USL writes off Rs 566-cr dues

Diageo-owned United Spirits on Thursday said it had written off Rs 566 crore in connection with the recovery of funds that were “diverted” from the company and its subsidiaries to Vijay Mallya-led UB Group firms, including defunct Kingfisher Airlines.

These dues of such parties to the company were on account of advances by the company “in earlier years under agreements for enhancing capacity, obtaining exclusivity and lease deposits in relations to tie-up manufacturing units agreements for specific projects or dues owing to the company from customers”.

USL, which had initiated a management inquiry into the alleged fund diversion, said “between 2010 and 2013 many of these transactions were diverted from the company and or its subsidiaries to certain UB Group, including Kingfisher Airlines”.

Meanwhile, United Spirits’ standalone net loss narrowed to Rs 8.99 crore for the March quarter, on account of exceptional items.

The company had reported a net loss of 1,799 crore for the quarter a year-ago, United Spirits said.

Net sales of the company on a standalone basis rose 13.03 per cent to Rs 2,283.64 crore during the quarter under review, against Rs 2,020  crore during the same period a year ago.