United Spirits delays results again

5th August, 2014 by Neal Baker

United Spirits has once again delayed publishing its full-year performance results, citing as its reason the need to clarify financial concerns raised by its own audit committee.

India Economic Summit 2008

Industry insiders see the delay as being related to massive internal loans involving USL and other UB Group companies under chairman Vijay Mallya (Photo: Wikipedia)

United Spirits, which was recently taken over by Diageo for £1.1 billion, issued a filing to the Bombay Stock Exchange claiming its audit committee was seeking “certain clarifications and information” before it could announce its results.

According to Business Standard, the reason behind USL’s delay relates to its inability to explain loans of around 1,400 crore (about £140m ) to parent company UB Holdings, during which time billionaire Vijay Mallya was leading the group.

It is thought that this massive loan was used to prop up the failing UB Group company Kingfisher Airlines, which is has now been grounded since 2012 due to defaults in payments.

The group was due to publish its financial results on Friday 1 August following two previous delays. USL has also delayed reporting its fourth quarter results due to issues surrounding its sale of the Whyte & Mackay whisky firm to Emperador.

Industry experts following the USL acquisition by Diageo have been wary of the risks of high write-offs, including a likely write-down of inventories and a longer-than-expected period for working capital improvement, according to Business Standard.

Diageo, the world’s largest drinks group, has been attempting to clean up USL’s balance sheet since it acquired a 55% majority shareholding in June 2014.

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Job vacancies

Brand Ambassador – Santa Rita Estates

Santa Rita Estates
London or Hertfordshire but with flexibility to travel, UK

Sales Executive - Wine and Spirits Awards

The Drinks Business
Central London, UK

On-Trade Channel Manager

Delegat Europe Limited (UK)
London / Midlands, GB

Trade Marketing Analyst

Delegat Europe (UK)
London, GB

Key Account Executive

Delegat Europe Limited (UK)
London / Midlands, GB

Senior National Account Manager

Conviviality
London, UK

ON-TRADE Sales Executive

Roberson Wine
London, UK

OFF-TRADE Sales Executive

Roberson Wine
London, UK

Judging Week Runners

Decanter World Wine Awards
ExCel Centre, London E16, UK

Sales Administrator

Les Caves de Pyrène
Guildford, UK

Retail Commercial Executive

Laithwaite's Wine
Theale, Berkshire

Wine Buyer

Conviviality Plc
Crewe, UK

Sales Account Manager - On-Trade

Berkmann Wine Cellars
Liverpool

Sales Account Manager - On-Trade

Berkmann Wine Cellars
M3/M4 corridor

Media Sales Manager - Hong Kong

The Drinks Business Hong Kong
Hong Kong

The Global Merlot Masters 2017

Deadline : 31st March 2017

The Prosecco Masters 2017

Deadline : 10th March 2017

db Awards 2017

Deadline : 28th April 2017

The Global Organic Masters 2017

Deadline : 3rd March 2017

Click to view more

The Global Sparkling Masters

the drinks business is thrilled to announce the launch of The Global Sparkling Masters

The Global Rosé Masters 2016

the drinks business is proud to announce the launch of the Global Rosé Masters 2016.

The Prosecco Masters 2016

Now in its third year, the competition will reflect the growth in popularity of this fresh and exciting sparkling wine from the picturesque regions of Veneto and Friuli.

The Global Pinot Noir Masters 2016

After the success of last year’s competition that judged over 250 wines from no less than 16 countries, the drinks business is proud to announce the third year of the Global Pinot Noir Masters

Click to view more