In its first quarter earnings statement, USL said certain pre-existing loans, deposits or advances exited on its books as on March 31, 2013 which were consolidated into as unsecured loan to United Breweries (Holdings) Ltd. Such dues, together with an interest of 9.5 per cent per annum, aggregated to Rs 1,337.40 crore.
After Diageo gained control of the firm, an inquiry was initiated which has found that between 2010 and July 2013 transactions showed lower exposure of the company to UBHL than what actually existed.
It further said that UBL "is in the process of evaluating its right and remedies in relation to such violations".
"The amounts owed by UBHL to the company's wholly-owned subsidiaries had been assigned by such subsidiaries to the company and recorded as loans from such subsidiaries in the books of the company.
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"Such dues (together with interest) aggregating Rs 1,337.40 crore were consolidated into and recorded as an unsecured loan by way of an arrangement entered into between the company and UBHL on July 3, 2013," UBL said.
"In connections with recovery of the funds that were diverted from the company and/or its subsidiaries, pursuant to the decision of the board as its meeting held on April 25, 2015, the company is in the process of initiating steps for recovery against the relevant parties so as to seek to expeditiously recover the company's dues from such parties to the extent possible," USL said in a BSE filing.
The diverted amounts were included in the provisions made by the company in the financial statements for the previous financial year.
"The inquiry also indicated that the manner in which certain transactions were conducted, prima facie,indicates various improprieties and potential violation of provisions, inter alia, of the Companies Act and the listing agreement signed by the company with various stock exchanges in India on which its securities are listed," USL added.