | 239

1.

Need for rationalizationof COVID cess as well as
approving the policy on
price revision (EBP increase)in Telangana on account of
increased cost pressures on
manufacturing.

Multiple Policy Inputs toencourage
responsible
consumption in the State of
Karnataka

Immediate need for pricerevision on account ofhuge cost burden on
manufacturing and supply inRajasthan.
Also, rationalization of Excise
Duties and tax structure to
avoid tax on tax.

2.

3.

4.

			

5.

Created a Business case for the State on benefits of allowing 3rd shift
which included buoyancy in revenue and Volumes for the State, as
well as higher local employment and in-state resource utilization.
Submitted through meetings at Excise Department as well as Principle
Secretary level.

Need for the policy on third
shift Brewery operations
in Odisha to meet peakseason demand.

1.

Tax rationalization and Ease Submitted a plea on the immediate need for tax rationalization toof Doing Business in West revive demand in the State.
BengalAlso emphasized on the need for Ease of Doing Business on certain
processes to enable an efficient supply chain for the industry.
Submitted through meetings at Excise Department and Principal
Secretary level.

Built a case for price revision owing to inflation in dry and wet goods,
increased working capital, steep increase in logistics and packaging
material cost.
Also submitted a business case for rationalization of Beer taxes and to
revive the industry badly hit by COVID.
Showcased the benefits to the investments made in the State andthus the need for a comprehensive policy on pricing and taxation todrive sustainability of the investments.
Submitted through meetings at Excise Department, Principal Secretary
as well as Ministerial level.

Submitted a Business Proposal on rationalized taxation on milder
drinks and adequate retail presence in the State in order to encourage
responsible consumption among customers.
Illustrated the socio-economic benefits to the State citing examples ofbest practices in other States.
Submitted through meetings at Excise Department and Principal
Secretary level.

Built a case for price revision owing to inflation in dry and wet goods,
increased working capital, steep increase in logistics and packaging
material cost.
Shown socio-economic benefits of the request, and how the same
would drive industry sustainability.
Submitted through meetings at Excise Department, Principle Secretary
as well as Ministerial level.

Method resorted for such advocacy

Sl. Public policy advocatedNo.

Details of public policy positions advocated by the entity:

Leadership Indicators

No

Whether
information
available inpublic domain?
(Yes/No)Part of overall business
plan

Not
Available

Web Link,
Frequency of Review
ifby Board (Annually /available
Half yearly / Quarterly/ Others – please specify)PRINCIPLE 8 - Businesses should promote inclusive growth and equitable development
Essential Indicators
1.

Details of Social Impact Assessment (SIA) of projects undertaken by the entity based on applicable laws, in thecurrent financial year.
Name andbrief details of
project

SIA Notification
No.

Date ofnotification

Whether
conducted byindependent
external agency(Yes/No)

Results
communicatedin public
domain(Yes/No)

Relevant
Web link

Not Applicable
2.

Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by
your entity, in the following format:
Sl. Name of the
No. Project for which
R&R is ongoing

State

District

No. of Project
Affected
Families (PAFs)% of PAFs
covered by
R&R

Amounts paid
to PAFs in theFY (In INR)

Not Applicable3.

Describe the mechanism to receive and redress grievances of the community.
– At the brewery level, grievances if any, are taken up and addressed.

4.

Percentage of input material (inputs to total inputs by value) sourced from suppliers:
Particulars

FY 2021-2022(Current Financial Year)

FY 2020-2021(Previous Financial Year)

Directly sourced from MSMEs / Small
producers

19.32%

18.85%

Sourced directly from within the
district and neighboring districts *About 19%

About 19%

* Given the multi locational scale of operations across India, numbers are provided in a range.
Leadership Indicators
1.

2.

Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments(Reference: Question 1 of Essential Indicators above):
Details of negative social impacts identified

Corrective action taken

Nil

Not Applicable

Provide the following information on Corporate Social Responsibility (CSR) projects undertaken by your entity indesignated aspirational districts as identified by government bodies:State

Aspirational District

Amount spent (In INR)

West Bengal

Nadia

2,38,273/-

3.

(a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprisingmarginalized/vulnerable groups? (Yes / No)
		– No(b) From which marginalized/vulnerable groups do you procure?
		– Not Applicable(c) What percentage of total procurement (by value) does it constitute?
		– Not Applicable
240 | United Breweries Limited

4.

5.

6.

Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in thecurrent financial year), based on traditional knowledge:
Sl. Intellectual Property based on
No. traditional knowledge

Owned/Acquired(Yes/No)

Benefit shared(Yes/No)

Basis of calculating
benefit share

1.

Patents

Owned

No

Not Applicable2.

Trademark

Owned

No

Not Applicable3.

Copyrights

Owned

No

Not Applicable

Details of corrective actions taken on underway, based on any adverse order in intellectual property related disputes
wherein usage of traditional knowledge is involved.
Name of authority

Brief of the Case

Nil

Not Applicable

Corrective action taken

Details of beneficiaries of CSR Projects:
Sl. CSR ProjectNo.

No. of persons% of beneficiaries
benefitted from from vulnerable
CSR Projects
and marginalizedgroups1.

Water Conservation, Haryana

76,26564.71

2.

Water Conservation, Rajasthan

4,800

17

3.

Integrated Water Resource Management, Tamil Nadu

49,75393.75

4.

Water Conservation, Punjab

38,44441

5.

Water Conservation, Telangana and Karnataka

17,00066

6.

Sustainable livelihood through climate resilient practices, Kerala

41,696

13

7.

Covid Relief-Happiness Kit distribution, Karnataka

16,68047

8.

Project Oxygen Hub, Maharashtra

64,50062

9.

Tarang Agroforestry

17,82073

63,250

60

97

84

1,280

Not Captured

Not Definable

Not Definable

10. Project Oxygen Zone, Maharashtra
11. Pragati Scholarship Programme, Pan India
12. Project H.E.A.L., Pan India
13. Local covid response and community activities, Pan India

PRINCIPLE 9 - Businesses should engage with and provide value to their consumers in a responsible manner
Essential Indicators
1.

Describe the mechanism in place to receive and respond to consumer complaints and feedback.
– There is a customer service number available on the label of every beer bottle. Consumers contact directly to thenumber available and grievances resolved, if any. In case grievances are directed to sales team, the regional sales
team shall contact the customer/consumer and resolve the issues, and the feedback is provided to the customer
care.

2.

Turnover of products and/services as a percentage of turnover from all products/service that carry information
about:
Particulars

As a percentage to total turnover

Environmental and social parameters relevant to the productNot Applicable

Safe and responsible usage

Not Applicable

Recycling and/or safe disposal

Not Applicable
Annual Report 2022 | 241

3.

Number of consumer complaints in respect of the following
Particulars

FY2021-2022(Current Financial YearFY2020-2021(Previous Financial Year)

Received
duringthe year

Pending
resolution at
end of year

Remarks

Received
duringthe year

Pending
resolution at
end of year

Remarks

Data privacy

Nil

NA

NA

Nil

NA

NA

Advertising

Nil

NA

NA

4

Nil

NA

Cyber-security(Fake Interviews)

1

Nil

NA

1

Nil

NA

Delivery of essential
services

Nil

NA

NA

Nil

NA

NA

Restrictive Trade Practices

Nil

NA

NA

Nil

NA

NA

Unfair Trade Practices

Nil

NA

NA

Nil

NA

NA

Others (Consumer cases)*

01

36

NA

04

31

NA

* Out of 36 consumer cases only 18 cases are active in Consumer forum.
4.

Details of instances or product recalls on account of safety issues:
Particulars

NumberReasons for recall

Voluntary recalls

Nil

Not Applicable

Forced recalls

Nil

Not Applicable

5.

Does the entity have a framework/policy on cyber security and risks related to data privacy? (Yes/No) If available,
provide a web-link of the policy.
– Yes. Company has implemented data privacy policy on cyber security and risk related to data privacy under theBusiness Conduct Program and available on Company’s Intranet Portal.

6.

Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essentials
services; cyber security and data privacy of customers; re-occurrence of instances of product recalls; penalty/action
taken by regulatory authorities on safety of products/services.
– No such instances/issues have been faced so far.
Leadership Indicators

1.

Channels/platforms where information on products and services of the entity can be accessed (provide web link, if
available).
–  Information on products and services can be accessed through Company’s Weblink:
https://www.unitedbreweries.com/our-brands.

2.

Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.
– We educate on ‘Responsible usage of Consumption of Alcohol’ (i.e., Beer) and also display Statutory Warning onLabels of Bottles and Cans.

3.

Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.
– Not Applicable

242 | United Breweries Limited

4.

Does the entity display product information on the product over and above what is mandated as per local laws?
(Yes / No / Not Applicable) If yes, provide details in brief. Did your entity carry out any survey with regard to consumer
satisfaction relating to the major products/services of the entity, significant locations of operation of the entity or
the entity as a whole? (Yes / No)
Yes – Additional Information about the product is displayed on the labels. Our regional sales heads in the regions,meet customers on a regular basis, ascertain business concern areas which require attention and resolve theirconcerns in a time bound manner. UBL periodically assesses consumer trends, consumer choice and preference
through need-based survey.

5.

Provide the following information relating to data breaches:a. Number of instances of data breaches along-with impact		– Nil
b. Percentage of data breaches involving personally identifiable information of customers
		
– Nil

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Annual Report 2022 | 243

ANNEXURE - B: ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR)
ACTIVITIES FOR THE FINANCIAL YEAR 2021-22[Pursuant to Section 135 of the Companies Act, 2013 read with Clause (1) of Rule 8of Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 further to amend
the Companies (Corporate Social Responsibility) Rules, 2014.]
1. A brief outline on CSR Policy of the Company.
The Board of Directors at its meeting held on May 27, 2014 adopted the CSR Policy pursuant to the provisions ofSection 135 of the Companies Act, 2013 read with Rule 5 of Companies (Corporate Social Responsibility Policy)
Rules, 2014, (as amended). In line with the guidelines given under Schedule VII of the Companies Act, 2013,
the CSR committee has identified activities primarily in four major areas viz., Primary Health, Primary Education,
Water Conservation & Providing Safe Drinking Water and Responsible Consumption of Alcohol around which yourCompany focuses its CSR initiatives and channelizing the resources in a sustained manner.
2. Composition of CSR Committee:
Sl.
No.

Name of Director

Designation / Nature of
Directorship

Number ofmeetings of CSR
Committee held
during the year

Number of meetingsof CSR Committee
attended during the
year

1.

Mr. Stephan Gerlich

Chairperson / Independent
Director

1

1

2.

Mr. Rishi Pardal

Member / Managing Director

1

1

3.

Mr. Berend Odink

Member / Director & Chief
Financial Officer

1

1

4.

Mr. Christiaan A J Van
Steenbergen

Member / Non-Executive
Director

1

1

5.

Ms. Kiran Mazumdar
Shaw

Member / Independent Director

11

3. The weblink where composition of CSR committee, CSR Policy and CSR projects are placed at:https://www.unitedbreweries.com/csr under the head Corporate Social Responsibility.
4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of theCompanies (Corporate Social Responsibility Policy) Rules, 2014, if applicable.
Impact Evaluation Report is available on:https://www.unitedbreweries.com/Pdf/CSR/Impact%20Evaluation%20Report%20April%202021.pdf
5. Details of the amount available for set-off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social
Responsibility Policy) Rules, 2014 and amount required for set-off for the financial year, if any:
(Amount in Rupees million)
Sl.
No.

Financial Year

Amount available for set-off frompreceding financial years

Amount required to be set-off forthe financial year, if any

1.

2020-21

NIL

NIL

2.

2019-20

NIL

NIL

3.

2018-19

NIL

NIL

TOTAL

NIL

NIL

244 | United Breweries Limited

Annual Report 2022 | 245

Amount required to be set-off for the financial year, if any

Total CSR obligation for the financial year (7a+7b-7c)

c.

d.

34.41

Amount28.04.2022

Date of transfer

Total Amount transferred to
Unspent CSR Account as per section 135(6)(5)

Telangana
andKarnataka
Punjab

Yes

Yes
Yes
Yes

4. Water Conservation

5. Water Conservation

RajasthanRajasthanKeralaState

BehrorAlwar

Ludhiana

Sangareddy and
Bangalore Rural

Palakkad

District

Location of the Project

Yes

Name ofthe Project

Sl.
No.

(4)

Item from the Local
list of activities areain Schedule VII (Yes/No)
to the Act(3)

1. Sustainable Livelihood Ensuring
through climate
environmental
resilient practices
sustainability,
conservation of
2. Water Conservation natural resourcesin Telangana andand maintaining
Karnatakaquality of soil, air
3. Water Conservation and water

(2)

(1)

24
Months24Months36Months30
Months25Months(Amount in Rupees million)

108

NIL

NIL

108

Amount(Amount in Rupees million)

(7)

(8)

N.A.

Name of the Fund

(9)

12.83

9.82

39.15

40.20

27.87

NIL

2.55

2.0

2.47

0.5

12.83

NIL

NIL

NIL

NIL

No

No

No

No

No

Mode of
Implementation– Direct(Yes/No)

(10)

N.A.

AmountSM Sehgal
Foundation

SM Sehgal
Foundation

Action for Food
Production

Action for Food
Production

United Way of
Bengaluru

Name

CSR00000262

CSR00000262

CSR00000747

CSR00000747

CSR00000324

CSR
Registration
NumberMode of Implementation –Through Implementing Agency(11)(Amount in Rupees million)

N.A.

Date of transfer

Amount transferred to any fund specified under Schedule VIIas per second proviso to section 135(5)AmountAmountAmount spent in transferred to
Project allocated the current Unspent CSR
duration for thefinancial
Account for
project
year
project as per
Section 135(6)(6)(b) Details of CSR amount spent against ongoing projects for the financial year

73.59

Total Amount Spentfor Financial Year

Amount Unspent

Surplus arising out of the CSR projects or programmes or activities of the previous financial yearsb.

8. (a) CSR amount spent or unspent for the financial year:

Two percentage of average net profit of the company as per section 135(5)Particularsa.

7. Financial Details

6. Average net profit of the Company as per section 135(5): Rs. 5,400 Millions

246 | United Breweries Limited(2)

Ensuring
environmental
sustainability,
conservation ofnatural resources
and maintaining
quality of soil, airand water(3)

Improvinggender equality
and reducing
inequalities
faced by sociallyand economically
backward groups.

11. Tarang Agroforestry
Project

TOTAL

Improvinggender equality
and reducing
inequalities
faced by sociallyand economically
backward groups.

10. Pragati Scholarship
Program

8. Project Oxygen Hub – Ensuring
environmental
Tree plantation
through Miyawaki
sustainability,
ecological
Methodbalance, and
9. Project Oxygen Zone – protection ofTree plantation
flora and faunathrough Miyawaki
Method7. Water Conservation

6. Water Conservation

(1)

Yes

Maharashtra

Punjab,Haryana,Rajasthan,West Bengal,
Karnataka,
Tamil Nadu,
AndhraPradesh,Telangana,
Maharashtra,
Odisha, Goa
and Kerala

Maharashtra

Yes

Yes

Maharashtra

Tamil Nadu

Haryana

Yes

Yes

Yes

(4)

36
Months36Months24Months24Months(6)

Aurangabad

12MonthsLudhiana,
5 Months
Rewari, Bhiwadi,
Alwar, Nadia,
Bangalore
Rural, Mysore,
Mangalore,
Thiruvallur,
Srikakulam,
Medak,
Aurangabad,
Raigad, Khurda,
North Goa andPalakkad

Aurangabad

Aurangabad

Thiruvallur

Rewari(5)

213.35

1.93

11.2

11.43

5.02

13.85

40.05

(7)

33.73

0.19

2.00

2.28

0.25

2.65

18.84

(8)

34.41

1.74

NIL

8.64

NIL

11.20

NIL

(9)

No

No

No

No

No

No

(10)

Prayas YouthFoundation

Shiksha Seva
Foundation

Prayas YouthFoundation

Prayas YouthFoundation

Dilasa Janvikas
Pratishthan

Akhil Bhartiya
Gramin Uthan
Samiti

CSR00001678

CSR00002256

CSR00001678

CSR00001678

CSR00000098

CSR00002164(11)

Annual Report 2022 | 247

Promotion of healthcare
including preventive
healthcare and disastermanagement

Promotion of healthcare
including preventive
healthcare and disastermanagement

Promoting education,
including special education

Measures for the benefit
of armed forces veterans,
war widows and theirdependents

3. Covid Relief Happiness
Kits

4. Covid Relief Vaccination
Program

5. Community Initiatives

6
N.A.

Across India

Across India

Bengaluru Rural,
Mysore andMangalore

Alwar,
Aurangabad,
Bengaluru Rural,
Mysore,Mangalore,
Chennai andPalakkad: Rs. 73.59 million(f) Total amount spent for the Financial Year (8b+8c+8d+8e): Rs. 5.4 million

N.A.

Across India

Across India

Karnataka

Rajasthan,
Maharashtra,
Karnataka,
Tamil Nadu,
Kerala andGoa

Across India: Rs. 0.35 million

N.A.

Yes

Yes

Yes

Yes

Across India

District

34.11

0.59

1.93

2.5

5

22.97

1.12

Amount spent
for the project

Location of the Project
State

(6)

(5)

(e) Amount spent on Impact Assessment, if applicable(d) Amount spent in Administrative Overheads

TOTAL

Contribution to Armed
Forces Flag Day Fund

Promotion of healthcare
including preventive
healthcare and disastermanagement

2. Covid Relief

Yes

Local area
(Yes/No)

Item from the list ofactivities in Schedule VII
to the Act

Project Monitoring

Name ofthe Project

Sl.
No.

(4)

(3)

1. Monitoring & Evaluation

(2)

(1)

(c) Details of CSR amount spent against other than ongoing projects for the financial year:

Yes

Yes

No

No

Yes

No

N.A.

N.A.

National Restaurant
Association of India

Akshaya Patra
Foundation

N.A.

Soulace Consulting
Pvt Ltd

N.A.

N.A.

CSR00008633

CSR00000286

N.A.

N.A.

CSR Registration
NumberMode of Implementation – ThroughImplementing Agency

Mode of
Implementation– Direct(Yes/No)
Name

(8)

(7)

(Amount in Rupees million)

248 | United Breweries Limited

2020-212019-20
2018-19
TOTAL

1.
2.
3.

NIL
4.7
NIL
4.7

Amount transferred to
Unspent CSR Accountunder section 135(6)
NIL
4.6
NIL
4.6

Amount spent in
the reporting
Financial Year

(2)

NIL

NIL
NIL
NIL
NIL

2.

3.
4.
5.
6.

TOTAL

NIL

1.

Sl. Project
No.
ID

(1)

Sustainable livelihood through climate
resilient practices in Palakkad, Kerala
Water Conservation in Telangana andKarnataka
Water Conservation in Punjab
Water Conservation in Rajasthan
Water Conservation in Haryana
Project Oxygen Hub – Tree plantation
through Miyawaki Method

Name of the Project(3)

2019-20
2019-20
2019-20
2019-20

2019-2036 Months
36 Months
24 Months
36 Months

30 Months

33 Months

Project
duration

Financial Yearin which the
project wascommenced
2019-20(5)(4)

162.11

39.15
9.82
40.05
5.02

40.20

27.87

Total amountallocated forthe project

(6)

(7)

31.17

5.66
2.55
19.74
0.25

2.47

0.5

Amountspent on the
project(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):PrecedingFinancial
Year

Sl.
No.

125.38

18.71
2.95
40.05
5.02

30.78

Ongoing
Ongoing
Completed
Completed

Ongoing

Completed

Status ofthe project –Completed/ Ongoing

Cumulative
amount spentat the end ofreporting Financial
Year
27.87

(9)

(8)

(Amount in Rupees million)

NIL
0.1
NIL
0.1

Amount remaining
to be spent insucceeding financial
years(Amount in Rupees million)

Amount108.00
73.59
NIL
NIL
NIL

(Amount in Rupees million)

Amount transferred to any fundspecified under Schedule -VII as per section
135(6), if any.
Name of theDate ofAmountFundtransfer
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL

Particulars
Two percent of average net profit of the company as per section 135(5)Total amount spent for the Financial Year
Excess amount spent for the financial year [(ii)-(i)]Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any
Amount available for set off in succeeding financial years [(iii)-(iv)]

9. (a) Details of Unspent CSR amount for the preceding three financial years:

Sl. No.
(i)
(ii)
(iii)
(iv)
(v)

(g) Excess amount for set off if any;

Not Applicable

Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their address etc.

Provide details of the capital asset(s) created or acquired (including complete address and location of the capital asset).

(c)

(d)

April 26, 2022
Bengaluru

Chairman of CSR Committee
DIN:00063222

Managing Director
DIN:02470061

Director & CFO
DIN:09138421

				 By Authority of the Board

11. Specify the reason(s), if the company has failed to spend two percent of the average net profit as per section 135(5) – Not Applicable.

Not Applicable

Not Applicable

Amount of CSR spent for creation or acquisition of capital asset(b)

Not Applicable

Date of creation or acquisition of the capital asset(s)(a)

10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR spent in the financial year
(Asset-wise details):

Annexures contd.

Annual Report 2022 | 249

ANNEXURE - C: FORM AOC-I[Pursuant to first Proviso to sub-section (3) of Section 129 read with Rule 5 of Companies (Accounts) Rules, 2014]
Statement containing salient features of the financial statement of subsidiaries / associate companies / joint ventures
Part “A”: Subsidiary(Amount in Rupees million)
1.

Name of the Subsidiary

Maltex Malsters Limited

2.

Reporting period for the subsidiary concerned, if different
from the holding company’s reporting period

Not Applicable

3.

Reporting currency and Exchange rate as on the lastdate of the relevant Financial Year in the case of foreignsubsidiaries

Not Applicable

4.

Share capital

4.50

5.

Reserves & Surplus

79.96

6.

Total Assets

102.26

7.

Total Liabilities

102.26

8.

Investments

9.

TurnoverNIL
131.61

10. Profit before taxation

17.48

11. Provision for taxation

4.78

12. Profit after taxation

12.69

13. Proposed Dividend

4.50

14. % of Shareholding51%

1. Names of subsidiary which are yet to commence operations
2. Name of subsidiary which have been liquidated or sold during the year

250 | United Breweries Limited::

Not Applicable.
Not Applicable.

Part ‘B”: Associate(Amount in Rupees million)
Name of Associate

Kingfisher East Bengal Football Team Private Limited

1.

Latest Audited Balance Sheet Date

March 31, 2022

2.

Shares of Associate held by Company on the year end

Associate

Number4,999 Equity Shares

Amount of Investment in Associate

0.049

Extend of Holding (%)

49.99%

3.

Description of how there is significant influence

By virtue of Investment in excess of 20% of voting
rights.

4.

Reason why the Associate is not consolidated

The Company’s interest in the Associate has not been
included in the consolidated financial statements as thesame has not been considered as material.

5.

Net-worth attributable to Shareholding as per latest
audited Balance Sheet

4.65

6.

Share capital

0.1

7.

Reserves & Surplus

8.02

8.

Total Assets

20.38

9.

Total Liabilities

20.38

10. Investments

NIL

11. Turnover

0.005

12. Profit before taxation(0.19)

13. Provision for taxation

0.01

14. Profit after taxation(0.18)

15. Proposed Dividend

NIL

1. Names of Associates or Joint Ventures which are yet to commence operations: Not Applicable.
2. Name of Associates or Joint Ventures which have been liquidated or sold during the year : Not Applicable.
For and on behalf of the Board of Directors ofUnited Breweries Limited

April 26, 2022
Bengaluru

Govind Iyengar
Senior Vice President – Legal& Company Secretary

Berend Odink
Director & CFO
DIN: 09138421

Rishi Pardal
Managing Director
DIN: 02470061

Annual Report 2022 | 251

ANNEXURE - D: STATEMENT UNDER SECTION 134(3)(m) OF
THE COMPANIES ACT, 2013 READ WITH THE COMPANIES (ACCOUNTS) RULES, 2014
(A) Conservation of energy
Electrical Energy:• Taloja (Bombay) Brewery: In bottle washer machine, improvement in the running cycle of pre-rinser pump, soaktank 1, soak tank 2 (2 nos) and soak tank 3 (2 nos.) from continuous running, when needed through Variable
Frequency Drive (VFD) & Interlock installation resulting in saving of 400Kwh per day.
• Goa Brewery: Reduction in power consumption at boiler through air flow regulation through VFD control bymaintaining the required draft resulted in 115 Kwh per day.
• Shahjahanpur (Aravalli) Brewery: Systematic Kaizen approach for power reduction at Air Compressor machineduring production day and non-production day through leakage arresting, air regulator provision and arresting
the losses through restoring basic condition in generation & distribution of compressed air has resulted in saving
0.3 Kwh/ Hl (130 Kwh per day)• Odisha (Khurda) Brewery: Old Glycol supply pump 75 Kw replaced with high efficiency pump 55 Kw, resulted
250 Kwh savings per day. In KC-6 ammonia compressor, soft starter replaced with VFD, resulted 180 Kwh saving
per day; Cooling tower fan automation completed with discharge pressure instead of water temp, resulted
40 Kwh saving per day.
Thermal Energy:• Kerala (Palakkad) Brewery: Steam consumption reduction at pasteuriser machine through recovery of flash steam
from Bottle washer & Vapour Absorption Machine (VAM) and using it in pasteuriser hot water tank resulting insaving of 1.7 Tons of steam per day.
• Karnataka (Chamundi) Brewery: Steam consumption reduction in wort kettle through improvement in
Clean-in-Place (CIP) standards for tube cleaning and plate cleaning for vapour condenser and Preheating Plate
Heat Exchanger (PHE) and preventive maintenance schedule implementation resulting in 3.0 Tons per day inprocess area.
Co2 Reduction:• Taloja (Bombay) Brewery: Reduction in waste heat through innovative approach at Co2 vaporiser has resulted insaving of 360 Kwh of power per day and Co2 consumption saving of 500 Kg per day. This improvement casestudy won Platinum Level award in CIIs 40th National level Kaizen Competition under innovative Kaizen Category.
Water Conservation:• Shahjahanpur (Aravalli) Brewery: Reduction in water consumption in Water Treatment Plant (WTP) plant Reverse
Osmosis (RO) reject area through efficiency improvement of Ultra Filtration and 2nd RO by implementing effective
CIP schedules.
• Kerala (Palakkad) Brewery: Tertiary Reverse Osmosis (TRO) water consumption reduction in bottle washer throughVFD & pressure transmitter closed loop installation at TRO water transfer pump has resulted in 50 Kl per day.
• Rajasthan (Chopanki) Brewery: New water project installation has been completed and validation is underprogress. The accrued savings on account of energy conservation, reduction in water consumption and Co2
reduction is Rs.22 Million.
(B) Technology absorption
Research & Development• The Company has continued its Research & Development program in development of two row malting variety ofBarley.
• The Company has engaged in Research & Development program on Water project for achieving Zero Liquid
discharge.
Expenditure on Research & Development• During FY22 UBL spent Rs.260 Million on Research & Development for innovative project “Water project”.
(C) Foreign Exchange Earnings and Outgo
Foreign Exchange earned
Foreign Exchange used
252 | United Breweries Limited(Amount in Rupees million)
1,684
1,117

ANNEXURE - E: FORM NO. MR-3
SECRETARIAL AUDIT REPORTFOR THE FINANCIAL YEAR ENDED MARCH 31, 2022
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of
the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To,
The Members,
United Breweries Limited, Bangalore
I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good
corporate practices by UNITED BREWERIES LIMITED (CIN: L36999KA1999PLC025195) (hereinafter called the Company).
Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts/
statutory compliances and expressing my opinion thereon.
Based on my verification of the Company‘s books, minute books, forms and returns filed and other records maintainedby the company and also the information provided by the Company, its officers, agents and authorized representatives
during the conduct of secretarial audit, I hereby report that in my opinion, the Company has, during the audit period
covering the financial year ended on March 31, 2022, complied with the statutory provisions listed hereunder and alsothat the Company has proper Board processes and compliance-mechanism in place to the extent, in the manner andsubject to the reporting made hereinafter.
I have examined the books, papers, minute books, forms, and returns filed and other records maintained by United
Breweries Limited (“the Company”) for the financial year ended on March 31, 2022 according to the provisions of:i.

The Companies Act, 2013 (the Act) and the rules made thereunder;ii.

The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;iii.

The Depositories Act, 1996 and the Regulations and Bye-Laws framed thereunder;iv.

Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign
Direct Investment, Overseas Direct Investment and External Commercial Borrowings;

v.

The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992(‘SEBI’):(a) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015;(b) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;(c) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;(d) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (Noinstances for compliance requirements during the year);(e) The Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021;(No instances for compliance requirements during the year);(f) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008; (No instances
for compliance requirements during the year);(g) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993
regarding the Companies Act and dealing with client;(h) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021, (No instances forcompliance requirements during the year);(i) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018 (No instances for compliancerequirements during the year); and(j) Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018vi.

Various State Excise Laws to the extent applicable to brewing / alcohol industry;
Annual Report 2022 | 253

vii. Legal Metrology Act, 2009 and Rules thereunder;
viii. Food Safety and Standards Act, 2006 and applicable Rules and Regulations made thereunder;ix.

All other Labour, Employee and Industrial or factory and environmental Laws to the extent of necessary permissions,licenses, compliance mechanisms, controls and any violations noted by the respective authorities as applicable to theCompany;

I have also examined compliance with the applicable clauses of the Secretarial Standards issued by The Institute ofCompany Secretaries of India.
During the period under review the Company has generally complied with the provisions of the Act, Rules, Regulations,
Guidelines, Standards, etc. mentioned above wherever applicable.
As reported in the previous years with respect to the enquiry of Directorate-General, Competition Commission of India(CCI), the CCI had passed an Order on September 24, 2021 levying a penalty of Rs.75,183 Lakhs for the contravention ofprovisions of Section 3 of the Competition Act, 2002. The Company has filed an appeal against the aforesaid CCI Order
before the National Company Law Appellate Tribunal (‘NCLAT’). The NCLAT vide its order dated December 22, 2021
granted a stay of the CCI Order subject to payment of deposit of 10% of penalty amount during the pendency of theappeal and the Company has deposited the said amount by way of Fixed Deposit Receipt (FDR).
I further report that
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive
Directors, and Independent Directors. The changes in the composition of the Board of Directors that took place during theperiod under review were carried out in compliance with provisions of the Act.
Adequate notices were given to all Directors to schedule the Board meetings, agenda and detailed note on agenda weresent at least seven days in advance and with necessary compliance wherever sent at shorter period and a system exists forseeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful
participation at the meeting.
All decisions are carried through majority and recorded in the minutes and there were no dissenting views.
I further report that there are adequate systems and processes in the company commensurate with size and operations of
the company to monitor and ensure compliance with applicable laws, rules, regulations, and guidelines.
I further report that during the audit period there were no specific actions having major bearing on the Company’s affairs
in pursuance of the above referred laws, rules, regulations, guidelines, standards, etc. referred to above.

Place: Bangalore
Date: 26.04.2022

254 | United Breweries Limited

SUDHIR VISHNUPANT HULYALKAR
Company Secretary in Practice
FCS No.: 6040 and C P No.: 6137
Peer Review Certificate No. 607/2019
UDIN: F006040D000210233

ANNEXURE TO SECRETARIAL AUDIT REPORT
To,
United Breweries Limited,
Bangalore
Our report of even date is to be read along with this letter.
1. Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is toexpress an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about thecorrectness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts
are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis
for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.
4. Wherever required, we have obtained the Management representation about the compliance of laws, rules andregulations and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibilityof management. Our examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy oreffectiveness with which the management has conducted the affairs of the Company.

Place: Bangalore
Date: 26.04.2022

SUDHIR VISHNUPANT HULYALKAR
Company Secretary in Practice
FCS No.: 6040 and C P No.: 6137
Peer Review Certificate No. 607/2019
UDIN: F006040D000210233

Annual Report 2022 | 255

ANNEXURE - F: ADDITIONAL INFORMATION ON CORPORATE GOVERNANCE REPORTOwn Manufacturing Network

ANDHRA PRADESH – SRIKAKULAMTAMIL NADU – KUTHAMBAKKAM & ARANVOYALTELANGANA – MALLEPALLY & KOTHLAPURPUNJAB – LUDHIANAGOA – PONDA

WEST BENGAL – KALYANIKERALA - CHERTHALA* & PALAKKAD

RAJASTHAN – CHOPANKI & SHAHJAHANPUR

KARNATAKA – MANGALORE, NELMANGALA & MYSORE MAHARASHTRA – TALOJA & AURANGABAD (2) UNITSODISHA – KHURDA

BIHAR – NAUBATPUR *HARYANA – DHARUHERA* Not in Operation.
Contract Manufacturing Network

UTTAR PRADESH – ALIGARH

ASSAM – GUWAHATIDAMAN AND DIU – DAMANSIKKIM – GANGTOKMADHYA PRADESH – INDOREMEGHALAYA – SHILLONG (BYRNIHAT)JAMMU AND KASHMIR – SAMBAJHARKHAND – RANCHIARUNACHAL PRADESH – NAMSAIREGISTERED OFFICE:“UB TOWER”, UB CITY, No. 24, VITTAL MALLYA ROAD, BENGALURU - 560 001.
Phone: (91-80) 45655000, Fax No. (91-80) 22211964, 22229488
Email: ublinvestor@ubmail.com, Website: www.unitedbreweries.com
CIN: L36999KA1999PLC025195, Cable: UBEEGEE
Discretionary Requirementsa) The Board:
The Chairman/Chairperson of the Board is entitled to maintain his / her office at the Company’s expense and also
allowed reimbursement of expenses incurred in performance of his / her duties. Currently there is no permanent
Chairperson on the Board.
b) Shareholder Rights:
The Company’s half yearly results are published in English and Kannada Newspapers having wide circulation and arealso displayed on the Company’s website. Press releases are also issued which are carried by a few newspapers andalso displayed on the Company’s website. Hence, same are not sent to the shareholders.
c) Modified opinion in audit report:
There is no modified opinion in the Auditor’s Report.
d) Separate posts of Chairperson and CEO:The position of Chairperson and Managing Director are held by separate individuals.
e) Reporting of Internal Auditor:
The Internal Auditor reports to the Audit Committee Chairman on matters arising out of audit and makes presentation
to the Audit Committee on a quarterly basis.

256 | United Breweries Limited

Compliance with Code of Business Conduct and Ethics
In accordance with Regulation 17(5)(a) of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015,
it is hereby confirmed that during the year 2021-2022, all the members of the Board of Directors and Senior
Managerial personnel have affirmed their Compliance with the Company’s Code of Business Conduct and Ethics.
Rishi Pardal
Managing Director
DIN: 02470061

Place: Bengaluru
Date: April 26, 2022
CORPORATE GOVERNANCE COMPLIANCE CERTIFICATE
To,
Members of United Breweries Limited

We have examined the compliance of conditions of Corporate Governance by United Breweries Limited (“theCompany”), for the purpose of certifying of the Corporate Governance under Regulation 17 to 27, clauses (b) to (i) ofRegulation 46(2) and paragraphs C, D and E of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 from the period April 01, 2021, to March 31, 2022. We have obtained all the information andexplanations which to the best of our knowledge and belief were necessary for the purposes of certification.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was
limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance with theconditions of Corporate Governance. It is neither an audit nor an expression of opinion on the Financial Statements of
the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that theCompany has complied with the conditions of Corporate Governance as stipulated in Regulations 17 to 27, clauses(b) to (i) of sub-regulation (2) of Regulation 46 and paragraphs C, D and E of Schedule V of the Listing Regulations, asapplicable of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
We draw attention of Members to the following:
The Competition Commission of India (“CCI”) on September 24, 2021, had imposed a penalty of Rs.751.83 Crores forcontravention of provisions of Section 3 of the Competition Act, 2002. The Company had filed an appeal before the
National Company Law Appellate Tribunal (“NCLAT”) and the NCLAT vide its order dated December 22, 2021, granted
a stay, subject to a deposit of 10% of the penalty amount. On December 24, 2021, the Company deposited the said
amount by way of Fixed Deposit Receipt (FDR).
We further state that such compliance is neither an assurance as to the future viability of the Company nor of theefficiency or effectiveness with which the management has conducted the affairs of the Company.
For BMP & Co. LLP
Company Secretaries

Date: April 26, 2022
Place: Bangalore

Pramod SMPartner
FCS: 7834 / CP No. 13784
UDIN: F007834D000211169
Peer Review Certificate Number: 736/2020

Annual Report 2022 | 257

[This space has been intentionally left blank]Towards the
Towardsgood!
thegreatergreater good!
ESG Report
2020-22
ESG Report
2020-22

Annual Report 2022 | 259

Annual Report 2022 | 259

Content
1
2

Leadership speaks		
Report Overview

262
267

2.1 Report Boundary
2.2 Report Content
2.3 Report Data
2.4 Report Communication
2.5 Key exclusions
2.6 Towards greater good !

267
267
268
268
269
269

Report in a nutshell
Brewing good times

270
272

4.1 Our Values and Mission
4.2 Jewels of our crown
4.3 Leading by example

274
274
276

3
4

5

Corporate governance at UBL

278

5.1 Our philosophy of governance
5.2 Governance structure
5.3 Board of directors
5.4 Legal compliance monitoring system
5.5 Data security and privacy

278
279
280
291
292

6
7
8
9
10

ESG value realization
Stakeholder engagement
Materiality assessment
ESG strategic vision
Our commitment towards a healthier planet

10.1 Supply chain sustainability
10.2 Responsible material consumption
10.3 Water stewardship10.4 Waste management
10.5 Energy management

260 | United Breweries Limited

294
296
298
301
304
304
309
313
319
322

10.6 Biodiversity
10.7 Climate resilient operations

326
327

11

330

People Engagement

11.1 Employee health and safety
11.2 Workforce management
11.3 Skill development at UBL
11.4 Human rights
11.5 Diversity and Inclusion
11.6 Prevention of sexual harassment at workplace

331
333
336
338
339
340

12

Product responsibility341

12.1 Product quality and safety
12.2 Product labelling12.3 Consumer Health and Safety

342
342
344

13
14

346
347

Product Innovation
Relationship with communities

14.1 UBL’s Approach
14.2 UBL’s Action and Future Plan
14.3 The importance of our local communities
14.4 CSR Policy and framework
14.5 CSR goal
14.6 CSR Focus areas and initiatives undertaken with
UBL’s Partners
14.7 Impact and need assessment of the activities

350
355

15

357

Economic performance

347
347
347
350
350

15.1 Financial growth15.2 Outlook for growth

359
359

16
17

360
368

Disclosure mapping table
Abbreviations

Annual Report 2022 | 261

1.0
Leadership speaks
Message from the Managing Director
Dear Reader,
Building resilience for our business, our people, and our community
throughout the pandemic while ensuring that we rise above the storm
has been my primary focus. My vision to stand strong and provide
care and support to our employees, our suppliers, our customers, andour community, is aligned with UBL’s mission to ensure holistic growthand development not just as a market leader but also as a preferred
employer and a preferred partner for customers and suppliers.
As a business and for the entire industry, 2020 has been an extremely
challenging period across the globe, affecting our consumers andcommunities as well. UBL has sustained a steady business through thetoughest times of the global pandemic, backed by our years of successand strong hold in the market.
Our heritage takes me back to 1915 when UBL began its journey ofbrewing with merely 5 breweries in South India. Arriving to the present,
the company has showcased immense growth across all spheres
comprising our business, our community development initiatives,
employee wellness and development and our customer involvement
and satisfaction. UBL has tasted success even during the toughest
times, while ensuring that our support extends beyond the walls ofour breweries and towards our employees, their families, and families
across all states where we operate. Our very strength lies in thespirit of our team, our managers, our employees, and our suppliers,
and all other stakeholder groups who have gone above and beyond
their duties to ensure appropriate sensitivity, care, and sanitation
throughout the pandemic.
We introduced multiple initiatives undertaken by Kingfisher to engage
consumers to socialize responsibly and aligned our logo with thestay home, stay safe message. Our management team and UBL has
always continued to prioritize health and safety of our people and ourcommunities, while also managing our costs and cash flow. As one of
the leading producers in the alcohol beverage industry, we are majorly
committed to working towards environmental sustainability along witha generous economic growth for our business and extensive social
outreach to ensure community development and growth. Recently
we have identified and promoted responsible consumption of our
products through various initiatives and campaigns.
At UBL, we are constantly striving to ensure that maximum complianceis followed in terms of our governance, environment, and economic
strategies. Since our product is mainly based on raw materials

262 | United Breweries Limited

Rishi Pardal

Managing Director

sourced from nature, we have undertaken significant and efficientmeasures towards stewardship of natural resource management. Ourcommunity involvement and impact projects are directed towards
empowering our local communities to strive for a healthier and safer
planet for all.
We have successfully designed our sustainability strategy with thehelp of our internal and external experts that have been guiding
us since the beginning of our sustainability journey. Our strategy
comprises of short term, mid-term and long-term goals and realistic
targets that are aligned and ingrained into our business agenda
to accomplish sustainable business growth while working towards
creating a healthier planet for generations to come. We shall always
strive to enhance our strategies and commitments towards being a
responsible business while we continue to transparently share oursustainability performance and goals moving forward. It is of utmost
importance for UBL to maintain an honest accountability towards ourcommunities, stakeholders, and shareholders.
I take this opportunity to extend my gratitude towards the persistent
hard work and dedication of all our employees and associates towards
achieving sustainability as a responsible business. As we continue togrow in our business, we are also working towards enhancing andupskilling our employees while ensuring utmost health and safety
across all our business operations, protecting our employees’ rights,
and uplifting their learning and talent curve. Our continual support fromvarious associations and organizations in addition to our employees’
efforts shall ensure our roaring success in creating a benchmark inthe sustainability field. We persevere to overcome risks and challenges
lying ahead of us, as we continue to work devotedly towards a moresustainable world for our business and our people.

Regards,
Rishi Pardal

GRI 102-14 Statement from senior decision- maker’

Annual Report 2022 | 263

Message from the Chief Supply Chain Officer
Dear Reader,In these unprecedented times of the pandemic, UBL has relied on our
entire supply chain expertise and support to ensure that our businessflourishes despite the prevailing tough times. As a team we haveworked through the problems and tackled them with endurance andresilience to make sure we deliver consistent quality and a smooth
experience to our consumers as we have for several decades.
Working in times of the pandemic has been the biggest adversity faced
by UBL during our reporting period. Despite these circumstances, due
to our cost saving initiatives and compliance to safety norms as well as
our core business principles, at all our breweries, we have managed
to maintain profitability while keeping the manufacturing expenses
under control. Also, we have managed to continue growing withcapacity expansion at some of our breweries, which has helped avert
any gaps in supply and demands.
The transparency in our processes with regards to all our vendors,
stakeholders, consumers, etc. has helped develop an ecosystem of trustand sustainability on which the growth of our brand and our associates
has been consistent and impervious by uncertain circumstances, likethe ongoing pandemic and lockdowns. We have initiated business
operations that are in line with our vision of sustainability, to ensurethat our supply chain is strengthened to commit to our sustainability
agenda. Strengthening our supply chain to maintain quality across allfunctions and processes has been fruitful in maintaining and upholding
our consistency in the market and in our product manufacturing.
Our supply chain acts as the backbone of our entire team, and we always
look forward to innovating, experimenting, and stretching beyond ourbasic requirements as a business, to create a better brewing experience
across our entire supply chain. This in turn ensures that our brand,
our people, and our entire business are aligned toward our vision andgoal to achieve a successful and healthy business that strives to create
excellent brews for our valued consumers. We look forward to building
our supply chain operations towards greater heights to incorporate
sustainability across all facets in the years to come.
Regards,
Shalabh Seth264 | United Breweries Limited

Shalabh SethChief Supply Chain Officer

Annual Report 2022 | 265

266 | United Breweries Limited

2.0
Report Overview
United Breweries Limited (UBL)1 has been brewing exceptional quality beer since1915. We have been one of the largest beer brewing companies in India2. With our
registered office and headquarters at UB Tower UB City 24 Vittal Mallya Road Bengaluru
560001, Karnataka India3, the company operates through 20 owned manufacturing
units and 10 contract manufacturing units. With this ESG report, we intend to explore
sustainability as a business imperative for our onward journey and thereby growth,in the years to come. Being primarily dependent on natural resources for developing
our product line, sustainability is ingrained in all our activities and decision-making,throughout our value chain.
The reporting years are FY2020-21 and FY2021-22 , while FY2020-21 will be consideredas the baseline year for all our subsequent ESG reporting and disclosures; and thedata in this report will serve as a reference point for the respective sustainability
initiatives across the spectrum of environment, social and governance relatedparameters, in the upcoming years.

2.1 Report Boundary
In this ESG report, we have covered 20 of our operational facilities spread acrossvarious states of the Country. Our reporting boundaries are inclusive of our
subsidiary, mainly Maltex Maltsters Limited. Subsidiaries of the group that do notpossess the right to exercise management control are excluded from the reporting
boundary.

2.2 Report Content
This report has been published as per:1. GRI Standard ’in accordance – core’ criteria4, and
2. Alcoholic Beverages Sustainability Accounting Standard (2018) disclosures of
Sustainability Accounting Standards Board (SASB),
thus, providing a comprehensive outlook on a diverse set of ESG based topics, toour stakeholders. The report has been prepared by applying the reporting principles
of materiality, stakeholder inclusiveness, sustainability context and completenesswhile ensuring accuracy, clarity, comparability, reliability and due timeliness in ourreporting and data presented during the reporting period5.
The report throws light on significant topics for our business and the society weoperate in. We have included our materiality assessment conducted during the year
1
2
3
4
5

GRI 102-1 Name of the organization, GRI 102-5 Ownership and legal form
GRI 102-2 Activities, brands, products, and services
GRI 102-3 Location of headquarters
GRI 102-54 Claims of reporting in accordance with the GRI Standards
GRI 102-46 Defining report content and topic boundaries

Annual Report 2022 | 267

2021 and 2022 as part of our reporting endeavors, along with our ESG Roadmap
2030. Our various initiatives towards promoting and practicing sustainability havealso been covered throughout the report. Our materiality matrix has helped us
in identifying key ESG topics material to our business from the perspective of ourmanagement as well as the expectations of our key stakeholders. The materiality
matrix has further guided us in prioritizing our intervention areas and formulating
strategies, targets, and action plans to address our key material issues to bolster
our Environmental, Social, and Governance (ESG) commitments and performances.
Disclosure on our key material topics is in alignment with the recommendations of
GRI standards, while the topics have been categorized as low, medium, high andvery high. One can refer to the disclosure mapping table6 for a complete listing of
GRI and SASB disclosures included in this report.

2.3 Report Data
The report covers our sustainability-based initiatives for the period FY2020-21 andFY2021-22 respectivelyas the ‘reporting period’7. Our most recent sustainability report

was circulated internally in 2017-18, post which we also published a Corporate
Responsibility Report for the year 2019-208. We aspire to report on our sustainability
initiatives annually9, to ensure regular communication of our sustainability
performance against the set objectives and targets, to all our relevant stakeholders.
The materiality matrix has undergone a significant change since the last report,
owing to the inclusion of new priority material topics deemed to exert a significant
impact, on our operations and overall business10.
Forward Looking Statement
The report includes forward-looking statements based on certain assumptions andmanagement plans. In the report, these statements have been identified by words
such as ‘intend’, ‘anticipate’, ‘believe’, ‘expect’, ‘project’, ‘plan’, etc., as far as possible.
Should they materialize, the achievement of the projections is subject to risks anduncertainties.

2.4 Report Communication
We intend to communicate our sustainability performance periodically through our
ESG Report. Your inputs, comments and suggestions would help us to improve ourcommunication on sustainability.
For any query or suggestion, please contact11 at feedback@ubmail.com or
corporateaffairs@ubmail.com to send in your inputs to us.

2.5 Key exclusions
This report is prepared based on the requirements of ‘GRI- In accordance - Core’standards. Reporting is done basis the mandatory requirements only. All ‘voluntary’
reporting requirements has been kept out of the reporting scope.
6 GRI 102-55 GRI content index
7 GRI 102-50 Reporting period
8 GRI 102-51 Date of most recent report
9 GRI 102-52 Reporting cycle
10 GRI 102-49 Changes in reporting

268 | United Breweries Limited

2.6 Towards greater good !
As the largest brewing company in the country, we at UBL feel accountable andresponsible towards our people and our planet. We aspire to create positive
impacts across our supply chain and beyond by aligning our strategies to valuesof passion, courage, concern, and enjoyment. Our vision of excellence aims at
streamlining our business aspirations with the ethos of sustainability. We intend
to nurture a company-wide culture of adopting sustainability from the grassroots
to the top, by delivering best in class quality of products, giving due consideration
to consumer preferences, leading trends in consumption, encouraging innovationand promoting cultural and social inclusiveness.

We believe in leading by example to endorse our legacy of premium products while
operating our breweries in an energy efficient and water responsible way. We seize
the opportunities that competition in the market has to offer and we believe incontinuous upgradation of our offerings and processes. We are further committed
to promote diversity and inclusion across our operations by creating an equitableworkplace for all. We wish to adopt a culture of togetherness in our value chain bydriving communication and unity. We shall continue to prioritize the foundation of
the business – our people, by enabling growth and development through capacity
building for enhanced performance.
Smart utilization of our resources while ensuring holistic sustenance for all, hasbeen our mantra during the reporting year. We aspire to expand our geographic
presence, promote social aspects with focus on empowering our people andtheir capabilities across locations, and harnessing our resources from within, tobuild upon our sustainable ventures. Such actions will drive the sustainable andcomprehensive growth of our business, our people, and the planet – the greater good!

Annual Report 2022 | 269

3.0
Report In A Nutshell
Financial Year FY2020-21 and FY2021-22

FY2020-21

20

FY2021-22

Breweries

FY2020-21

2934/ 5972

FY2021-22

Manpower(Permanent/ Contract) in Nos

FY2020-21

50.5%

Market Share
In %

54.0%

FY2021-22

CSR Budget
In Mio INR

270 | United Breweries Limited

2837/ 8339

FY2021-22

FY2020-21

138.3

20

108.6

Fresh Water
Consumption - hl/hl

Water Stress Areas
Consumption - hl/hl

Total Renewable
EnergyIn %RE - ElectricalIn %RE - Thermal
In %Accident Frequency
Rate - Mio Manhours

Safety Training
Mandays

FY2020-21

FY2021-22

3.61

3.44

3.7

3.5

78.7

80.8

30

32.4

96

96

0.045

0.143

5.78

6.34
Annual Report 2022 | 271

4.0
Brewing good times1
The company bought by the late Mr. Vittal Mallya in 1947 – United Breweries Limited,is a market leader in India both in terms of market share and revenue. We have aleading market share of 54% in the Indian beer market, whereas beer contributes
to 12% of the overall alcoholic beverage market. Our beers are available in two
premium brand categories ‘Kingfisher’ strong and Lager having six variety of beers
Our product line makes us a truly national company2.
We have delivered to the consumers & our market share has moved up from 50.5%
in FY20-21 to 54% in FY21-22. We have 28 beer brands in our portfolio ranging fromlight to strong beers to cater to a variety of tastes of our consumers. Our portfolioof beers is diversified with craft beers, quartz, pints, and kegs. We operate India’s
largest brewery at Sangareddy, Telangana, having a daily production rate of 360,000
liters of beers. UBL has its headquarters at UB City in Bengaluru, Karnataka, India,
and has successfully spread its wave of good times across the country and beyond.
Our local operations are spread across the country, in the states of Punjab, Haryana,
Rajasthan, Bihar, West Bengal, Odisha, Andhra Pradesh, Telangana, Maharashtra,
Goa, Karnataka, Tamil Nadu, and Kerala. Our global presence is felt through our UB
Exports, with a manufacturing and supply license arrangement in UK (with supplies
to the European market), Australia, New Zealand, Singapore and Nepal3. Total Fleet
distance covered for transfer of Finished Goods from Breweries to Govt. Depots byour breweries in FY2020-2021 is 232 Lacs Kms while for FY 2021-2022 it was 259
lacs km4. We have a large consumer base across various sections of the society, andwe strive to ensure that our products are sold with care and compliance.
We will also align our sustainability initiatives and targets in line with Heineken’s
EverGreen strategy to seize newer prospects and build resilience while achieving
goals along our sustainability journey. With Heineken’s long-standing legacy inproviding experiential customer delight and UBL’s strong foothold in India, we lookforward to an energized future towards sustainable growth of our business and ourpeople.

1 GRI 102-7 Scale of the organization
2 GRI 102-2 Activities, brands, products, and services
3 GRI 102-4 Location of operations, GRI 102-6 Markets served
4 SASB - FB-AB-000.C

272 | United Breweries Limited

= Own manufacturing units

Ludhiana

Dharuhera
Shahjahanpur
ChopankiNalandaKalyani
AjantaElloraOdishaNizam

Mumbai
Golconda

Srikakulam

Nelamangala
Goa

Chennai

Mangalore
EMPEE -Chennai
Chamundi

PalakkadFigure 1: Our presence across India

Our production is supported by 2837 permanent employees (out of which 148 are women) and 8339
temporary / contractual employees for FY2021-221. UBL serves its consumers with quality alcoholicand non-alcoholic products out of its 20 own production plants operational in India2. This vast networkof plants has helped us create a robust distribution network with agility to provide quick response to
any dynamic market demand.
1 GRI 102-8 Information on employees and other workers
2 SASB FB-AB-000.B Number of production facilities

Annual Report 2022 | 273

Scale of ourorganization1

UoM

FY2020-21

FY2021-22

Net Sales

Mio INR

42,40758319

EquityMio INR

35,796

39339

Debt

Mio INR

2,500

0

Total brands

Nos.

28

28

Market Share

%

50.52

54.0

1 GRI 102-7 Scale of the organization
2 SASB FB-AB-000.A – Total volume of product sold

4.1 Our Values and Mission1
UBL aspires to be a pioneer in the Indian beer market and deliver top-quality
performance through excellence in product and brand portfolio, capabilities, andpolicies.
Our values:• Passion for achievement, success and winning• Freedom to operate and learn from our mistakes• Treating people with respect and fairness• Respecting the environment• Integrity in all things and at all times

4.2 Jewels of our crown
We have stood as a market leader through our exceptional beer production
practices, with several varieties of Kingfisher, brands and brews created to cater tothe regional palate and premium export brands. With a wide range in the brews,
we have managed to capture a larger audience at a global as well as a regional
level for maximum market share coverage. We take pride in the fact that ourlargest selling beer brand - Kingfisher, has a market share of circa 50% in India, withevery alternate bottle of beer sold in India being a Kingfisher brand. Our market
presence is spread across the globe, with our success in maintaining and increasing
market shares through effectual marketing strategies. We have 20 main brands
and 4 imported brands under the alcoholic segmen, and 4 brands in non-alcoholic
beverages. The brands manufactured and marketed by United Breweries Ltd. havebeen synonymous with impeccable quality on an international scale. Out of ourvast product portfolio, certain brands like UB Bullet, Flying Horse Royal, Kalyani
Black Super Strong, Kingfisher Extra Strong, Kingfisher Premium, Kingfisher Ultra,
Maharaja Premium Indian Pilsner, Taj Mahal Premium, UB Export Premium andKingfisher Blue constitute our products that are exported globally.
1 GRI 102-16 Values, principles, standards, and norms of behavior

274 | United Breweries Limited

Launched in 1978, Kingfisher Premium is one of the first brands launched in themild beer category under the Kingfisher umbrella. A young, contemporary, and funbrand, Kingfisher constantly reinvents itself to engage with its consumers in exciting
ways. The brand is associated with some of the best music, style, food and sporting
events, and lives up to its promise of ‘The King of Good Times’.

Some of the Brand details under the UBL canopy are as follows:

1

2

3

4

5

Kingfisher Premium:The brand has been known as the king of good times since its launch in 1978.
Kingfisher keeps reinventing itself to keep up with contemporary trends while
engaging consumers. It has been associated with numerous food and music
festivals, sports and fashion events across the globe. Available in bottles (650ml), pints (330ml), and regular cans (500ml).

Kingfisher Strong:This brand was launched in 1999 to tap into the demand for strong beer inthe country. Sales have always skyrocketed since its launch and it still stands
among top 3 strong beer brands across almost every state in the country.
Available in bottles (650 ml), pints (330 ml), and regular cans (500ml)

Kingfisher Ultra:

The first-ever premium beer brand launched in 2009. Most loved for its uniquetaste and the ‘Ultra experience’, the brand has grown rapidly in its segment
across the country. Available in bottles (650 ml), pints (330 ml), and regularcans (500ml).

Kingfisher Ultra Max:

Synonymous with ‘Maximum Taste. Maximum Life’ - stands for our current
mantra of living life to the max. Launched in 2015 and crafted by using thefinest Pilsen malt, the brand offers a soothing after taste along with a fragrantaroma. Available in bottles (650 ml), pints (330ml), and regular cans (500ml).

Heineken:

One of the most trusted international brands on a global scale since 1873.
Blended to be the most iconic beer brand in the world, it offers a consistenttaste with a rich, satisfying flavor and a hint of fruitiness.

The Heineken brands have successfully amplified our market presence throughtheir striking brands with a global esteem. This has placed UBL as a top priority for
consumers and customers as we have instilled confidence and trust in our productquality and safety.

Annual Report 2022 | 275

Our non-alcoholic beverages

1

Kingfisher Radler is a 0% alcohol brewed beer mixed with real Lemonjuice and natural ingredients to give you the ultimate refreshing experience.
Make no mistake, carbonated drinks are delicious but most of them areloaded with chemicals. So we made a better one! Kingfisher Radler combines
the goodness of barley malt and the freshness of real fruit juice to give you
a mouth-watering refresher which will leave you craving for more. So, Stock,
Pop and Hit Refresh! Kingfisher Radler 300 ml can is available in Lemon, Mint,
Strawberry Cranberry and Black Currant Flavors Lemon.

2

Heineken 0.0 is twice brewed and fermented with Heineken’s uniqueA-yeast from natural ingredients with gentle alcohol removal and blending
to achieve a fruity flavour and slight malty notes. It is available in 330 ml canand bottle.

We wish to foster a spirit of good times for all our patrons through our wide range ofalcoholic and non-alcoholic brews to make sure there’s a brew to cater to a variety
of preferences. With beer emerging as a preferred alcoholic beverage among theyouth of today, our decision to widen our geographic footprint with ‘Kingfisher
Radler brands, Kingfisher Ultra Non-Alcoholic, Amstel Malt Classic, Ultra Witbier,and Heineken 0.0 has set our business growth towards higher prospects. We areconsistently exploring avenues to increase the Sale of non-alcoholic products in
India, to further realize our aspiration of encouraging responsible consumption.
We ensure that our production practices are in line with adequate and only
necessary utilization of our primary raw material - water. Employing the best inindustry practices and leveraging state of the art technology together with oursincere passion to brew, has placed our brands among the most preferred andconsumed, across the globe.

4.3 Leading by example
UBL has always believed in upholding steady relationships through collaborations
with industry associations and bodies. Engagements through such industry
organizations enables a comprehensive redressal of several issues faced by thesector. UBL has maintained an enduring connection with the Confederation ofIndian Industry (CII) and the All-India Brewers’ Association (AIBA), where leadersfrom UBL have been a part of governance bodies in these associations1. Throughthese time immemorial and fruitful connections, we have worked upon andpromoted awareness highlighting issues faced by the alcohol beverage industry
mainly on topics of responsible consumption and responsible product marketing2

1 GRI 102-12 External initiatives
2 GRI 102-13 Membership of associations

276 | United Breweries Limited

Awards &recognition

CII EHS
ExcellenceAwardsBrewery at Nanjangud, Mysore won “20th Annual Greentech
Environment Award 2020” for Energy Efficiency.
Brewery at Palakkad received “Safety” award 2020 from
Kerala State Department of Factories & Boilers, under Large
Factories – Food and Food Product Category

Brewery at Sangareddy, Telangana received “EHS 3-starrating” award for 2020 and received supplement award forBest Hygiene at Workplace Initiatives
Brewery at Palakkad recognized with EHS sectoral award
under Manufacturing - Food Process Category and “EHS 5-starrating (top rating)” award from CII

Brewery at Ellora, Aurangabad was awarded at Kaizen
Competition organized by Quality Circle forum of India

Total
Productive
Management

Brewery at Palakkad, Kerala was awarded with Gold award(Autonomous Management Category) at Challengers Trophyorganized by CII Institute of Quality Feb21
Brewery at Shahjahanpur, Rajasthan was awarded with Gold
Medal at 39th Kaizen Competition organized by CII Institute of
Quality (Innovative Kaizen Category)
Brewery at Chopanki, Rajasthan was awarded with Goldaward s (Innovative Kaizen Category) at Challengers Trophyorganized by CII Institute of Quality Dec21
Brewery at Taloja, Mumbai was awarded with Platinum award(Innovative Kaizen Category) at 40th National level Kaizen
competition by CII Institute of Quality in June21

Shahjahanpur Award Team

Mumbai Award Team with Cluster Head

Annual Report 2022 | 277

5.0
Corporate governance at UBL
Our Targets

Timeline

1

Strive towards achieving zero conflict with stakeholders.

Ongoing2

Strive towards achieving 100% compliance to all applicableregulatory requirements.

Ongoing

5.1 Our philosophy of governanceAs manifested in the Company’s vision, UBL has always strived for excellence inCorporate Governance. Beyond mere compliance, we are committed towards
taking all strategic initiatives to enhance Shareholders’ wealth in the long term. In
pursuit of corporate goals, the Company accords high importance to transparency,
accountability, and integrity in its dealings. Our philosophy on Corporate Governanceis driven towards welfare of all the Stakeholders and the Board of Directors remains
committed towards this end.
The Board of Directors supports the broad principles of Corporate Governance andlays strong emphasis on its role to align and direct the actions of the Company inachieving its objectives.

278 | United Breweries Limited

5.2 Governance structure
We follow a three-tiered corporate governance structure, where our board of
directors are at the top of the hierarchy.

Board committees
Audit Committee
Stakeholders’ Relationship Committee
Nomination and Remuneration Committee

Board ofDirectors

Special Purpose Committee
Share Transfer Committee
Corporate Social Responsibility /Environmental Social GovernanceCommittee
Risk Management Committee
Borrowing Committee

Annual Report 2022 | 279

5.3 Board of directors1
We, as a company are committed to having a diversified board providing us therequired long-term vision while improving our quality of corporate governance.
Executive suitability and independent judgement in our board is ensured by adiversified representation of executive, non-executive, and independent nonexecutive directors coming from a mixed background of professionals, academicians,
and business houses. The fiduciary responsibility towards each stakeholder ofthe company is exercised by the board while striving to increase stakeholders’value ethically following the highest standards of integrity and sustainability. The
ultimate supervision and accountability in relation to the stewardship function is
the responsibility of the board2.
Sl. NoName

Designation

1

Mr. Rishi Pardal (MD)Managing Director*

2

Mr. Berend Odink

Director & Chief Financial Officer

3

Mr. Christiaan A J Van
Steenbergen

Non- Executive Director

4Mr. Jan Cornelis van der Linden

Non- Executive Director

5

Mr. Sunil Alagh

Independent Director

6

Ms. Kiran Mazumdar Shaw

Independent Director

7

Mr. Madhav Bhatkuly

Independent Director

8

Mr. Stephan Gerlich

Independent Director* GRI 102-23 Chair of the highest governance body

Our board of directors comprises of 2 executive, 2 non-executive and 4 independent
directors. As per SEBI mandate, we have 1 women director on the board. It should
be noted that the following members are part of other significant positions andcommitments as follows3:a) Mr. Rishi Pardal is not a Director in any other Company.
b) Mr. Berend Odink is on the Board of 1 Company.
c) Mr. Christiaan A J Van Steenbergen is on the Board of 1 Overseas Company.
d) Mr. Jan Cornelis van der Linden is on the Board of 11 Overseas Companies.
e) Mr. Sunil Alagh is on the Board of 3 Companies. Out of which 1 is a		 Private Limited Company.
f) Ms. Kiran Mazumdar Shaw is on the Board of 14 Companies. Out of which
2 are Private Limited Companies and 4 are Section 8 Companies under theCompanies Act, 2013. Ms. Mazumdar is also on the Board of 9 Overseas
Companies.
g) Mr. Madhav Bhatkuly is on the Board of 1 Company. Mr. Bhatkuly is also on
the Board of 1 Overseas Company.
h) Mr. Stephan Gerlich is not a Director in any other Company.

1 GRI 102-18 Governance structure
2 GRI 102-26 Role of highest governance body in setting purpose, values, and strategy
3 GRI 102-22 Composition of the highest governance body and its committees

280 | United Breweries Limited

Board committees1
The Board has constituted Committees of Directors as mandatorily required andto deal with matters which need urgent decisions and timely monitoring of theactivities falling within their terms of reference, The Board Committees are as
follows:
1 GRI 102-18 Governance structure

Our board level committees

Stakeholders’Relationship Committee

Audit Committee

Nomination andRemuneration Committee

Risk Management
Committee

Corporate Social
Responsibility
Environmental Social
Governance Committee

In addition to the above-mentioned mandatory Committees required to beconstituted as per Companies Act, 2013 and/or Securities and Exchange Board ofIndia (Listing Obligations and Disclosure Requirements) Regulations, 2015, (Listing
Regulations), a few other Non-mandatory Committees are also constituted by the
Board viz., Share Transfer Committee, Borrowing Committee and Special Purpose
Committee.

Audit committee:
Our Audit committee composition
Sl. NoName

Designation

1

Mr. Madhav Bhatkuly

Chairman

2

Mr. Jan Cornelis van der Linden

Member3

Mr. Sunil Alagh

MemberAnnual Report 2022 | 281

The audit composition consists of two Independent Director and one non-Executive
Director.
The Committee oversees the financial reporting process, disclosure requirements
and matters related to Internal Control System. The Committee also reviews
periodically the financial accounts, adequacy of the internal audit function,compliance with accounting standards and other areas within its Terms ofReference, as under:i)

Oversee the Company’s financial reporting process and the disclosure of its
financial information to ensure that the financial statement is correct, sufficientand credible;

ii)

Recommending to the Board, the appointment, remuneration and terms of
appointment of auditors of the Company;iii) Approval of payment to statutory auditors for any other services rendered by
the statutory auditors;iv) Reviewing, with the Management, the Annual Financial Statements andauditor’s report before submission to the Board for approval, with particularreference to;v)• Matters required to be included in the Directors Responsibility Statement to
be included in the Board’s report in terms of Clause (c) of sub-section 3 ofSection 134 of the Companies Act, 2013;• Changes, if any, in accounting policies and practices and reasons for thesame;• Major accounting entries involving estimates based on the exercise ofjudgement by the Management;• Significant adjustments made in the Financial Statements arising out ofAudit findings;• Compliance with listing and other legal requirements relating to Financial
Statements;• Disclosure of any related party transactions;• Modified opinion(s) in the draft audit report;
Reviewing with the Management the quarterly Financial Statements before
submission to the Board for approval;vi) Reviewing with the management, the statement of uses / application of funds
raised through an issue (public issue, rights issue, preferential issue, etc.), thestatement of funds utilized for purposes other than those stated in the offer
document / prospectus / notice and the report submitted by the monitoring
agency monitoring the utilization of proceeds of a public or rights issue andmaking appropriate recommendations to the Board to take up steps in thismatter;vii) Reviewing and monitoring the auditor’s independence and performance, andeffectiveness of audit process;viii) Approval or any subsequent modification of transactions of the Company withrelated parties;ix) Scrutiny of inter-corporate loans and investments;x)

Valuation of undertakings or assets of the Company, wherever it is necessary;xi) Evaluation of internal financial controls and risk management systems;xii) Reviewing with the management the performance of statutory and internal
auditors, adequacy of the internal control system;
282 | United Breweries Limited

xiii) Reviewing the adequacy of internal audit function, if any, including the structureof the internal audit department, staffing and seniority of the official heading
the department, reporting structure, coverage and frequency of internal audit;xiv) Discussion with internal auditors of any significant findings and follow-up
thereon;xv) Reviewing the findings of any internal investigations by the internal auditors
into matters where there is suspected fraud or irregularity or a failure ofinternal control systems of a material nature and reporting the matter to theBoard;xvi) Discussing with statutory auditors before the audit commences, about thenature and scope of audit as well as post-audit discussion to ascertain any
area of concern;xvii) To look into the reasons for substantial defaults in the payments to thedepositors, debenture holders, shareholders (in case of non-payment of
declared dividends) and creditors;
xviii) To review the functioning of Whistle Blower mechanism;xix) Approval of appointment of Chief Financial Officer (i.e., the whole-time FinanceDirector or any other person heading the finance function or discharging thatfunction) after assessing the qualifications, experience and background, etc.
of the candidate;xx) To review utilization of loans and / or advances from investment by holding
Company in the subsidiary exceeding Rs.100 Crore or 10% of the asset size ofthe subsidiary, including existing loans, advances and investments;xxi) To consider and comment on rationale, cost-benefits and impact of schemes
involving merger, demerger, amalgamation etc;
xxii)

Carrying out any other function as is mentioned in terms of reference of the
Audit Committee.

The Audit Committee mandatorily reviews the following information:
1. Management discussion and analysis of financial conditions and results ofoperations;
2. Management letters/letters of internal control weaknesses issued by the
Statutory Auditors;
3. Internal audit reports relating to internal control weaknesses;
4. The appointment, removal and terms of remuneration of the Chief Internal
Auditor; and5. Statement of deviations:(a) quarterly statement of deviation(s) including report of monitoring agency;(b) annual statement of funds utilized for purposes other than those stated in
the offer documents / prospectus/notice.

Annual Report 2022 | 283

Stakeholders’ relationship committee:
Stakeholders relationship committee composition
Sl. NoName

Designation

1

Mr. Madhav Bhatkuly

Chairman

2

Mr. Berend Odink

Member3

Mr. Sunil Alagh

Member

4

Mr. Stephan Gerlich

Member

The Terms of Reference are as under:• Resolving the grievances of the security holders of the listed entity including
complaints related to transfer/ transmission of shares, non-receipt of annual
report, non-receipt of declared dividends, issue of new/ duplicate certificates,
general Meetings etc.;• Review of measures taken for effective exercise of voting rights by Shareholders;• Review of adherence to the service standards adopted by the listed entity inrespect of various services being rendered by the Registrar & Share Transfer
Agent; and• Review of the various measures and initiatives taken by the listed entity for
reducing the quantum of unclaimed dividends and ensuring timely receipt ofdividend warrants / annual reports / statutory notices by the shareholders of theCompany.

Nomination and remuneration committee:
Nomination and remuneration committee composition
Sl. NoName

Designation

1

Ms. Kiran Mazumdar Shaw

Chairperson

2

Mr. Christiaan A J Van Steenbergen

Member3

Mr. Sunil Alagh

Member

The Terms of Reference are as under:• Formulate criteria for determining qualifications, positive attributes andindependence of a Director and recommend to the Board a policy relating to, theremuneration of the directors, Key Managerial Personnel and other employees;• For appointment of an independent director, the Committee shall evaluate thebalance of skills, knowledge and experience on the Board and on the basis ofsuch evaluation, prepare a description of the role and capabilities required of an
independent director. The person recommended to the Board for appointment as
an independent director shall have the capabilities identified in such description.
The Committee for the purpose of identifying suitable candidates may:a) use the services of an external agencies, if required;b) consider candidates from a wide range of backgrounds, having due regard
to diversity; andc) consider the time commitments of the candidates.
284 | United Breweries Limited• Formulate criteria for evaluation of performance of Independent Directors andthe Board of Directors;• Devise a policy on diversity of Board of Directors;• Identify persons who are qualified to become Directors and who may be
appointed to the Board as well as senior management in accordance with thecriteria that may be laid down, and recommend to the Board their appointment
and removal;• To extend or continue the term of appointment of the Independent Director, on
the basis of the report of performance evaluation of Independent Directors;• Recommend to the Board, all remuneration, in whatever form, payable to senior
management; and• Operate and cover areas as may be prescribed under the Companies Act, 2013
and other applicable Regulations from time to time including formulation of
Employee Stock Option Scheme to Employees/Directors in compliance withguidelines prescribed.

Share transfer committee:
Share transfer committee composition
Sl. NoName

Designation

1

Mr. Stephan Gerlich

Chairman

2

Mr. Rishi Pardal

Member3

Mr. Berend Odink

Member4

Mr. Christiaan A J Van Steenbergen

Member

The Terms of Reference are as under:• To monitor Transfer, Transmission and Transposition of the Shares of theCompany;• Issue of Duplicate Share Certificates, in lieu of Certificates lost or misplaced;• Issue of New Share Certificates In lieu of Certificates torn, mutilated, cages fortransfer filled up etcetera;• Consolidation and sub-division of Share Certificates;• To oversee compliance of the norms laid down under the Depositories Act, 1996;• To appoint / remove Registrar and Transfer Agent;• To oversee compliance of the norms laid down under the Tripartite Agreementwith National Securities Depository Limited / Central Depository Services (India)
Limited, and• Perform all such acts and deeds, matters and things as it may in its absolute
discretion deem necessary, expedient, desirable, usual or proper and to settle
any question, dispute, difficulty or doubt that may arise in regard to the mattersarising out of the aforesaid acts.

Annual Report 2022 | 285

Risk management committee:
Risk management committee composition
Sl. NoName

Designation

1

Mr. Sunil Alagh

Chairman

2

Mr. Rishi Pardal

Member3

Mr. Berend Odink

Member4

Mr. Madhav Bhatkuly

Member5

Ms. Kiran Mazumdar Shaw

Member6

Mr. Stephan Gerlich

Member7

Mr. Berend Odink

Member

The Terms of Reference are as under:• To formulate a detailed risk management policy which shall include:a. A framework for identification of internal and external risks specifically facedby the listed entity, in particular including financial, operational, sectoral,sustainability (particularly, ESG related risks), information, cyber security risks
or any other risk as may be determined by the Committee.
b. Measures for risk mitigation including systems and processes for internal
control of identified risks.
c. Business continuity plan.
• To ensure that appropriate methodology, processes and systems are in place tomonitor and evaluate risks associated with the business of the Company.
• To monitor and oversee implementation of the risk management policy, including
evaluating the adequacy of risk management systems.
• To periodically review the risk management policy, at least once in two years,
including by considering the changing industry dynamics and evolving complexity.
• To keep the board of directors informed about the nature and content of its
discussions, recommendations and actions to be taken.
• The appointment, removal and terms of remuneration of the Chief Risk Officer (ifany) shall be subject to review by the Risk Management Committee.

Special purpose committee:
Special purpose committee composition
Sl. NoName

Designation

1

Mr. Madhav Bhatkuly

Chairman

2

Mr. Rishi Pardal

Member3

Mr. Berend Odink

Member4

Mr. Christiaan A J Van Steenbergen

Member286 | United Breweries Limited

The Special Purpose Committee was formed inter alia to review the investigation/
matters with respect to Competition Commission of India.

Borrowing committee:
Borrowing committee composition
Sl. NoName

Designation

1

Mr. Madhav Bhatkuly

Chairman

2

Mr. Sunil Alagh

Member3

Ms. Kiran Mazumdar Shaw

Member

4

Mr. Stephan Gerlich

Member5

Mr. Berend Odink

MemberHaving regard to the size of operations, frequency of funds requirement andadministration convenience, the Board has constituted a Borrowing Committee of
Directors and has delegated powers to borrow moneys within approved limits fromtime to time.

Corporate social responsibility/ Environmental, Social andGovernance committee:
Our Corporate Social Responsibility Committee is a five-member committee
constituted to oversee our CSR activities and provide strategic directions. Our
key CSR focus areas are primary health, primary education, water conservation &providing safe drinking water and responsible consumption of alcohol. For seamlessintegration of our business operations with marketplace, workplace, environmental
and community concerns, we have formulated CSR policy. Our strategic CSR
initiatives are integral business process for supporting our quest for sustainable
and inclusive development. This helps us in constantly striving for good corporate
citizenship.
Corporate social responsibility committee composition
Sl. NoName

Designation

1

Mr. Stephan Gerlich

Chairman

2

Mr. Rishi Pardal

Member3

Mr. Berend Odink

Member4

Mr. Christiaan A J Van Steenbergen

Member5

Ms. Kiran Mazumdar Shaw

MemberNote: Composition of above committees are modified after March 31, 2022.

Annual Report 2022 | 287

Assessment of the board
Appointment
Our performance evaluation policy prescribes evaluation criteria for independent
directors and the board of directors of the company. This policy further extends
in laying down of criteria for appointment and remuneration of directors and key
managerial personnel.
Our corporate governance has a three tired governance structure. The Board is
the highest governing body of the Company. The members of the Board consist of
personnel who have gained prominence in industrial and professional backgrounds
in a wide range of diversified portfolios. Their effective contribution offers leadershipin setting the strategic direction, establishing a sound control framework for the
successful functioning of the Company.
The directors are expected to exercise their business judgement in the interest of
the company and its stakeholders in all actions taken by the board. The directors
participate in articulating goals, visions, strategies, and business targets. The
questions by shareholders are answerable by the directors at General Body Meetings.
They are expected to ensure an appropriate dialogue with the shareholders. All
the Board level appointments follow a structured and formal process within thepurview of the Nominations Committee1.

Evaluation2
Performance evaluation of Non-Executive Directors including Independent
Directors, the Board as a whole and Committees of the Board is being carried out
in accordance with the statutory provisions as contained in the Act and Listing
Regulations.
To ensure an effective evaluation process, the Nomination and Remuneration
Committee has put in place a robust framework for conducting the exercise withkey steps and practices defined clearly. Performance of the Board is evaluated on
various parameters such as composition, strategy, tone at the top, risk and controls
and diversity. Also, a questionnaire for Committees is framed on parameters suchas adherence to the terms of reference and adequate reporting to the Board.
Parameters for the Directors include intellectual independence of the Director,
participation in formulation of business plans, constructive engagement withcolleagues and understanding of the risk profile of the Company.
Keeping in view the sensitivity, confidentiality is ensured. As part of this process,customized questionnaires, are circulated to all Directors of the Company. Each
Director is required to undertake a self-assessment. Additionally, the effectivenessof the Board and Committees is also evaluated by each Member of the Board andCommittee through an electronic platform and kept confidential.
Summary of responses received from Directors is placed at a Board Meeting..

1 GRI 102-24 Nominating and selecting the highest governance body
2 GRI 102-28 Evaluating the highest governance body’s performance* Replaced by Mr. Berend Cornelis Roelof Odink as Director and CFO during the publishing of the report in
2021.

288 | United Breweries Limited

Risk management
Though already established efficiency programmes apply to all aspects of ourbusiness, there is a constant drive for further efficiencies and reducing cost.
Backed by strong internal control systems, the current Risk Management
Framework consists of key elements laying down the roles and responsibilities inrelation to risk management covering a range of responsibilities, from strategic
to operational. These role definitions, inter alia, provide the foundation for
appropriate risk management procedures, their effective implementation across
UBL and independent monitoring and reporting. The Risk Management Committee,
constituted by the Board, monitors, and reviews the strategic risk management
plans of UBL as a whole and provides necessary directions on the same.
The Corporate Risk Management Cell, through focused interactions with businesses,
facilitates the identification and prioritisation of strategic and operational risks,development of appropriate mitigation strategies and conducts periodic reviews of
the progress on the management of identified risks.
The competitive environment is expected to remain intense. UBL’s strategy andfocus remains consistent to robustly strengthen its leadership and thereby maintainits position as the clear leader in the Indian Beer Market. In line herewith, UBL
endeavours to continually sharpen its Risk Management systems and processes inline with a rapidly changing business environment.
The COVID pandemic has triggered new risks in business operations. While the impactof the pandemic is still unfolding, UBL pro-actively put in place Crisis/Contingency
Management Teams, both at the Breweries as well as at the Corporate office during
the peak times of the pandemic. These cross-functional teams, represented bysenior management, continually review strategic, operational, financial matters aswell as measures relating to employee well-being health and safety.
Detailed advisories have been issued to employees on how to safeguard themselves,
their colleagues and associates, and their families both at the workplace as well asat their homes. These guidelines also provide details on social distancing norms,
how they should seek help on any aspect concerning their health from within theorganizational support system. Heightened safety protocols were implemented at
all units that resumed operations, with end-to-end solutions from transportation ofworkmen, screening, regular deep cleaning and sanitisation, innovations to ensure
safe distancing and strict adherence to hygiene standards and use of personal
protective equipment where required.
Through these actions, the Directors are confident that UBL would sustain its
leadership position, grow ahead of the market, and realize improved profitability
in the years to come.

Annual Report 2022 | 289

Key risks

Availabilityof waterPrice &
Availability
Risk

Legal
Liabilities

Key enterpriserisks

Risk ofprohibition

Alcoholunderpressure

We perform risk assessment in which Strategic, Operative, Information Technology,
Financial and other risks are analyzed. This is reviewed regularly by the Internal
Audit team, Risk Management Committee, and the Board. Our Board and the top
management are keen in improving the effectiveness of our risk management
framework and thus incorporate all ESG related risks3.
The Management Committee meets regularly to address various risks and mitigation
thereof. Through the risk management framework, we periodically assess theinternal and external environment, along with the potential cost of the risks andincorporate risk management plans in our strategy, business, and operational
plans. To further augment our precautionary approach, a quarterly comprehensive
report on current legal exposures, trends and risks provided by our complianceteam to the Board highlighting the risks faced by the company in the geographiesin which we operate. These aspects are also addressed by our risk management
process and enables the Company to develop resilient mitigation plan at an earlystage and tap into further business opportunities4.

3 GRI102-30 Effectiveness of risk management processes, GRI 102-29 Identifying and managing economic,
environmental, and social impacts
4 GRI102-11 Precautionary principle or approach

290 | United Breweries LimitedOur ethos
While we operate in a very competitive environment, we inspire growth andsustenance to build our legacy and take it forward. UBL believes that ethical businesspractices are critical for sustainable growth and to maintain our position as amarket leader, we conduct our business in compliance with laws and adherence tomoral values. Our heritage and legendary brands have been our greatest assets for
decades. The management maintains an “open door” policy in addressing employee
concerns including those pertaining to business conduct and shall endeavor toresolve any concern without retaliation. The Company has adopted vigil mechanism
which is a channel for receiving and redressing of complaints about any misconduct,
actual or suspected fraud, actual or potential violations of the Company’s code of
conduct and any other unethical, unlawful or improper practices, acts or activities
within the Company
We have formulated various policies for doing business in ethical and legal manner
which are commensurate with international standards. Our management attributes
great importance to an ethically impeccable business environment. All stakeholders
including Directors, employees, contractors, consultants, distributors, suppliersetc., are covered within the ambit of the Code of Business Conduct and Ethics andthey pledge to adhere to these standards. To impart clear rules of conduct to ouremployees, and especially to avoid any conflicts of interest in everyday working
situations, we focus on regular training courses and communication measures.
All employees (including trainees, contract workmen etc.) and directors of theCompany are expected to understand, implement, and uphold its standards. Any
violation of Code of Business Conduct is dealt with utmost seriousness. Appropriate
disciplinary actions are taken, where necessary. During the reporting period, we had
no incidents of corruption1. During the reporting period, no cases had been filed for
unfair trade practices, namely, anti-competitive behavior, anti-trust, and monopoly
practices. Any and all violations of our code of conduct and ethics that comprisesof all related regulations and principles shall be subject to an internal investigationand disciplinary actions. Based on the severity of the violation or non-conformanceto the code all persons subject to discipline will be penalized accordingly2.
In the reporting year, we have conducted trainings for all our permanent andcontractual employees of our company, on our Code of conduct and businessethics3. We use multi-channel communication modes like mailers and floaters
periodically to communicate and alert our stakeholders on ethics and integrity ofour business.

5.4 Legal compliance monitoring system4
Ensuring effective and stringent compliance processes and controls facilitates us
to maintain our reputation and brand integrity. It enables us to operate smoothly
across all our business locations and breweries.
Our Board of Directors have ensured and devised appropriate systems to ensurecompliance with respect to applicable laws. They have also ensured that such
systems are all adequate and operating effectively. Each committee as mentioned
in our board of committees is responsible for ensuring compliance according to1
2
3
4

GRI 205-3 Confirmed incidents of corruption and actions taken
GRI 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices
GRI 205-2 Communication and training about anti-corruption policies and procedures
GRI102-31 Review of economic, environmental, and social topics

Annual Report 2022 | 291

the statutory requirements based on the business functions and operations inline with the guidelines and requirements. Our processes consist of annual risk
assessments to identify non-compliance with our policies covering topics of antibribery and corruption, competition law, accounting, code of business conduct
and ethics, guidance to business associates, code for fair disclosure, dividend
distribution policy, remuneration policy, whistleblower policy and so on. Allapplicable and relevant policies are available on the company website and are
subject to periodic reviews by the Management, auditors and consultants in
the respective areas. The company also interacts with government, regulatory
authorities, and relevant public bodies for development of policies andmaintaining compliance commitments. We are committed to complying with thelaws and regulations of the jurisdictions in which we operate and aim to exceed
legal and regulatory requirements where those are less stringent than our own5.

5.5 Data security and privacy
Protection of consumer data is of paramount importance for us. All sensitive
personal data of our consumers is protected with adequate Information
Technology Management System. We understand hat the threat of data theft andhacking has increased substantially in last few years. To mitigate such untowardrisk, we have a dedicated policy on Information security management system.
This is one of our high priority material topics. Our data collection is limited only
to relevant data and focus on not collecting very sensitive private data. We havededicated policy on preservation of documents which also deals with archived
customer data as well. In FY2020-21 and FY2021-22, we have not received any
complaints on data breaches6 .

5 GRI 419-1 Non-compliance with laws and regulations in the social and economic area
6 GRI 418-1: Substantiated complaints concerning breaches of customer privacy and losses ofcustomer data

292 | United Breweries Limited

Annual Report 2022 | 293

6.0
ESG value realization
We, at United Breweries Ltd, mark 2021 as our new starting point of measuring,
reporting and disclosing our sustainability initiatives under the comprehensive ESG
framework. We have responded to the call to action for United Nations Sustainable
Development Goals to eradicate poverty, protect our plant, and improve lives ofpeople. We have prioritized our action areas and aligned them as per the goals laidout in UNSDGs.
We, at United Breweries Limited, mark 2021 as our starting point of measuring,
reporting, and disclosing our sustainability initiatives.
We believe in continuous improvement in our sustainability strategy. Our businessis driven by our quest to create maximum shared value for our stakeholders bymaintaining ethical corporate governance. Taking social and environmental
responsibility for all we do is an integral part of how we perceive ourselves as acompany. As a significant partner to the communities where we operate, we leadthe change towards creating a better environment, supporting local values andfurther aid in driving economic and social development. Many of our operations
are in existence for decades now and maintaining a social license to operate themis critical, which has been made possible by our interventions.

Linkages with UN Sustainable Development Goals
We have aligned our initiatives and priority areas to the following UN Sustainable
Development Goals (UN SDGs) to achieve the greatest impact

Environmental
Sustainability
PeoplePerformance
Relationship With
Communities
Economic
Performance
Figure 8: Our commitment to UNSDGs (United Nations Sustainable Development Group)

294 | United Breweries Limited

Annual Report 2022 | 295

7.0
Stakeholder engagement1
Our stakeholders are the foundation of our success. Our stakeholder engagement
bolsters our commitment and accountability towards them. We leverage thisinteraction to understand different perspectives of our business through key
insights towards gaining competitive advantage and hedging possible risks. We
engage with all our stakeholder focus groups to identify key concerns, prioritize, andincorporate them into our sustainability strategy. Through this proactive approach,
we intend to build trust that augments our business resilience while propelling ourbusiness growth.
During the reporting period, we have conducted our stakeholder engagement as
a part of our sustainability strategy. Our key stakeholder groups include but are
not limited to employees, employee union, consumers, local community, industry
associations, business partners, farmers, regulators, distributors, and suppliers2.
This list was developed basis an extensive market analysis along with a systematic
approach of identification and prioritization basis the impact the stakeholders haveon the business operation and vice-versa3.
The unique challenge posed by the pandemic compelled us to modify the strategies
for our interaction with our stakeholders following the regulations imposed by
the authorities and maintaining utmost health and safety parameters during ourinteractions. In the reporting year, a majority of our in-person meetings related tothe stakeholder engagement were replaced with virtual meetings, resulting in all
physical surveys being replaced by online surveys and all events being put on hold.
We understand that penetration of digital literacy in our country especially in rural
areas is a challenge, hence for this reporting year, we have interacted with themwhile following all Covid-19 safety protocols. Community interactions were replaced
by individual interactions following social distancing and other safety measures.
Through our interactions, we understood the expectations of our key stakeholders
from our business. The responses that we received from our sample key stakeholders
to the questionnaire provided in the form of an online assessment, assisted us inaddressing their concerns and expectations from our business. The responses
were further normalized to obtain our materiality matrix, which is elaborated in themateriality assessment section of this report. The below table illustrates the modeand frequency of our interactions4:

1 GRI 102-21 Consulting stakeholders on economic, environmental and social topics
2 GRI 102-40 List of stakeholder groups
3 GRI 102-42 Identifying and selecting stakeholders
4 GRI 102-43 Approach to stakeholder engagement296 | United Breweries Limited

Table 11: Stakeholder interaction process
Key
Stakeholder
GroupsMode of Engagement

Frequency ofEngagement

Key expectations1

External stakeholder groups

CSR Partners• Community events*• CSR activities• Need basis,• Periodically• Community development
programs• Improvement of social
infrastructure• Economic and social
empowerment

Contract
breweries• Events• One to one meeting• Monthly,• Quarterly,• Annually and• Need Basis• Mutual beneficial relationship• Suppliers meet
• Mutual visits• Monthly meetings withleadership• Events• Monthly,• Quarterly,• Annually and• Need basis• Fair price• Supplier sustainability• Suppliers meet
• Mutual visits• Monthly meetings withleadership• Events• Monthly,• Quarterly,• Annually and• Need basis• Fair price• Supplier sustainability

Distributors• Events• Annual Meetings• One to one meeting• Periodically• Business continuity• Support and collaboration• Business growth

Investors• Annual meetings• One to one meeting• Annually• Periodically• Enhanced return on investment• Lowering capital risks

Analysts• One to one meeting• Periodically• Annually• Enhanced return on investment• Lowering capital risks

Material
Suppliers

Equipment
Suppliers• Internal stakeholder group
Management• Events• Surveys• Monthly,• Quarterly,• Annually and• Need basis• Enhanced business performance

Employees• Monthly and quarterly
meet• Personal review and visits• Surveys• Trainings• Annual day• Events• Monthly,• Quarterly,• Annually and• Need Basis• Personal development• Health and safety• Grievance resolution mechanism*Physical events are suspended owing to Covid-19 restrictions and safety protocols** Surveys are now conducted online to ensure safety and Covid-19 protocols
1 GRI 102-44 Key topics and concerns raised

Annual Report 2022 | 297

8.0
Materiality assessment
We at UBL acknowledge the importance of materiality assessment as it provides
details on the aspects that are most significant and relevant to our stakeholders
and our business.

Identificationof important
stakeholders

Stakeholder
survey for
impact ofprobablematerial
topics on ourbusiness

Evaluation of
stakeholder
perception of
UBL’s impact
with respect tomaterial topics

Validation ofmaterial topics

Figure 5: Materiality assessment process

Client satisfaction surveys, employee feedback, feedback from investors, suppliersand discussions with other organizations serve as formal inputs in prioritizing the
key issues to each of the stakeholder groups. We had also considered the following
in reviewing the material issues:• Stakeholder groups, their needs and expectations, impact of these expectations
on business performance• Significant risks that could impact on business and customer relationships• Relevant regulation, legislation and our values, policies & commitments• Previous year’s financial performance
Further the responses obtained through the stakeholder engagement, that werenormalized to minimize any bias, augmented the categorization into low, medium,
high, and very high categories.

298 | United Breweries Limited

Review andfinalizationof material
topics by top
management

GovernanceSocialEnvironmenta) Ethics and governancea) Responsible sourcinga) Waterb) Innovationb) Human rightsc) Indirect economic impactc) Responsible consumptionb) Energy use and transition
to renewable energyd) Remunerationd) Occupational Health & Safetyc) Greenhouse gas emissione) Data security & privacye) Product quality and safetyd) Sustainable packagingf) Taxationf) Skill development andtraininge) Biodiversityg) Diversity & inclusiong) Waste managementf) Climate resilient operationsh) Community relationships

Figure 6: Material topics
SocialVery High

Environment

1

High

2
7
9

12
13

6

3

4
5

8

8

10

10

11

MediumRELEVANCE FOR STAKEHOLDERS

Governance

15
17

14
16

16
18

18
MediumHigh

Very HighRELEVANCE FOR THE BUSINESS

Increasing Priority

Key Material Topics
1. Water
2. Product quality and safety
3. Ethics and governance
4. Taxation
5. Occupational health and safety
6. Waste management
7. Data security & Privacy
8. Responsible consumption
9. Innovation

10. Sustainable packaging
11. Human rights
12. Remuneration
13. Energy use and transition to Renewable Energy
14. Community relationships
15. Green House Gas emission
16. Diversity & inclusion
17. Skill development and training
18. Climate resilient operations

Figure 7: Materiality matrix

Annual Report 2022 | 299

Sl. No.

Material Topics1

Aspect Boundary2

Report Coverage

1

Water

Internal

Water management

2

Product quality and safety

Internal

Product quality and safety

3

Ethics and governanceInternal

Code of business conduct and ethics

4

Taxation

External

Economic performance5

Occupational health andsafetyInternal

Employee health and safety

6

Waste management

Internal

Waste management

7

Data security & Privacy

Internal

Data security and privacy

8

Responsible consumption

Internal and external

Responsible Consumption of Alcohol

9Innovation

Internal

Product Innovation

10

Sustainable packaging

Internal and external

Waste management

11

Human rights

Internal and external

Protection of human rights

12

Remuneration

External

Board committees

13

Energy use and transition to
Renewable Energy

Internal

Energy management

14

Community relationships

Internal and external

Relationship with communities

15

Green House Gas emission

Internal

Energy consumption

16

Diversity & inclusion

Internal

Diversity and Inclusion

17

Skill development andtraining

Internal

Employee training and development

18

Climate resilient operations

Internal and External

Climate resilient operations

19

Responsible sourcing

External

Supply chain sustainability

20

Indirect economic impact

External

Financial growth21

Biodiversity

External

Biodiversity

1 GRI 102-47 List of material topics
2 GRI 102-46 Defining report content and topic Boundaries, 103-1 Explanation of the material topic and its Boundary

300 | United Breweries Limited

9.0
ESG strategic vision
Depleting natural resources due exploitation and other climatic changes pose a risk
for all the companies. Due to the high level of dependence of the beverage industry
on natural resources, proactive and strategic measures are necessary to ensurebusiness continuity. We at UBL, have hence set the following ambitious vision for
ensuring business sustainability:

Water

To become water positive across our own
operations.

Renewable energy

Transitioning towards clean energy
sources for almost all of our energy
requirements.

Greenhouse Gas
emission

Keeping our carbon footprint as minimalas possible, across our value chain.

Circular economy

We wish to attain optimal waste
management and be circular by design inall our operations.

Responsible sourcing

To build a positive impact throughout our
upstream and downstream operations,on the society at large.

Human Rights

To uphold human rights and dignity
throughout our value chain.

Health and safety

To be recognized as a safety leader in theindustry.

Community
relationships

To foster and nurture our commitments
to the communities where we operate in.

Diversity and inclusion

To create a safe and inclusive workspace
for all diversities.

Governance and ethics

Fostering a model of ethical governanceand serve as a benchmark for theindustry.

Annual Report 2022 | 301

Our 2030 Vision

Operational
standardizationand certification
To standardize all ouroperations as per industry
best practices andget certified forthe same

Water
To become water
positive across ourown operations

ESG
disclosures andcommunication

EthicalGovernanceFostering a model of
ethical governance andserve as a benchmark forthe industry

To be a transparent andresponsible organization,
which strives to excel in
its ESG performance

Sustainability
risk
management

Occupational
Health & Safety
To be recognized asa safety leader in theindustry

To be able to manage andmitigate sustainability andclimate related risks in
our operations

Responsible
sourcing

Waste
management
and circularity

Our Vision2030

To build a positive impact
throughout our upstream
and downstream
operations, on thesociety at large

We wish to attain optimal
waste management andbe circular by designin all ouroperations

Diversity &inclusion

Responsible
consumption

To create a safe andinclusive workspace for all
diversities

To discourage overuseof alcohol and promoteresponsible drinking

GHG Emissions

Human Rights

Keeping our carbon
footprint as minimal as
possible, across our valuechain

To uphold human rights
and dignity throughout
our value chain

Community
Relationships
To foster and nurture
our commitments to thecommunities where we
operate in

302 | United Breweries Limited

Energyuse andtransition to RE
Transitioning towards
clean energy sources foralmost all of our energy
requirements

Annual Report 2022 | 303

10.0
Our commitment towards
a healthier planet
Managing our environmental footprint
As a business dedicated towards promoting a culture of top-notch quality while
enhancing our operations to ensure lowered environmental impact, we havealigned our business strategy encompassing sustainability across our supply chain
and in reducing our environmental footprint. Our actions have always been aligned
towards achieving greater heights, while building a net positive impact on our entire
value chain. We have successfully implemented an organization wide system forrecording of our integrated sustainability data across the three pillars of ESG.

10.1 Supply chain sustainability
Our Targets

Timeline

1

Work with Key agricultural suppliers on performing
Farm Sustainability Assessment

2023

2

Implementation of the Action plan based on the Farm
Sustainability Assessment

3

Deploy learnings from assessment and implement
the actions

304 | United Breweries Limited2024

onwards

20252030

The quest for a sustainable business cannot be restricted within the periphery of our own
operations and therefore, the forward and backward integration of processes becomes
critically important to drive the overall sustainability objectives of the organization.
Exploring the facets of sustainability in our supply chain enables us to expand our horizons
to venture into a comprehensive approach towards embarking on our sustainability
journey. We are now in process of embedding aspects of sustainability in our suppliercode of conduct, for aligning our organization’s sustainability related goals. We currently
assess our suppliers and distributors based on the compliance of our human rights
policy and equal opportunity policy. All our suppliers need to adhere to our policy onhealth and safety, policy on human rights, policy on equal opportunity.
Our supply chain consists of mainly 4 subcategories that we have divided for our ease ofunderstanding and analysis - suppliers of raw material, logistics, capital equipment andcivil contractors1.
Supply chain

Agriculture

Malting

Brewing

PackagingDistribution

Consumption

In FY2020-21, our total spending on our raw materials procurement was 36370 Mio INR
whereas, in FY2021-22, our total spending for raw materials procurement was 35930 Mio
INR, while we experienced a disruption in our supply chain due to the pandemic, andincreased restrictions on transportation, sourcing, and distribution. We further ensured
primary focus on strict compliance of national and local COVID safety guidelines andprocedures, across all breweries and throughout our supply chain.

Assessment of suppliers
Our supply chain is carefully curated and managed to ensure high standards of quality
and compliance to be maintained by our suppliers. Addressing the environmental,
health and safety impacts of our products across our supply chain through systematic
assessment and understanding of ways to minimize the negative impacts creates
enhanced sustenance across our entire value chain. We are engaged in activities toimprove sustainability performance across the lifecycle of our product, from the farm to
the glass and we are fervently working towards maximizing our sustainability potential
across the supply chain.
1 102-9 Supply chain

Identificationof Suppliers

Prequalification
evaluation of
suppliers

Supplier
onboarding

Expectation
setting

Building
supplier
relationship

Periodic
Assessmentof suppliers

Figure 8: Supplier Assessment process

Annual Report 2022 | 305

We ensure to deliver premium quality beer to our consumers, brewed from best
quality ingredients. This has been made possible by our rigorous supplier evaluation
process. Apart from many other parameters, our suppliers are evaluated basedon their ability to fulfill orders, thus mitigating risks to business discontinuity. We
have an intricate standard operating procedure for evaluation of existing andnew vendors and to perform internal audits for quality compliance as per the
specifications by UBL Central Technical Cell. Our intensive process also entails visits
to supplier facilities for supplier due diligence processes and ensuring reliability
before onboarding all suppliers. A precursor to all our supplier relations, we ensure
clarity and responsibility to be undertaken by our suppliers once they are a partof the UBL network, through maintenance of efficient compliance systems andadequate records to back their claims of compliance. We have always encouraged
our supply chain entities to rise above and beyond compliance to national laws,
towards expanding the purview of business compliance with respect to globally
recognized standards. This will ensure a greater advancement towards being a
responsible business on the aspects of social, environmental, and business ethics.
Our supply chain affiliates are thoroughly screened and evaluated, to ensure
quality of materials, complete compliance, and safety in business operations. This
helps us and our suppliers achieve transparency and accountability in our supplier
relations while maintaining top notch products and services for our consumers. The
evaluation is designed differently for existing suppliers and new suppliers based on
the relevance of the information required. Suppliers are scored during the audit ona scale of 1 to 10, with less than 5 denoting critical failure and 10 meeting complete
requirements. The supplier assessment process covers all key suppliers of raw,
additive and packaging material in the supply chain . We further plan to include key
ESG parameters as a part of our comprehensive evaluation process.

Engaging our local suppliers
As we endeavor to reduce negative impacts in our supply chain and increase oursustainable initiatives, we have realized the important to prioritize our procurementand
sourcing from local suppliers. During our reporting period of FY2020-21, we successfully
engaged with 8837 suppliers, while 1032 new suppliers were onboarded. While in FY202122, we have engaged with 7203 suppliers and 761 new suppliers were onboarded.

Key distributors engaged
LocationContact personnel

Pondicherry (R R Wines)

Mr. Ramamurthy

Radha Wines (Maharashtra)

Pratiek Kishnani

S V Distributors (Mumbai)

Neeraj Rawal

Swangai Distributors (Goa)

Praveen Kerkar

BRINDCO (Haryana)

Aman Dhall

BRINDCO (Delhi)

Brindal Pal Singh306 | United Breweries Limited

Key material suppliers
Location

Materials

Distributor

Aurangabad

Cans

Canpack India Private Limited

Bangalore

Cans

Ball Beverage Packaging India Private Limited

New Delhi

CrownsAMD Industries Ltd

Gurugram

Malt

Bamalt Malting (India) Private Limited

Bangalore

Label

Sai Packaging Company (Div Of Sai Security
Printers Pvt Ltd)

Aurangabad

New Bottles

Canpack India Private Limited

New Delhi

Transportation

ATOZ Logistics Limited

Key equipment suppliers
Equipment supplierContact personnel

KHS

Rajagopal Shailes

KronesKrimmer David

Praj

Sanjay Sapru

Alfa Laval

Pankaj Maheswari

Hypro

Ravi Varma

Key equipment suppliers
Suppliers engaged

UoM

FY2020-21

FY2021-22

New Suppliers

Nos

1032

761

Total Procurement budget

Mio INR

36370

35930

Procurement budget spent on local suppliers1

Mio INR

7250

6980

Percentage RM spending of procurement budget on local
suppliers

%

20

19.4

Percentage of domestic suppliers

%

92.6

91.3

1 GRI 204-1 Proportion of spending on local suppliers

Annual Report 2022 | 307

The organization defines its local suppliers based on their geographical proximity to
the business activities across India.

Collaborative farming
Agricultural commodities form the bulk of our key raw materials, and it is hence
essential to make our agricultural supply chain future ready and resilient.
We at United Breweries Limited, have developed the collaborative farming modelwith the help of farmers, our key stakeholders. This model encompasses aroundmaintaining quality, assuring higher productivity, lower production cost, andsustainability. We collaborate with our farmers by providing them with seeds andtraining them on latest technologies to enhance productivity while maintaining
quality. We provide fair price assurance to our farmers and procure at minimum
support prices as set by Government or the current market price, whicheveris higher. We predominantly procure our key agricultural raw materials barley
through this model which is currently being implemented across Haryana, Punjab,
and Rajasthan.
The model also includes a farm sustainability assessment framework which
focuses on human rights protection, soil management and fertility, degraded land
management, crop health and protection, biodiversity conservation, pollution
control and by-product management, energy efficiency, and water management.
In FY2020-21, almost 40.1% by volume and 42% by value while in FY2021-22, 11% by
Volume and 11% by value of our total agricultural raw material and ingredients areprocured directly from our collaborative farming initiatives with our farmers acrossvarious states. The drop is volume was mainly due to rejection in the previous
years due to Pandemic which is normalized and showing positive trend currently.
There is drop in value which has driven us to aid groups of farmers for exploringand developing on research and technology in the agricultural sector. We strive toimprovise on existing initiatives for our farmers to reduce wastage post-harvest,
optimization in production costs and value creation.
Almost 25% of our barley requirement is met through collaborative farming while
we procure the remaining from the local market. Implementation of this model
enabled a more sustainable approach towards farming and sourcing of our raw
materials since the model aims at:

The farming model
Hops and barley production parallel to the trends in sales, toreduce wastage post-harvest
Maximizing yield of crops through effective use of seeds andfertilizers and well-timed- harvest of crops

Prevention of soil depletion and improving quality of soil

308 | United Breweries Limited

The benefits experienced by our farmer partners include:• Fair pricing in line with market rates for sourcing of the raw materials• Rate of production was increased due to best practices for agriculture
andharvesting

Details of agricultural raw materials procured in the reporting year

(In MT)

Procurement by
volume throughcollaborative
farming (In MT)

Total value of
procurement(In Mio INR)

FY2020-21

153,464

61543

2550

FY2021-22

115328

12425

2440

Reporting year

Total volume
procured

Procurement byvalue throughcollaborative
farming(In Mio INR)

1070
270

Ensuring security in supply of barley
The quality of our products is dependent on the quality of accurate mix of six-row
barley and two-row barley. We resort to importing barley, only on need basis. We
intend to increase the two-row barley production from our current 20,000 MT to
1,25,000 MT by FY 23-24 thus reducing our dependence on six-row barley. This
coupled with expansion of farm coverage in Rajasthan and continued developmentof high yielding barley through in-house research program, ensures barley supply
security. The interaction with farmers through contract farming provides us
the right quality and quantity of raw materials thus ensuring brand quality andcustomer loyalty.

We intend to contribute towards food safety and sustainable agricultural practices
through our initiatives on a global and local scale. Our bottom-up approach is toensure sustainability from the farms ensures overall development and growth ofour business and business partners.

10.2 Responsible material consumption1
Being a leading brewery, necessitates us to be responsible for our consumption
and utilization of resources, materials, ingredients, and items for packaging anddistribution. Our widespread initiative, under Total Productive Management (TPM),
enables us in achieving the excellence in our manufacturing process, while ensuring
optimized consumption. The continual monitoring and analysis of our total supply
1 GRI 301-1 Materials used by weight or volume, SASB FB-AB-410a.1

Annual Report 2022 | 309

and demand operations through our TPM program, across our breweries, with astandardized approach and process, augments our resource optimization. Our
manufacturing division comprises of sourcing and procurement, new productdevelopment and testing, and our Centre of manufacturing excellence. Our TPM
tools and techniques are standardized to achieve consistency and high-performanceefficiency through a participatory approach for all our employees and workers
across 19 self-owned Breweries.
The below table illustrates the raw materials procured from suppliers, while
our fuel consumption in manufacturing process is mentioned in the energy andemission management section.

Our Total Productive Management

LEADERSHIP TEAM PILLAR
E2E Roadmap / Driving Performance / Leading Change / Shop Floor Excellence

ENABLING PILLARS

CV Customer Value Pillar

W&T Warehouse &Transportation Pillar• SAF Safety Pillar

Plan Pillar

AM Packaging Pillar

AM Brewing Pillar

AM Utilities Pillar

Supplier Value Pillar

CORE PILLARS• PQ Quality Pillar• PM Maintenance Pillar• POD People & Organization
Development Pillar• ES Environmental Sustainability
Pillar• RPM Returnable Packaging
Materials Pillar• P&EEM Project & Early Equipment
Management Pillar

TPM fundamentals (5S, DCS, UPS, VSM, BPO, VM & Standards)
Core Pillar - Focus on Excellent Execution of Standard
Enabling Pillar - Focus on Creation of Standards and help core pillars for Implementation
Leadership Team Pillar - Drives Performance, Support Change Management & focus on Shopfloor Excellence

The risks associated with sourcing our most essential raw materials – barley, hops,
rice, sugar, and yeast can be attributed to the disruptions caused in agricultural
supplies, transportation difficulties and restrictions due to the geographical locationand distances. Our agricultural raw materials contribute to a larger amount of risk
associated with climate change vulnerabilities among others for the agricultural
sector1. We ensure that our materials are sourced from our trusted partners and
1 SASB FB-AB-440a.2 – List of priority beverage ingredients and descriptionof sourcing risks due to environmental and social considerations

310 | United Breweries Limited

tracked across their respective lifecycle at the brewery and management level
through a robust tracking system. Frequent technical guidance is provided for all
our suppliers to ensure quality supplies. This guarantees long-term sustainability of
their business and reliability our product quality.

Raw material input
Materials used by weight or volume

Raw Materials

UoM

FY2020-21

FY2021-22

Malt

MT

90891

117435

Hops

MT

200

295

Rice

MT

47089

61586

Sugar

MT

12588

16281

Carbon Dioxide

MT

20753

24601

Total

MT

171513220197

Dry yeast production and utilization
The dry yeast production was improved and made more efficient at Ellora andEmpee. Yeast is required during the fermentation process to add character andflavor to the beer. Yeast that is utilized at the breweries is further grown andcollected for sale as a source of chicken feed. The optimization initiative aims
at improving the production of dry yeast in the yeast dryer and is driven bystandardized procedures.
At Empee, activities such as – providing insulation in the dryer chamber leading
to accelerated increase in temperature during the night shift, installation of abutterfly valve to remove residual yeast, adequate support structure provided forthe yeast dryer and restriction of discharge of yeast to the effluent treatment plant(ETP); were undertaken to improve yeast productivity. These activities amounted
to average production of 854 kg/day as observed in January 2020. At Empee theproject resulted an increase in the output of the yeast drier (from 2 batches to 6
batches per day).

Semi manufactured goods
Semi Manufactured Goods

UoM

FY2020-21

FY2021-22

Additives

MT

553

680

Annual Report 2022 | 311

We are also aware of the impacts of our packaging material during distribution
and labelling, and we are striving to minimize our waste production even due toour secondary packaging materials. We seek to incorporate sustainable packaging
materials and invest in recycling of such material. Through effective and efficientuse of necessary material, we seek to enhance our cost competitiveness. We ensure
90% recycled contents in our tertiary packaging, while 98% of our primary packaging
materials are reused in FY2020-21.

Packaging material used
Reclaimed products and their packaging material

Packaging Material

UoM

FY2020-21

FY2021-22

Glass bottles

MT

405764515890

Aluminium cans

MT

2449

3517

Crowns

MT

2208

2807

Cardboards

MT

20018

25879

Adhesives

MT

790

944

Delivering high quality products in recyclable bottles, packed with to ensure safedelivery to every customer across the globe is of prime importance for us. Thus,
we strive to increase recycled content in our packaging, ensure that packaging is
not oversized, and explore the use of different materials. We have also successfully
recycled cardboard boxes of 1230 MT in FY2020-21 and 1329.7MT in FY2021- 22.
Out of our entire packaging material being utilized across the breweries, in FY202021 we have reused 65% of our packaging material Bottles while in FY2021- 22 wehave reused 63.2% of our packaging materials. The data has been recorded within
the organization and collected at the brewery level1. Through the adoption of
NNPB technology, enables us to purchase new bottles with reduced weight, better
distribution of glass, thus ensuring better stability, lower breakages and reduced
wastage. Moreover, trademark and design registration of our bottles has optimized
the cost of recycled bottles, among the major cost centers both in financial andenvironmental aspect.

Bottles reused
Number of Reused Bottles2

UoM

FY2020-21

FY2021-22

Bottles reused

Mio. Nos.

700

864

Bottles Reuse %

%age

65

63.2

312 | United Breweries Limited

10.3 Water stewardship
Our Targets

Timeline1

We will achieve fresh water at 2.6HL/HL in water stressed area.

2025

2

We will achieve Water at 3.08hL/hL in other than water
stressed area

2025

3

We will achieve average Overall Fresh Water at
2.9HL/HL across all own Breweries.

2025

4

Water Efficiency – Will achieve 3.03 hl/hl against
3.4 hl/hl in 2021

2025

5

Overall Water Efficiency across all Own Breweries
will be 2.9 hl/hl

2027

Our production is heavily reliant on water, a major externality, which we have hence
identified among our priority material topics. As a responsible corporate we haveensured that we conserve and utilize water resources wisely and efficiently, toensure sustenance in the coming years. Increasing adversity in the availability ofwater, especially in the rural regions where majority of our operations are based,makes water, a resource of utmost importance and focus for UBL1.
1 GRI 303-1 Interactions with water as a shared resource

Annual Report 2022 | 313

The following map illustrates the water status across our breweries:= Water Non-Stress Area
= Water Stress Area
Ludhiana

Dharuhera
Shahjahanpur
ChopankiNalandaKalyani
AjantaElloraOdishaNizam

Mumbai
Golconda

Srikakulam

Nelamangala
Goa

Chennai

Mangalore
EMPEE -Chennai
Chamundi

Palakkad314 | United Breweries Limited

A majority of our breweries are not located in water stressed areas. The decision oflocating our breweries become strategic for business continuity along with reducing
distance to key markets. We ensure that for breweries that are located in semicritical, critical and exploited water stress levels, we implement maximum water
efficient strategies to monitor water input and consumption and reuse, recycle andrecharge water levels across such breweries. We are committing to achieve a water
neutral status by 2025, through our various initiatives and activities towards water
conservation, rejuvenation, restoration, and preservation of our water resources inand around our operational facilities.
We have engaged local communities in various activities of rainwater harvesting,watershed development, watershed restoration, pond restoration and providing
clean water for drinking and domestic purposes1. UBL has active water conservation
projects, operational in the states of Rajasthan, Punjab, Haryana, Maharashtra,
Telangana, Karnataka, and Kerala. Our several water projects spread across thestates have positively impacted the lives of lakhs of people till date. Our cumulative
water consumption during the FY2020-21 was 27.93 Mio HL and 32.83 Mio HL in
FY2021-22.

Sources of water withdrawal
Water withdrawal sources4

FY2020-21

FY2021-22

1

Mio HLHL/HLMio HL

HL/HL

Municipality Water – A

11.6

1.51

16.92

1.78

Tanker Water – B

6.2

0.81

2.05

0.22

Ground Water (Borewell) – C

10.0

1.3

13.86

1.45

Surface Water (External Pond / River) – D

0.0

0.0

0.0

0.00

Total Water: (A + B + C + D)

27.9

3.61

32.83

3.44

Improvement is evident from 3.61 Hl in FY2020-21 to 3.44Hl/HL in FY2021-22
1 GRI 303-2 Initiative for water conservation

2 GRI 303-3 Water withdrawal, SASB FB-AB-140a.1 Total water withdrawn

Annual Report 2022 | 315

Sources of freshwater input
Water Source in – FY 2020’21

Water Source in – FY 2021’22

6%
22%
42%
42%

52%

36%

Municipality Water

Ground Water (bore well)

Our 4R approach to water conservation

ReduceOptimizing
usage of waterand mitigate
unnecessary
consumption of
fresh water

RecycleUsage oftreated water for
supplementary
purposes316 | United Breweries Limited

Reuse
Treatment ofrecovered waterand utilization for
on-site purposes

Recharge
Facilitatedthrough rainwater harvestingfor groundwater
recharge

Tanker Water - Third Party

Our operational water treatment plants (WTP) and effluent treatment plants (ETP)
contribute towards our targets to return water safely to the environment. We
continually incorporate newer technologies in the WTP and ETP such as multiple
effect evaporator and sludge less system, to ensure improvements in treatment
processes.
Our key initiatives into water conservation include:·

Mapping of water usage patterns in the breweries·

Reusing of water in the bottle washing process – utilization of used water inprewashing zone to wash fresh empty bottles, while consuming fresh water only
for the final rinse cycle, leading to reduction in freshwater consumption by 9600KL
per annum.

·

Increasing overall efficiency in the CIP process which contributes towards highest
quantity of freshwater consumption in the breweries. The CIP process is a 6-stepprocess for cleaning, rinsing and sanitizing of various systems and vessels in the
manufacturing process.

·Ensuring usage of only recycled water in the pasteurizer during the sterilization
stage, in the cooling tower, and in the filler vacuum pump in the packing hall to
avoid wastage through draining of water·

Ensuring water recovery in the mashing process and in the boilers used on site·

Recharging of groundwater is promoted through the plantation of green belts
inside the premises and construction of rainwater harvesting ponds. The rainwater
harvesting ponds and structures are equipped with rooftop rainwater harvestingand surface water collection to recharge the bore wells and improving the groundwater table. The rainwater harvesting initiative has contributed towards 51.64% of
recharge while improving the quality of water in the borewells.

Wastewater management
We also work towards managing our wastewater in an efficient manner as it
remains to be a primary area of reduction of freshwater consumption. We ensure
appropriate treatment of wastewater before any kind of discharge can flow
into the natural environment. All our breweries remain equipped with highest
technologies for wastewater treatment with adequate capacities corresponding
to the consumption on site. We ensure full compliance in matters of discharge tominimize and completely neutralize our impact on the environment through ourwastewater discharge. We ensure that the wastewater discharged is completely
within prescribed safety parameters and at times, exceptionally safe within thelimits.
We are aware of the ill-effects of disposal of wastewater without treatment,
and thus we adhere to strict compliance internally as well as externally to thepollution control board regulations. We ensure zero untreated discharges acrossour breweries. To ensure comprehensive compliance to regulatory norms andour commitments towards a healthier planet, we conduct periodic testing of ourwastewater discharges as per applicable environmental standards. In FY2020- 21,
4.03 Mio HL and in FY 2021-22, 4.74 Mio HL of total water consumption in our
processes are recycled and reused as compared to 32% in 2017-18. The ETP & STP
are available at the Breweries and are complied in line with the central Pollution
control Board requirements.

Annual Report 2022 | 317

Wastewater
Wastewater parameters1

FY2020-21

FY2021-22

Mio HLHL/HLMio HL

HL/HLTotal wastewater generated - Inlet for ETP

19.6

-

22.0

-

Total wastewater discharged - From ETP

15.6

-

17.3

-

Total water recycled and reused - Outlet
RO

4.0

0.52

4.7

0.50

1 GRI 303-4 Water discharge, 306-1 Water discharge by quality and destination

Sources of water discharge
Water discharge
Total Water Discharge

FY2020-21

FY2021-22

Mio HLHL/HLMio HL

HL/HL

15.6

2.02

17.3

1.81

Through our wastewater management process, we aim to bring out significant
changes in our water usage and efficiency. Since all our breweries are equippedwith appropriate wastewater treatment plants, we are significantly mitigating our
impact on the environment by treating water before releasing it into the ecosystem.
We have ensured that our wastewater is collectively utilized to the maximum extent
on our operational facility itself for various purposes of gardening and horticulture.
We have not experienced any incidents of spillage across our operational sites.
Zero liquid discharge
In the reporting year, we have built Zero Liquid Discharge system in twoof ourbreweries inUBR Rajasthan and UBC Chennai, Tamil Nadu. We have built andoperating Reject Management System (RMS) to handle the high dissolved solids
concentrated RO (Reverse Osmosis) reject water. The RMS helps to avoid dischargeof these high dissolved solid water into land in the following breweries at Aravalli(84 KLD), UB Chennai (60 KLD), Palakkad (25 KLD), Srikakulam (50 KLD) and Empee
Chennai (25 KLD). In the upcoming year two more RMS will be setup at Ludhiana
and Dharuhera.

318 | United Breweries Limited

10.4 Waste management
Our Targets

Timeline1

Zero Waste to Landfill: All UBL production sites will be at least
95% waste to Landfill free

2023

2

Zero Waste to Landfill: All UBL production sites will be at least
100% waste to Landfill free

2025

Waste management persists to be one of the largest problems that our nation is
faced with. All eyes turn to us as a large corporate to ensure complete adherence
to all relevant waste management rules, policies, and programs, to ensure
minimization of waste generated along with maximizing opportunities for reusing
and recycling of waste generated throughout our business activities. Across amajority of our breweries, we are currently using agro-waste fuel, which stands tobe energy efficient in terms of consumption of purchased electricity.
Our manufacturing process generates a variety of wastes that are both hazardousand non-hazardous in nature. We ensure appropriate segregation at source for
effective repurposing. For the waste that we cannot dispose as a business on ourown, we ensure to transfer it to the respective authorities or management bodies
at a local or regional level as per the mandates of the respective state pollution
control boards.

Annual Report 2022 | 319

Hazardous waste management process­­

Process

Disposal Method

1. Collection: in barrel at
the source.

1. Collection: in barrel
at the source.

2. Storage: In barrel atsecured Hazardous waste
storage yard.

2. Storage: In barrel
at secured Hazardous
waste storage yard.

3. Transport: Special
Vehicle along with TREM
Card & Manifest.

3. Transport: Special
Vehicle along with
TREM Card & Manifest.

Filters
contaminatedwith oil1. Collection: Colour
coded bins to segregate
the waste at source.
2. Storage: In PE bags at
secured Hazardous waste
storage yard.
3. Transport: Special
Vehicle along with TREM
Card & Manifest.

Incineration/Landfill
at TSDF (Treatment
Storage Disposal
Facility) site (SPCB*
approved)

Wastes /Residuescontaining Oil- Oil-Soaked
Cotton Waste

1. Collection: Colour
coded bins to segregate
the waste at source.
2. Storage: In PE bags at
secured Hazardous waste
storage yard.
3. Transport: Special
Vehicle along with TREM
Card & Manifest.

Incineration/Landfill
at TSDF (Treatment
Storage Disposal
Facility) site (SPCB*
approved)

Used / Spent oil

Unit

FY202021

FY202122

MT

1.3

12.1

MT

1.1

1.8

Non-hazardous waste management process
NonHazardous
Waste
Corrugated Box/ Cardboard

Metal Scrap(MS, GI, SS &Aluminium)

Process
1. Collection: directcollection.
2. Storage: in bale/
bundle3. Transport: normal
vehicle.
1. Collection: directcollection.
2. Storage: In waste
storage yard.
3. Transport: Normal
vehicle.

320 | United Breweries Limited

Disposal Method
1. Mode: Selling
2. Treatment:
Recycled as carton/
cardboard
3. Disposal: Nil
4. By: UBL vendor
1. Mode: Selling
2. Treatment:
Recycled as steel
3. Disposal: Nil
4. By: UBL vendor

Unit

Amount generated
FY2021FY2020-21
22

MT

1230

1329.7

KG/HL

0.16

0.14

MT

761

388.4

KG/HL

0.1

0.04

Plastic Waste /HDPE bags

HDPE
Containers

Reject Bottles

Paper &
Stationery /Shredding Pape
(Craft)Reject Crowns

Reject Cans

Spent GrainETP Sludge

1. Collection: directcollection.
2. Storage: In waste
storage yard.
3.Transport: Normal
vehicle.
1. Collection: directcollection.
2. Storage: In waste
storage yard.
3. Transport: Normal
vehicle.
1. Collection: Cullet
trolley to segregate thewaste at source.
2. Storage: In cullet
storage yard.
3. Transport: Normal
vehicle.
1. Collection: Colour
coded bins to segregate
the waste at source.
2. Storage: In waste
storage yard.
3. Transport: Normal
vehicle.
1. Collection: directcollection.
2. Storage: In waste
storage yard.
3. Transport: Normal
vehicle.
1. Collection: directcollection.
2. Storage: In waste
storage yard.
3. Transport: Normal
vehicle.
1. Collection: directcollection.
2. Storage: Unloaded in
Vehicles Directly
3. Transport: Normal
vehicle.
1. Collection: Directcollection.
2. Storage: Unloaded in
Vehicles Directly
3. Transport: Normal
vehicle.

1. Mode: EPR
2. Treatment:
Recycled
3. Disposal: Nil
4. By: UBL vendor(IPCA)

MT

1477

1318

KG/HL

0.19

0.14

MT

391

109

KG/HL

0.05

0.01

MT

17718

22157

KG/HL

2.29

2.32

MT

418

201

KG/HL

0.05

0.02

1. Mode: Selling
2. Treatment:
Recycled
3. Disposal: Nil
4. By: UBL vendor

MT

23.2

33.8

1. Mode: Selling
2. Treatment:
Recycled
3. Disposal: Nil
4. By: UBL vendor

MT

28.6

31.7

1. Mode: Selling as
Cattle feed
2. Treatment:
Recycled
3. Disposal: Nil
4. By: UBL vendor

MT

104.4

131.1

1. Mode: Paying forLand fill disposal
2. Treatment:
Disposal
3. Disposal: Landfill
4. By: PCB approved*TSDF site

MT

7733

9531

1. Mode: Selling
2. Treatment:
Reused
3. Disposal: Nil
4. By: UBL vendor
1. Mode: Selling
2. Treatment:
Recycled
3. Disposal: Nil
4. By: UBL vendor

1. Mode: Selling
2. Treatment:
Recycled
3. Disposal: Nil
4. By: UBL vendor

TSDF – Treatment storage disposal site.

Annual Report 2022 | 321

During FY2020-21, we had generated 29893 MT of waste of which 22151 MT wasdiverted from disposal while 7733 MT was diverted to disposal. While in FY202122, we had generated 35248 MT of waste of which 25699 MT was diverted from
disposal while 9531 MT was diverted to disposal.

Initiatives undertaken for waste management1

We have centered our focus and priority towards sustainable packaging initiatives.
Our product is delivered to our consumers in glass bottles, aluminum cans,stainless steel, or aluminum kegs while we use carton boxes and crates for bulk
transportation of our products, which constitutes the secondary packaging in the
lifecycle of our products. 2
Bottles have always been our largest capital investment. We are proud to state that
100% of our unit case volume is delivered in recyclable bottles, and this remains a
key focus area for our business. With extensive market research, we have been able
to minimize our expenditure on cost of bottles without compromising on stability
and breakage threshold. We are tirelessly involved in research and development
to understand various products that can replace our current product packaging
materials, through a complete life cycle analysis of suitable alternatives to ensure
minimal compromise on quality and strength while ensuring maximum reductionof environmental harm.
We have also been exploring innovations in the secondary packaging for our
products as well; towards introducing more sustainable packaging alternatives
during transportation and distribution.
1 GRI 306-2 Management of significant waste-related impacts; SASB FB-AB-410a.2 – Discussion of strategies toreduce the environmental impact of packaging throughout its lifecycle
2 GRI 306-3 Waste generated
GRI 306-4 Waste diverted from disposal
GRI 306-5 Waste diverted to disposal

10.5 Energy management
SASB FB-AB-130a.1 Energy management

Our Targets

Timeline

Transitioning to total renewable energy: 82% with:1

I. 40% of total electric energy from renewable sources
II. >98% of total thermal energy from renewable sources(Agro based fules)

2023

Transitioning to Total Renewable Energy: 85% with2
3

I. 60% of total electrical energy from Renewable Sources)

II. >98% of Thermal Energy from Renewable SourcesAgribased Fuels)

Work towards RE100. (Subjected to States Policies, Rules andRegulations)322 | United Breweries Limited

2026
2030

We understand that the future of our business prospects lies in incorporating clean,renewable energy as a primary source of electricity generation for our operations,to ensure a sustainable and economic growth. Access to energy is quintessential
for our manufacturing processes and thus our business growth. Through ourinvestments to increase the share of clean energy sources that propel our businessgrowth, we contribute to the global combat to mitigate climate change.
Our total energy consumption during FY2020-21 was 1415 TJ and 1645 TJ in FY202122, Through various technological interventions and resulting increase in process
efficiencies, we have reduced energy consumption. Overall, our emission intensity
is 0.02 for FY2020-21 & 0.19 for FY2021-22
Our commitment to transition into a low carbon economy is evident from ouradoption of clean energy such as wind and solar rooftop.
We have been working on various Improvement initiatives on Power and Thermaland some of the examples are depicted below. These initiatives not only improve
the operational Efficiencies, but impact on emission reduction and supports in ourjourney towards Zero Emission.

SectionKPI

Improvement Description1

Benefits
in GJ/annum
FY2020-21

Karnataka

ThermalThermal energy consumption reduction in wort kettle.

3457

Rajasthan

ThermalReduce variation in evaporation ratio in wort boiling

405

Maharashtra

ThermalTo reduce steam consumption in wort kettle from 4431 Kg/Brew to 3931
Kg/Brew

2774

OdishaThermalReduction of thermal energy consumption in bottle washer

932

Telangana

ThermalReduction of Power consumption in Lighting

307

1 GRI 302-1 Energy consumption within the organization

SectionKPI

Improvement Description1

Benefits in
GJ/annum
FY2021-22

MumbaiPower

To reduce waste heat at Co2 Vaporizer (Utility)

204

RajasthanPower

To reduce energy consumption in Air Compressor.

641

Karnataka

Power

Power consumption reduction in boiler house

1096

Karnataka

ThermalReduction in thermal Consumption at Wort Kettle in Brewing Process

154

KeralaThermalSteam consumption reduction @ pasteurizer390

1 GRI 302-1 Energy consumption within the organization

Annual Report 2022 | 323

Sources of energy
FY2020-21

Emission

FY2021-22

TJ

MJ/HL

TJ

MJ/HL

Coal

75

9.7

90

9.5

HSD

56

7.3

32

3.3

Furnace Oil

25

3.2

31

3.3

LPG

0.39

0.1

0.9

0.1

Electricity

224

29.0

258

27.1

Total

380

49.1

411

43.2

The Energy consumption absolute figures show the rise however wrt. volume there is visible
improvement in the Energy Consumptions

Sources of renewable energy
Emission

FY2020-21

FY2021-22

TJ

MJ/Hl

TJ

MJ/Hl

Wind Without REC

56

7.3

49

5.1

Solar Without REC

40

5.2

74

7.8

Briquettes

262

33.88

308

32.31

Rice husk

676

87.41

802

84.14

The percentage of renewable thermal energy (including rice husk, saw dust andbriquettes) that UBL was able to harness during the reporting period is 96.1% in
FY2020-21 and FY2021-22 1. UBL’s own units consumed 30.0% electricity generated
from renewable sources in FY2020-21 and 32.42 in FY2021-22 as compared to15.36% in 2017-18. The renewable energy usage is equivalent to carbon footprintof 25,304 tons of CO2 in FY2020-21 and 32350tons of CO2 in FY2021-22.
For this reporting year, we have included our Scope 1 & Scope 2 emissions only. We
are planning to report on our Scope-3 emissions from the 2024 onwards.

1 SASB FB-AB-130a.1 Energy management

Reduction in power consumption
Manufacturing processes demand a large quantity of energy input to ensure
efficient functionality of the machines and systems across operations. Significant
power reduction initiatives in refrigeration (Ellora), RAC plant (Dharuhera) andair compressors (Aravalli) have contributed towards energy savings.

324 | United Breweries Limited

Reduction in steam consumption
Pasteurization is a process in beer manufacturing where the beer is subjected
to heat treatment to mitigate the risk of unwanted growth of microorganisms
and to prolong the shelf life of the product. During this process there is a certain
amount of steam utilized in the bottle packaging. At Chamundi, reduction wasachieved in the bottle pasteurizer, through installation of new line. The entire
process efficiency enabled an annualized savings potential of INR 17.5 lakhs .

At our Chopanki brewery we have also carried out recovery of heat from wort
vapor to generate hot water which is in turn used to increase the wort temperature
before boiling, resulting in a reduction in the steam consumption in wort kettle;
thus, improving the boiler efficiency. This has resulted in saving 367 MT of steam
annually.

GHG Emissions
Our Targets

Timeline

1

Production Emission Reduction (Scope 1 & 2 ) by 29% over 2018base at Own Breweries

2022

2

Begin Reporting on our Scope 3 Emissions in our annual
reports

2024

Our direct emissions are accounted from burning of fossil fuels and rice husk,
fermentation, brewing and a few other processes in our operations; while the main
source of our indirect emissions is the offsite generation of purchased electricity. We
have worked efficiently towards adopting renewable energy while also incorporatingenergy conserving technologies across our breweries. We have installed Plate Heat
Exchanger (PHE) technology in our manufacturing process as well to ensure thatheat and steam produced during manufacturing is reused within the processes.
Our average emission intensity1 is 0.033 tCO2eq/hl in FY2020-21 and 0.031 in FY2021-22.
1 GRI 305-4 GHG emissions intensity

Emission

FY2020-21

FY2021-22

tCO2 eq.

CO2e Kg/Hl

tCO2 eq.

CO2e Kg/Hl

Scope I

103852

13.43

120661

12.66

Fuel Consumption

10342013.37120305

12.62

ODS

432

0.06

356

0.04

Scope II

49142

6.35

56605

5.94

Annual Report 2022 | 325

Air emissions
The stack emission1 parameters: SOx, NOx, and SPM, are regularly monitored. We
ensure that the values are monitored and maintained within the permissible limitsof the central and state pollution control board.

Stack parameters recorded
Stack Parameters

UoM

FY2020-21

FY2021-22

NOx

MT

93

220.5

Sox

MT

351

121.10

SPM

MT

57

140.80We also monitor our ODS2 (ozone depleting substances) as a part of routine
maintenance activity of air-conditioning systems. We have obsoleted the use of ODS
substance in our Golconda brewery and are planning for phased implementation
across all our breweries.
1 GRI 305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions
2 GRI 305-6 Emissions of ozone-depleting substances (ODS)ODS monitoring recorded
ODS
R22

Unit

FY2020-21

FY2021-22

kg

0.245

0.202

tCO2 eq.

432.1

355.8

10.6 Biodiversity
Rising threat to our biodiversity due to increasing population, demand of land
resources, environmental degradation, and exploitation due to overutilization,
among other threats, has led to a need to preserve our existing biodiversity.
Out of our 20 operational facilities only at Khurda (UB Odisha )1 has their operations
significantly located close to a protected/reserved area. Our operations at UB
Odisha are well within permissible limits of operation to prevent environmental
damage or any hazards to the biodiversity, and our operations are not closely

1 GRI 304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of highbiodiversity value outside protected areas

326 | United Breweries Limited

linked or dependent on the biodiversity rich regions around our breweries2. To thebest of our knowledge, we are confident that there are no IUCN Red List species andnational conservation list species that are affected by any of our operations acrossall locations3 .
As a part of our projects directed towards water conservation and rejuvenation,
we have also conducted tree plantation drives across Chennai and Aurangabad. At
Chennai we have undertaken a plantation drive of 2000 saplings along with removalof invasive shrub species - Prosopis juliflora, from 100 acres of shared land.
2 GRI 304-2 Significant impacts of activities, products, and services on biodiversity
3 GRI 304-4 IUCN Red List species and national conservation list species with habitats in areas affected byoperations

Our Project Oxygen Hub at Waluj MIDC, Aurangabad in partnershipwith Canpack India Pvt. Ltd. and Prayas Foundation in Waluj Maharashtra,
was undertaken on a large scale for tree plantation through adoption of
Miyawaki technique of afforestation. We take pride in our achievement ofcreating Maharashtra’s biggest man-made native forest to restore biodiversity
functioning in the identified region. An overwhelming plantation of 75,000 trees
consisting of more than 73 native species was successfully implemented ona stretch of about 5 hectares1. We are building our project on the hope that
our saplings will soon build a dense forest to contribute towards an improved
ecosystem and beneficial biodiversity.
1 304-3 Habitats protected or restored

10.7 Climate resilient operations
Our Targets

Timeline

1

Identifying key sustainability and climate risks and its
potential impact on the organization.

2023

2

Formulating Risk management action plan to deal with theidentified risks

2025

Our array of climate resilient activities and operations have ensured that we
maintain our growth and business while incorporating sustainable and efficienttechnologies across various operations.

Annual Report 2022 | 327

Reduction in carbon-dioxide (CO2) consumption
The initiative to minimize CO2 consumption was carried out at the brewery
level at Srikakulum, Nizam, Goa, Empee Chennai and UB Chennai. UBL has
implemented several processes to maximize the usage of CO2, produced
during the fermentation process, thus reducing the usage of bought in CO2.
This CO2 is captured and recovered during the fermentation process throughan elaborate recovery system. The recovery was facilitated through a unified
problem-solving route to understand the process flow and address observed
anomalies. Key areas of focus across the manufacturing processes in theCO2 reduction initiative were the filtration area, fillers, bottling and canning
section, and functional changes in the operations of the CO2 generation andrecovery plants. Replacing old parts, recovery pipelines and installation ofadequate technology in the manufacturing systems improved the process
efficiency of the CO2 recovery plant.
It is evident that one of the major disruptions caused due to climate change is an
imbalance in the availability of water resources. Our water consumption activities
have hence been aligned to ensuring recycling and reuse of water to its maximum
extent possible, within our organizational boundaries. We have also undertaken
several watershed development projects as a part of our community outreachprogramme, to increase and maintain water supply across communities in ouroperational locations. We further have rainwater harvesting facilities across all ouroperational locations.
Our barley sourcing strategy also contributes towards strengthening our businessresilience. It has enabled our independence in terms of acquiring barley fromcontract farmers to reducing the dependence on the traditional six row systemof agriculture. We are focused on increasing our two-row barley production from
20,000 MT in the FY2020-21 to 1,250,000 MT by the year FY 2023-24 . Encouraging
our research and development along these lines and investing in creating newer,
more climate resilient varieties is critical for us towards ensuring independence
in sourcing of raw materials. We are further venturing towards attaining reduced
sugar content in our brews. Originally, we source sugars from sugarcane which has
been the most traditional choice. We plan on expanding our bounds and sourcing
sugars from maize or rice crops and current studies are in the pipeline to explore
the opportunities in doing so.
UBL has always promoted locally sourced produce, except for resources that weessentially need to import in the absence of a possible alternative. This reduces
the carbon footprint of our business activities while promoting local produce andempowering our farmers.
We are ensuring that our water and carbon dioxide utilized in the manufacturing
process across all our breweries is thoroughly reused to its safest possible extent.
We are also reusing at least 10% of the energy that is created in our processes tomaximize the energy consumption across our locations.
Attaining sustainability in our packaging is of utmost importance and stands out asa priority area. For our tertiary packaging material, we have successfully offset useof virgin materials by 90% in our cartons. We are currently recycling more than 98%
of our glass bottles and aluminum crowns; and 90% of our cans . We aim to usebottles that require lesser energy consumption, have a lower carbon footprint, andjustify our product while upholding consumer sentiments

328 | United Breweries Limited

Annual Report 2022 | 329

11.0
People Engagement
We at UBL acknowledge that our human capital is among the key aspects of ourbusiness growth. Our Human Resources (HR) personnel are entrusted to recruit thebest skilled and intellectual minds in the industry, to retain our existing skilled talentpool, and to offer adequate trainings to enhance the capabilities of our organization,at large. We take cognizance of our HR guidelines; which are compliant with all
relevant regulations, and enable us to provide consistent, cost-effective, and timebound HR services to all our employees; which encapsulates the essence of ourorganizational vision and core values. We continuously strive to develop a congenial
environment for the inclusive and organic growth of all our diverse employees. We
are an equal employment opportunity provider and require the same from ourbusiness partners. We seek to provide for a psychologically safe workspace, which
promotes mutual respect thus fostering inclusivity1.
We have policies and monitoring processes in-place that ensure us to effectively
tackle all employee related concerns. During the reporting period, no incidence of
substantiated discrimination or sexual harassment was reported. Employee safety
is of prime importance for us at UBL, hence is among the tops 5 material topics forthe reporting period. Our health and safety procedures are aimed at achieving thetarget of zero lost time incidents across all our breweries.
We acknowledge the efforts of all our employees, in effectively contributing to theorganizational growth, despite the pandemic induced restrictions. Our employee
benefit programme for permanent employees covers a retirement plan, gratuity
plan, and absence compensation benefits based on leave accrual individually. We
have also made a provision for day-care facilities for children at certain operational
locations. We also provide annual health checkups for the employees and havecovered our employees under our group Mediclaim policy applicable for theemployees and their family2. Our prompt development and implementationof health and safety protocols, which were compliant with COVID protocols, isillustrative of our commitment to employee wellbeing and thus effective operations.
Further various risk mitigation measures such as revamping of air conditioning
and ventilation systems, organizing company-wide vaccination drives, conducting
wellness/mental health programs etc. have been implemented across all the plants.
1 GRI 103-2 The management approach and its components, 103-3 Evaluation of the management approach
2 GRI 401-2 Benefits provided to full-time employees that are notprovided to temporary or part-time employees

330 | United Breweries Limited

11.1 Employee health and safety
Our Targets
Create leadership capacity to drive zero fatality and zero
serious accidents at work.

Timeline

Ongoing

The physical and mental wellbeing of our employees is of utmost importance tous. We are committed to minimizing the risk of accidents, injury, and exposure
to health risks. We consider health and safety as an important management
commitment that requires a culture of continual improvement. Our corporate
level HSE committee supports our brewery operations in integrating health andsafety standards into the plant’s operational planning, business decisions, and daily
operation activities. Based on each brewery’s health and safety performance, theplant specific health and safety committee design their own annual improvement
plans, which include goals and measurables targets. The progress made towards theestablished targets is monitored periodically by the plant and corporate level healthand safety committee. We constantly monitor and review our safety performances
and incorporate innovative ideas for improving our safety record.
Health and safety are always our top priority. We have established our health andsafety procedures in line with the international standards OHSAS 18001, and weare planning to develop and implement our health and safety management systemaligned with ISO 45001 starting from the next financial year. We carry out safety
inspections and various safety initiatives at all our breweries. Our corporate level
health and safety guidelines apply to all the employees working at UBL, including
the contractual employees. We have developed a Health and Safety strategic planconsidering all the elements to ensure our goal of zero fatalities in the workplace.
Our health and safety policy articulates our commitment towards achieving healthand safety related targets1.
We have appointed a health and safety officer at unit level who facilitates andmonitors the process is for identifying the hazards and risks specific to theiroperation. For each incident, a formal report is prepared with incident type androot cause. This report is also included in the monthly report and presented in thesafety committee meetings.
During this year, we worked upon key strategic initiatives to enhance and improve
our health and safety practices. With a total of 14.47Mio man-hours worked in
FY2020-21 and 15.7Mio man-hours worked in FY2021-22.
We have a robust emergency preparedness and response plan to ensure
responsiveness in case of any emergencies. The plan also provides guidance on
preventing or mitigating significant negative occupational health and safety impacts
that are directly linked to our operations. We deploy appropriate control measures
to effectively manage the health and safety risks in plants. Based on our emergency
response plan, we conduct periodic mock drills. This helps us in identifying our
preparedness against any hazards at the very grassroot level2.
1 GRI 403-8 Workers covered by an occupational health and safety management system
2 GRI 403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business
relationships

Annual Report 2022 | 331

We have established a proactive safety culture, by defining health and safety
objectives & goals while ensuring continual improvement. Our management leaders
drive a cultural change and help us to achieve our health and safety goals. To
encourage our employees and inculcate proactive safety culture, we have initiatedvarious safety initiatives in the plants. We appreciate the employees for theiroutstanding performance, that significantly contributes to achieving operational
excellence. The safety performance indicators are as under 3.
3 GRI 403-9 Work-related injuries, 403-10: Work-related ill healthReported cases of OHSOHS Reported Cases

UoM

FY2021

FY2022

Fatality - Contract personnel

Nos.

0

0

Fatality - Company Personnel

Nos.

0

1

Serious Accident - Contract personnel

Nos.

4

0

Serious Accident with Long term effect - Contract personnel

Nos.

0

0

Serious Accident - Company Personnel

Nos.

1

4

Serious Accident with Long term effect - Company Personnel

Nos.

0

0

Lost day Rate - Company Personnel (Breweries)

Days

23

98

Total Manpower

Nos.

8906

11176

accident
per million
Manhours

0.045

0.143

Accident (Absolute value)

Accident (Relative value)

Accident Frequency Rate - Company Personnel

UBL believes that training its employees in health, safety, and environment (HSE)is essential in providing a safer workplace while ensuring a positive impact on theenvironment from our operations. We have curated our training content to makeit more relevant with changing times. Our approach is to empower our workforce
with all the relevant knowledge and training to execute work safely. Our safety-first
approach is a testimony to this. All our new recruits are trained mandatorily on HSE
which conforms to the requirements of ISO 45001. Our annual refresher courses
are a part of mandatory training which all our employees must undertake. All our
employees must mandatorily undergo trainings4 on basic safety awareness, electricalsafety, material handling, behavior-based safety, LOTO, safety management system,
MOC, PTW, risk assessment, emergency response plan, fire safety, machine guarding
requirement, safety in confined space, work at height safety, chemical safety, accident
prevention. Below tables provides the HSE related training details
4 GRI 403-5 Worker training on occupational health and safety

332 | United Breweries Limited

Training
Total Training Man-days - Permanent Employees +Contract Employees

UoM

FY2021

FY2021'22

Man-days

5.78

6.34

11.2 Workforce management
As per a recent market study, the alcohol industry in India is expected to grow at a
CAGR of 6.8 per cent till 20231, wherein the lower middle and upper middle-income
11.2
Workforce
managementclass customer
sectorwould contribute to about 70 percentage growth over the
next decade. To cater to this ever-increasing demand, we are on the continuous
look-out for resources with key talents and skill sets while constant initiatives are
implemented to retain veterans and existing workforce. Our initiatives promote
employees’ creativity, enhance their capabilities to support future opportunities
and challenges for their benefits and long run for the business. We motivate our
employees and ensure that we continue to attract and retain talented professionals.
We ensure that all employees are treated with dignity and receive fair remuneration
with no discrimination of any sort. Below table is illustrative of our workforce
breakup for FY 2020-21 and 2021-22.

Contract
Employees(Out-sourced)

Permanent
Employees(On Payroll Workmen)

Permanent
Employees(On Payroll Staﬀ)

1 http://icrier.org/pdf/ppt-22-July-21.pdf

FY2020'21 265

972 184

FY 2021'22 173 893 159
FY2020'21 259

971

FY 2021'22 223

1092 297

283

FY2020'21

2528

FY 2021'22

3024

3408

> 18 to 29 Years

420
4345

30 to 49 years

586

50 to < 58 years

Permanent
Employees(On Payroll Workmen)

Permanent
Employees(On Payroll Staﬀ)

Figure 14: Breakup of workforce as per age category in 2020-21 and 2021-2297
FY2020'21

1322

FY 2021'22

1120

99

105

FY2020'21

1475

FY 2021'22

1569

38

Annual Report 2022 | 333
43

P
E
(O
Contract
Employees(Out-sourced)

FY 2021'22 223

1092 297

FY2020'21

2528

FY 2021'22

3024

420

3408

4345

> 18 to 29 Years

30 to 49 years

586

50 to < 58 years

Breakup of workforce as per age category in FY2020-21 and FY2021-221
1 GRI 102-8 Information on employees and other workers

Contract
Employees(Out-sourced)

Permanent
Employees(On Payroll Workmen)

Permanent
Employees(On Payroll Staﬀ)

Figure 14: Breakup of workforce as per age category in 2020-21 and 2021-2297
FY2020'21

1322

FY 2021'22

1120

99

105

FY2020'21

1475

FY 2021'22

1569

38

43

FY2020'21

849

5123

FY 2021'22

1310

7029

0

1000

2000

3000
Male

4000

5000

6000

7000

8000

9000

FemaleFigure 15: Gender wise breakup of workforce in 2020-21 and 2021-2296

http://icrier.org/pdf/ppt-22-July-21.pdf
GRI 102-8 Information on employees and other workers

Number of new Joinees in the reporting period

97

Reportingyear

New Joiners1
Employee
category

UoM

18 to 29
years

30-50
years

>50 to 58
years

Male

FemaleFY202021

FY2020-21

Permanent
Employees (OnPayroll - Staff)

No.

44

21

0

57

8

65

FY2021-22

Permanent
Employees (OnPayroll - Staff)

No.

34

45

1

38

42

80

1 GRI 401-1 New employee hires and employee turnover

334 | United Breweries LimitedNumber of new joinees in the reporting period

Employee
category
Permanent
Employees(On Payroll Staff)

UoM

Reportingyear

Workforce Turnover (include cases of retirement, transfer, and death)18 to 29
years

30-50
years

>50 to 58
years

Male

FemaleTotal

FY2020-21

41

83

23

134

13

147

FY2021-22

68

164

54

248

38

286

FY2020-21

12

15

34

57

4

61

FY2021-22

30

20

27

76

1

77

FY2020-21

53

98

57

191

17

208

FY2021-22

98

184

81

324

39

363

No.

Permanent
Employees(On Payroll Workmen)

No.

Total in
FY2020-21

No.

We encourage our employees to avail of their parental leave as required to ensure
their personal welfare as and when required. Four employees availed of parental
leaves during the reporting period.1.
1 GRI 401-3 Parental leave

Record of parental leave
FemaleParameters

2021

2022

Number of employees that were entitled to parental leave

93

105

Number of employees who took parental leave

4

5

Number of employees who returned after their parental leave ended

3

5

Number of employees who took parental leave in previous year2

4

Total number of employees retained 12 months after returning to work following aperiod of parental leave

2

3

Return to work rate (%)

100

75

Conducive work environment is provided for ensuring efficient output, while relevant
trainings help enhance skill sets resulting in optimal performance of workforce.
Providing performance feedback and career development is a norm at UBL. We
periodically provide performance feedback to our employees and provide career
counselling to our employees. In the reporting year, we have provided performance
feedback to all our regular employees.

Annual Report 2022 | 335

11.3 Skill development at UBL
Our focus is to keep our employees inspired and engaged with meaningful work,
challenging development opportunities, and rewarding careers. Our Learning &Development (L&D) strategy has been formulated to ensure employee growth goals
are achieved along with our business goals. We support and encourage employees’
continuous learning by offering job-specific, classroom training, online training,
reimbursement towards higher education and training on skill development1. Plant
head along with the human resource team share the responsibility for identifying
training needs of employees. In FY2020-21, average number of hours of employees’
training was 27,470 hours with 2522 and 2366 employees attended the various
training programs listed below in FY2020-21 and FY2021-22
1 GRI 404-2 - Programs for upgrading employee skills and transition assistance programs
2 GRI 404-2 Programs for upgrading employee skills and transition assistance programs

336 | United Breweries Limited

SeniorManagement

COBC Ethics workshop and People Leadership Workshop

MiddleManagement

Analytics for Business Impact, Managing performanceworkshop, Managing Relationship workshop,
Manufacturing competency Development Batch 2,
Business orientation, Sales Analytics workshop

ICC Team
Members
All Employees

Internal Compliant CommitteeTeam Training

Prevention of Sexual Harassment Training

Our policy on equal opportunity mandates us to maintain a diverse workforce,providing equal opportunities to all irrespective of gender, race, caste, religion, sexual
orientation, nationality, and community. We regularly sensitize our employees on
aspects of diversity and inclusivity. We ensure a safe workplace for all, free fromharassment. We have a strong mechanism at both unit level and organizational
level to deal with any untoward incidents of harassment.
We offer our employees market-driven and competitive remuneration and a clear
career path that inspires them to achieve their goals. We have formal and informal
channels of communication through which the employees can suggest how best
to have a pleasant work environment for optimum productivity and employee
satisfaction. To enable employees to maintain a stable work life balance, we
regularly engage with them through surveys, emails, events, town-hall meetings,
trainings, rewards and recognition programs and workplace activities. We maintaingender pay parity across all our roles1. We are proud to announce that there havebeen no incidents of discrimination and no requirement for any corrective actions
to be taken during our reporting period2.
We have one female board member as per the regulatory requirements. We have set
an ambitious target to have at least 2 female board members by 2025 and achieve
gender parity at board level by 2030. We are committed to promoting gender parity
at our corporate office by 2030. Operating in a restrictive regulatory environment
and a social taboo against female workforce participating in breweries proves to bechallenging in achieving gender parity at our brewery level. We are working our way
to navigate through these challenges and achieve our targets by 2030.

1 GRI 405-2 Ratio of basic salary and remuneration of women to men
2 GRI 406-1 Incidents of discrimination and corrective actions taken

Annual Report 2022 | 337

11.4 Human rights
Our Targets
Ensuring 100% continual compliance on human rights policy atboth unit level and organizational level.

Timeline

Ongoing

UBL is committed to protecting human rights in its entire organization. We have apolicy on human rights and the policy applies to all employees, trainees, interns,
consultants, contractors, including visitors to the company.
We train our employees on various aspects of human rights, all our employees
are trained in FY2020-21 and FY2021-22 . Our human rights policy also covers
wider aspects of diversity and inclusion, as well as equal opportunity. We have also
recently developed guidelines for our engagement of women contract workers inour breweries to safeguard the safety of women working across our operational
location. We have also extended a Flexi time policy for women to effectively manage
their work-life balance if they complete a total of 8 hours at work.
UBL has a standard operating procedure (SOP) for its vendors and service providers
which focuses on fair treatment, human rights, good labor practices, environmental
conservation, health, and safety. We are in process of developing a detailed ESG
compliant supplier code of conduct by the next financial year. We are presently in theprocess of evaluating various potential human rights risks across our supply chain.
We have also ensured that we extend our training in human rights procedures andpolicies for our security personnel across locations. 100% of our security personnel
across all operational locations have been trained during FY2020-211. During thereporting period, none of our operations have been subjected to human rights
impact assessments or reviews2.
In the following years, we are planning to invest a significant amount dedicated for
improving the condition of human rights throughout our supply chain and make itcomparable to the world’s best practices3.

Prohibition of Child Labor and Forced Labor
UBL is committed towards ensuring good labor practices in all the plants. The risk ofencountering conditions of child labor or forced/bonded labor mainly arises acrossour supply chain operations, especially in contract employees of the organization.
We always ensure that no person below the age of eighteen years is employedat the plant premises. Forced or compulsory labor is strictly prohibited in all theplants and so is the association with vendors and suppliers who employ child and/or forced labor. We have recognized areas where there is a significant risk of childlabor and ensured mitigation measures to refrain from recruiting child labor. We
evaluate our suppliers, distributors, and other key members of our value chain on
1 GRI 410-1 Security personnel trained in human rights policies or procedures
2 GRI 412-1 Operations that have been subject to human rights reviews
or impact assessments
3 GRI 412-3 Significant investment agreements and contracts that include human rights clauses or that
underwent human rights screening

338 | United Breweries Limited

our guidance note for suppliers which ensures zero presence of child labor, forced
and/or bonded labor. We do not have any young labor engaged at all, especiallyin any sort of hazardous work at our breweries. We even engage with our larger
stakeholder group to sensitizing against practices of child labor. We strongly
discourage forced and compulsory labor. Within our direct operations we ensure
all our workforce are associated with us at their will. Our human rights policy acts asa guidance for us. We also evaluate our suppliers based on their compliance to our
supplier code of conduct where human rights are an integral part4.

Freedom of Association and collective bargaining
UBL recognizes and respects the right of its employees to exercise their freedomof association and collective bargaining. We regularly interact with our employee
unions for employee grievance redressal and various other employee welfare
discussions.
4 GRI 408-1 Operations and suppliers at significant risk for incidents of child labor, GRI 409-1 Operations andsuppliers at significant risk for incidents of forced or compulsory labor

11.5 Diversity and Inclusion
Our Targets

Timeline1

We will establish Gender Pay Parity

2024

2

We will have 30% of our New Joinees from 2023 to begender diverse

2023

3

25% Women in our Senior Managers ( JG15 and above)

2025

4

Two women Board members

2027

5

We will have Overall 25% women representation acrossthe company

2030

Annual Report 2022 | 339

At UBL, we have always encouraged diversity and inclusion across all business operations. We
believe that there is no specific job that needs to be assigned to any specific gender,
race, caste, religion, sexual orientation, nationality, or community. As a business it isextremely essential for us to promote a diverse culture to bring in varied opinions
and expertise into the organization. We aim to become a diverse workforce in theyears to come, and our journey towards the same has already begun.

We must ensure that our inclusive culture begins from the roots of our organization
to allow our people to express themselves and develop not only as an employee
but as a person with our organization. We must ensure to nurture our people todevelop their talent and provide an equal platform of growth for all. Our board
currently has a diversity of 1 woman to 7 men and we intend on improving thisrepresentation in the coming years . We have a working plan in action to promote
our vision of gender diversity at our board level.
To maintain and expand our culture in terms of inclusion, we are working towards
sensitizing our employees regularly on aspects of the same. We also aim toincorporate diversity and inclusivity in our selection processes, remuneration scales
and corporate representation in the coming years to achieve our ambitious targets
in this sphere.

11.6 Prevention of sexual harassment at workplace
We have constituted Internal Complaints Committee (ICC) at our registeredoffice and across all breweries and regional offices to address all reported sexual
harassment complaints, as per the Sexual Harassment at Workplace (Prevention,
Prohibition and Redressal) Act, 2013.
Complaints can be raised both by in person and anonymously through our ‘SpeakUp’ portal. We protect the complainant from any type of retaliatory actions. Dueinvestigations are conducted, and we ensure that all complaints pertaining tosexual harassment are adequately addressed. Our entire complaint handlingprocedure is in accordance with the guidelines set by Government of India andthe state governments. In the reporting year we have received three complaint ofsexual harassment which is presently under investigation.

340 | United Breweries Limited

12.0
Product responsibility
We are aware of the effect of over consumption and misuse of our products likeseveral other products in the market, which may lead to negative impacts on ourconsumers. Our responsibility during brewing, manufacturing, and selling our
product also lies in raising awareness and spreading information of the ill-effectsof overconsumption of our product and alcohol abuse. Product responsibility as
a business lies greatly in ensuring the safe, controlled, and smart consumption of
our product, a culture which we have been introducing over the past few years
to encourage and promote smart and responsible drinking1. For decades we havebeen the providers of memorable good times, and we strive to continue to do so by
providing a safe and enjoyable experience for our consumers.
Compared to a global average per capita consumption of around 30 liters, India only
accounts for 2 liters of beer consumption. However, with changing trends in culture,
increasing growth in the beer market driven by preferences of the youth and a risein the culture of social drinking at clubs and bars promises a growth in demand forour product. With this increasing growth in demand, we are geared to shoulder
the responsibilities tied to it. As a market leader in the industry, we have ensured
that we have taken necessary precautionary steps through various initiatives as apart of our marketing and product labelling strategy and campaigns to promoteresponsible drinking for safeguarding the health of our consumers. To ensure safe
consumption of our brews across our large consumer base, we are prioritizing
responsible consumption as one of our major focus, intertwined with our businessstrategy and sustainability goal. We have conducted educational and enforcement
campaigns with our implementation partners – non-profit organizations and publicauthorities.
We endeavor to align our strategy and goals to the Global Smart Drinking Goals
Initiative in the coming years as the next step forward to ensure a comprehensive
approach towards a marketing intervention as a responsible corporate2.
We are completely against the sale of our product towards minor individuals of
our society, but there is a limited amount of control and regulation that we can
exercise as manufacturers on the retail of our products. Keeping this in mind we aresupportive of laws and regulations in line with ensuring that our products are notpurchased illegally to the young adults. We maintain our stand on full compliancewith all environmental laws and regulations to ensure that all our operations
are environmentally safe and have minimal to zero negative impacts on theenvironment. In the year FY2020-21, we have not encountered any issues during
period of reporting, however as and when the statutory agencies/bodies suggest
for any improvements/ compliances the same is immediately addressed.

1 GRI 103-1 Explanation of the material topic and its Boundary
2 GRI 103-2 Management approach and its components

Annual Report 2022 | 341

12.1 Product quality and safety
As manufacturers of beer, it is our primary responsibility to ensure that maintainand uphold our value proposition while delivering high-quality and safely brewed
products to our consumers. Our high-quality brews require safeguarding in termsof high compliance in brewing processes and following to the recipe right down
to every grain of raw material that goes into preparing our varieties. In doing so,
we uphold the trust our consumers have in us, along with our promise to ensure
highest quality beer that has been brewed with maximum safety. Maintainproduct quality and safety extends encompasses activities that are a part of ourmanufacturing process while ensuring high quality check and process management,
while informing our consumers of the effect of consumption of our product to raiseawareness on safety and health3.
We endeavor to keep improving our product quality and safety check mechanisms
which are currently in place to assess risks, monitor performance of our processes
internally throughout our manufacturing units, and in maintaining and upkeep ofour equipment to ensure best quality processes throughout our manufacturing line.
We make sure that we follow stringent processes internally so that we minimize
the loss in brewing and wastage of resources. We maintain records of our quality
incidents and losses to minimize the impact in the future and to prepare for possible
risks to our quality systems4. We have internal procedures of maintaining a checkon our quality processes and systems with respect to our manufacturing processes,
and labelling practices to keep a record of our process functioning and incidents, tostrengthening our capacity to maintain highest product quality while managing ouraccidents and risks5.

12.2 Product labelling
We address product labelling with utmost diligence and care, to ensure that ourconsumers are well informed of all the aspects related to our product. We provide
all the essential information and means that would enable our consumers to makea safe and rational choice before consumption of all our products. For UBL, productlabelling is the primary form of communication through which we can connect
and spread adequate awareness and information related to our product to ourconsumers across the globe. Since our product is a consumable, our main concern
lies in retrieving the bottles after consumption to minimize the environmental
impact caused. We achieve this by using reusing bottles to minimize the creation of
more waste in production of new bottles. Given our widespread consumer base, we
strive to create informational yet brief labelling to cover all necessary information
while safeguarding the interests of our business and our consumers, to minimize
the negative impacts of our product on society, and to cultivate a culture of safe andresponsible drinking. We communicate details of the ingredients, the side-effects,
percentage of alcohol content, means for disposal and usage of the products for all
brands6.

3 GRI 103-1 Explanation of the material topic and its Boundary
4 GRI 103-2 The management approach and its components
5 GRI 103-3 Evaluation of the management approach
6 GRI 417-1 Requirements for product and service information and labeling342 | United Breweries Limited

Annual Report 2022 | 343

We are strictly governed by the Fair packaging and labeling act for labelling andconsumer information, for which we have formulated our policy on commercial
communications to ensure compliance with the requirements, applicable acrossall our operational locations. Advertising and marketing our product responsibly
are of utmost importance to ensure that we do not encourage any kind of
inappropriate behavior after consumption of our product, nor is it directed to theyouth under the legal drinking age. We wish to spread a social message of goodtimes, togetherness, and joy through our products, and we strongly advice against
any unlawful and illegal sale and overconsumption or abuse of our products. Thisawareness extends across all our branding and communication practices such as
promotions, advertising, sponsorship, website contents, relationship marketing,consumer public relations, packaging, and labelling claims. While we have ensured
to keep up with our standards of responsible marketing and advertising to avoid
any situations or indications towards illegal or unlawful consumption of our
product, there has been an incident of where the Advertisement Standards Councilof India had raised four objections towards brand advertisements on social media/
television. Objections raised were on the lines of not meeting certain criteria laid
down the council, among others. We ensured that due responses were provided
along with detailed explanations and reasonings even during personal hearings7.
Labelling on all products strictly adheres to including responsible drinking advisingagainst drinking and driving, legal drinking age, impacts of consumption and side
effects of overconsumption, health aspects, ingredients, alcohol content, andlicense information. We observe the labelling requirements of Food Safety andStandards (Packaging and Labelling) Regulations, 2011. We have been extremely
aware of our compliance in terms of our product labelling and communications
herewith with absolutely zero occurrence of non-compliance concerning our
product and labelling in FY2020-21. While in FY2021-22, we have 01 occurrence of
non-compliance concerning our product and labelling8. Despite of our best efforts
to abide by all the regulations regarding product labelling, in the reporting year wehave received 4 complaints, which have been duly resolved.

12.3 Consumer Health and Safety
Consumer trends and surveys have indicated towards consumer’s wanting complete
transparency and honesty when it comes to consumables, especially products ofalcoholic nature. For UBL, producing beer has been a passion and our heritage
stands for pure quality and exceptional taste.
Our brands are formulated keeping in mind trends in consumption and preferencesof consumers that we can capture through surveys and sales. Each of our brands
has a distinctive taste and vigor, and all our brands are produced, tested, andmanufactured in advanced laboratories, with usage of most apt technologies to suit
the specific requirements of each recipe of our exquisite brews. We direct our focus
towards our ingredients and materials, ensuring that we source the highest andsafest quality of produce for our brews. Our compliance monitoring systems are
set in a periodic evaluation system to comply with standards in manufacturing anddistribution of our products. Periodic monitoring and analysis enable us to maintainour standard of quality and manufacturing in line with internal and customer
expectations in the wide beverage market. We also conduct periodic assessmentsof the food safety risks starting at our procurement practices right till our packaging
7 GRI 417-3 Incidents of non-compliance concerning marketing communications
8 GRI 417-2 Incidents of non-compliance concerning product and service information and labeling, SASB FBAB-270a.2

344 | United Breweries Limited

process. We ensure that all our active operations are compliant with Food Safety
and Standards (Alcoholic Beverages Standards) Regulation, 2018. We also go aboveand beyond to mitigate the risks in maintaining food safety through various control
and preventive measures. All our manufacturing facilities have been audited andcertified to ISO 22000:2005 (Food Safety Management System) standard9.
Our strong and efficient governance systems enable us to preserve and enhance
our consistency in terms of safety and quality, with highest compliance to applicableguidelines and standards. We ensure that all our employees and staff follow andabide by our stringent policies in place to avoid mishaps, facilitated through our
integrated quality management program. This measures operations and maintains
uniformity across all locations against the global standards for manufacturing anddistribution of our product.
We strive to work towards enhancing our brews, and in meeting and exceeding
our customer expectations. Our quality policy assists us in staying at the top of
the charts in our quality management systems and customer satisfaction. We arecompliant with ISO 9001:2015 which establishes our ability to meet and exceed
customer requirements to enhance their experience, while ensuring best practices
in meeting our statutory and regulatory requirements. In FY 21,155 customer
complaints were received which have been satisfactorily resolved. In FY 21 one
consumer case was filed which is pending in consumer forum. Overall there are 36
consumer cases pending in various consumer courts. During the year FY21 and FY
22 we are not subject to any regulatory actions or voluntary codes with respect tohealth and safety of our products10.
We also guarantee that during all consumer surveys and interactions that weorganize, we maintain highest level of confidentiality to build and maintain ourvalue of integrity with our consumers. Since in today’s technologically driven age,consumer data protection and privacy are of utmost importance to all businesses,
we also ensure that our consumers are engaged in an effective yet secure manner.
9 GRI 416-1 Assessment of the health and safety impacts of product and service categories
10 GRI 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services

Annual Report 2022 | 345

13.0
Product Innovation
Innovation is our way of doing business. It helps us to navigate through thehighly competitive market and regulatory challenges and retain our dominanceas a market leader in beer segment. We also innovate in our digital capability as
a part of enhancing our process efficiency as well as learning and development.
Our constant innovation in processes and products has helped us achieving higher
material efficiency thereby saving on input cost. This is not only enabling us toreduce our overall environmental footprint, but also helped us in retaining our
profitability even though a significant inflation has been observed in the price of
input materials. Our major focus areas through research and development are thedevelopment of two row malting variety of Barley.
We also innovated in enhancing efficiency of capturing carbon dioxide generated
from the processes and using it in bottling processes. This system operates withmore than 99% efficiency, thereby helping us to remove 99% of our carbon-dioxidefrom emitting into the environment.
Our focus lies on innovating our service and the products we serve to the consumers.
As, a result of this, our latest product, Kingfisher Ultra Max is an instant market
hit. We have added three innovative flavors, the Kingfisher Ultra Witbier, Kingfisher
Ultra Draught and UB Export Cans to our existing product line in the reporting year.

346 | United Breweries Limited

14.0
Relationship with communities
Our Targets

Timeline1

We will engage annually or need basis with local
communities.

Ongoing2

We will continue implementing CSR projects
based on the needs of the local communities andour strategic objectives

2025

14.1 UBL’s Approach
UBL has worked towards community empowerment through various projects andactivities across its area of operations. Community development initiatives arefocused for communities residing around our breweries. Community development
has been a long-standing commitment for UBL since inception, as we believe thatour business will only thrive eternally if our community and people are flourishing1.

14.2 UBL’s Action and Future Plan
Our breweries are in regions where the local communities aren’t as developed asurban localities. This gives us an opportunity to engage and involve people around ourbreweries by providing employment, extending our resources, and building capacities
by providing necessities across villages and towns. We are on a mission to build a more
inclusive society and community, and we are now committed to integrate our visionand planning into action! This decade and the coming years hold a promise that we
intend on fulfilling to our best possible extent.
Water being an absolute necessity for our business and for our communities, remains
a primary focus area to divert our intent and action. Judicious usage of water is the
topmost priority at UBL, and while doing so we also understand our responsibility toinvest towards water stewardship to reduce the stress on water resources in our areasof operation.
Education is the key to world of opportunities and experiences, and we wish toopen those doors to as many children and youth as possible. For the same, we havepartnered with various organizations to maximize our capacity building and education
for children in rural regions where our breweries are located2.

14.3 The importance of our local communities
Our aim is to become an efficient water positive business not limited to ourselves
but extending towards the community. Our projects are initiated in a phased manner
to understand the local needs through partnerships with international and national
1 GRI 103-1 Explanation of the material topic and its Boundary
2 GRI 103-2 The management approach and its components

Annual Report 2022 | 347

NGOs to maximize efficient implementation of our water ambition.
Our belief lies in community involvement and engagement to understand their
specific requirements across all our operational sites and locations. With the helpof our partners, we have identified that water scarcity, education and responsible
consumption of our products are high priority areas towards which we can extend our
support to the local communities. Our initiatives have been structured according to the
local requirements of the people across all locations and our projects are molded toaccomplish our community-based needs.
As per our identified high priority areas, we have implemented several projects towards
water stewardship, community development and responsible consumption of alcohol.
Water stewardship for us is identified with an aim to become a water neutral
organization by 2030. At UBL we believe in implementing best practices across our
locations towards sustainable management of water resources. Focused water
conservation and increased accessibility to safe drinking water are other initiatives
towards our water neutrality vision. UBL has always stood for thorough research andinnovation and we aim to implement a similar approach towards our water stewardshipto gain a holistic understanding of water-related risks at the ground level and theadversity our communities are faced with.
Our next generation will determine the future of our business and our planet, and webelieve that facilitating primary education for them is of utmost necessity especiallyaround our area of operations. Our community development programme focuses on
this very aspect towards which we have initiated several projects for school construction,
renovations and refurbishments, infrastructure development, mid-day meal programme,
model safe schools and quality education programs along with access to educational aid
and clean drinking water for children across our operational locations.
Our initiatives towards responsible consumption are mainly targeted to ensure that our
patrons are aware of our product and its usage.
Our actions aligned to our values and beliefs:
We carry the weight of our global brand recognition on our shoulders, to uphold theintegrity and excellence that we are renowned for. We stand responsible for the impactof our business on the society, and we can vouch for our efficient policies and strategies
to commit towards raising the bar with our CSR initiatives and their implementation.
Our CSR policy has clearly mentioned our outlook and vision towards our initiatives
towards building a better society. All our CSR activities are based on an annual
assessment to address the needs of the local community. We have a structured CSR
Committee to ensure timely and efficient delivery of our initiatives and to create a driving
force across all our breweries and operations to work towards a better, healthier society.
Members of our CSR Committee are:
Sl. NoName

Designation

1

Mr. Stephan Gerlich

Chairman

2

Mr. Rishi Pardal

Member3

Mr. Berend Odink

Member4

Mr. Christiaan A J Van Steenbergen

Member5

Ms. Kiran Mazumdar Shaw

Member348 | United Breweries LimitedOur CSR programme and activities
Our CSR policy and action plans are grounded in the core belief of community
driven programs. Increasing consumption has led to overexploitation, which inturn has led to a scarcity for communities which are unable to received access tonecessities of water, shelter, and education. Our impact through our CSR programsmust rise above and beyond to successfully implement a larger positive effectoutweighing the negative effects caused by our business operations. Throughour efficient partnerships with ASSIST, Akshaya Patra Foundation, Dilasa Janvikas
Pratishthan, Sir Syed Trust, The Energy & Resources Institute (TERI), United Way of
Bengaluru and Sambhav Foundation, we are enabled to design and structure a local
needs-based plan across our operational locations to ensure measurable impacts
with key performance indicators to provide the best support and technology to
our communities. This also provides an efficient system of monitoring, tracking,and implementing projects for maximum positive impact and best in practicesustainable solutions to community issues.

Annual Report 2022 | 349

14.4 CSR Policy and framework
UBL and our employees are all passionate towards our initiatives to uphold our
responsibility towards our society. With ever-changing times and needs of thecommunity, we have ensured that our CSR policy and initiatives are essentially
adaptable and dynamic in nature. Our goal is to remain forward looking while we
implement all our programs and to maintain high quality of social and environmental
development and progress for sustenance of communities and thus our business.
Our policy ensures that all our projects are implemented only based on a thoroughin-depth assessment of the community requirements to cater to their specific needs.

14.5 CSR goalWith our business reaching new heights, our scope of expansion into larger projects
and contributions to the community have increased considerably. Our goal throughour CSR and Sustainability initiatives is to provide well-rounded growth for ourcommunity.

• We aim to do so by leveraging our own resources, expertise, services, andrelationships for highest benefits to our communities and community
partners.
• Ensuring that our decision making, and business strategy remains alignedwith due consideration for the community interests in the short and longterm.
• Dynamically ensure availability and accessibility of safe drinking water andsanitation for our communities.
• Improving quality of education and accessibility to health services.
• Promote and act upon environmental sustainability with prime focus on water
stewardship.
• Regularly monitor outcomes of our initiatives and publicly report on our
progress in a transparent and effective manner.

14.6 CSR Focus areas and initiatives undertakenwith UBL’s Partners
Our implementation partners for various projects are carefully picked to accomplish
our ambitious vision of empowering our local communities around our breweries
and extending our support in regions apart from our operational locations aswell based on the need. UBL and our partners have consistently focused upon
the areas of water stewardship, education, health and sanitation and responsible
consumption of alcohol.
‘Integrated water resource management project with implementation partner
United Way Bengaluru (UWB)
Our most extensive and dynamic project to assist the local communities across
5 villages in Nandi Gram Panchayat, Chikkaballapur District, Karnataka. Villagers
across the gram panchayat have been completely dependent on the monsoon
for their water requirement, thus experiencing acute shortage during low rainfall
periods. The project was undertaken to combat these climate change risks through350 | United Breweries Limited

focused intervention. A balanced and comprehensive water resource management
is extremely essential to increase water independency for the local communities
while restoring and preserving the existing supply of water. This ensure that our
local communities had a reliable initiative with guaranteed supply of water related
health and sanitation risks among the people. These included- Installation of rooftop rainwater harvesting units to ensure supply of usable
water and tackle decline in the groundwater table- Rejuvenation of Nandi Lake through soil and water conservation activities- Restoration of Gunduthopu – a community protected sacred grove
Our lake rejuvenation initiative along with the restoration of Gunduthopu in turnenriched the biodiversity and soil quality of the region, reviving the essence of thesacred grove to its previous glory. Rejuvenation of Nandi Lake through soil and water
conservation activities helps to improve biodiversity and soil quality in the region
Our CSR Programme Snapshot1

REJUVENATION OF PONDS ROOF TOP
RAINWATER HARVESTING UNITS

Beneficiaries

MID-DAY MEAL PROGRAMME SCHOOLREFURBISHMENTS AND RENOVATIONS

Beneficiaries

1862621666 Students

MODEL SAFE SCHOOLS PRIMARYHEALTHCARERESPONSIBLE CONSUMPTION OF ALCOHOL”
PROGRAMME FOR TRUCK DRIVERS

Beneficiaries

7 Government Schools

Across 23 Schools

Beneficiaries

637 Drivers

1 GRI 413-1 Operations with local community engagement, impact assessments, and development programs,
GRI 413-2 Operations with significant actual and potential negative impacts on local communities

Annual Report 2022 | 351

Water Stewardship
Approximately 70% of UBL’s annual CSR budget has been set aside for water
rejuvenation and water conservation projects. This empowers us to diligently work
towards our aspirations of becoming a water neutral organization by the year 2030.
We have successfully implemented major projects for water rejuvenation acrossstates of Tamil Nadu, Maharashtra, Karnataka, Punjab, Bihar, Odisha, Kerala andHaryana. Our well-defined goals, areas of focus and realistic targets with respective
key performance indicators enable UBL to achieve successful implementationand efficiency of projects undertaken towards environmental sustainability andcommunity support and development.

Water Conservation Project at Sangareddy district:
The project supported by United Way Bengaluru and implemented by AFPRO.
We have initiated this project to ensure water security for local communities
and farmers as well. The project has been started since November 2019 and willcomplete by October 2022. Check dams, percolation tanks and recharge shafts
have been constructed to meet the requirements of the villagers.

1,39800 KL water
stored/conserved

40 borewells
benefited

Benefiting 6,612
families across
9 villages

Pond rejuvenation and deepening in Punjab and Rajasthan with
implementation partner TERI:
The project was implemented with the help of TERI. Our CSR initiatives havesuccessfully rejuvenated 8 ponds in the year 2019-20 in states of Punjab andRajasthan. Community participation has been prime importance through ourhistorical observations of successful projects with long-term benefits throughcommunity involvement. Formation of Village Development Committee (VDC)
provides a platform for interactions and inputs of the local community.
Transformation of a 100-year-old pond in Ludhiana, from a waste dumping site
into a healthy, functional storage structure was successfully carried out. The pond
offers a groundwater recharge potential of approximately 19,51,475 KL, benefitting
13,614 people across 8 villages.
Similar restoration and rejuvenation were undertaken in Patiala district based on
the discussions with panchayat members and local communities to address theirneed for rainwater harvesting and groundwater recharge. An estimated 171891 KL/
year of recharge capacity has been created.

352 | United Breweries Limited

Haritha- Samruddhi Sustainable Livelihood in Karnataka:
The project was in partnership with United Way Bengaluru. Through climate
resilient practices project, is aimed at empowering our farmers in Puduserry Gram
Panchayath, Palakkad district, Kerala, in partnership with United Way Bengaluru.
Our project entails the training of farmers to empower them through organic
farming, to promote a means of sustainable livelihood for them.
Nutrition gardens were introduced as an innovative solution to combat foodsecurity and malnutrition. We provided families with saplings and adequate training
to grow their own vegetables and sell the surplus in the market to achieve a sourceof nutrition for the family and added income through this project.

Education and community welfare
UBL envisions to provide quality education, food security, good health and wellbeing,
and overall improvement in the quality of life for as many communities within ourreach. Programs under this program are mainly directed towards upliftment of
the quality of lives for the future generation of our nation. Key projects under thisinitiative are:Mid-day meal programme• Implementation partner: Akshaya Patra Foundation• Providing nutritious, hygeinic and fresh food for• 1666 students across 23 schools in Mangalore
School renovation & refurbishment• Implementation partner: Dilasa Janvikas Pratishthan &United Way Bengaluru• Renovation of multiple schools and reconstruction toprovide safe environment for children• Across Maharashtra, Karnatak and Bihar
Model safe school programme• Implementation partner: Inchara Foundation• Across 7 governement schools• Providing personal safety education & training, first aid,
menstrual hygience and fire safety workshops• Provided ‘Deskit’ for students to faciliate infrastructural
facility at school or home for writing
Primary healthcare
•
•
•
•
•

Ensure adequate medical facilities across rural areas
Raise awareness for healthcare and
Set up primary healthcare centres and camps
Provide medicines, & employment of full time nurses
Provide consultation services for local communities

Annual Report 2022 | 353

Responsible Consumption of Alcohol
SASB FB-AB-270a.4 Description of efforts to promote responsible consumption of alcohol

Timeline

Our Targets

2023

1

In addition to current portfolio Kingfisher 0.0
will be launched2

Clear and transparent information to consumers
as per stringent regulatory norms for all our
products

3

10% of media budget of Heineken brand will bespend on responsible consumption campaign.

Ongoing

2023

Project related to responsible consumption of alcohol
Projects
Sensitization workshops on
Responsible Drinking

Location
Khurda, Odisha, Kalyani, West
Bengal Dharuhera, Haryana

Implementation Partner
Sambhav Foundation

Our increasing knowledge of the market trends have empowered us to ensure that
we work towards providing exceptional good times while keeping in mind the safety
and well-being of our consumers. UBL is well-aware of the impact and consequenceof overconsumption of our product, which has created a sense of responsibility that
we extend towards our consumers and our supply chain as well. We are working
extensively towards providing a safe experience to all our consumers to ensure
market leadership while maintaining reputable relations with regulators. Reachinga considerably large population of our consumers personally is next to impossible,
and thus we aim to achieve the same through our effective packaging and labelling,
our smart marketing initiatives and our campaigns for our truck drivers who are
the essential piece in our supply chain. We believe that sensitization and awarenessneed to be raised as a part of our social outreach, to ensure that cases of drinking
and driving are minimized in our country. We undertake campaigns, responsible
marketing, and cautious labelling to declare the downside of reckless consumptionof our product.

Building awarenessthrough our Responsible
Drinking Campaign

354 | United Breweries Limited

Conducted across 4
breweries in Karnataka
and Telangana

Participation and involvementof 637 truck drivers – to build
awareness and sensitivity

Targeting festive seasons for promoting and marketing our responsible
consumption initiatives fits the best in our strategy to reach a larger audience andcapture our consumers’ attention. To sustain and build an Alco-beverage industry
without endorsing our responsible consumption agenda would hamper ourmarket presence and the confidence of our regulators in our business strategy.
We endeavor to incorporate global scale campaigns and drives to ensure that ourmessage reaches far and wide.

14.7 Impact and need assessment of the activities1
Our resourceful and highly skilled partners and associates for our CSR activities
ensure that all initiatives, projects, programs, and campaigns are structured
based on a need assessment. UBL has also undertaken an essential activity inpartnership with Sattva Consulting, to evaluate and maintain a record of all CSR
initiatives and to explore higher efficiency in project planning and implementation.
We sanctioned an independent, technical assessment and study to evaluate
all impact-based CSR activities by UBL and reported on the same through our
Impact Evaluation Report of United Breweries Ltd. CSR Programs, available on our
website under our CSR section.
1 GRI 103-3 Evaluation of the management approach

Total CSR investment made by UBL in FY2020-21(against ongoing projects)

Sl.
No

Name of the
project

1

Sustainable
Livelihood
throughclimate resilient
practices

2

Water
Conservation
In Telangana,
Karnataka

3

Water
Conservation

4

Water
Conservation

5

Water
Conservation

6

Project Oxygen
Hub-Treeplantation
through
Miyawaki
MethodItem from listof activities inschedule VII to theCompanies Act
2013

Ensuring
environmental
sustainability,
conservationof natural
resources
maintaining
quality of soil, airand water

Ensuring
environmental
sustainability,
ecologicalbalance, andprotectionof flora andfauna

Project
duration(inmonths)Amountallocatedfor project(in million)

Amountspent(in million)
in current FY(FY2020-21)

Implementation
Partner

Palakkad,Kerala

25

15.59

15.59

United Way
of Bengaluru

Sangareddy,
Bangalore
Rural,
Telangana,
Karnataka

30

23.77

23.77

Action for
Food
Production

Alwar,
Rajasthan

24

4.00

4.00

SM Sehgal
Foundation

Rewari,Haryana

24

20.30

20.30

Ludhiana,
Punjab

36

13.05

13.05

Aurangabad,
Maharashtra

30

1.76

1.76

Location ofproject

Akhil Bhartiya
GraminUtthan Samiti
Actionfor Food
Production

PrayasYouthFoundation

Annual Report 2022 | 355

7

Ganitha Kalika
AndolanPromotion of
education

Mysore,Karnataka

10

4.77

4.77

AksharaFoundation

8

Rajasthan School
adoption Project

Promotion of
education

Alwar,
Rajasthan

21

1.70

1.70

Sir Syed Trust

84.94

84.94

Total

Total CSR investment made by UBL in FY2020-21(Other than ongoing projects)
Sl.
No.

Name of the project1

Participatory water
conservation throughrejuvenation of water
bodies2

3

Rejuvenation workat Nandi Lake,
Nandi Village andRestoration of Kalyani
and Gunduthopu at
Sultanpet
Integrated
Water Resource
Development Project

Item from list ofactivities in schedule
VII to the Companies
Act 2013

Ensuring environmental
sustainability,
conservation ofnatural resources andmaintaining quality ofsoil, air and water

Amount spent(in million)
in current
FY (FY2020-21)

Implementation
Partner(if any)

Tiruvallur, Tamil
Nadu

4.38

Dilasa Janvikas

Chikkaballapur

4.69

United Way of
Bengaluru

Aurangabad,
Maharashtra

3.46

Dilasa Janvikas

2.01

Akshaya Patra
Foundation

Location of project4

Nutrition Programme

Eradicating hunger,
poverty andmalnutrition

Mangalore,
Karnataka

5

Amphan Disaster
ReliefDisaster management,
including relief,
rehabilitation andreconstruction activities

South 24 Parganas,
West Bengal

5Inclusive India
Foundation

6

Need Assessment

Need assessment ofwater projects

Nadia, West Bengal

0.53

Soulace
Consulting Pvt
Ltd

7

Monitoring &Evaluation

Project Monitoring

Across India

0.42

Nextgen ProjectManagement
Services Pvt Ltd

8

Monitoring &Evaluation

Project Monitoring

Across India

1.42

Soulace
Consulting Pvt Ltd

Promotion of healthcare
including preventive
healthcare and disastermanagement

Punjab, Haryana,
Rajasthan, West
Bengal, Odisha,
Maharashtra,
Karnataka,
Telangana, Tamil
Nadu, Kerala.

11.49

Promotion of education

Punjab, Haryana,
Rajasthan, West
Bengal, Bihar,
Karnataka,
Tamil Nadu,
Andhra Pradesh,
Telangana,
Maharashtra,
Odisha, Goa

12.37

9

10

Covid relief

Education

356 | United Breweries Limited

11

Native Tree Plantation

Ensuring Environmental
Sustainability, ecologicalbalance, and protectionof flora and fauna

12

Water

Maintaining qualityof water, preventive
healthcare

Total

Aurangabad,
Maharashtra

0.3

Patna, Bihar;
Palakkad, Kerala;
Medak Telangana

1.67

47.74

15.0
Economic performance
The financial year of FY2020-21 has been gravely impacted due to the Covid-19
impacts on a global scale. The company was faced with institutional challenges
such as unforeseen lockdowns, additional taxation being levied by various states
related to the pandemic, untimely and prolonged closure across various tradechannels and several restrictions on opening and operational hours. Due to a risein the pandemic, retail activities were shut down from March 23, 2020 leading to asignificant drop in sales of our product.
During FY2020-21, our sales volume declined by 38% due to the prevailing Covid
induced depression in market conditions. Our net profit ratio decreased from 2.92%
in 2019-20 to 1.11% in FY2020-21, mainly due to reduction observed in volumes.
Return on Net worth decreased from 12% in 2019-20 to 3% in FY2020-21.
FFor FY2021-22 , our sales volume increased by 33%. Net profit ratio increased to
2.78%. Return on Net worth increased to 10%
Our profit before taxes had declined from INR 5674.2 Mio INR in FY2019-20 to INR
1679.6 Mio INR in FY2020-21 while profit before taxes for FY2021-22 increased to4928.9 Mio INR. We have witnessed a decreasing operating profit in the reporting
year due to slowing topline volume. Our net cashflow from operating activities
stood at INR 6190 Mio INR in the FY2020-21 and 8990 Mio INR in FY2021-22.
We recognize that the pillar of our stellar growth journey is the hard work andperseverance of our employees. As a gratitude, we always strive to take care of the
wellbeing of our employees. Retirement benefits in the form of provident fund isa structure contribution scheme, payable by the Company to the provident fundcontribution, apart from which the Company holds no other obligation. Under
the provident fund benefit plan, the Company contributes towards the provident
fund trust which holds a guarantee of specified rate of return on the contributions
as defined by the Government notification. Our gratuity fund is managed byexternal agencies. Superannuation fund trust has also been established by UBL
to which contributions are made each month, based on the services provided by
the employee. Our employee obligations during the reporting period stood at INR

Annual Report 2022 | 357

1020 Mio INR1. Our contribution towards employee salary and various employee
benefits has witnessed an increasing trend in the reporting year as compared tothe previous reporting year.
1 GRI 201-3 Defined benefit plan obligations and other retirement plans

Employee benefit contribution

GRI 201-1 Direct economic value generated and distributed
FY2020-21
Mio INRFY2021-22
Mio INR

Salaries, wages and bonus

4213.54629.3

Gratuity expense

1067

86

Contribution to provident andother funds

2250

183.5

Staff welfare expenses

2777

294.8

Taxation, for us, is an effective way of wealth distribution to those communities
whom we are unable to cater directly due to our operational challenges. As anenterprise practicing ethical governance, we believe and practice transparent
taxation.

Our tax contribution
FY2020-21

FY2021-22

Current tax

6779

1321

Deferred tax (credit)

-1221

-37

Total tax expense

5558

1284

(All amounts in Indian Rupees Lakhs, except as otherwise stated).

Climate change and the impacts are increasing globally at an alarming pace. The
company is exposed to climate change risks and vulnerabilities as our raw material
is directly obtained from nature. Water is highly vulnerable to the impacts of climatechange with erratic monsoons and increasing scarcity of freshwater sources due toexploitation, poor infrastructure and governance. Increasing pressure on water has
also caused a hike in the price of water due to high demand and unavailability thus
posing a financial risk in terms of acquiring continuous supply of water. Agriculture
is mainly dependent on the climate conditions of a region and is thus in the forefrontof the impacts due to climate change. Loss of agriculture due to irregular rainfall,inadequate sources of water and increasing pressure on the farmer community
has led to increasing financial risks for the farmers as well the business in termsof sourcing the raw material. This also provides an opportunity for us to exploreand dive into research focused on smart agriculture and water conservation andrestoration. Increasing pressure on our natural resources has driven us to innovate
newer methods and technology to ensure a smooth, risk proof supply of our raw
materials. We have incorporated several measures to mitigate the impacts of

358 | United Breweries Limited

climate change across our breweries and communities and will continue to do so to
combat climate change1.
Government grants are accepted and recognized only in situations where there isa rational assurance that the grant shall be received along with compliance of all
attached conditions. In relation to an asset availed through a grant, it is recognized
as the income in equal amount over the expected lifespan of the related asset.

15.1 Financial Growth
The Company’s contribution towards development projects i.e., water, disaster
relief and other community initiatives during FY2020- 21 was Rs.138.3 Mio INR andFY2021-22 was 108.6Mio INR.
Our company has generated a significant indirect economic impact2 through oursystem of bottle collection, which supports almost 3000 suppliers of bottles. All
these suppliers are dependent on the bottle supply in the market, and we maintainan indirect impact on their growth through our consistent and never-ending needfor bottles for our product.

15.2 Outlook for growth
We intend to enhance our product-line though innovation thus catering tolager audience, both India and abroad. We intend to leverage and contribute to
the inhouse expertise of Heineken thus augmenting our mutual growth. All our
initiatives are driven to encash the young demographics and increasing disposable
income in India, taking cognizance of the statistics published by the United Nations,
Department of Economic and Social Affairs, thus contributing to ‘brewing goodtimes’.
We intend to further increase and strengthen our CSR engagement to empower
the lower echelon of the society. Our alignment with Heineken’s APAC strategy isindicative of our commitment towards enhancing our environmental performanceand governance system. We also intend to fine-tune our supply-chain, whichis crucial in adequately catering to consumer demand. All our initiatives will beworking towards ensuring accelerated and sustained growth.

1 GRI 201-2 Financial implications and other risks and opportunities due to climate change
2 GRI 203-2 Significant indirect economic impacts

Annual Report 2022 | 359

16.0
Disclosure mapping table
GRI Index
General Standard Disclosures
GRI Standard

GRI Standard

Disclosure description

Name of chapter

GRI 102 - General Disclosures 2016

Organizational
profile102-1

Name of organization

2.0 Report overview

102-2

Activities, brands, products, andservices

2.0 Report overview

102-3

Location of headquarters

2.0 Report overview

102-4

Location of operations

2.0 Report overview

102-5

Ownership and legal form

2.0 Report overview

102-6

Markets served

4.0 Brewing good times

102-7

Scale of the organization

4.0 Brewing good times

102-8

Information on employees and otherworkers

4.0 Brewing good times

102-9

Supply chain

10.1. Supply chain sustainability

102-10Significant changes to the organizationand its supply chain

We have been acquired by
Heineken Group during thereporting period

102-11

Precautionary Principle/Approach

5.3.6 Risk management
committee

102-12External initiatives

Leading by example

102-13

Membership of associations

Leading by example

102-14

Statement from senior decisionmaker

1.0 Leadership speaks

102-15Key impacts, risks and opportunities

Not reported

102-16

Values, principles, standards, andnorms of behavior

4.1 Values & Missions

Strategy

Ethics and Integrity

360 | United Breweries Limited

Governance
Structure

Stakeholder
Engagement

Reporting Practice102-18Governance structure

5.3 Board of directors

102-21

Consulting stakeholders on economic,
environmental and social topics

7.0 Stakeholder engagement102-22Composition of the highest
governance body and its committees

5.2 Governance structure102-23Chair of the highest governance body

5.2 Governance structure102-24

Nominating and selecting the highest
governance body

5.3.10 Assessment of the board

102-26

Role of highest governance body insetting purpose, values, and strategy

5.3 Board of directors

102-28

Evaluating the highest governancebody’s performance

5.2 Governance structure102-29Identifying and managing economic,
environmental, and social impacts

5.3 Governance structure102-30Effectiveness of risk management
processes

5.3 Governance structure102-31

Review of economic, environmental,
and social topics

5.4 Legal compliance monitoring
system102-35

Remuneration policies

Not reported

102-38Annual total compensation ratio

5.3 Governance structure102-40

List of stakeholder groups

7.0 Stakeholder engagement102-41

Collective bargaining agreements

11.4.2 Freedom of Associationand collective bargaining

102-42

Identifying and selecting stakeholders

7.0 Stakeholder engagement102-43

Approach to stakeholder engagement

7.0 Stakeholder engagement102-44

Key topics and concerns raised

8.0 Materiality assessment

102-45

Entities included in the consolidated
financial statements

Refer our annual report for thereport periods

102-46

Defining report content and topic
Boundaries

8.0 Materiality assessment

102-47

List of material topics

8.0 Materiality assessment

102-48

Restatements of information

No restatements in the current
report102-49Changes in reporting

2.4 Report communication

102-50

Reporting period

2.3 Report data

102-51

Date of most recent report

2.3 Report data

102-52

Reporting cycle

Report data

102-53

Contact point for questions regarding
the report

Report overview

102-54Claims of reporting in accordance with
the GRI Standards

Report overview

102-55

GRI content index

Disclosure mapping table

Annual Report 2022 | 361

Topic Specific Standard Disclosures
GRI Standard

Disclosure description

Name of chapter

GRI 300 Environmental

GRI 301: Materials

GRI 302: Energy

GRI 303: Water andEffluents

GRI 304: Biodiversity

GRI 305: Emissions

362 | United Breweries Limited

301-1

Materials used by weight or volume

10.2 Responsible material
consumption

301-2

Recycled input materials used10.2 Responsible material
consumption

301-3

Reclaimed products and theirpackaging materials

10.2 Responsible material
consumption

302-1

Energy consumption within theorganization

10.5 Energy management

302-3

Energy intensity

10.5 Energy management

302-4

Reduction of energy consumption

10.5 Energy management

303-1

Interactions with water as a sharedresource

10.4 Water management

303-3

Water withdrawal

10.4 Water management

303-4

Water discharge

10.4 Water management

304-1

Operational sites owned, leased,managed in, or adjacent to, protectedareas and areas of high biodiversity
value outside protected areas

10.6 Biodiversity

304-2

Significant impacts of activities,
products, and services on biodiversity

10.6 Biodiversity

304-3

Habitats protected or restored

10.6 Biodiversity

304-4

IUCN Red List species and national
conservation list species with habitats
in areas affected by operations

10.6 Biodiversity

305-1

Direct (Scope 1) GHG emissions

10.5 GHG Emission

305-2

Energy indirect (Scope 2) GHG
emissions10.5 GHG Emission

305-4

GHG emissions intensity

10.5 GHG Emission

305-5

Reduction of GHG emissions

10.5 GHG Emission

305-6

Emissions of ozone-depleting
substances (ODS)

10.5 GHG Emission

305-7

Nitrogen oxides (NOX), sulfur oxides(SOX), and other significant air
emissions10.5 GHG Emission

306-1

Water discharge by quality anddestination/ Waste generation andsignificant waste related impact

10.4 Waste management

306-2

Management of significant wasterelated impacts

10.4 Waste management

306-3

Waste generated

10.4 Waste management

306-4

Waste diverted from disposal

10.4 Waste management

306-5

Waste directed to disposal

10.4 Waste management

307-1

Non-compliance with environmental
laws and regulations

10.0 Our commitment towards ahealthier planet

GRI 306: Waste

GRI 307:
Environmental
Compliance

Annual Report 2022 | 363

Topic Specific Standard Disclosures
GRI Standard

Disclosure description

Name of chapter

GRI Social Disclosures
402-1

Minimum notice periods regarding
operational changes

11.2 Workforce management

401-2

Benefits provided to full-time
employees that are not provided totemporary or part-time emplyees

11.1 Employee health andsafety401-3

Parental leave

11.2 Workforce management

402-1

Minimum notice periods regarding
operational changes

Not reported

403-5

Worker training on occupational
health and safety

11.1 Employee health andsafety403-7

Prevention and mitigation ofoccupational health and safety
impacts directly linked by business
relationships

11.1 Employee health andsafety403-8Workers covered by an occupational
health and safety management
system11.1 Employee health andsafety403-9Work-related injuries

11.1 Employee health andsafety403-10Work-related ill health11.1 Employee health andsafety404-1

Average hours of training per year
per employee

Not reported

404-2

Programs for upgrading employee
skills and transition assistanceprograms

11.3 Skill development at UBL

404-3

Percentage of employees receiving
regular performance and careerdevelopment reviews

11.2 Workforce management

405-1

Diversity of governance bodies andemployees

Not reported

405-2

Ratio of basic salary andremuneration of women to men

11.3 Skill development at UBL

GRI 406: Nondiscrimination

406-1

Incidents of discrimination andcorrective actions taken

11.3 Skill development at UBL

GRI 408: Child Labor

408-1

Operations and suppliers at
significant risk for incidents of childlabor

11.4 Human rights

GRI 409: Forced orCompulsory Labor

409-1

Operations and suppliers at
significant risk for incidents offorced or compulsory labor

11.4 Human rights

GRI 402: Labor/
Management Relations

GRI 402: Labor/
Management Relations

GRI 404: Training and
Education

GRI 405 Diversity andEqual Opportunity

364 | United Breweries Limited

410-1

Security personnel trained in humanrights policies or procedures

11.4 Human rights

412-1

Operations that have been subject
to human rights reviews

11.4 Human rights

412-2

Employee training on human rights
policies or procedures

11.4 Human rights

412-3

Significant investment agreements
and contracts that include humanrights clauses or that underwent
human rights screening

11.4 Human rights

413-1

Operations with local community
engagement, impact assessments,
and development programs

14.0 Relationship with
communities

413-2

Operations with significant actualand potential negative impacts on
local communities

14.0 Relationship with
communities

414-1

New suppliers that were screenedusing social criteria

Not reported

416-1

Assessment of the health and safety
impacts of product and service
categories

12.3 Consumer health andsafety416-2

Incidents of non-complianceconcerning the health and safety
impacts of products and services

12.3 Consumer health andsafety417-1

Requirements for product andservice information and labeling12.2 Product labelling

417-2

Incidents of non-complianceconcerning product and service
information and labeling12.2 Product labelling

417-3

Incidents of non-complianceconcerning marketing
communications

12.2 Product labelling

GRI 418: Customer Privacy

418-1

Substantiated complaints
concerning breaches of customer
privacy and losses of customer data

5.4 Legal compliancemonitoring system

GRI 419: Socioeconomic
Compliance419-1

Non-compliance with laws andregulations in the social andeconomic area

5.4 Legal compliancemonitoring system

GRI 410: Security Practices

GRI 412: Human Rights
Assessment

GRI 413: Local
Communities

GRI 414: Supplier Social
Assessment

GRI 416: Customer Healthand Safety

GRI 417: Marketing andLabeling

Annual Report 2022 | 365

Topic Specific Standard Disclosures
GRI Standard

GRI Standard

Disclosure description

Name of chapter

GRI Economic Disclosures

GRI 201: Economic
PerformanceGRI 204:
Procurement
Practices

GRI 205: AntiCorruption

GRI 206: AntiCompetitive
Behaviour

201-1

Direct economic value generated anddistributed

15.0 Economic Performance

201-2

Financial implications and other risks
and opportunities due to climatechange15.0 Economic Performance

201-3

Defined benefit plan obligations andother retirement plans

15.0 Economic Performance

204-1

Proportion of spending on local
suppliers10.1 Supply chain sustainability

205-1

Operations assessed for risks related
to corruption

15.1 Financial Growth205-2

Communication and training
about anti-corruption policies andprocedures

5.3.11 Our ethos

205-3

Confirmed incidents of corruption andactions taken

5.3.11 Our ethos

206-1

Legal actions for anti-competitive
behavior, anti-trust, and monopoly
practices

5.4 Legal compliance monitoring
systemSASB Index
Sustainability Disclosure topics and Accounting Metrics
SASB Topic

SASB Code

Accounting Metric

Category

1) Total energy consumed
EnergyManagement

FB-AB-130a.1

FB-AB-140a.1
Water
Management

FB-AB-140a.2

366 | United Breweries Limited2) percentage grid electricity

Name of chapter

10.5 Energy management

Quantitative

10.5 Energy management3) percentage renewable10.5 Energy management

1) Total water withdrawn

10.3 Water management2) total water
consumed, percentage ofeach in regions with High orExtremely High Baseline Water
StressDescription of water
management risks anddiscussion of strategies andpractices to mitigate those risks

Quantitative
10.3 Water management

Discussion &Analysis10.3 Water management

Responsible
Drinking &Marketing

FB-AB-270a.2

Number of incidents of noncompliance withindustry or regulatory labeling
and/or marketing codes

Quantitative

12.2 Product labelling

FB-AB-270a.4

Description of efforts topromote responsible
consumption of alcohol

Discussion &Analysis14.6.4 Responsible
consumption of alcohol

Quantitative

10.2 Responsible material
consumption

FB-AB-410a.2

Discussion of strategies toreduce the environmental
impact of packaging
throughout its lifecycle

Discussion andAnalysis10.4 Waste management

FB-AB-430a.1

Suppliers’ social andenvironmental responsibility
audit1) non-conformance rate and2) associated corrective action
rate for(a) major and (b) minor nonconformances

Quantitative

10.1 Supply chain
sustainability

FB-AB-440a.2

List of priority beverage
ingredients and description ofsourcing risks due toenvironmental and social
considerations

Discussion andAnalysis10.2 Responsible material
consumption

1) Total weight of packaging

FB-AB-410a.1
Packaging
Lifecycle
Management

Environmental& Social
Impactsof Ingredient
Supply Chain

Ingredient
Sourcing

2) percentage
made from recycled and/or
renewable materials3) percentage that isrecyclable, reusable, and/or
compostable

Activity Metrics
Activity Metric

SASB Code

Category

Blueprint chapter

Volume of products sold

FB-AB-000.A

Quantitative

4.0 Brewing good
times

Number of production
facilities

FB-AB-000.B

Quantitative

4.0 Brewing goodtimes

Total fleet road miles
traveled

FB-AB-000.C

Quantitative

4.0 Brewing goodtimes

Annual Report 2022 | 367

17.0
Abbreviations
AIBA: All-India Brewers’ Association
AM – Autonomous Management
BPO: Business Process Optimisation
CCI: Competition Commission of India
CII: Confederation of Indian Industry
CAGR: Compounded Annual Growth Rate
COSO: The Committee of Sponsoring Organizations
CSR: Corporate Social Responsibility
DCS: Daily Control System
E2E: End To End
EHS: Employee Health and Safety
ETP: Effluent Treatment Plant
GRI: Global Reporting Initiative
HSE: Health Safety and Environment
HSD: High Speed Diesel
ICC: Internal Complaints Committee
ITMS: Information Technology Management System
ISO: International Standards Organization
LOTO: Lock Out Tag Out
L&D: Learning and Development
MOC: Management of ChangeNOx: Nitric oxides
ODS: Ozone Depleting Substances
OSHAS: Occupational Health and Safety Assessment Series
PHE: Plate Heat Exhanger
PTW: Permit to Work
RO: Reverse Osmosis
SASB: Sustainability Accounting Standards Board
SEBI: Securities and Exchange Board of India
SOP: Standard Operating Procedure
SOx: Sulphur oxides
SPM: Suspended Particulate Matters
STP: Sewage Treatment Plant
TPM: Total Productive Management
TREM: Transport Emergency Cards
UBL: United Breweries Limited
UNSDGS: United Nations Sustainable Development Goals
UPS: Unified Problem Solving
VDC: Village Development Committee
VM : Visual Management
VSM: Value Stream Mapping

368 | United Breweries Limited

Board of Directors
Mr. Rishi Pardal (Managing Director)
Mr. Berend Odink (Director & Chief Financial Officer)
Mr. Christiaan A J Van Steenbergen (Non-Executive Director)
Mr. Jan Cornelis van der Linden (Non-Executive Director)
Mr. Sunil Alagh (Independent Director)*
Ms. Kiran Mazumdar Shaw (Independent Director)
Mr. Madhav Bhatkuly (Independent Director)
Mr. Stephan Gerlich (Independent Director)*
Ms. Geetu Gidwani Verma (Independent Director)*
Mr. Manu Anand (Independent Director)** 0n. April 26, 2022 Ms. Geetu Gidwani Verma and Mr. Manu Anand were appointed as
Independent Directors with effect from May 29, 2022 in place of Mr. Sunil Alagh and
Mr. Stephan Gerlich who resigned voluntarily from their position as Board Memberswith effect from June 13, 2022.

Senior Leadership TeamMr. Kiran Kumar (Chief Sales Officer)
Ms. Kavita Singh (Chief Human Resource Officer)
Mr. Shalabh Seth (Chief Supply Chain Officer)
Mr. Debabrata Mukherjee (Chief Marketing Officer)
Ms. Shelly Kohli (Chief Legal & Compliance Officer)

Company Secretary
Mr. Govind Iyengar (Senior Vice President - Legal & Company Secretary)