United Spirits delays results amid audit concernsBy Amy Hopkins
United Spirits has once again delayed publishing its full-year sales results for 2013/14 in order to clarify some concerns over its finances.
United Spirits Limited (USL), which was recently acquired by Diageo for £1.1 billion, issued a filing to the Bombay Stock Exchange (BSE) claiming its audit committee was seeking “certain clarifications and information on the draft financial results and related issues”.
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.
According to Business Standard, the main reason for 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.
In June this year, Mallay’s own stake in United Spirits declined after lenders to his troubled Kingfisher Airlines – also owned by UB holdings – invoked shares pledged to them as collateral.
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.
United Spirits owns Indian whisky brand McDowell’s, which until recently was the world’s best selling whisky brand.