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Board of directors
Mr. Ravi Jaipuria
Mr. Varun Jaipuria
Mr. Raj Gandhi
Dr. Girish Kumar Ahuja
Ms. Rashmi Dhariwal
coMPaNY secretarYMr. Mahavir Prasad Garg
registered officeF-2/7, Okhla Industrial Area, Phase-I,New Delhi - 110 020.
Head officeRJ Corp HousePlot No. 31, Institutional AreaSector - 44, Gurugram -122 002 Haryana
BaNkersYes Bank Limited
IndusInd Bank Limited
Kotak Mahindra Prime Limited
Axis Finance Limited
ICICI Bank Limited
auditorsM/s. APAS & Co.,Chartered Accountants, New Delhi
coNteNts: Page No.
Board’s report 3
standalone financial statements Auditors’ Report 26 Balance Sheet 34 Statement of Profit & Loss 36 Cash Flow Statement 37 Notes on Accounts 41
consolidated financial statements
Auditors’ Report 101
Balance Sheet 109
Statement of Profit & Loss 111 Cash Flow Statement 113 Notes on Accounts 123
Annual Report 2019-20 | RJ Corp Limited 3
The Members,
rJ corp Limited
Your Directors have pleasure in presenting the 40th (Fortieth) Annual Report on the business and operations of your
Company along with the Audited Financial Statements, for the Financial Year ended March 31, 2020.
fiNaNciaL PerforMaNce
The Company’s financial performance for the year ended March 31, 2020 is summarized below:
Particularsstandalone consolidated
Year ended March 31, 2020
Year ended March 31, 2019
Year ended March 31, 2020
Year ended March 31, 2019
Total Revenue 1,657.25 1,446.61 107,328.05 80,731.62Total Expenses 2,673.81 2,279.58 102,554.69 78,801.80Profit/ (Loss) before tax & exceptional items (1,016.56) (832.97) 4,773.36 1,929.82Exceptional items - - 324.40 19.13Profit before share of profit of equity accounted investees
(1,016.56) (832.97) 4,448.96 1,910.69
Share of Profit of equity accounted investees (Net of income tax)
- - 41.34 38.20
Profit before tax (1,016.56) (832.97) 4,490.30 1,948.89Less - Tax expenses 0.68 - 1,325.83 1,285.24Profit/(Loss) after tax (1,017.24) (832.97) 3,164.47 663.65Balance brought forward from last year 1154.59 789.7 (3,098.66) (3,325.81)General Reserve 41.78 41.78 201.65 201.65Other Reserves 6,696.95 9,071.94 7,120.38 8,792.85Reserve & Surplus carried to Balance Sheet 6,876.08 9,070.45 7,387.84 6,332.34
coNsoLidated fiNaNciaL stateMeNts
The Consolidated Financial Statements of your Company for the Financial Year 2019-20, are prepared in compliance
with the applicable provisions of the Companies Act, 2013 (“the Act”), Indian Accounting Standards (“Ind AS”) which shall
be placed before the members in their forthcoming Annual General Meeting (AGM).
In accordance with Section 129 (3) of the Companies Act, 2013, a statement containing the salient features of the financial
statement of subsidiary/ associate companies is provided as Annexure in Form aoc – 1 to the consolidated financial
statement and therefore not repeated to avoid duplication.
state of coMPaNY’s affairs (staNdaLoNe)
During the period under review, the Company earned a total revenue of Rs. 1,657.25 Million as compared to a total
revenue of Rs. 1,446.61 Million during the previous year. The Net Loss after tax was Rs. 1,017.24 Million as compared to
a Net Loss after Tax of Rs. 832.97 Million during the previous year.
dePosits
Your Company has not accepted any deposits during the year under review, falling within the ambit of Section 73 of the
Act and the Companies (Acceptance of Deposits) Rules, 2014.
Board’s report
(` in Millions)
statutory r
eports
Annual Report 2019-20 | RJ Corp Limited 4
traNsfer to geNeraL reserVe
The Board of Directors do not propose to transfer any amount to reserves during the year under review.
cHaNge iN tHe Nature of BusiNess, if aNY
During the year under review, there was no change in the nature of the business of the Company.
diVideNd
Your Directors do not recommend any dividend for the year ended March 31, 2020 due to losses incurred during the year
under review.
scHeMe of aMaLgaMatioN
During the year under review, the Board of Directors, approved the Scheme of Amalgamation (“Scheme”) of Pinnacle
Infracon Limited, Anuj Traders Private Limited, Accor Solar Energy Private Limited, Shabnam Properties Private Limited,
Capital Towers Private Limited, D. J. Agri Industries Private Limited, Snowpeak Enterprises Private Limited, Pinnacle
Constructions Private Limited, Pinnacle Township Private Limited, Pinnacle Town Planners Private Limited (Collectively
known as the “Transferor Companies”) with RJ Corp Limited (“Transferee Company/ Company”) their respective
shareholders and creditors as per the terms and conditions mentioned in the Scheme w.e.f. 01.04.2019 (‘Appointed
date’).
The Hon’ble National Company Law Tribunal, Special Bench, New Delhi, vide its Order dated June 8, 2020 approved the
aforesaid Scheme and certified copy of the said Order sanctioning the Scheme was filed with the Registrar of Companies,
NCT of Delhi & Haryana on June 30, 2020. Consequently, all the above-mentioned Transferor Companies were merged
with the Company w.e.f 1st April, 2019 (Appointed date).
sHare caPitaL
During the period under review, the Issued, Subscribed and Paid-up Share Capital of the Company was increased from
Rs. 21,19,850/- divided into 2,11,985 (Two Lac Eleven Thousand Nine Hundred Eighty Five) Equity Shares of Rs. 10/-
(Rupees Ten only) to Rs. 21,67,450/- divided into 2,16,745 (Two Lac Sixteen Thousand Seven Hundred Forty Five) each
pursuant to Rights Issue of 4,760 (Four Thousand Seven Hundred and Sixty) Equity Shares of Rs. 10/- each to the existing
equity shareholders of the Company on October 1, 2019.
Further, pursuant to the Order of Hon’ble National Company Law Tribunal, Special Bench, New Delhi dated June 8, 2020
approving the Scheme of Amalgamation, the Board of Directors at their meeting held on August 31, 2020 allotted 245
(Two Hundred Forty Five) Equity Shares of face value of Rs. 10/- each to the existing shareholders of the Transferor
Companies and 10 (Ten) Equity Shares of face value of Rs. 10/- each held by Shabnam Properties Private Limited
(one of the Transferor Company) in the Company were cancelled. The appointed date of the Scheme is 1st April 2019,
accordingly, the Issued, Subscribed and Paid-up Share Capital of the Company has been considered as Rs. 21,69,800/-
divided into 2,16,980 (Two Lac Sixteen Thousand Nine Hundred Eighty) Equity Shares of face value of Rs. 10/- each for
the financial year ended March 31, 2020.
reLated PartY traNsactioNs
Your Directors draw attention of the Members to Note No. 40 to the Standalone Audited Financial Statements, which sets
out related party disclosures. Further, during the year under review, all contracts /arrangements/ transactions entered
into by the Company with related parties were in the ordinary course of business and at arm’s length and there were
no material contracts/ arrangements/transactions. Accordingly, no details of related party transactions are required to
Annual Report 2019-20 | RJ Corp Limited 5
be provided in Form AOC-2 under Section 134(3)(h) of the Companies Act, 2013 read with Rule 8(2) of the Companies
(Accounts) Rules, 2014.
ParticuLars of LoaNs, iNVestMeNts aNd guaraNtees
Particulars of investments made, loans given, guarantees given and securities provided are detailed in the financial
statements (Please refer note no. 6, 7 and 8 to the standalone financial statements).
HoLdiNg, suBsidiarY aNd associates coMPaNies
During the year under review, the Company does not have any holding company. The Company had following subsidiaries
as on March 31, 2020:
direct subsidiaries
1. AccorBev (Telangana) Private Limited;
2. Cryoviva Biotech Private Limited;
3. Devyani Food Industries Limited;
4. Devyani International Limited;
5. Modern Montessori International (India) Private Limited;
6. Snowpeak Enterprises Private Limited^;
7. Anuj Traders Private Limited^;
8. S V S India Private Limited;
9. Arctic International Private Limited*;
10. Cryoviva International Pte. Limited*.
11. Wellness Holdings Limited*;
* Foreign company
^ The investment has been cancelled due to merger of Companies as per the order of Hon’ble National Company Law
Tribunal, Special Bench, New Delhi, which is effective from 01 April, 2019. However, the actual transfer is effected
w.e.f. 30/06/2020 i.e. the date of filing of the said order with Registrar of Companies.
step-down subsidiaries
1. Devyani Airport Services (Mumbai) Private Limited
2. Devyani Food Street Private Limited
3. Accor Developers Private Limited*
@ Ole Marketing Pvt. Ltd.*
4. Cryoviva Bangladesh Pvt. Ltd.*
5. Cryoviva Singapore Pte. Limited*
@Reviva Cell Technologies Pte. Ltd.
6. Devyani International (Nepal) Pvt. Ltd.*
7. RV Enterprises Pte. Ltd.*
@ Devyani International (Nigeria) Ltd.*
8. Devyani International (UK) P. Ltd.*
9. Varun Developers Pvt. Ltd.*
statutory r
eports
Annual Report 2019-20 | RJ Corp Limited 6
10. Varun Food & Beverages (Zambia) Ltd.*
@ Varun Beverages (Africa) Ltd.*
@ Varun Food & Beverages (Africa) Ltd.*
@ Varun Infrastructure (Zambia) Ltd.*
* Foreign company
@ further step-down subsidiary.
associate coMPaNies
As on March 31, 2020, the Company had following Associate Companies:
1. Capital Infracon Private Limited;
2. Varun Beverages Limited;
3. Africare Limited*.
* Foreign company
During the year under review, Alisha Retail Private Limited (w.e.f. February 20, 2020), Diagno Labs Private Limited (w.e.f.
March 28, 2020) and Lineage Healthcare Limited (w.e.f. March 12, 2020) were ceased to be subsidiaries of the Company
due to sale of these Companies .
directors
During the period under review there was no change in the composition of Board of Directors.
Mr. Ravi Kant Jaipuria (DIN: 00003668), Director of the Company is liable to retire by rotation at the ensuing Annual
General Meeting and being eligible, offers himself for re-appointment. Your Directors recommend his re-appointment.
None of the Directors of your Company are disqualified as per provision of Section 164 (2) of the Companies Act, 2013.
The Directors of the Company have made necessary disclosures, as required under various provisions of the Companies
Act, 2013.
keY MaNageriaL PersoNNeL
During the year under review, there was no change in the Key Managerial Personnel of the Company.
As on date Mr. Vikas Kumar Keshri, Manager, Mr. Mahavir Prasad Garg, Company Secretary and Mr. Lalit Kumar Singh,
Chief Financial Officer of the Company are the Key Managerial Personnel of the Company.
Board eVaLuatioN
To comply with the provisions of Section 134(3)(p) of the Act and the rules made thereunder, the Board has carried
out the annual performance evaluation of the Directors individually including the Independent Directors (wherein the
concerned director being evaluated did not participate), Board as a whole, and following Committees of the Board of
Directors:
(i) Audit Committee;
(ii) Nomination and Remuneration Committee; and
(iii) Corporate Social Responsibility Committee
The Board of Directors of the Company ensures formation and monitoring of Robust Evaluation framework of the
Individual Directors including Chairman of the Board, Board as a whole and various Committee thereof and carries out
the evaluation of the Board, the Committee of the Board and Individual Directors, including the Chairman of the Board on
annual basis.
Annual Report 2019-20 | RJ Corp Limited 7
Board Evaluation for the Financial Year ended March 31, 2020 has been completed by the Company internally which
included the Evaluation of the Board as a whole, Board Committees and Directors. Further, results of the Evaluation were
shared with the Board.
MeetiNgs of tHe Board or aNY coMMittee tHereof
During the year under review, Eight meetings of the Board of Directors were held on April 02, 2019, April 18, 2019, June
17, 2019, September 23, 2019, October 01, 2019, December 30, 2019, February 03, 2020 and March 27, 2020. The gap
between two meetings was within the limit prescribed under Section 173(1) of the Act. Details of the attendance of the
Directors are as under:
s. No. Name of the director Number of meetings attended
1. Mr. Ravi Kant Jaipuria 3
2. Mr. Varun Jaipuria 3
3. Mr. Raj Gandhi 8
4. Ms. Rashmi Dhariwal 3
5. Dr. Girish Kumar Ahuja 5
During the year under review, one meeting of the Audit Committee of the Board of Directors was held on September 23,
2019 which was attended by Mr. Raj Gandhi and Dr. Girish Kumar Ahuja.
During the year under review, no meeting was held for the Corporate Social Responsibility Committee.
During the year under review, one meeting of the Nomination and Remuneration Committee of the Board of Directors was
held on September 23, 2019 which was attended by Mr. Raj Gandhi, Dr. Girish Kumar Ahuja and Ms. Rashmi Dhariwal.
audit coMMittee
The Composition and terms of reference of the Audit Committee satisfy the requirement of Section 177 of the Act read
with Companies (Meetings of Board and its Powers) Rules, 2014. Composition of the Committee as on March 31, 2020
was as follows:
s. No. Name category designation
1. Ms. Rashmi Dhariwal Independent Director Chairperson
2. Dr. Girish Kumar Ahuja Independent Director Member
3. Mr. Raj Gandhi Non-executive Director
Member
The Audit Committee invites such executives, as it considers appropriate, representatives of Statutory Auditors and
representatives of Internal Auditors to attend the meetings.
The Company Secretary acts as Secretary of the Audit Committee.
NoMiNatioN aNd reMuNeratioN coMMittee
The Composition and terms of reference of the Nomination and Remuneration Committee satisfy the requirements of
Sections 178 of the Act as amended from time to time. Composition of the Committee as on March 31, 2020 was as
follows:
statutory r
eports
Annual Report 2019-20 | RJ Corp Limited 8
s. No. Name category designation
1. Ms. Rashmi Dhariwal Independent Director Chairperson
2. Dr. Girish Kumar Ahuja Independent Director Member
3. Mr. Raj Gandhi Non-executive Director
Member
The Company Secretary acts as Secretary of the Nomination and Remuneration Committee.
To comply with the provisions of Section 178 of the Act read with Rules made thereunder, the Company’s Remuneration
Policy for Directors, Key Managerial Personnel and Senior Management is uploaded on the website of the Company at
www.rjcorp.in
reMuNeratioN of directors, keY MaNageriaL PersoNNeL aNd ParticuLars of eMPLoYees
The information required pursuant to Section 197 read with Rule 5 of The Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 in respect of employees of the Company will be provided upon request. If any
Member is interested in obtaining such information, such Member may send a request to the Company at its Registered
Office in this connection.
statutorY auditors
In terms of Section 139 of the Companies Act, 2013 and the rules made thereunder, M/s. APAS & Co., Chartered
Accountants were appointed as the Statutory Auditors of the Company to hold office for a period of five years from the
conclusion of 37th Annual General Meeting until the conclusion of the 42nd Annual General Meeting to be held for the
financial year ended March 31, 2022.
The Statutory Auditors’ Report for the Financial Year 2019-20 does not contain any qualification, reservation or adverse
remarks and therefore do not require any further clarification/ explanation from the Directors. No Frauds have been
reported by the auditors under Section 143 (12) of the Act.
cost audit
In terms of Section 148 of the Act and the Companies (Cost Records and Audit) Rules, 2014 and any amendment thereto,
Cost Audit is not applicable to the Company.
secretariaL auditors
Your Board, on the recommendation of the Audit Committee, has appointed M/s. Sanjay Grover & Associates, Company
Secretaries to conduct the Secretarial Audit of your Company. The Secretarial Audit Report for the Financial Year 2019-
20 is attached to this report as aNNeXure – i. The audit report is self-explanatory and does not call for any further
comments.
iNterNaL audit
Your Board, on the recommendation of the Audit Committee, has appointed M/s. O.P. Bagla & Co. LLP, Chartered
Accountants as an Internal Auditor of the Company for the Financial Year 2019-20 to conduct Internal Audit of the
Company.
risk MaNageMeNt
Your Company has a Robust Risk Management Policy which identifies and evaluates business risks and opportunities.
The Company recognizes that these risks need to be managed and mitigated to protect the interest of the stakeholders
Annual Report 2019-20 | RJ Corp Limited 9
and to achieve business objectives. The risk management framework is aimed at effectively mitigating the Company’s
various business and operational risks through strategic actions.
iNterNaL fiNaNciaL coNtroL
Your Company has in place adequate Internal Financial Controls. The report on the Internal Financial Controls issued by
M/s. APAS & Co., Chartered Accountants, the Statutory Auditors of the Company is attached to the Audit Report on the
Financial Statements of the Company and does not contain any reportable weakness of the Company.
researcH aNd deVeLoPMeNt (r&d)
During the year under review, the Company did not carry out any Research & Development.
corPorate sociaL resPoNsiBiLitY
The composition, role, functions and powers of the Corporate Social Responsibility (CSR) Committee of the Company are
in accordance with the requirements of the Companies Act, 2013. As on March 31, 2020 the CSR Committee comprises of
Ms. Rashmi Dhariwal (DIN: 00337814), Independent Director, Mr. Varun Jaipuria (DIN: 02465412), Non-executive Director
and Mr. Raj Gandhi (DIN: 00003649), Non-executive Director.
Your Company has a Corporate Social Responsibility Policy which is uploaded on the website of the Company at www.
rjcorp.in
Annual Report on CSR activities for the Financial Year 2019-20 as required under Section 134 and 135 of the Act read
with Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 and Rule 9 of the Companies (Accounts)
Rules, 2014 is not applicable.
directors’ resPoNsiBiLitY stateMeNt
Pursuant to Section 134 (3) (c) and (5) of the Companies Act, 2013, the Directors hereby confirm that:
(i) in the preparation of the annual accounts, the applicable accounting standards have been followed and there is no
material departure from the same;
(ii) the directors have selected such accounting policies and applied them consistently and made judgments and
estimates 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 loss of the company for that period;
(iii) the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance
with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
(iv) the directors have prepared the annual accounts of the Company on a ‘going concern’ basis; and
(v) the directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that
such systems are adequate and operating effectively.
VigiL MecHaNisM / WHistLe BLoWer PoLicY
To comply with the provisions of Section 177 of the Act, the Company has adopted a Vigil Mechanism / Whistle Blower
Policy for employees of the Company. Under the Vigil Mechanism Policy, the protected disclosures can be made by
a victim through an e-mail or a letter to the Company Secretary (Vigilance Officer) or to the Chairperson of the Audit
Committee.
statutory r
eports
Annual Report 2019-20 | RJ Corp Limited 10
The Policy provides for adequate safeguards against victimization of employees and Directors and also provides for
direct access to the Vigilance Officer or the Chairperson of the Audit Committee, in exceptional cases. No personnel of
the Company has been denied access to the Audit Committee. The main objective of this policy is to provide a platform to
Directors and employees to raise concerns regarding any irregularity, misconduct or unethical matters / dealings within
the Company which have a negative bearing on the organization either financially or otherwise. During the year under
review, no complaint under the Whistle Blower Policy was received.
discLosure uNder tHe seXuaL HarassMeNt of WoMeN at WorkPLace (PreVeNtioN, ProHiBitioN aNd
redressaL) act, 2013
To comply with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013 has been notified on 9th December, 2013, your Company has adopted a policy for prevention of Sexual
Harassment of Women at workplace and has set up Committee for implementation of said policy. During the year, the
Company has not received any complaint of sexual harassment.
coNserVatioN of eNergY, tecHNoLogY aBsorPtioN aNd foreigN eXcHaNge earNiNgs aNd outgo
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo as
stipulated under Section 134(3)(m) read with Rule 8 of the Companies (Accounts) Rules, 2014 is attached to this report
as aNNeXure – ii.
eXtract of aNNuaL returN
Extract of Annual Return of the Company is annexed herewith as aNNeXure - iii to this report.
HuMaN resources
Human Resource department in your Company act as a Strategic partner in building Company’s businesses by maximizing
the value of human capital and aligning it with company’s initiatives, values, strategies and needs of all stakeholders.
Your Company has created a favorable work environment that encourages innovation and meritocracy. Your Company
has also set up a scalable recruitment and human resources management process which enable us to attract and retain
high caliber employees. Our employee partnership ethos reflects your Company’s longstanding business principles and
drive your Company’s overall performance with the prime focus to identify, assess, groom and build leadership potential
for future.
iMPact of coVid-19
Covid-19 was declared Pandemic having an unprecedented impact on millions globally and economies worldwide.
The virus outbreak saw lockout across geographies effecting global economy, disrupting businesses and supply chains
world over. Nevertheless, your Company ensured the safety and well-being of employees, ensuring business continuity
while considering all the relevant guidelines.
The situation caused by COVID-19 pandemic continues to evolve and its impact on the working of the company is uncertain
as detailed in Note No. 53 of the accompanying financial statements.
geNeraL
Your Directors confirm that no disclosure or reporting is required in respect of the following items as there were no
transaction on these items during the year under review:-
Annual Report 2019-20 | RJ Corp Limited 11
1. Issue of equity shares with differential voting rights as to dividend, voting or otherwise.
2. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going
concern status and Company’s operations in future.
3. Issue of Sweat Equity Shares.
4. There are no material changes and commitments affecting the financial position of the Company which have occurred
between the end of the financial year of the Company to which the financial statements relate and the date of the
report.
5. The Company is compliant of the applicable provisions of Secretarial Standards issued by the Institute of Company
Secretaries of India.
ackNoWLedgeMeNt
Your Company’s organizational culture upholds professionalism, integrity and continuous improvement across all
functions, as well as efficient utilization of the Company’s resources for sustainable and profitable growth.
Your Directors wish to place on record their appreciation for the sincere services rendered by employees of the Company
at all levels. Your Directors also wish to place on record their appreciation for the valuable co-operation and support
received from the various Government Authorities, the Banks / Financial Institutions and other stakeholders such as,
members, customers and suppliers, among others. Your Directors also commend the continuing commitment and
dedication of the employees at all levels, which has been critical for the Company’s success. Your Directors look forward
to their continued support in future.
statutory r
eports
Place : New Delhi Dated : September 30, 2020
raj gandhi DirectorDIN No.: 00003649
Varun Jaipuria DirectorDIN: 02465412
for and on behalf of Board of directors of
rJ corP LiMited
Annual Report 2019-20 | RJ Corp Limited 12
aNNeXure – i
secretariaL audit rePortfor tHe fiNaNciaL Year eNded 31st MarcH, 2020
[Pursuant to section 204(1) of the companies act, 2013 and rule 9 of the companies (appointment and remuneration of Managerial Personnel) rules, 2014]
To,
The Members,
rJ corp Limited
(CIN: U62200DL1980PLC010262)
F-2/7, Okhla Industrial Area, Phase-1
New Delhi - 110020
We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good
corporate practices by rJ corp Limited (hereinafter called the Company) which is an unlisted company. Secretarial
Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory
compliances and expressing our opinion thereon.
We report that-
a) Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to
express an opinion on these secretarial records based on our audit.
b) We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about
the correctness 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.
c) We have not verified the correctness and appropriateness of the financial statements of the Company.
d) Wherever required, we have obtained the Management representation about the compliances of laws, rules and
regulations and happening of events etc.
e) The compliance of the provisions of the Corporate and other applicable laws, rules, regulation, standards is the
responsibility of the management. Our examination was limited to the verification of procedures on test basis.
f) The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Company.
g) Some of the books and papers were verified through online means due to prevailing lockdown (COVID-19) and due
efforts have been made by the company to make available all the relevant documents & records and by the auditors
to conduct and complete the audit in aforesaid lockdown conditions.
Based on our verification of the Company’s books, papers, minute books, forms and returns filed and other records
maintained by the Company and also the information provided by the Company, its officers, agents and authorized
representatives during the conduct of Secretarial Audit, we hereby report that in our opinion, the company has, during
the audit period covering the financial year ended on 31st March, 2020 (“Audit Period”) complied with the statutory
provisions listed hereunder and also that the Company has proper Board processes and compliance mechanism in place
to the extent, in the manner and subject to the reporting made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records maintained by the
company for the financial year ended on 31st March, 2020 according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made thereunder;
(ii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder: and
Annual Report 2019-20 | RJ Corp Limited 13
statutory r
eports
(iii) 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, wherever applicable;
We have also examined compliance with the applicable clauses of Secretarial Standards on Meetings of the Board of
Directors (SS-1) and General Meetings (SS-2) issued by the Institute of Company Secretaries of India, which the Company
has generally complied with.
During the period under review, the Company has generally complied with the provisions of the Act, Rules, Regulations
and Guidelines, to the extent applicable, as mentioned above.
(iv) The Company is engaged in the business of Trading in Shares, Securities, Debentures, Ice Cream, Shoes & Apparels
of ‘Nike’ brand, Apple Products and in investment activities. As informed by the Management, there is no specific law
applicable to the Company.
We 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. No changes in the composition of the Board of Directors
that took place during the period under review.
As per Management representation, notices were given to all the Directors to schedule the Board Meetings. Further, as
per the Management Representation, agendas and detailed notes on agendas were provided to the Directors in advance
of the Meetings. We understand and as confirmed by the management that a system exists for seeking and obtaining
further information and clarifications on the agenda items before the meeting for meaningful participation at the meeting.
Board decisions are carried out with unanimous consent and therefore, no dissenting views were required to be captured
and recorded as part of the minutes.
We further report that there are adequate systems and processes in the company commensurate with the size and
operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
We further report that during the audit period, the shareholders of the Company have passed the following Special
Resolutions in the Annual General Meeting held on September 30, 2019:
• For alteration of Articles of Association of the Company pursuant to Section 14 of the Companies Act, 2013.
• For increasing the limit of granting loans, investments, guarantee or security of the Company up to Rs. 2,000 Crores
(Rupees Two Thousand Crores only) under section 185 of the Companies Act, 2013.
Further, the Board of Directors of the Company passed the following resolutions in its meeting held on September 23,
2019:
• For approving the issue of 4,760 equity shares on rights basis pursuant to the provisions of Section 62(1)(a) of the
Companies Act, 2013
• For approving the scheme of amalgamation of Pinnacle Infracon Limited, Anuj Traders Private Limited, Accor Solar
Energy Private Limited, Shabnam Properties Private Limited, Capital Towers Private Limited, D. J. Agri Industries
Private Limited, Snowpeak Enterprises Private Limited, Pinnacle Constructions Private Limited, Pinnacle Township
Private Limited, Pinnacle Town Planners Private Limited (collectively termed as “Transferor Companies”) with RJ
Corp Limited (“Transferee Company”) under sections 230 to 232 of the Companies Act, 2013. The said Scheme of
amalgamation has been approved by Hon’ble NCLT, New Delhi Bench vide its order dated June 08, 2020.
Place : New Delhi Dated : September 30, 2020
Vijay k. singhalPartner
CP No.:10385 M. No.: A21089
UDIN: A021089B000824595
For sanjay grover & associatesCompany Secretaries
Firm Registration No.: P2001DE052900
Annual Report 2019-20 | RJ Corp Limited 14
aNNeXure – ii
1. conservation of energy, technology absorption and foreign exchange earnings and outgo
The details of conservation of energy, technology absorption, foreign exchange earnings and outgo are as follows:
a) conservation of energy
(i)the steps taken or impact on conservation of energy Replacement of CFL/FTL lamps with
LED lamps
(ii)the steps taken by the company for utilizing alternate sources of energy
-
(iii) the capital investment on energy conservation equipment’s -
b) technology absorption
(i) the efforts made towards technology absorption -
(ii)the benefits derived like product improvement, cost reduction, product development or import substitution
-
(iii) in case of imported technology (imported during the last three years reckoned from the beginning of the financial year)-
-
(a) the details of technology imported -
(b) the year of import; -
(c) whether the technology been fully absorbed -
(d) if not fully absorbed, areas where absorption has not taken place, and the reasons thereof
-
(iv) the expenditure incurred on Research and Development -
c) foreign exchange earnings and outgo
The Foreign Exchange earned in terms of actual inflows during the year and the Foreign Exchange outgo during the year in terms of actual outflows.
Particulars 2019-20 2018-19
Foreign Exchange Earned (Inflow) 72.08 127.47
Foreign Exchange Paid (Outflow) - Nil
Place : New delhi dated : september 30, 2020
raj gandhi DirectorDIN No.: 00003649
Varun Jaipuria DirectorDIN: 02465412
for and on behalf of Board of directors of
rJ corP LiMited
Annual Report 2019-20 | RJ Corp Limited 15
statutory r
eports
aNNeXure – iii
forM No. Mgt 9eXtract of aNNuaL returN
as on financial year ended on March 31, 2020
Pursuant to section 92 (3) of the companies act, 2013 and rule 12(1) of the company (Management & administration) rules, 2014
i. registratioN & otHer detaiLs:
1. CIN U62200DL1980PLC010262
2. Registration Date 01/03/1980
3. Name of the Company RJ Corp Limited
4. Category/Sub-category of the Company Public Company
5. Address of the Registered Office & contact details
F-2/7, Okhla Industrial Area, Phase – I, New Delhi – 110020; Tel. 0124 – 4643100 – 500
6. Whether listed company No
7. Name, Address & contact details of the Registrar & Transfer Agent, if any.
KFin Technologies Private LimitedSelenium Building, Tower-B, Plot No 31 & 32,Financial District, Nanakramguda, Serilingampally, Hyderabad, Rangareddi, Telangana, India - 500 032Tel: +91 40 6716 2222; Fax: +91 40 2342 0814Email: [email protected]: www.kfintech.com
ii. PriNciPaL BusiNess actiVities of tHe coMPaNY (All the business activities contributing 10% or more of the
total turnover of the company shall be stated)
s. No.Name and description of main products /
servicesNic code of the Product/
service% to total turnover of the
company
1 Retail sale in specialized stores 5239 54.98 %
2 Lease Rental 6810 45.02 %
iii. ParticuLars of HoLdiNg, suBsidiarY aNd associate coMPaNies
s. No
Name and address of the company
ciN/gLN Holding / subsidiary/ associate
% of shares
held
applicable section
1
Wellness Holdings Limited,1003, Khalid Al Attar Tower, Sheikh Zayed Road, PO Box 71241, Dubai, UAE
Not Applicable Subsidiary 100.00% 2(87) (ii)
2 Devyani Food Industries Ltd.F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U74899DL1991PLC046403 Subsidiary 99.92% 2(87) (ii)
Annual Report 2019-20 | RJ Corp Limited 16
3 Devyani International Ltd.F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U15135DL1991PLC046758 Subsidiary 76.40% 2(87) (ii)
4 AccorBev (Telangana) Private Limited F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U15500DL2008PTC183357 Subsidiary 100.00% 2(87) (ii)
5 Anuj Traders Private Limited *F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U74899DL1991PTC046376 Subsidiary 99.90% 2(87) (ii)
6 Cryoviva Biotech Private LimitedF-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U85195DL2005PTC137768 Subsidiary 87.46% 2(87) (ii)
7 Modern Montessori International (I) Private Ltd.F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U80301DL2003PTC118290 Subsidiary 50.20% 2(87) (ii)
8 Snowpeak Enterprises Private Limited* (formerly Mumbai Rockets Sports Private Limited)F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U74899DL1975PTC007694 Subsidiary 99.95% 2(87) (ii)
9 S V S India Private Ltd.F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U74899DL1985PTC022537 Subsidiary 72.00% 2(87) (ii)
10 Arctic International Private Ltd.St. Louis Business Centre, Cnr Desroches & St. Louis Streets, Port Louis, Mauritius
Not Applicable Subsidiary 100.00% 2(87) (ii)
11 Cryoviva International Pte. Limited72, South Bridge Road, #01-00, MMI Building, Singapore
Not Applicable Subsidiary 56.00% 2(87)(ii)
12 Accor Developers (Private) Limited 93/1, Industrial Road, Kerawelapitiya, Wattala, Sri Lanka
Not Applicable Subsidiary 73.68% 2(87) (ii)
13 Ole Marketing Private LimitedNo. 140, Low Level Road, Embulgana, Ranala, Sri Lanka
Not Applicable Subsidiary 66.67% 2(87) (ii)
14 Cryoviva Singapore Pte. Limited350 Orchard Road, #08-00, Shaw House, Singapore (238868)
Not Applicable Subsidiary 76.59% 2(87) (ii)
15 Reviva Cell Technologies Pte. Ltd.13A Mackenzie Road Singapore (228676)
Not Applicable Subsidiary 100.00% 2(87) (ii)
s. No
Name and address of the company
ciN/gLN Holding / subsidiary/ associate
% of shares
held
applicable section
Annual Report 2019-20 | RJ Corp Limited 17
statutory r
eports
16 Devyani Airport Services (Mumbai) P. Ltd. F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U55101DL2013PTC250959 Subsidiary 51.00% 2(87) (ii)
17 Devyani Food Street Pvt. Ltd. F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U55101DL2009PTC193995 Subsidiary 100.00% 2(87) (ii)
18 Devyani International (Nepal) Pvt. Ltd. Sinamangal, Koteshwar, W.No.35, Kathmandu, Nepal
Not Applicable Subsidiary 100.00% 2(87) (ii)
19 RV Enterprises Pte. Ltd. 60 Robinson Road # 11-1, Bank of East Asia Building, Singapore 068892
Not Applicable Subsidiary 87.00% 2(87) (ii)
20 Devyani International (Nigeria) Ltd. 110/114 Oshodi Apapa Expressway, Isolo, Lagos, Nigeria
Not Applicable Subsidiary 57.50% 2(87) (ii)
21 Devyani International (UK) P. Ltd. 65 Delamere Road, Hayes, UB4 0NN, United Kingdom
Not Applicable Subsidiary 100.00% 2(87) (ii)
22 Cryoviva Bangladesh Pvt. Ltd. (formerly Cryobanks Bangladesh Pvt. Ltd.)Dr. Lal Pathlabs Bangladesh, 152/2-F, Green Road Panthapath, Dhaka
Not Applicable Subsidiary 77.00% 2(87) (ii)
23 Varun Developers P. Ltd. Ward No.35, Sinamangal Koteshwar, Kathmandu, Nepal
Not Applicable Subsidiary 100.00% 2(87) (ii)
24 Varun Food & Beverages (Zambia) Ltd. Plot no. 37426, Mungwi Road, Heavy Industrial Area, Lusaka, P.O.Box 30007, Zambia
Not Applicable Subsidiary 99.90% 2(87) (ii)
25 Varun Beverages (Africa) Ltd.1st Floor Aquarius House, City Centre, Lilongwe 3, BOX : 30636, Malawi, Africa
Not Applicable Subsidiary 100.00% 2(87) (ii)
26 Varun Food & Beverages (Africa) Ltd. 1st Floor Aquarius House, City Centre, Lilongwe 3, BOX : 30636, Malawi, Africa
Not Applicable Subsidiary 100.00% 2(87) (ii)
s. No
Name and address of the company
ciN/gLN Holding / subsidiary/ associate
% of shares
held
applicable section
Annual Report 2019-20 | RJ Corp Limited 18
27 Varun Infrastructure (Zambia) Ltd. Plot no. 37426, Mungwi Road, Heavy Industrial Area, Lusaka, P.O. Box 30007, Zambia
Not Applicable Subsidiary 99.90% 2(87) (ii)
28 Devyani Food Industries (Kenya) Limited49 Riverside Drive Nairobi, Republic of Kenya,Post office Box No. 55358-00200 Nairobi
Not Applicable Subsidiary
100.00%2(87)(ii)
29 Varun Beverages Ltd. F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
L74899DL1995PLC069839 Associate 27.69% 2(6)
30 Capital Infracon Private Ltd.F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U70109DL2006PTC149697 Associate 49.50% 2(6)
31 Africare Ltd.L.R. No. 209/12961, Mombasa Road, P.O. Box 60293, 00200, Nairobi, Kenya
Not Applicable Associate 27.50% 2(6)
* Companies got merged with RJ Corp Ltd. vide NCLT order dated 8th June, 2020.
iV. sHare HoLdiNg PatterN (equity share capital Breakup as percentage of total equity)
i) category-wise share Holding
category of shareholders
No. of shares held at the beginning of the year
No. of shares held at the end of the year%
change during
the year
demat Physical total % of total
shares
demat Physical total % of total
shares
a. Promoters(1) Indian - - - - - - - - -a) Individual/HUF
2,11,960 - 2,11,960 99.99% 216,965 - 216,965 * 99.99% -
b) Central Govt./ State Govt.
- - - - - - - - -
c) Bodies Corporates
- - - - - - - - -
d) Bank/FI - - - - - - - - -e) Any other - - - - - - - - -suB totaL:(a) (1)
2,11,960 - 2,11,960 99.99% 216,965 - 216,965 99.99% -
(2) foreign
s. No
Name and address of the company
ciN/gLN Holding / subsidiary/ associate
% of shares
held
applicable section
Annual Report 2019-20 | RJ Corp Limited 19
a) NRI- Individuals
- - - - - - - - -
b) Other Individuals
- - - - - - - - -
c) Bodies Corp. - - - - - - - - -d) Banks/FI - - - - - - - - -e) Any other - - - - - - - - -suB totaL (a) (2)
0 0 0 0 0 0 0 0 -
total shareholding of Promoter (a)= (a)(1)+(a)(2)
2,11,960 - 2,11,960 99.99% 216,965 - 216,965 99.99% -
B. Public shareholding(1) institutionsa) Mutual Funds - - - - - - - - -b) Banks/FI - - - - - - - - -C) Central Govt - - - - - - - - -d) State Govt. - - - - - - - - -e) Venture Capital Fund
- - - - - - - - -
f) Insurance Companies
- - - - - - - - -
g) FIIs - - - - - - - - -h) Foreign Venture
- - - - - - - - -
Capital Funds - - - - - - - - -i) Others (specify)
- - - - - - - - -
suB totaL (B)(1):
- - - - - - - - -
(2) Non institutionsa) Bodies corporates
- 25 25 0.01% - 15 15 ** 0.01% -
i) Indian - - - - - - - - -ii) Overseas - - - - - - - - -b) Individualsi) Individual shareholders holding nominal share capital uptoINR1 lakhs
- - - - - - - - -
category of shareholders
No. of shares held at the beginning of the year
No. of shares held at the end of the year%
change during
the year
demat Physical total % of total
shares
demat Physical total % of total
shares
statutory r
eports
Annual Report 2019-20 | RJ Corp Limited 20
ii) Individuals shareholders holding nominal share capital in excess of INR 1 lakhs
- - - - - - - - -
c) Others (specify)
- - - - - - - - -
suB totaL (B)(2):
- - - - - - - - -
total Public shareholding (B)= (B)(1)+(B)(2)
- - - - - - - - -
C. Shares held by Custodian for GDRs & ADRs
- - - - - - - - -
grand total (a+B+c)
2,11,960 25 2,11,985 100% 216,965 15 216,980 100% -
* Includes 245 Equity Shares allotted on 31st August, 2020 to shareholders of transferor companies pursuant to Merger of those Companies into RJ Corp Ltd. vide NCLT order dated 8th June, 2020, which was effective from the appointed dated i.e. 1st April, 2019.
** 10 Equity Shares held in the name of Shabnam Properties Pvt. Ltd. cancelled due to cross holding vide NCLT order dated 8th June, 2020, which was effective from the appointed dated i.e. 1st April, 2019.
(ii) shareholding of Promoters
sl No.
shareholder's Name
shareholding at the beginning of the year
shareholding at the end of the year
% change in share holding
during the year
No. of shares
%of total shares of the
company
%of shares Pledged /
encumbered to total shares
No. of shares
% of total shares of the
company
% of shares Pledged /
encumbered to total shares
1 Varun Jaipuria 19,751 9.31% 2,690 19,966 * 9.11% 2,690 -0.20%2 Dhara Jaipuria 2,243 1.06% - 2,251 ** 1.00% - -0.03%3 Devyani Jaipuria 5,511 2.60% - 5,519 *** 2.50% - -0.06%4 Ravi Kant Jaipuria &
Sons (HUF)1,84,455 87.01% 45,095 1,89,221
$87.20% 65,144 0.29%
total 211,960 99.99% 47,785 216,957 99.81% 67,834 -
category of shareholders
No. of shares held at the beginning of the year
No. of shares held at the end of the year%
change during
the year
demat Physical total % of total
shares
demat Physical total % of total
shares
Annual Report 2019-20 | RJ Corp Limited 21
* Includes 215 Equity Shares allotted on 31st August, 2020 to Mr. Varun Jaipuria vide NCLT order dated 8th June, 2020, which was effective from the appointed dated i.e. 1st April, 2019.
** Includes 8 Equity Shares allotted on 31st August, 2020 to Ms. Dhara Jaipuria vide NCLT order dated 8th June, 2020, which was effective from the appointed dated i.e. 1st April, 2019.
*** Includes 8 Equity Shares allotted on 31st August, 2020 to Ms. Devyani Jaipuria vide NCLT order dated 8th June, 2020, which was effective from the appointed dated i.e. 1st April, 2019.
$ Includes 6 Equity Shares allotted on 31st August, 2020 to Ravi Kant Jaipuria & Sons (HUF) vide NCLT order dated 8th June, 2020, which was effective from the appointed dated i.e. 1st April, 2019.
(iii) change in Promoters’ shareholding (please specify, if there is no change) –
sl. No.
Particulars
shareholding at the beginning of the year
cumulative shareholding during the year
No. of shares% of total
shares of the company
No. of shares% of total
shares of the company
1 Varun JaipuriaAt the beginning of the year 19,751 9.11% 19,751 9.11%Shares allotted due to Merger* 215 0.09% 19,966 9.20%At the end of the year 19,966 9.20% 19,966 9.20%
* 215 Equity Shares allotted on 31st August, 2020 to Mr. Varun Jaipuria vide NCLT order dated 8th June, 2020, which was effective from the appointed dated i.e. 1st April, 2019.
sl. No.
Particulars
shareholding at the beginning of the year
cumulative shareholding during the year
No. of shares% of total
shares of the company
No. of shares% of total
shares of the company
2 dhara JaipuriaAt the beginning of the year 2243 1.00% 2243 1.00%Shares allotted due to Merger* 8 0.00% 2251 1.00%At the end of the year 2251 1.00% 2251 1.00%
* 8 Equity Shares allotted on 31st August, 2020 to Ms. Dhara Jaipuria vide NCLT order dated 8th June, 2020, which was effective from the appointed dated i.e. 1st April, 2019.
sl. No.
Particulars
shareholding at the beginning of the year
cumulative shareholding during the year
No. of shares% of total
shares of the company
No. of shares% of total
shares of the company
3 devyani JaipuriaAt the beginning of the year 5511 2.50% 5511 2.50%Shares allotted due to Merger* 8 0.00% 5519 2.50%At the end of the year 5519 2.50% 5519 2.50%
* 8 Equity Shares allotted on 31st August, 2020 to Ms. Devyani Jaipuria vide NCLT order dated 8th June, 2020, which was effective from the appointed dated i.e. 1st April, 2019.
statutory r
eports
Annual Report 2019-20 | RJ Corp Limited 22
sl. No.
Particulars
shareholding at the beginning of the year
cumulative shareholding during the year
No. of shares% of total
shares of the company
No. of shares% of total
shares of the company
4 ravi kant Jaipuria & sons (Huf)At the beginning of the year 1,84,455 85.01% 1,84,455 85.01%01.10.2019 – Shares allotted on rights issue basis
4,760 2.19% 189,215 87.20%
Shares allotted due to Merger* 6 0.00% 189,221 87.20%At the end of the year 189,221 87.20% 189,221 87.20%
* 6 Equity Shares allotted on 31st August, 2020 to Ravi Kant Jaipuria & Sons (HUF) vide NCLT order dated 8th June, 2020, which was effective from the appointed dated i.e. 1st April, 2019.
(iv) shareholding Pattern of top ten shareholders (other than directors, Promoters and Holders of gdrs and adrs):
sl. No.
Particulars
shareholding at the beginning of the year
cumulative shareholding during the year
No. of shares% of total
shares of the company
No. of shares% of total
shares of the company
1 sellwell foods & Beverages Private LimitedAt the beginning of the year 5 0.00% 5 0.00%Increase/Decrease during the year -- -- 5 0.00%At the end of the year 5 0.00% 5 0.00%
sl. No.
Particulars
shareholding at the beginning of the year
cumulative shareholding during the year
No. of shares% of total
shares of the company
No. of shares% of total
shares of the company
2 empire stocks Private LimitedAt the beginning of the year 10 0.00% 10 0.00%Increase/Decrease during the year -- -- 10 0.00%At the end of the year 10 0.00% 10 0.00%
sl. No.
Particulars
shareholding at the beginning of the year
cumulative shareholding during the year
No. of shares% of total
shares of the company
No. of shares% of total
shares of the company
3 shabnam Properties Private LimitedAt the beginning of the year 10 0.00% 10 0.00%Increase/Decrease during the year -- -- 10 0.00%At the end of the year 0 0.00% 0 0.00%
* 10 Equity Shares held in the name of Shabnam Properties Pvt. Ltd. cancelled due to cross holding vide NCLT order dated 8th June, 2020, which was effective from the appointed dated i.e. 1st April, 2019.
Annual Report 2019-20 | RJ Corp Limited 23
sl. No.
Particulars
shareholding at the beginning of the year
cumulative shareholding during the year
No. of shares% of total
shares of the company
No. of shares% of total
shares of the company
4 Vivek guptaAt the beginning of the year 0 0.00% 0 0.00%Shares allotted due to Merger* 5 0.00% 5 0.00%At the end of the year 5 0.00% 5 0.00%
* 5 Equity Shares allotted to Mr. Vivek Gupta on 31st August, 2020 vide NCLT order dated 8th June, 2020, which was effective from the appointed dated i.e. 1st April, 2019.
(v) shareholding of directors and key Managerial Personnel:
sl. No.
for each of the directors and kMP
shareholding at the beginning of the year
cumulative shareholding during the year
No. of shares% of total
shares of the company
No. of shares% of total
shares of the company
1 Varun JaipuriaAt the beginning of the year 19,751 9.11% 19,751 9.11%Shares allotted due to Merger* 215 0.09% 19,966 9.20%At the end of the year 19,966 9.20% 19,966 9.20%
* 215 Equity Shares allotted on 31st August, 2020 to Mr. Varun Jaipuria vide NCLT order dated 8th June, 2020, which was effective from the appointed dated i.e. 1st April, 2019.
V. iNdeBtedNess
Indebtedness of the Company including interest outstanding/accrued but not due for payment
Secured Loans excluding deposits
Unsecured Loans
DepositsTotal
Indebtedness
indebtedness at the beginning of the financial yeari) Principal Amount 8,357.38 4,927.65 - 13,285.02 ii) Interest due but not paid
11.10 184.04 - 195.14
iii) Interest accrued but not due - - - - total (i+ii+iii) 8,368.48 5,111.69 - 13,480.17 change in indebtedness during the financial year* Addition 2,860.74 4,226.56 - 7,087.30 * Reduction -2,344.18 -8,473.01 - -10,817.18 Net Change 516.57 -4,246.45 - -3,729.88 indebtedness at the end of the financial yeari) Principal Amount 8,873.94 681.20 - 9,555.14 ii) Interest due but not paid 44.21 76.84 - 121.05 iii) Interest accrued but not due - - - - total (i+ii+iii) 8,918.16 758.04 - 9,676.19
statutory r
eports
(` in millions)
Annual Report 2019-20 | RJ Corp Limited 24
Vi. reMuNeratioN of directors aNd keY MaNageriaL PersoNNeL [Please insert the bifurcation of the remuneration paid to following directors of the company.]
A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
sl. no. Particulars of remunerationVikas keshri,
Managertotal amount
1
Gross salary(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961
(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961
1.02 1.02
2 Stock Option - -3 Sweat Equity - -4 Commission
- as % of profit- others, please specify
- -
5 Others, please specify - -Total (A) 1.02 1.02Ceiling as per the Act N/A N/A
B. Remuneration to other directors:
sl. No Particulars of remuneration Name of directors total amount
1
Independent Directors Rashmi DhariwalDr. Girish Kumar Ahuja
Fee for attending board / committee meetings
0.30 0.30 0.60
Commission - - -Others, please specify - - -total (1) 0.30 0.30 0.60
2
Other Non-Executive Directors Ravi Kant Jaipuria
Varun Jaipuria Raj Gandhi total amount
Fee for attending board / committee meetings
- - - -
Commission - - - -Others, please specify - - - -Total (2) - - - -Total (B)=( 1 +2) 0.60Total Managerial Remuneration 0.60Overall Ceiling as per the Act Not Applicable
Annual Report 2019-20 | RJ Corp Limited 25
c. reMuNeratioN to keY MaNageriaL PersoNNeL otHer tHaN Md/MaNager/Wtd
si. No. Particulars of remuneration key Managerial Personnel
1
Gross salary cscfo
Lalit kumar singh
total
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961
- 3.42 3.42
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 - 0.16 0.16(c) Profits in lieu of salary under section 17(3) Income- tax Act, 1961
- - -
2 Stock Option - - -3 Sweat Equity - - -4 Commission - - -
- as % of profit - - -- others, please specify - - -
5 Others, please specify - - -total - 3.58 3.58
Vii. PeNaLties / PuNisHMeNt/ coMPouNdiNg of offeNces:
typesection of the
companiesBrief description
details of Penalty/
Punishment/ compounding fees imposed
authority [rd/ NcLt/ court]
appeal made, if any (give details)
Penalty Nil Nil Nil Nil Nil
Punishment Nil Nil Nil Nil NilCompounding Nil Nil Nil Nil NilotHer officers iN defauLtPenalty Nil Nil Nil Nil NilPunishment Nil Nil Nil Nil NilCompounding Nil Nil Nil Nil Nil
statutory r
eports
Place : New delhi dated : september 30, 2020
raj gandhi DirectorDIN No.: 00003649
Varun Jaipuria Director
DIN: 02465412
for and on behalf of Board of directors of
rJ corP LiMited
(` in millions)
Annual Report 2019-20 | RJ Corp Limited 26
To the Members of
rJ corp Limited
Report on the Standalone Financial Statements
opinion
We have audited the accompanying standalone financial statements of rJ corp Limited (“the Company”), which comprise the
Balance Sheet as at March 31, 2020, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement
of Changes in Equity, the statement of Cash Flows for the year ended 31 March, 2020 and a summary of the significant
accounting policies and other explanatory information (here after referred to as “Standalone Financial Statement”).
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 Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India including Ind AS specified under Section 133 of the Act
read with the Companies (Indian Accounting Standard) Rules, 2015, as amended, and other accounting principles generally
accepted in India, of the state of affairs (financial position) of the Company as at 31st March 2020, and statement of its profit
and loss (financial performance including other comprehensive income), its cash flows and the changes in equity for the year
ended on that date.
emphasis of matter
We draw attention to Note No. 53 of the financial statements regarding the impact of COVID-19 pandemic on the Company.
Management is of the view that there are no reasons to believe that the pandemic will have any significant impact on the
ability of the company to continue as a going concern. Nevertheless, the impact in sight of evolvement of pandemic in future
period is uncertain.
Our opinion is not modified in respect of this matter.
Basis for opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies
Act, 2013. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of
the 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 Accountants of India together with the ethical requirements that are relevant to our audit
of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
information other than the standalone financial statements and auditor’s report thereon
The Company’s Board of Directors is responsible for the preparation of other information. The other information comprises
the Director’s report and Management Discussion and Analysis of Annual report, but does not include the Standalone
Financial Statements and our report thereon. The Directors report and Management Discussion and Analysis of Annual report
is expected to be made available to us after the date of this auditor’s report.
Our opinion on the Standalone Financial Statements does not cover the other information and we will 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
identified above when it becomes available to us and, in doing so, consider whether the other information is materially
inconsistent with the Standalone Financial Statements or our knowledge obtained during the course of our audit, or otherwise
iNdePeNdeNt auditors’ rePort
Annual Report 2019-20 | RJ Corp Limited 27
appears to be materially misstated.
When we read such other information as and when made available to us and if we conclude that there is a material
misstatement therein, we are required to communicate the matter to those charged with governance.
Management’s responsibility for the standalone ind as financial statements
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“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, total comprehensive income, changes in equity and cash flows of the company in accordance
with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance
of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 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 presentation of the standalone Ind AS financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company’s ability to continue
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 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 are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered 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:
1. Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud
or error audit procedures, design and perform responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
2. Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are
appropriate 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 system in place and the operating effectiveness of such
controls.
3. Evaluate the appropriateness of accounting policies used and the reasonable ness of accounting estimates and related
disclosures made by management.
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 28
4. 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 cast significant 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 standalone 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 to cease to continue as a going
concern.
5. Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures,
and whether the standalone financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate,
makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may
be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work
and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial
statements.
We communicate with those charged with governance regarding, among other matters, the planned 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 ethical requirements
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 most
significance in the audit of the standalone financial statements of the current period 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 outweigh the public interest benefits of
such communication.
report on other Legal and regulatory requirements
1. As required by the ‘Companies (Auditor’s Report) Order, 2016’, issued by the Central Government of India in terms of sub-
section (11) of section 143 of the Act (hereinafter referred to as the “Order”), we give in the Annexure ‘I’ a statement on
the matters specified 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 and belief were
necessary for the purpose 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 financial statements dealt with by this report are in agreement with the books of account;
Annual Report 2019-20 | RJ Corp Limited 29
financial statem
ents
(d) in our opinion, the aforesaid standalone financial statements comply with Ind AS specified under Section 133 of the
Act read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the directors and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2020 from being appointed as a director in terms of Section
164(2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the
operating effectiveness of such controls, refer to our separate report in “Annexure-2”. Our report expresses as
unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls over
financial reporting.
(g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of
section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid
by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
(h) with respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the
explanations given to us:
i. The company has disclosed in Note No. 37 the impact of pending litigations on its financial position it its standalone
financial statements;
ii. according to the information and explanations provided to us, the Company did not have any long-term contracts
including derivative contracts for which there were any material foreseeable losses;
iii. there were no amounts which were required to be transferred to the Investor Education and Protection Fund by
the Company.
Place: New delhidate: 30 september, 2020
For aPas & co.Chartered AccountantsFirm Registration No.: 000340C
(sumit kathuria)PartnerM No. 520078 UDIN: 20520078AAAAHS7484
Annual Report 2019-20 | RJ Corp Limited 30
annexure- 1 to the independent auditor’s report
(referred to in paragraph 1 under ‘report on other Legal and regulatory requirements’ section of our report
to the members of rJ corp Limited of even date)
Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of
the company and taking into consideration the information and explanations given to us and the books of account and other
records examined by us in the normal course of audit, and to the best of our knowledge and belief, we report that:
i) In respect of its fixed assets:
a) The company has maintained proper records showing full particulars, including quantitative details and situation of
fixed assets.
b) As explained to us, fixed assets have been physically verified by the management in a phased periodical manner,
which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. As informed to
us no material discrepancies were noticed on such physical verification.
c) The title deeds of all the immovable properties (which are included under the head ‘Property, plant and equipment’)
are held in the name of the company except for the following property:
Nature of property Whether leasehold /freehold
gross block as
on31 March
2020
Net block on31 March
2020
remarks (as per the information and explanation given to us by the
management)
Space in commercial complex, Mohali Mall
Freehold ` 60.00 million
` 56.20 million
Acquired in an amalgamation; registration is in process, will be done on completion of
relevant formalities.
Building (Commercial retail space acquired at Mumbai)
Freehold ` 850.49 million
` 850.41 million
Acquired in an amalgamation; registration is in process, will be done on completion of
relevant formalities.
ii) As explained to us physical verification has been conducted by the management at reasonable intervals in respect
of inventories of trading goods. We were explained that no material discrepancies have been noticed on physical
verification.
iii) As informed to us the company has granted unsecured loans to certain companies covered in the register maintained
under section 189 of the Companies Act 2013. In our opinion and according to information and explanation given to us:
a) the terms and conditions of the grant of such loans are not prejudicial to the Company’s interest;
b) the schedule of repayment of principal and payment of interest has not been stipulated. The borrowers are
regular in repayment of principal and payment of interest on demand.
c) there is no amount overdue for more than 90 days in respect of abovementioned loans.
iv) According to the information and explanations given to us, the company has complied with the provisions of Section
185 and 186, wherever applicable for loans, investments and guarantees.
v) According to the information and explanations given to us, the company has not accepted any deposits, in terms
of the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant
provisions of the Companies Act 2013 and the rules framed there under.
vi) In respect of business activities of the company, maintenance of cost records has not been specified by the Central
Government under sub-section (l) of section 148 read with rules framed thereunder of the Companies Act 2013.
vii) a) As per information and explanations given to us, the company is regular in depositing undisputed statutory dues
including provident fund, employees’ state insurance, income-tax, sales-tax, GST, service tax, duty of customs, duty
of excise, value added tax, cess and any other statutory dues with the appropriate authorities except for delay in
some cases. As informed to us there are no outstanding statutory dues in arrears as at the last day of the financial
year concerned for a period of more than six months from the date they became payable.
Annual Report 2019-20 | RJ Corp Limited 31
financial statem
ents
b) According to the information and explanations given to us, following are the details of disputed dues:
Name of the statute Nature of the dues
amount (` in million) (Net of deposited
under dispute)
Period to which the amount
relates
forum where dispute is pending
Rajasthan Value Added Tax
Value added tax
0.61 A.Y. 2006-07 Rajasthan Tax Board
Maharashtra Value Added Tax
Value added tax
9.01 A.Y. 2013-14 to A.Y. 2015-16
Maharashtra Tax Board
Service tax Act Service Tax 132.94 April 2009 to March 2011
Custom, Central Excise and Service tax Appellate
Tribunal
Other than the details mentioned above and according to the information and explanations given to us, there are no
dues of Income tax, Sales tax, GST, Wealth tax, Service tax, Customs duty, Excise duty, Value added tax or Cess which
have not been deposited with the appropriate authorities on account of any dispute.
viii) The company has not defaulted in repayments of dues payable to a financial institution or a bank or debenture
holders during the year.
ix) As explained to us term loans obtained during the year were applied for the purpose for which the loans were
obtained by the company. The company has not raised any money during the year by way of initial or further public
offer.
x) Based upon the audit procedures performed and information and explanations given by the management, we report
that, no fraud by the Company or on the company by its officers or employees has been noticed or reported during
the course of our audit for the year ended 31.03.2020.
xi) Managerial remuneration has been paid and provided by the company in accordance with the requisite approvals
mandated by the provisions of section 197 of the Act read with Schedule V of the Companies Act 2013.
xii) The provisions of clause 3(xii) of the Order are not applicable as the company is not a Nidhi Company as specified in
the clause.
xiii) According to information and explanations given to us we are of the opinion that all related party transactions are
in compliance with the Section 177 and 188 of Companies Act 2013. Necessary disclosures have been made in the
financial statements as required by the applicable Indian Accounting Standards.
xiv) During the year, the company has issued equity shares on preferential allotment in compliance with the requirement
of Section 62 of the Companies Act, 2013 and so amount raised has been utilized for the purposes for which the funds
were raised.
xv) According to information and explanations given to us the Company has not entered into any non-cash transaction
with the director or any person connected with him during the year.
xvi) In our opinion, in view of its business activities, the company is not required to be registered under section 45IA of
Reserve Bank of India Act, 1934.
Place: New delhidate: 30 september, 2020
For aPas & co.Chartered AccountantsFirm Registration No.: 000340C
(sumit kathuria)PartnerM No. 520078 UDIN: 20520078AAAAHS7484
Annual Report 2019-20 | RJ Corp Limited 32
annexure 2 to the independent auditor’s report
(referred to in paragraph 2 (f) under ‘report on other Legal and regulatory requirements’ section of our report to the
Members of rJ corp Limited of even date)
report on the internal financial controls over financial reporting under clause (i) of sub-section 3 of section 143 of the
companies act, 2013 (“the act”)
In conjunction with our audit of the standalone financial statements of RJ Corp Limited (hereinafter referred to as “Company”)
as at and for the year ended March 31, 2020, we have audited the internal financial controls over financial reporting (‘IFCoFR’)
of the Company as at that date.
Management’s responsibility for internal financial controls
The Board of Directors of the Company are responsible for establishing and maintaining internal financial controls based
on the internal control over financial reporting criteria established by the respective Companies considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
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 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 the timely preparation of
reliable financial information, as required under the Act.
auditor’s responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting based on our audit. We
conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the
“Guidance Note”) issued by the Institute of Chartered Accountants of India and the Standards on Auditing, prescribed under
Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 over financial reporting 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 system over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial
controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of 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 internal financial controls system over financial reporting.
Meaning of internal financial controls over financial reporting
A company’s internal financial control over financial reporting is a process designed to provide 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 control over financial reporting includes those
policies and procedures that;
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company;
Annual Report 2019-20 | RJ Corp Limited 33
(2) provide reasonable assurance that transactions are recorded 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 authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized 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 over financial reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion
or improper management override of controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to
the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
opinion
In our opinion, the company has, in all material respects, an adequate internal financial controls system over financial
reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2020, based
on the internal control 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” issued by the
Institute of Chartered Accountants of India.
Place: New delhidate: 30 september, 2020
For aPas & co.Chartered AccountantsFirm Registration No.: 000340C
(sumit kathuria)PartnerM No. 520078 UDIN: 20520078AAAAHS7484
Annual Report 2019-20 | RJ Corp Limited 34
staNdaLoNe BaLaNce sHeetas at 31 March 2020
Notes as at 31 March 2020
as at 31 March 2019
assets
Non-current assets
(a) Property, plant and equipment 4A 2,432.58 1,550.53
(b) Capital work in progress 4A 2.86 0.63
(c) Right of use assets 4B 365.35 -
(d) Goodwill (refer note 49) 5A 1,394.55 -
(e) Other intangible assets 5B 4.88 3.46
(f) Investment in subsidiaries and associates 6 7,322.62 7,945.77
(g) Financial assets
(i) Investments 7 3,649.61 6,463.19
(ii) Loans 8 78.34 67.19
(iii) Others 9 7.96 3.32
(h) Income tax assets 10 182.42 167.88
(i) Other non-current assets 11 18.73 43.97
total non-current assets 15,459.90 16,245.94
current assets
(a) Inventories 12 206.20 175.23
(b) Financial assets
(i) Trade receivables 13 0.38 0.45
(ii) Cash and cash equivalents 14 25.67 83.46
(iii) Loan 15 1,975.02 3,203.33
(iv) Others 16 79.03 141.52
(c) Other current assets 17 35.50 80.80
total current assets 2,321.80 3,684.79
total assets 17,781.70 19,930.73
equity and liabilities
equity
(a) Equity share capital 18 2.17 2.12
(b) Other equity 19
Equity contribution in compounded financial instruments 535.57 535.57
Reserve & surplus 6,876.08 9,070.45
total equity 7,413.82 9,608.14
(` in millions)
Particulars
Annual Report 2019-20 | RJ Corp Limited 35
(` in millions)
Liabilities
Non-current liabilities
(a) Financial liabilities
(i) Borrowings 20A 5,885.30 7,128.59
(ii) Lease liabilities 20B 322.36 -
(iii) Other financial liabilities 21 35.96 32.89
(b) Provisions 22 11.45 7.59
(c) Deferred tax liabilities (Net) 34 29.76 410.35
total non-current liabilties 6,284.83 7,579.42
current liabilities
(a) Financial liabilities
(i) Borrowings 20D 377.64 92.77
(ii) Lease liabilities 20E 97.39 -
(iii) Trade payables 23
-Total outstanding dues of micro enterprises and small enterprises 0.81 0.29
-Total outstanding dues of creditors other than micro enterprises and small enterprises 80.84 68.91
(iv) Other financial liabilities 24 3,403.35 2,467.42
(b) Other current liabilities 25 122.82 113.64
(c) Provisions 22 0.20 0.14
total current liabilties 4,083.05 2,743.17
total liabilities 10,367.88 10,322.59
total equity and liabilities 17,781.70 19,930.73
Significant accounting policies 3
The accompanying notes are an integral part of the standalone financial statements
As per our report of even date attached.
Notes as at 31 March 2020
as at 31 March 2019
Particulars
sumit kathuriaPartnerMembership No.: 520078
raj Pal gandhiDirectorDIN: 00003649
Lalit kumar singhChief Financial Officer
Varun JaipuriaDirectorDIN: 02465412
Mahavir Prasad gargCompany Secretary
For aPas & co.Chartered Accountants Firm Registration No.: 000340C
For and on behalf of the Board of directors of
rJ corp Limited
Place: New delhidate: 30 september 2020
Annual Report 2019-20 | RJ Corp Limited 36
staNdaLoNe stateMeNt of Profit aNd Lossfor the year ended 31 March 2020
Notes Year ended 31 March 2020
Year ended 31 March 2019
income
Revenue from operations 26 911.21 886.95
Other income 27 746.04 559.66
total income 1,657.25 1,446.61
expenses
Purchases of traded goods 28 435.40 404.09
Changes in inventories of traded goods 29 (30.97) (11.98)
Employee benefits expense 30 113.34 102.79
Finance costs 31 1,291.93 1,488.83
Depreciation and amortization expense 32 139.79 26.84
Other expenses 33 724.32 269.01
total expenses 2,673.81 2,279.58
Profit/(loss) before tax (1,016.56) (832.97)
tax expense
(a) Current tax 34 - -
(b) Adjustment of tax relating to earlier periods 0.68 -
(c) Deferred tax - -
total tax expense 0.68 -
Net profit/(loss) for the year (1,017.24) (832.97)
other comprehensive income
Items that will not to be reclassified to Statement of Profit and Loss:
(i) Re-measurement gains/(losses) on defined benefit plans (0.50) 1.08
(ii) Re-measurement of equity instrument at fair value/gain on sale of such instruments. (2,573.23) 1,259.71
(iii) Income tax relating to items that will not be reclassified to Statement of Profit and Loss 34 380.59 (61.93)
total other comprehensive income (2,193.14) 1,198.86
total comprehensive income for the year (3,210.38) 365.89
Earnings per equity share of face value of ` 10 each 36
Basic (`) (4,740.59) (4,298.55)
Diluted (`) (4,740.59) (4,298.55)
Significant accounting policies 3
The accompanying notes are an integral part of the standalone financial statements
As per our report of even date attached.
(` in millions)
sumit kathuriaPartnerMembership No.: 520078
raj Pal gandhiDirectorDIN: 00003649
Lalit kumar singhChief Financial Officer
Varun JaipuriaDirectorDIN: 02465412
Mahavir Prasad gargCompany Secretary
For aPas & co.Chartered Accountants Firm Registration No.: 000340C
For and on behalf of the Board of directors of
rJ corp Limited
Place: New delhidate: 30 september 2020
Annual Report 2019-20 | RJ Corp Limited 37
staNdaLoNe casH fLoW stateMeNtfor the year ended 31 March 2020
Year ended 31 March 2020
Year ended 31 March 2019
(indirect Method)
Particulas
a.
B.
c
(` in millions)
operating activities Profit/ (Loss) before tax (1,016.56) (832.97)adjustments to reconcile profit before tax to net cash flows: Depreciation on property, plant and equipment 28.20 25.69 Depreciation on right of use 110.07 - Amortisation of intangible assets 1.52 1.15 Interest income on items at amortised cost (253.88) (306.64)Excess provisions written back (0.53) (3.69)Dividend income from non-current investment (210.86) (139.72)Loss / (Gain) on remeasurment of equity instruments at FVTPL 2.46 1.67 Gain on sale of invesments/financial assets (net) (78.11) - Guarantee Commission income from subsidiary and associates (41.23) (15.92)Interest on items at amortised cost 1,291.93 1,488.83 Gain on derecognition of financial instruments (20.69) - Impairment of lnvestment in associate 9.83 - Impairment of loan to associate 533.23 - Loss on disposal of property, plant and equipment (net) 12.91 3.18 Unrealised foreign exchange fluctuation (130.64) (93.21)operating profit before working capital changes 237.65 128.37 Increase in inventories (30.97) (11.98)Decrease in trade receivables 0.07 19.66 Increase/(decrease) in current and non-current financial assets and other current and non-current assets (1,056.55) (55.20)(Increase)/decrease in current financial liabilities and other current and non-current liabilities and provisions 34.91 (21.50)total cash from operations (814.89) 59.35 Taxes (paid)/received (net of tax deducted at source) (15.22) 33.39 Net cash flows from operating activities (a) (830.11) 92.74
investing activities Purchase of property, plant and equipment and intangible assets (including adjustment on account of capital work-in-progress, capital advances and capital creditors) (23.84) (34.18)Purchase of investment (2,905.52) (443.61)Proceeds from sale of investment (net of expenses) 3,840.41 1,349.76 Proceeds from disposal of property, plant and equipment and intangible assets 1.06 0.03 Loans given (195.12) (1,039.31)Repayments of loan given - 25.13 Change in other bank balances having maturity more than 12 months (4.64) (0.05)Interest received 230.64 192.17 Dividend received 210.86 139.72 Net cash flows from/(used in) investing activities (B) 1,153.85 189.66
financing activities Proceeds from non-current borrowings 3,161.10 2,854.27 Repayment of non-current borrowings (3,424.36) (2,340.01)
Annual Report 2019-20 | RJ Corp Limited 38
(indirect Method)
Particulas Year ended 31 March 2020
Year ended 31 March 2019
(` in millions)
Non-current Borrowings current Borrowings
(` in millions)
Proceeds from issue of compulsorily convertible debentures - 650.00 Change in short-term borrowings 284.87 (250.36)Repayment of lease liabilities (136.53) - Proceeds from equity share capital 0.05 0.26 Securities premium 999.99 - Capital reserve - - Interest paid (1,280.33) (1,141.23)Net cash flows from/(used in) financing activities (c) (395.21) (227.07)
Net change in cash and cash equivalents (a+B+c) (71.47) 55.33 Add: Opening cash and cash equivalents 83.46 23.89 Add: Cash and cash equivalents acquired on amalgmation (refer note 49) 13.68 4.24 closing cash and cash equivalents (refer Note-14) 25.67 83.46
Notes :- a) amendment to iNd as 7 The amendments to IND AS 7 “ Statement of Cash Flows” requires the entities to provide disclosures that enable users of Financial Statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities to meet the disclosure requirement.
Balance as at 01st April 2019 9,466.64 92.77 Cash Flows (Net) (263.26) 284.87 Non cash changes Impact of fair value changes 36.28 - Balance as at 31st March 2020 9,239.66 377.64
Balance as at 01 April 2018 12,946.17 338.86 Cash Flows (Net) 1,159.99 (246.09)Non cash changes Conversion of CCPS and CCDS into Equity (5,058.80) - Impact of fair value changes 419.28 - Balance as at 31 March 2019 9,466.64 92.77
Figures in brackets indicate cash outflow.
The accompanying notes are an integral part of the standalone financial statements
As per our report of even date attached.
Particulars
sumit kathuriaPartnerMembership No.: 520078
raj Pal gandhiDirectorDIN: 00003649
Lalit kumar singhChief Financial Officer
Varun JaipuriaDirectorDIN: 02465412
Mahavir Prasad gargCompany Secretary
For aPas & co.Chartered Accountants Firm Registration No.: 000340C
For and on behalf of the Board of directors of
rJ corp Limited
Place: New delhidate: 30 september 2020
Annual Report 2019-20 | RJ Corp Limited 39
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arch
201
9 2
11,9
85
2.1
2
Cha
nges
in e
quity
sha
re c
apita
l dur
ing
the
year
201
9-20
4,9
75
0.0
5
Bal
ance
as
at 3
1 M
arch
202
0 2
16,9
60
2.1
7
B
oth
er e
quit
y
Part
icul
ars
Pro
mot
or
cont
ribu
tion
in
equ
ity
res
erve
and
sur
plus
re-
mea
sure
men
t of e
quit
y in
stru
men
t at f
air
valu
e th
roug
h o
ci (n
et o
f def
erre
d ta
x)
tota
l
capi
tal
rese
rve
sec
urit
y pr
emiu
m
rese
rve
gen
eral
re
serv
e r
etai
ned
earn
ings
Bal
ance
as
at 3
1st M
arch
-201
8 5
35.5
7 2
,216
.45
600
.13
41.
78
(2,3
69.8
2) 3
,159
.52
4,1
83.6
4
Am
ount
tran
sfer
red
on a
mal
gam
atio
n of
co
mm
on c
ontr
ol e
ntiti
es (r
efer
not
e 49
) (1
.33)
(1.0
0) (2
.33)
Pro
fit f
or th
e ye
ar e
nded
(832
.97)
(832
.97)
On
Con
vers
ion
of C
ompu
lsor
ily C
onve
rtib
le
Pre
fren
ce S
hare
s &
Com
puls
orily
C
onve
rtib
le D
eben
ture
5,0
58.8
2 5
,058
.82
oth
er c
ompr
ehen
sive
inco
me
for
the
year
en
ded:
Re-
mea
sure
men
t gai
ns/(
loss
es) o
n de
fine
d be
nefi
t pla
ns (N
et o
f def
erre
d ta
xes)
1.0
8 1
.08
Re-
mea
sure
men
t of e
quity
inst
rum
ents
on
fair
val
ue/g
ain
on s
ale
of s
uch
inst
rum
ents
. (N
et o
f def
erre
d ta
xes)
1,1
97.7
8 1
,197
.78
Tran
sfer
red
to r
etai
ned
earn
ings
on
disp
osal
of e
quity
inve
stm
ents
638
.71
(638
.71)
-
Bal
ance
as
at 3
1st M
arch
-201
9 5
35.5
7 2
,215
.12
5,6
58.9
5 4
1.78
(2
,564
.00)
3,7
18.5
9 9
,606
.02
(` in
mill
ions
)
(` in
mill
ions
)
Annual Report 2019-20 | RJ Corp Limited 40
Am
ount
tran
sfer
red
on a
mal
gam
atio
n of
co
mm
on c
ontr
ol e
ntiti
es (r
efer
not
e 49
) 1
00.9
4 0
.00
100
.94
Tran
sitio
nal i
mpa
ct o
n ad
optio
n of
Ind
AS
116
app
lyin
g m
odifi
ed r
etro
spec
tive
appr
oach
(ref
er n
ote
41)
(84.
93)
(84.
93)
Pro
fit f
or th
e ye
ar e
nded
(1,0
17.2
4)(1
,017
.24)
On
Exer
cise
of r
ight
issu
e 1
,000
.00
1,0
00.0
0
oth
er c
ompr
ehen
sive
inco
me
for
the
year
en
ded:
Re-
mea
sure
men
t gai
ns/(
loss
es) o
n de
fine
d be
nefi
t pla
ns (N
et o
f def
erre
d ta
xes)
(0.5
0) (0
.50)
Re-
mea
sure
men
t of e
quity
inst
rum
ents
on
fair
val
ue/g
ain
on s
ale
of s
uch
inst
rum
ents
. (N
et o
f def
erre
d ta
xes)
(2,1
92.6
4)(2
,192
.64)
Tran
sfer
red
to r
etai
ned
earn
ings
on
disp
osal
of e
quity
inve
stm
ents
1,2
30.1
8 (1
,230
.18)
-
Bal
ance
as
at 3
1st M
arch
-202
0 5
35.5
7 2
,316
.06
6,6
58.9
5 4
1.78
(2
,436
.48)
295
.77
7,4
11.6
6
Part
icul
ars
Pro
mot
or
cont
ribu
tion
in
equ
ity
res
erve
and
sur
plus
re-
mea
sure
men
t of e
quit
y in
stru
men
t at f
air
valu
e th
roug
h o
ci (n
et o
f def
erre
d ta
x)
tota
l
capi
tal
rese
rve
sec
urit
y pr
emiu
m
rese
rve
gen
eral
re
serv
e r
etai
ned
earn
ings
sum
it k
athu
ria
Part
ner
Mem
bers
hip
No.
: 520
078
raj
Pal
gan
dhi
Dir
ecto
r
DIN
: 000
0364
9
Lalit
kum
ar s
ingh
Chie
f Fin
anci
al O
ffice
r
Varu
n Ja
ipur
ia
Dir
ecto
r
DIN
: 024
6541
2
Mah
avir
Pra
sad
gar
g
Com
pany
Sec
reta
ry
For
aPa
s &
co.
Char
tere
d A
ccou
ntan
ts
Firm
Reg
istr
atio
n N
o.: 0
0034
0C
For
and
on b
ehal
f of t
he B
oard
of d
irec
tors
of
rJ
corp
Lim
ited
Pla
ce: N
ew d
elhi
dat
e: 3
0 s
epte
mbe
r 20
20
As
per
our
repo
rt o
f eve
n da
te a
ttac
hed.
Annual Report 2019-20 | RJ Corp Limited 41
1 corporate information
RJ Corp Limited (‘the Company’) was incorporated on
01st March 1980. The Company is primarily engaged
in the business of Trading in Shares, Securities,
Debentures, Ice cream, Shoes & Apparels of ‘Nike’
and ‘Rookie’ brand, Apple Products and in investment
activities.
2 Basis for preparation
The financial statements of the Company have been
prepared in accordance with Indian Accounting
Standard (‘Ind AS’) and comply with requirements of
Ind AS, stipulations contained in Schedule III (revised)
as applicable under Section 133 of the Companies Act,
2013 (“the Act”), the Companies (Indian Accounting
Standards) Rules, 2015 as amended from time to time
and other pronouncements/ provisions of applicable
laws. These financial statements are authorised for
issue on 30 September, 2020 in accordance with a
resolution of the Board of Directors. The revision to
financial statements are permitted by Board of Directors
after obtaining necessary approvals or at the instance
of regulatory authorities as per provisions of Companies
Act, 2013.
The financial statements have been prepared on a
historical cost basis, except for the following assets and
liabilities which have been measured at fair value:
i. Derivative financial instruments;
ii. Certain financial assets and liabilities measured
at fair value (refer accounting policy regarding
financial instruments);
iii. Defined benefit plans- plan assets measured at fair
value; and
The Company presents assets and liabilities in
the balance sheet based on current/non-current
classification. An asset is treated as current if it satisfies
any of the following conditions:
i. Expected to be realised or intended to sold or
consumed in normal operating cycle;
ii. Held primarily for the purpose of trading;
iii. Expected to be realised within twelve months after
the reporting period;
iv. 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 if it satisfies any of the following
conditions:
i. It is expected to be settled in normal operating
cycle;
ii. It is held primarily for the purpose of trading;
iii. It is due to be settled within twelve months after the
reporting period, or;
iv. There is no unconditional right to defer the
settlement of the liability for at least twelve months
after the reporting period.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as non-
current assets and liabilities.
The operating cycle is the time between the acquisition of
assets for processing and its realisation in cash and cash
equivalents. The Company has identified twelve months as
its operating cycle.
The financial statements of the Company are presented
in Indian Rupees (`), which is also its functional currency
and all amounts disclosed in the financial statements and
notes have been rounded off to the nearest million as per
the requirement of Schedule III to the Act, unless otherwise
stated.
3 significant accounting policies
3.1 fair value measurements
The Company measures financial instruments at
fair value which is the price that 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
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe staNdaLoNe
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 42
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe staNdaLoNe
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
the asset or transfer the liability takes place either:
• Intheprincipalmarketfortheassetorliability,or
• In the absence of a principalmarket, in themost
advantageous market for the asset or liability.
All assets and liabilities for which fair value is measured
or disclosed in the 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; and
Level 3 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
unobservable.
The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the
use of unobservable inputs. For assets and liabilities
that are recognised in the balance sheet 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.
For the purpose of fair value disclosures, the Company
has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the
asset or liability and the level of the fair value hierarchy
as explained above.
3.2 revenue recognition
Revenue is recognised to the extent that it is probable
that the economic benefits will flow to the Company
and the revenue can be reliably measured, regardless
of when the payment is being made. The Company has
concluded that it is the principal in all of its revenue
arrangements since it is the primary obligor in all the
revenue arrangements as it has pricing latitude and is
also exposed to inventory and credit risks. Revenue is
measured at the fair value of the consideration received
or receivable, taking into account contractually defined
terms of payment and excludes taxes/duties collected
on behalf of the government.
a) sale of goods:
Revenue from the sale of goods is recognised when the
significant risks and rewards of ownership of the goods
have passed to the buyer, usually on delivery of the
goods. Revenue from the sale of goods is measured at
the fair value of the consideration received or receivable,
net of returns and allowances, trade discounts and
volume rebates. Excise duty is a levy on manufacture
irrespective of ultimate sale of goods and hence the
recovery of excise duty flows to the Company on its own
account. Accordingly, revenues from sale of goods are
stated gross of excise duty. GST, sales tax and value
added tax (VAT) are not received by the Company on its
own account but collected on behalf of the government
and accordingly, are excluded from revenue.
b) interest:
Interest income is recognised on time proportion
basis taking into account the amount outstanding and
rate applicable. For all debt instruments measured
at amortised cost, interest income is recorded using
the effective interest rate (“EIR”). EIR is the rate that
exactly discounts the estimated future cash payments
or receipts over the expected life of the financial
instrument or a shorter period, where appropriate, to
the gross carrying amount of the financial assets. When
calculating the effective interest rate, the Company
estimates the expected cash flows by considering
all the contractual terms of the financial instrument
(for example, prepayment, extension, call and similar
options) but does not consider the expected credit
losses. Interest income is included in other income in
the Statement of Profit and Loss.
Annual Report 2019-20 | RJ Corp Limited 43
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe staNdaLoNe
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
c) dividends:
Dividend is recognised when the Company’s right to
receive the payment is established, which is generally
when shareholders approve the dividend.
d) commission:
Commission income is recognised rateably over the
contract period as per the agreed contractual terms.
e) services rendered:
Revenue from service related activities is recognised
as and when services are rendered and on the basis of
contractual terms with the parties.
3.3 inventories
Inventories are valued as follows:
i. traded goods - At lower of cost and net realisable value.
Cost represents purchase price and other direct costs
and is determined on a weighted average cost basis.
Net realisable value is the estimated selling price in the
ordinary course of business, less estimated costs of
completion and estimated costs necessary to make the
sale. Provision for obsolescence is determined based
on management’s assessment and is charged to the
Statement of Profit and Loss.
3.4 Property, plant and equipment
Property, plant and equipment and capital work-
in progress are stated at cost, net of accumulated
depreciation and accumulated impairment losses, if
any. Such cost includes the cost of replacing part of the
plant and equipment and borrowing costs for long-term
construction projects if the recognition criteria are met.
Cost comprises the purchase price, borrowing costs
if capitalization criteria are met and any directly
attributable cost of bringing the asset to its working
condition for the intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price.
The cost of an item of property, plant and equipment
shall be recognised as an asset if, and only if:
a) it is probable that future economic benefits
associated with the item will flow to the entity; and
b) the cost of the item can be measured reliably.
Subsequent expenditure related to an item of property,
plant and equipment is added to its book value only if
it increased the future benefits from the existing asset
beyond its previously assessed standard of performance.
All other expenses on existing assets, including day- to-
day repair and maintenance expenditure and cost of
replacing parts, are charged to the Statement of Profit
and Loss for the period during which such expenses are
incurred. Expenditure directly relating to construction
activity is capitalized. Indirect expenditure incurred
during construction period is capitalized as a part of
indirect construction cost to the extent the expenditure
is related to construction or is incidental thereto. Other
indirect costs incurred during-the construction periods
which are not related to construction activity nor are
incidental thereto are charged to the Statement of Profit
and Loss.
Value for individual assets acquired for a consolidated
price, the consideration is apportioned to the various
assets on a fair value basis as determined by competent
valuers.
The management has estimated, supported by
technical assessment, the useful lives of property,
plant and equipment. The management believes that
these estimated useful lives are realistic and reflect
fair approximation of the period over which the assets
are likely to be used. Depreciation is calculated on a
straight-line basis over the estimated useful lives of the
assets as follows:
a) depreciation on tangible fixed assets
Depreciation on tangible fixed assets is calculated
based on useful lives of assets as prescribed under
the Schedule II to the Companies Act, 2013, except
for leasehold improvements where depreciation is
calculated on straight line basis over the lease period.
Annual Report 2019-20 | RJ Corp Limited 44
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe staNdaLoNe
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
b) amortisation of intangible assets
Amortisation of intangible assets is provided on the
straight-line basis, at the rates representing the
estimated useful lives.
description rate of amortisation
Software 20%
3.5 intangible assets
Intangible assets are initially recognised at:
a) In case the assets are acquired separately then at cost,
b) In case the assets are acquired in a business
combination then at fair value.
Following initial recognition, intangible assets are
carried at cost less any accumulated amortisation and
accumulated impairment loss. Intangible assets with
finite useful life are assessed for impairment whenever
there is an indication that the intangible assets may be
impaired.
Goodwill is an asset representing the future economic
benefits arising from other assets acquired in a business
combination that are not individually identified and
separately recognized. Goodwill is initially measured
at cost, being the excess of consideration transferred
over the net identifiable assets acquired and liabilities
assumed, measured in accordance with Ind AS 103,
‘Business Combinations’.
Goodwill is considered to have indefinite useful life
and hence is not subject to amortization but tested for
impairment at least annually. After initial recognition,
goodwill is measured at cost less any accumulated
impairment losses.
3.6 Borrowing costs
Borrowing costs include interest, amortisation
of ancillary costs incurred in connection with the
arrangement of borrowings and exchange differences
arising from foreign currency borrowings to the extent
they are regarded as an adjustment to the interest
cost. Borrowing costs, if any, 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 capitalized, if any.
All other borrowing costs are expensed to the Statement
of Profit and Loss in the period in which they occur.
3.7 Leases
Accounting policy applicable from 1 April 2019 onwards:
The Company as a lessee
Right of use assets and lease liabilities
(The transition approach has been explained and
disclosed in Note 41)
The Company mainly has lease arrangements for retail
stores and warehouse spaces. The Company considers
whether a contract is, or contains a lease. A lease is
defined as ‘a contract, or part of a contract, that conveys
the right to use an asset (the underlying asset) for a
period of time in exchange for consideration’.
Classification of leases
The Company enters into leasing arrangements for
various assets. The assessment of the lease is based on
several factors, including, but not limited to, transfer of
ownership of leased asset at end of lease term, lessee’s
option to extend/purchase etc.
Recognition and initial measurement
At lease commencement date, the Company recognizes
a right-of-use asset and a lease liability on the balance
sheet. The right-of-use asset is measured at cost, which
is made up of the initial measurement of the lease
liability, any initial direct costs incurred by the Company,
an estimate of any costs to dismantle and remove the
asset at the end of the lease (if any), and any lease
payments made in advance of the lease commencement
date (net of any incentives received).
Subsequent measurement
The Company depreciates the right-of-use assets on a
straight-line basis from the lease commencement date
to the earlier of the end of the useful life of the right-of-
use asset or the end of the lease term. The Company
also assesses the right-of-use asset for impairment
when such indicators exist.
Annual Report 2019-20 | RJ Corp Limited 45
At lease commencement date, the Company measures
the lease liability at the present value of the lease
payments unpaid at that date, discounted using the
interest rate implicit in the lease if that rate is readily
available or the Company’s incremental borrowing rate.
Lease payments included in the measurement of the
lease liability are made up of fixed payments (including
in substance fixed payments) and variable payments
based on an index or rate. Subsequent to initial
measurement, the liability will be reduced for payments
made and increased for interest. It is re-measured to
reflect any reassessment or modification, or if there are
changes in-substance fixed payments.
When the lease liability is re-measured, the
corresponding adjustment is reflected in the right-
of-use asset. The Company has elected to account for
short-term leases and leases of low-value assets using
the practical expedients. Instead of recognizing a right-
of-use asset and lease liability, the payments in relation
to these are recognized as an expense in standalone
statement of profit and loss on a straight-line basis over
the lease term.
In the comparative period, as a lessee, the Company
classified leases that transferred substantially all of
the risks and rewards of ownership as finance leases.
Leases of property, plant and equipment in which
significant portion of risks and rewards of ownership
were not transferred were classified as operating
leases. In determining the appropriate classification, the
substance of the transaction rather than the form was
considered. In case, the lease arrangement includes
other consideration, it was separated at the inception of
the lease arrangement or upon a reassessment of the
lease arrangement into those for the lease and those for
other elements on the basis of their relative fair values.
Lease classification was made at the inception of the
lease. Lease classification was changed only if, at any
time during the lease, the parties to the lease agreement
agree to revise the terms of the lease (without renewing
it) in a way that it would have been classified differently,
had the changed terms been in effect at inception. The
revised agreement involves renegotiation of original
terms and conditions and were accounted prospectively
over the remaining term of the lease. Lease payments
Lease payments in respect of assets taken on operating
lease are charged to the profit or loss on a straight line
basis over the period of the lease unless the payments
are structured to increase in line with the expected
general inflation to compensate the lessor’s expected
inflationary cost increase.
The Company as a lessor
When the Company acts as a lessor, it determines at
lease inception whether each lease is a finance lease or
an operating lease. To classify each lease, the Company
makes an overall assessment of whether the lease
transfers substantially all of the risks and rewards
incidental to ownership of the underlying asset. If this
is the case, then the lease is a finance lease; if not, then
it is an operating lease. As part of this assessment, the
Company considers certain indicators such as whether
the lease is for the major part of the economic life of the
asset.
When the Company is an intermediate lessor, it
accounts for its interests in the head lease and the sub-
lease separately. It assesses the lease classification
of a sub-lease with reference to the right-of-use asset
arising from the head lease, not with reference to the
underlying asset. If a head lease is a short-term lease
to which the Company applies the exemption described
above, then it classifies the sub-lease as an operating
lease.
The Company recognises lease payments received
under operating leases as income on a straightline
basis over the lease term as part of ‘other income’.
The accounting policies applicable to the Company as a
lessor in the comparative period were not different from
Ind AS 116.
3.8 employee benefits
Contribution to provident and other funds
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 recognises contribution
payable to the provident fund scheme as an expense,
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe staNdaLoNe
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 46
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe staNdaLoNe
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
when an employee renders the related service. If the
contribution payable to the scheme for service received
before the balance sheet date exceeds the contribution
already paid, the deficit payable to the scheme is
recognised as a liability after deducting the contribution
already paid. If the contribution already paid exceeds
the contribution due for services received before the
balance sheet date, then excess is recognised as an
asset to the extent that the pre-payment will lead to,
for example, a reduction in future payment or a cash
refund.
Gratuity
Gratuity is a defined benefit scheme. The cost of
providing benefits under the defined benefit plan is
determined using the projected unit credit method. The
Company recognises termination benefit as a liability
and an expense when the Company has a present
obligation as a result of past 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.
If the termination benefits fall due more than twelve
months after the balance sheet date, they are measured
at present value of future cash flows using the discount
rate determined by reference to market yields at the
balance sheet date on government bonds.
Re-measurements, comprising 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
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 profit or loss
in subsequent periods.
Past service costs are recognised in Statement of Profit
and Loss on the earlier of:
• Thedateoftheplanamendmentorcurtailment,and
• The date that the Company recognises related
restructuring cost
Net interest is calculated by applying the discount rate
to the net defined benefit liability or asset.
The Company recognises the following changes in the
net defined benefit obligation as an expense in the
Statement of Profit and Loss:
• Service costs comprising current service costs,
past-service costs, gains and losses on curtailments
and non-routine settlements; and
• Netinterestexpenseorincome
Compensated absences
The Company treats accumulated leave expected to
be carried forward beyond twelve months, as long-
term employee benefit which are computed based on
the actuarial valuation using the projected unit credit
method at the period end. Actuarial gains/losses are
immediately taken to the Statement of Profit and
Loss and are not deferred. The Company presents the
leave 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 Company has the unconditional legal and
contractual right to defer the settlement for a period
beyond twelve months, the balance is presented as a
non-current liability.
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 amount that it
expects to pay as a result of the unused entitlement that
has accumulated at the reporting date.
All other employee benefits payable/available within
twelve months of rendering the service are classified as
short-term employee benefits. Benefits such as salaries,
wages, bonus, etc. are recognised in the Statement of
Profit and Loss in the period in which the employee
renders the related service.
3.9 foreign currency transactions and translations
Transactions in foreign currencies are initially recorded
in the reporting currency, by applying to the foreign
currency amount the exchange rate between the
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reporting currency and the foreign currency at the date
of the transaction.
Foreign currency monetary items are reported using
the closing rate. Non-monetary items which are carried
in terms of historical cost denominated in a foreign
currency are reported using the exchange rate at the
date of the transaction.
Exchange differences arising on the settlement of
monetary items or on restatement of the Company’s
monetary items at rates different from those at which
they were initially recorded during the year, or reported
in previous financial statements, are recognised as
income or as expenses in the year in which they arise.
3.10 Business combination and goodwill
Business combinations are accounted for using the
acquisition method. At the acquisition date, identifiable
assets acquired and liabilities assumed are measured
at fair value. For this purpose, the liabilities assumed
include contingent liabilities representing present
obligation and they are measured at their acquisition
date fair values irrespective of the fact that outflow
of resources embodying economic benefits is not
probable. The consideration transferred is measured at
fair value at acquisition date and includes the fair value
of any contingent consideration. However, deferred
tax asset or liability and any liability or asset relating
to employee benefit arrangements arising from a
business combination are measured and recognized in
accordance with the requirements of Ind AS 12, Income
Taxes and Ind AS 19, Employee Benefits, respectively.
Where the consideration transferred exceeds the
fair value of the net identifiable assets acquired and
liabilities assumed, the excess is recorded as goodwill.
Alternatively, in case of a bargain purchase wherein the
consideration transferred is lower than the fair value
of the net identifiable assets acquired and liabilities
assumed, the Company after assessing fair value of all
identified assets and liabilities, record the difference as
a gain in other comprehensive income and accumulate
the gain in equity as capital reserve. The costs of
acquisition excluding those relating to issue of equity or
debt securities are charged to the Statement of Profit
and Loss in the period in which they are incurred.
In case of business combinations involving entities
under common control, the above policy does not apply.
Business combinations involving entities under common
control are accounted for using the pooling of interests
method. The net assets of the transferor entity or
business are accounted at their carrying amounts on the
date of the acquisition subject to necessary adjustments
required to harmonise accounting policies. Any excess
or shortfall of the consideration paid over the share
capital of transferor entity or business is recognised as
capital reserve under equity.
goodwill
Goodwill is an asset representing the future economic
benefits arising from other assets acquired in a business
combination that are not individually identified and
separately recognized. Goodwill is initially measured at
cost, being the excess of the consideration transferred
over the net identifiable assets acquired and liabilities
assumed, measured in accordance with Ind AS 103,
‘Business Combinations’.
Goodwill is considered to have indefinite useful life
and hence is not subject to amortization but tested for
impairment at least annually. After initial recognition,
goodwill is measured at cost less any accumulated
impairment losses.
For the purpose of impairment testing, goodwill acquired
in a business combination, is from the acquisition date,
allocated to each of the Company’s cash generating units
(CGUs) that are expected to benefit from the combination.
A CGU is the smallest identifiable group of assets that
generates cash inflows that are largely independent of
the cash inflows from other assets or group of assets.
Each CGU or a combination of CGUs to which goodwill
is so allocated represents the lowest level at which
goodwill is monitored for internal management purpose
and it is not larger than an operating segment of the
Company.
A CGU to which goodwill is allocated is tested for
impairment annually, and whenever there is an
indication that the CGU may be impaired, by comparing
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the carrying amount of the CGU, including the goodwill,
with the recoverable amount of the CGU. If the
recoverable amount of the CGU exceeds the carrying
amount of the CGU, the CGU and the goodwill allocated
to that CGU is regarded as not impaired. If the carrying
amount of the CGU exceeds the recoverable amount of
the CGU, the Company recognizes an impairment loss
by first reducing the carrying amount of any goodwill
allocated to the CGU and then to other assets of the CGU
pro-rata based on the carrying amount of each asset in
the CGU. Any impairment loss on goodwill is recognized
in the Statement of Profit and Loss. An impairment loss
recognized for goodwill is not reversed in subsequent
periods.
On disposal of a CGU to which goodwill is allocated, the
goodwill associated with the disposed CGU is included
in the carrying amount of the CGU when determining the
gain or loss on disposal.
3.11 income taxes
Tax expense is the aggregate amount included in the
determination of profit or loss for the period in respect
of current tax and deferred tax.
current income tax
Current income tax is measured at the amount expected
to be paid to the tax authorities in accordance with the
Income-tax Act, 1961 and rules thereunder. 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 profit or
loss is recognised outside profit or loss (either in OCI or
in equity).
Current tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity.
Management periodically evaluates positions taken
in the tax returns 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 book bases. Deferred tax
liabilities are recognised for all temporary differences,
the carry forward of unused tax credits and any unused
tax losses. Deferred tax assets are recognised to
the extent that 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 can be utilised. 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 profit
or loss is recognised outside profit or loss. Deferred tax
items are recognised in correlation to the underlying
transaction either in OCI or directly in equity.
The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will
be available to allow all or part of the deferred tax asset
to be utilised. Unrecognised deferred tax assets are
re-assessed at each reporting date and are recognised
to the extent that it has become probable that future
taxable profits will allow the deferred tax asset to be
recovered.
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.
Minimum Alternate Tax (“MAT”) credit is recognised as
an asset only when and to the extent there is convincing
evidence that the relevant members of the Company will
pay normal income tax during the specified period. Such
asset is reviewed at each reporting period end and the
adjusted based on circumstances then prevailing.
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3.12 segment reporting
Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker, who is responsible for
allocating resources and assessing performance of
the operating segments. The business activities of the
Company predominantly fall within a single operating
segment, i.e., trading of goods.
3.13 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 those from
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
are corroborated by valuation multiples, quoted share
prices for publicly traded Company’s or other available
fair value indicators.
The Company bases its impairment calculation on
detailed budgets and forecast calculations, which are
prepared separately for each of the Company’s CGUs
to which the individual assets are allocated. These
budgets 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 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 or countries 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.
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 Company
estimates the asset’s or CGU’s recoverable amount. A
previously recognised impairment loss is reversed only
if there has been a change in the assumptions used to
determine the asset’s recoverable amount since 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.
3.14 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 at fair
value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset.
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For purposes of subsequent measurement, financial
assets are classified as follows:
a) Debt instruments at amortised cost
A ‘debt instrument’ is measured at the amortised cost
where the asset is held within a business model whose
objective is to hold assets for collecting contractual cash
flows; and contractual terms of the asset give rise to
cash flows on specified dates that are solely payments
of principal and interest.
After initial measurement, such financial assets are
subsequently measured at amortised cost using the
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
interest income from these financial assets is included
in finance income in the Statement of Profit and Loss.
The losses arising from impairment are recognised in
the Statement of Profit and Loss. This category generally
applies to trade and other receivables.
b) Debt instruments at Fair Value Through Other
Comprehensive Income
Assets that are held for collection of contractual
cashflows and for selling the financial assets, where
the cash flow represent solely payments of principal
and interest, are measured at fair value through other
comprehensive income (“FVOCI”). The Company has not
designated any debt instrument in this category.
c) Debt instruments at Fair Value Through Profit or Loss
Fair Value Through Profit or Loss (“FVTPL”) is a residual
category for debt instruments. Any debt instrument,
which does not meet the criteria for categorisation as at
amortized cost or as FVTOCI, is classified as at FVTPL.
In addition, the Company may elect to designate a debt
instrument which otherwise meets amortized cost or
FVTOCI criteria, as at FVTPL. However, such election
is allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred to
as ‘accounting mismatch’).
Debt instruments included within the FVTPL category
are measured at fair value with all changes recognised
in the Statement of Profit and Loss. The Company has
not designated any debt instrument in this category.
d) Equity instruments
All equity investments in scope of Ind AS 109 are
measured at fair value. Equity instruments included
within the FVTPL category are measured at fair value
with all changes recognised in the Statement of Profit
and Loss.
For all other equity instruments, the Company may
make an irrevocable election to present in other
comprehensive income subsequent changes in the
fair values. The Company makes such election on an
instrument-by-instrument basis. The classification is
made on initial recognition and is irrevocable.
If the Company decides to classify an equity instrument
as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognised in the
OCI. There is no recycling of the amounts from OCI to
profit or loss, even on sale of investment. However,
the Company may transfer the cumulative gain or loss
within equity.
De-recognition
A financial asset is derecognised when the contractual
rights to receive cash flows from the asset have expired
or the Company has transferred its rights to receive the
contractual cash flows from the asset in a transaction
in which substantially all the risks and rewards of
ownership of the asset are transferred.
Impairment of financial assets
The Company measures the Expected Credit Loss
(“ECL”) associated with its assets based on historical
trends, industry practices and the general business
environment in which it operates. The impairment
methodology applied depends on whether there
has been a significant increase in credit risk. ECL
impairment loss allowance (or reversal) recognised
during the period is recognised as income/ expense in
the Statement of Profit and Loss under the head ‘other
expenses’.
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financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as
financial liabilities at fair value through profit or loss, loans
and borrowings, payables, or as derivatives designated as
hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair value
and, in the case of loans and borrowings and payables, net
of directly attributable transaction costs.
The Company’s financial liabilities include trade and other
payables, loans and borrowings including bank overdrafts
and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their
classification, as described below:
a) Financial liabilities at FVTPL
Financial liabilities at FVTPL include financial liabilities
held for trading and financial liabilities designated upon
initial recognition as at 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 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.
Financial liabilities designated upon initial recognition
at fair value through profit or loss are designated
as such at the initial date of recognition, and only if
the criteria in Ind AS 109 are satisfied. For liabilities
designated as FVTPL, fair value gains/ losses are
recognised in the Statement of Profit and Loss, except
for those attributable to changes in own credit risk,
which are recognised in OCI. These gains/ loss are not
subsequently transferred to the Statement of Profit and
Loss.
b) Financial liabilities at amortised cost
After initial recognition, financial liabilities designated
at amortised costs are subsequently measured at
amortised cost using the EIR method. Gains and losses
are recognised in Statement of Profit and Loss when the
liabilities are derecognised as well as through the EIR
amortisation process.
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 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 expires.
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 is treated
as the de-recognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
Statement of Profit and Loss.
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.
3.15 investment in subsidiaries and associates
An investor, regardless of the nature of its involvement
with an entity (the investee), shall determine whether it
is a parent by assessing whether it controls the investee.
An investor controls an investee when it 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.
Thus, an investor controls an investee if and only if the
investor has all the following:
a) power over the investee;
b) exposure, or rights, to variable returns from its
involvement with the investee; and
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c) the ability to use its power over the investee to
affect the amount of the investor’s returns.
An associate is an entity over which the Company
has significant influence. Significant influence is the
power to participate in the financial and operating
policy decisions of the investee, but not control or joint
control over those policies. The considerations made in
determining significant influence are similar to those
necessary to determine control over subsidiaries.
The Company has elected to recognise its investments
in subsidiary and associate companies at cost in
accordance with the option available in Ind AS 27,
‘Separate Financial Statements’. Except where
investments accounted for at cost shall be accounted
for in accordance with Ind AS 105, ‘Non-current Assets
Held for Sale and Discontinued Operations’, when they
are classified as held for sale.
Investment carried at cost is tested for impairment as
per Ind-AS 36.
3.16 Non-current assets and liabilities classified as held
for sale
Non-current assets classified as held for sale are
presented separately in the Balance Sheet and measured
at the lower of their carrying amounts immediately prior
to their classification as held for sale and their fair value
less costs to sell. Once classified as held for sale, the
assets are not subject to depreciation or amortisation.
Any gain or loss arises on remeasurement or sale is
included in Statement of Profit and Loss
3.18 cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand, cheques 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. For the purpose of the statement of
cash flows, cash and cash equivalents consist of cash
and short-term deposits, as defined above.
3.19 Provisions
Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past 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, for example,
under an insurance contract, 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 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 rate
that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a
finance cost.
3.20 contingent liabilities
A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non–occurrence of one or more
uncertain future events beyond the control of the
Company or a present obligation that is not recognised
because it is not probable that an outflow of resources
will be required to settle the obligation. A contingent
liability also arises in extremely rare cases where there
is a liability that cannot be recognised because it cannot
be measured reliably. The Company does not recognize
a contingent liability but discloses its existence in
the financial statements. Contingent assets are only
disclosed when it is probable that the economic benefits
will flow to the entity.
3.21 earnings per share
Basic earnings/ (loss) per share are calculated by
dividing the net profit or loss for the year attributable to
equity shareholders by the weighted average number of
equity shares outstanding during the year. The weighted
average number of equity shares outstanding during
the year is adjusted for events, other than conversion of
potential equity shares, that have changed the number
of equity shares outstanding without a corresponding
change in resources.
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For the purpose of calculating diluted earnings/(loss) per
share, the net 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.
3.22 significant management judgement in applying
accounting policies and estimation uncertainty
The preparation of the Company’s financial statements
requires management to make judgements, estimates
and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and
the accompanying disclosures, and the disclosure
of contingent liabilities at the date of the financial
statements. Estimates and assumptions are
continuously evaluated and are based on management’s
experience and other factors, including expectations of
future events that are believed to be reasonable under
the circumstances.
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.
In particular, the Company has identified the following
areas where significant judgements, estimates and
assumptions are required. Further information on
each of these areas and how they impact the various
accounting policies are described below and also in the
relevant notes to the financial statements. Changes in
estimates are accounted for prospectively.
i) Judgements
In the process of applying the Company’s accounting
policies, management has made the following
judgements, which have the most significant effect on
the amounts recognised in the financial statements:
a) contingencies
Contingent liabilities may arise from the ordinary course
of business in relation to claims against the Company,
including legal, contractor, land access and other
claims. By their nature, contingencies will be resolved
only when one or more uncertain future events occur
or fail to occur. The assessment of the existence, and
potential quantum, of contingencies inherently involves
the exercise of significant judgments and the use of
estimates regarding the outcome of future events.
b) recognition of deferred tax assets
The extent to which deferred tax assets can be
recognised is based on an assessment of the probability
that future taxable income will be available against
which the deductible temporary differences and tax
loss carry-forward can be utilised. The Company has
not recognized deferred tax assets because it is not
probable that there will future taxable profit against
which which the deductible temporary differences, and
the carry forward of unused tax credits and unused tax
losses can be utilised
ii) estimates and assumptions
The key assumptions concerning the future and other
key sources of estimation uncertainty at the reporting
date that have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described
below. The Company based its assumptions and
estimates on parameters available when the financial
statements were prepared. Existing circumstances and
assumptions about future developments, however, may
change due to market change or circumstances arising
beyond the control of the Company. Such changes are
reflected in the assumptions when they occur.
a) useful lives of depreciable assets
The Company reviews its estimate of the useful lives of
depreciable assets at each reporting date, based on the
expected utility of the assets.
b) defined benefit obligation
The cost of the defined benefit plan and other post-
employment benefits and the present value of such
obligation are determined using actuarial valuations.
An actuarial valuation involves making various
assumptions that may differ from actual developments
in the future. These include the determination of the
discount rate, future salary increases, mortality rates
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and future pension increases. In view of 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 reporting
date.
c) inventories
The Company estimates the net realisable values of inventories, taking into account the most reliable evidence available
at each reporting date. The future realisation of these inventories may be affected by future technology or other market-
driven changes that may reduce future selling prices.
d) impairment of non-financial assets and goodwill
In assessing impairment, Company estimates the recoverable amount of each asset or cash-generating units based on
expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions
about future operating results and the determination of a suitable discount rate.
e) fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based
on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model.
The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree
of judgment is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk,
credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial
instruments.
Annual Report 2019-20 | RJ Corp Limited 55
financial statem
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.37)
(16.
28)
-
(0.1
4) (0
.29)
(33.
39)
Bal
ance
as
at
31 M
arch
202
0 1
,074
.00
1,2
87.0
5 5
6.99
6
0.00
-
1
.82
11.
87
57.
27
8.5
2 8
.63
14.
90
2,5
81.0
5
dep
reci
atio
n an
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pair
men
tB
alan
ce a
s at
01
Apr
il 20
19 -
6
2.29
2
4.13
-
-
0
.49
4.3
3 2
2.04
5
.82
5.6
7 9
.51
134
.28
Acq
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s ac
quis
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th
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erge
r du
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ar
-
-
-
1.9
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.51
-
-
-
-
-
-
5.4
1
Dep
reci
atio
n ch
arge
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the
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-
7.4
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.04
1.9
0 -
0
.03
1.3
2 6
.30
0.6
2 1
.18
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8.20
Rev
ersa
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disp
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of
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ts fo
r th
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ar
-
-
(6.7
5) -
(3
.51)
(0.2
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(8.3
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(0.1
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(19.
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(` in
mill
ions
)
No
tes
fo
rM
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cia
L s
tate
Me
Nts
fo
r t
He
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ar
eN
de
d 3
1 M
ar
cH
202
0
Annual Report 2019-20 | RJ Corp Limited 56
No
tes
fo
rM
iNg
Pa
rt
of
tHe
sta
Nd
aLo
Ne
fiN
aN
cia
L s
tate
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fo
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ar
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d 3
1 M
ar
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Bal
ance
as
at
31 M
arch
202
0 -
6
9.70
2
5.42
3
.80
-
0.2
7 5
.52
19.
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6.4
4 6
.72
10.
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148
.47
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am
ount
as
at
31 M
arch
202
0
1,0
74.0
0 1
,217
.35
31.
57
56.
20
-
1.5
5 6
.35
37.
31
2.0
8 1
.91
4.2
6 2
,432
.58
* Th
e co
mpa
ny h
ad a
cqui
red
spac
e in
com
mer
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com
plex
at m
ohal
i mal
l, w
hich
is y
et to
be
regi
ster
ed in
the
nam
e of
the
com
pany
.
^ B
uild
ing
acqu
ired
on
amal
gam
atio
n in
clud
es a
mou
ntin
g to
Rs.
850
.49
of c
omm
erci
al r
etai
l spa
ce a
cqui
red
at M
umba
i, w
hich
is y
et to
be
regi
ster
ed in
the
nam
e
of th
e co
mpa
ny.
Land
Bui
ldin
g^Le
aseh
old
build
ing
spa
ce in
co
mm
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al
com
plex
*
Mot
or
car
tube
wel
l P
lant
&
mac
hine
ryLe
aseh
old
furn
itur
e &
fi
xtur
es
elec
tric
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ttin
g &
ap
plia
nces
com
pute
rso
ffice
eq
uipm
ent
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l
(` in
mill
ions
)
(` in
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ions
)
Land
Bui
ldin
g^Le
aseh
old
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ing
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ce in
co
mm
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al
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*
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or
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l P
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&
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furn
itur
e &
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xtur
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ttin
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ap
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com
pute
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ffice
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ss c
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ntB
alan
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s at
01
Apr
il 20
18 1
,074
.00
436
.56
53.
93
-
-
2.0
8 9
.68
54.
68
8.5
2 6
.45
12.
02
1,6
57.9
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Add
ition
s fo
r th
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ar -
-
1
3.75
-
-
-
1
.36
12.
53
-
1.5
7 2
.25
31.
46
Dis
posa
ls fo
r th
e ye
ar -
-
(4
.56)
-
-
-
-
-
-
-
-
(4.5
6)
Bal
ance
as
at
31 M
arch
201
9 1
,074
.00
436
.56
63.
12
-
-
2.0
8 1
1.04
6
7.21
8
.52
8.0
2 1
4.27
1
,684
.82
Dep
reci
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n an
d im
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men
tB
alan
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s at
01
Apr
il 20
18 -
5
4.96
1
7.35
-
-
0
.46
3.4
7 1
6.25
5
.20
4.6
2 7
.63
109
.95
Dep
reci
atio
n ch
arge
for
the
year
-
7.3
3 8
.13
-
-
0.0
3 0
.85
5.7
9 0
.62
1.0
5 1
.88
25.
69
Rev
ersa
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disp
osal
of
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ts fo
r th
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ar
-
-
(1.3
6) -
-
-
-
-
-
-
-
(1
.36)
Bal
ance
as
at
31 M
arch
201
9 -
6
2.29
2
4.13
-
-
0
.49
4.3
3 2
2.04
5
.82
5.6
7 9
.51
134
.29
carr
ying
am
ount
as
at
31 M
arch
201
9
1,0
74.0
0 3
74.2
8 3
8.98
-
-
1
.59
6.7
0 4
5.16
2
.69
2.3
4 4
.74
1,5
50.5
3
Annual Report 2019-20 | RJ Corp Limited 57
(` in millions)
(` in millions)
(` in millions)
(` in millions)
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
i. asset under construction/ capital work in progress
Capital work in progress as at 31st March 2020 comprised capital expenditure mainly for the set up of new stores of
Nike and Rookie.
Net Book Value 31.03.2020 31.03.2019Capital work-in-progress 2.86 0.63 total 2.86 0.63
4B right-of- use assets
Particulars right-of- use Leasehold Buildings
Balance as at 1 april 2019 518.72 Additions during the year 7.19 Derecognition during the year (59.30)Balance as at 31st March 2020 466.61 accumulated depreciation and impairment lossesBalance as at 1 april 2019 - Depreciation for the year 110.07 Impairment charge for the year - Derecognition during the year (8.81)Balance as at 31st March 2020 101.26 carrying amount (net)Net carrying value as at 31 March 2019 - Net carrying value as at 31 March 2020 365.35
5a. goodwill
Particulars amountgross carrying amountBalance as at 01 April 2019 - Aquired during the year (refer note 49) 1,394.55 Balance as at 31 March 2020 1,394.55 amortisation and impairmentBalance as at 01 April 2019 - Amortisation charge for the year - Balance as at 31 March 2020 - carrying amount as at 31 March 2020 1,394.55
totalgross carrying amountBalance as at 01 April 2018 - Aquired during the year - Balance as at 31 March 2019 - amortisation and impairmentBalance as at 01 April 2018 - Amortisation charge for the year - Balance as at 31 March 2019 - carrying amount as at 31 March 2019 -
Annual Report 2019-20 | RJ Corp Limited 58
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
5B. intangible assets
computer software
total
gross carrying amountBalance as at 01 April 2019 12.36 12.36 Additions for the year 2.94 2.94 Disposals for the year - - Balance as at 31 March 2020 15.30 15.30 amortisation and impairmentBalance as at 01 April 2019 8.90 8.90 Amortisation charge for the year 1.52 1.52 Reversal on disposal of assets for the year - - Balance as at 31 March 2020 10.42 10.42 carrying amount as at 31 March 2020 4.88 4.88
computer software
total
gross carrying amountBalance as at 01 April 2018 10.50 10.50 Additions for the year 1.86 1.86 Disposals for the year - - Balance as at 31 March 2019 12.36 12.36 amortisation and impairmentBalance as at 01 April 2018 7.75 7.75 Amortisation charge for the year 1.15 1.15 Reversal on disposal of assets for the year - - Balance as at 31 March 2019 8.90 8.90 carrying amount as at 31 March 2019 3.46 3.46
6. investments in subsidiaries and associates
Particulars
face value per shares/
debenture in `
31.03.2020 31.03.2019Number of
shares/ debentures
Value Number of shares/
debentures
Value
investment in subsidiaries (unquoted)in equity shares (at cost)Wellness Holdings Limited 100 AED 250,000 451.58 250,000 451.58 Cryoviva Biotech Private Limited 10 17,492,540 131.90 17,492,540 131.90 Cryoviva International PTE Limited-Singapore
1 SGD 280 0.01 280 0.01
Arctic International (Mauritius) Private Limited
1 USD 500,002 19.78 500,002 19.78
Devyani Foods Industries Limited 10 12,490,100 436.15 12,490,080 436.15 Devyani International Limited 10 81,114,607 1,721.76 81,108,607 1,721.70 Diagno Labs India Private Limited# 10 - - 19,993,800 199.96 Modern Montessorie ( India) International Private Limited
10 627,500 3.01 627,500 3.01
(` in millions)
(` in millions)
(` in millions)
Annual Report 2019-20 | RJ Corp Limited 59
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Snowpeak Enterprises Private Limited^
100 - - - -
Anuj Traders Private Limited^ 10 - - - - AccorBev (Telangana) Private Limited (net of Provision for diminution in value of investment)
10 10,000 - 10,000 -
SVS ( India ) Private Limited 100 36,000 5.01 36,000 5.01 Accor Developers Private Limited 100 SLR 535,725 23.44 535,725 23.44 Alisha Retail Private Lmited# 10 - - 19,990,400 199.90 investment in associates (unquoted)in equity shares (at cost)Lineage Healthcare Limited# 10 - - 24,800 0.25 Parkview City Limited 10 228,000 2.28 228,000 2.28 Capital Infracon Private Limited 10 990,000 6.91 990,000 6.91 Ratnakar Foods & Beverages Private Limited*
10 - - 5,000 0.05
Africare Limited (net of provision for impairment)**
100 KSHS 550 - 550 0.03
Agarwal Cold Drinks Private Limited*
10 - - 2,500 0.03
investment in equity shares in subsidiary (at cost ) (quoted)Varun Beverages Limited 10 79,933,517 4,451.48 55,822,345 4,663.10 other investment in subsidiary-equity contribution of guarantee given on behalf of :Alisha Retail Private Lmited# - 26.65 Diagno Labs India Private Limited# - 22.19 Devyani Food Industries Limited 57.19 - -other equity contribution in subsidiaryDevyani Food Industries Limited 12.12 - other investment in associates-equity contribution of guarantee given on behalf of :Africare Limited (net of provision for impairment)**
- 9.80
Lineage Healthcare Limited# - 22.04 total 7,322.62 7,945.77 Aggregate book value of quoted investments
4,451.48 4,663.10
Aggregate market value of quoted investments
42,320.80 48,378.44
Aggregate value of unquoted investments
2,871.14 3,282.66
Particulars
face value per shares/
debenture in `
31.03.2020 31.03.2019Number of
shares/ debentures
Value Number of shares/
debentures
Value
(` in millions)
Annual Report 2019-20 | RJ Corp Limited 60
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
* Investment has been written off due to disolutiion of company during the finacial year 2019-20.
** For provision for impairment refer note no 52.
# During the year, the Company has divested its entire equity holdings in Diagno Labs India Private Limited, Lineage
healthcare Limited and Alisha Retail Private Limited which included existing holdings alongwith shares subscribed during
the year of these companies amounting to Rs. 800, Rs. 249.50 and Rs. 800 respectively. Consequently, the difference
between the carrying value of investment including the equity contribution of financial guarantee recognised in previous
years and sales consideration, has been charged to profit and loss account.
^The investment has been cancelled due to merger of companies as per the order of Hon’ble National Company Law
Tribunal, Special Bench, New Delhi which is effective from 01 April 2019. However the actual transfer is effected wef
30/06/2020 i.e. the date of filing of the order of Hon’ble National Company Law Tribunal, Special Bench, New Delhi with
Registrar of Companies. Acquisitions of businesses of the companies under common control are accounted using the
Pooling of Interest Method as per Ind AS 103 – Business Combinations as on 01 April 2018 at their respective carrying
values. (refer note 49)
For details towards pledge of some of above shares refer note no. 20 C
7. investments
Particulars
face value per shares/
debenture in `
31.03.2020 31.03.2019Number of
shares/ debentures
Value Number of shares/
debentures
Value
investment in equity shares (unquoted) (at fair value through oci) "Global Health Private Limited (Formerly Dr. Naresh Trehan and Associates Health Services Private Limited)"
10 2,000,000 1,011.76 2,000,000 1,029.06
Shabnam Properties Private Limited^
10 - - 15,680 3.44
Empire Stocks Private Limited 10 1,900 0.01 1,900 0.01 Sellwell Foods & Beverages Private Limited
10 - - 2,000 0.02
Pinnacle Infracon Limited^ 10 - - 100 0.00
investment in equity shares (quoted) (at fair value through oci) Lemon Tree Hotels Limited 10 32,427,784 713.41 53,427,784 4,308.95 Caiptal India Finance Limited 10 3,811,320 323.96 3,811,320 514.53
investment in equity shares (quoted) (at fair value through profit & loss) Cosmo Films Limited 10 110 0.02 110 0.02 Cosmo Ferrites Limited 10 200,000 0.62 200,000 2.96 Jaykay Enterprises Limited 1 9,877 0.03 9,877 0.06 J.K.Cement Limited 10 2,233 2.09 2,233 1.94 Jamna Auto Industries Limited 5 6,900 0.16 1,380 0.09 Pasupati Acrylon Limited 10 45 0.00 45 0.00 Rama Vision Limited 10 33,100 0.11 33,100 0.19 Welcure Drugs Limited 10 28,900 0.01 28,900 0.02 ICICI Bank Limited 2 4,950 1.60 4,500 1.80
(` in millions)
Annual Report 2019-20 | RJ Corp Limited 61
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Aravali Securities and Finance Limited
10 25,000 0.07 25,000 0.10
Reliance Industries Limited 10 4 0.00 2 0.00
in compulsorily convertible debentures in subsidiary (at amortised cost)5 Year compulsorily convertible debentures (fully Paid up)Devyani Food Industries Ltd. 1000 1,000,000 995.76 - -
in compulsorily convertible debentures in associate (at amortised cost)6 Year compulsorily convertible debentures (fully Paid up)Parkview City Limited 1000 600,000 600.00 600,000 600.00
total 3,649.61 6,463.19 Aggregate book value of quoted investments
1,042.09 4,830.65
Aggregate market value of quoted investments
1,042.09 4,830.65
Aggregate value of unquoted investments
2,607.54 1,632.53
For details towards pledge of some of above shares refer note no. 20C
^The investment has been cancelled due to merger of companies as per the order of Hon’ble National Company Law
Tribunal, Special Bench, New Delhi which is effective from 01 April 2019. However the actual transfer is effected wef
30/06/2020 i.e. the date of filing of the order of Hon’ble National Company Law Tribunal, Special Bench, New Delhi with
Registrar of Companies. (refer note 49)
8. Loans
as at 31.03.2020
as at 31.03.2019
Loans carried at amortised cost(Unsecured, considered good)Security Deposit 78.34 67.19
78.34 67.19
9. others
as at 31.03.2020
as at 31.03.2019
financial assets at amortised costBank deposit accounts with more than 12 months maturity 7.96 3.32
7.96 3.32
10. income tax assets
as at 31.03.2020
as at 31.03.2019
Income tax assets 182.42 167.88 182.42 167.88
Particulars
face value per shares/
debenture in `
31.03.2020 31.03.2019Number of
shares/ debentures
Value Number of shares/
debentures
Value
(` in millions)
(` in millions)
(` in millions)
(` in millions)
Annual Report 2019-20 | RJ Corp Limited 62
11. other non-current assets
as at 31.03.2020
as at 31.03.2019
(unsecured, considered good)Capital advances 6.04 1.17 Advances other than capital advances- Security deposits 3.07 3.12 - Balance with statutory authorities (includes amount paid under protest) 9.62 8.00 - Prepaid expenses 0.00 31.68
18.73 43.97
12. inventories
as at 31.03.2020
as at 31.03.2019
(valued at lower of cost or net realisable value)Traded goods 206.20 175.23
206.20 175.23
13. trade receivables
as at 31.03.2020
as at 31.03.2019
Unsecured, considered good 0.38 0.45 0.38 0.45
14. cash and cash equivalents
(also for the purpose of cash flow statement)
as at 31.03.2020
as at 31.03.2019
Balance with banks in current accounts 24.00 82.72 Cheques on hand 1.03 - Cash on hand 0.64 0.74
25.67 83.46
15. Loans
as at 31.03.2020
as at 31.03.2019
Loans carried at amortised costLoan to related parties 2,508.25 2,110.42 Less : Provision for impairment (refer note 52) 533.23 -
1,975.02 2,110.42 Loan to others - 1,092.91
1,975.02 3,203.33 Loans to related parties pertain to amounts due from company in which director of the company is a director :--Africare limited 533.23 497.86 -Cryoviva International PTE Limited 259.26 245.68 -Wellness Holdings Limited 223.68 168.28
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
(` in millions)
(` in millions)
(` in millions)
(` in millions)
(` in millions)
Annual Report 2019-20 | RJ Corp Limited 63
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Loan to other related parties--Arctic International Private Limited 1,355.50 1,198.59 -Capital Infracon Private Limited 136.57 -
16. other financial assets
as at 31.03.2020
as at 31.03.2019
(unsecured, considered good)Interest accrued on:-Loan given 63.69 130.69 -Term deposits 0.26 0.21 -Others 0.00 - Other receivables 15.08 10.62
79.03 141.52 interest accured include amount due by subsidiary/ associates companies :--Parkview City Limited - 64.80 -Capital Infracon Private Limited 14.74 - -Devyani Food Industries Limited 47.95 -
17. other current assets
as at 31.03.2020
as at 31.03.2019
(unsecured, considered good)other advances :-Employees 0.74 0.43 -Contractors and suppliers (net of provision for doubtful advances 19.70, previous year Nil)
2.56 20.22
-Prepaid expenses 3.03 2.63 -Balance with statutory/government authorities 28.77 7.32 -Security deposits - 50.00 -Advances to subsidiaries/associates 0.40 0.20
35.50 80.80
advance to subsidiary include amount due by following subsidiary/associate companies :--AccorBev Telangana Private Limited 0.40 0.20 security deposits include amount due by following subsidiary companies :--Lineage Healthcare Limited - 50.00
as at 31.03.2020
as at 31.03.2019
(` in millions)
(` in millions)
(` in millions)
Annual Report 2019-20 | RJ Corp Limited 64
18. equity share capital
as at 31.03.2020
as at 31.03.2019
authorised share capital1,287,800,000 (March 31, 2019: 1,281,850,000) equity shares of ` 10 each 12,878.00 12,818.50
12,878.00 12,818.50 issued, subscribed and fully paid-up216,745 (March 31, 2019: 212,005) equity shares of ` 10 each 2.17 2.12 Add : Equity Share Suspense Account 0.00 0.00 Note : 245 equity shares (March 31 2019 : 20) of ` 10 each are to be alloted as fully paid up for consideration other than cash and 10 equity shares (31 March 2019 : Nil) are to be cancelled pursuant to scheme of amalgamation as duly approved by Hon'ble National Company Law Tribunal, Special Bench, New Delhi.
2.17 2.12
a) reconciliation of share capital
Particulars No. of shares amount (`)Balance as at 01 April 2019 212,005 2,120,050 Add: Share to be alloted on amalgamation (net of cancellation) other than common control entities (refer note 49)
215 2,150
Add: Additions made on due to exercise of right shares# 4,760 47,600 Balance as at 31 March 2020 216,980 2,169,800
Particulars No. of shares amount (`)Balance as at 01 April 2018 187,820 1,878,200 Add: Share to be alloted on amalgamation (net of cancellation) for common control entities (refer note 49)
20 200
Add: Additions made on conversion of compulsorily convertible debentures into equity shares*
10,031 100,310
Add: Additions made on conversion of compulsorily convertible preference shares into equity shares**
14,134 141,340
Balance as at 31 March 2019 212,005 2,120,050
#During the year, the Company has allotted 4,760 equity shares of face value of ` 10 each at an issue price of ` 210,095
each on right issue. These shares are pari-passu with the existing equity shares of the company, in all respects.
*During the previous year, the Company has allotted 10,031 equity shares of face value of ` 10 each at an issue price of `
209,355 each on conversion of compulsorily convertible debentures. These shares are pari-passu with the existing equity
shares of the company, in all respects.
**During the previous year, the Company has allotted 14,134 equity shares of face value of ` 10 each at an issue price
of ` 209,355 each on conversion of compulsorily convertible preference shares. These shares are pari-passu with the
existing equity shares of the company, in all respects.
b) terms/rights attached to shares
The Company has only one class of equity shares having a par value of ` 10 each. Each holder of equity share is entitled
to one vote per share. In the event of liquidation of the Company, holders of equity shares will be entitled to receive any of
the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion
(` in millions)
(` in millions)
(` in millions)
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 65
to the number of equity shares held by the shareholders. The dividend, if any, proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual General Meeting.
c) List of shareholders holding more than 5% of the equity share capital of the company at the beginning and at the end
of the year:
shareholders as at 31 March 2020 No. of shares %Ravi Kant Jaipuria & Sons (HUF) 189,221 87.21%Mr. Varun Jaipuria 19,966 9.20%
shareholders as at 31 March 2019 No. of shares %Ravi Kant Jaipuria & Sons (HUF) 184,455 87.01%Mr. Varun Jaipuria 19,751 9.32%
As per records of the Company, including its register of shareholders/members and other declaration received from the
shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of
shares.
d) aggregate number of equity shares issued as bonus, shares issued for consideration other than cash and shares
bought back during the period of five years immediately preceding the reporting date:
During the year ended 31 March 2018, the company has alloted 63796 equity shares of ` 10 each as fully paid up for
consideration other than cash pursuant to scheme of amalgamation as duly approved by Hon’ble National Company Law
Tribunal, Special Bench, New Delhi.
During the year ended 31 March 2020, 235 equity shares (net of cancellation)of ` 10 each are to be alloted as fully paid up
for consideration other than cash pursuant to scheme of amalgamation as duly approved by Hon’ble National Company
Law Tribunal, Special Bench, New Delhi.
Further the company has not issued any bonus shares during the last preceding 5 years.
e) Preference share capital
The Company also has authorised preference share capital of 18,000,000 (31 March 2019: 18,000,000) preference
shares of `100 each. During the previous year, the Company has allotted 14,134 equity shares of face value of ` 10 each
at an issue price of ` 209,355 each on conversion of 8,999,950 compulsorily convertible preference shares of ` 100
each.
19. other equity
Particulars as at 31.03.2020
as at 31.03.2019
capital reserveBalance at the beginning of the reporting year 2,215.12 2,216.45 Add : Transferred Due to merger (refer note 49) 100.94 (1.33)Balance at the end of the reporting year 2,316.06 2,215.12
general reserveBalance at the beginning of the reporting year 41.78 41.78 Add : Transferred during the reporting year - - Balance at the end of the reporting year 41.78 41.78
(` in millions)
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 66
securities premium reserveBalance at the beginning of the reporting year 5,658.95 600.13 Add: Additions made on conversion of compulsorily convertible debentures into equity shares
- 2,099.94
Add: Additions made on conversion of compulsorily convertible preference shares into equity shares
- 2,958.88
Add: Additions made persuant to exercise of right issue 1,000.00 - Balance at the end of the reporting year 6,658.95 5,658.95
surplus in the statement of profit and lossBalance at the beginning of the reporting year (2,564.00) (2,369.82)Amount transferred on amalgamation of common control entities (refer note 49) 0.00 (1.00)Transitional impact on adoption of Ind AS 116 applying modified retrospective approach (refer note 41)
(84.93) -
Add: Profit for the reporting year (1,017.24) (832.97)(3,666.17) (3,203.79)
add: items of other comprehensive income (''oci'') recognised directly in retained earningsRemeasurement of post-employment benefit obligation, net of tax (0.50) 1.08 add: gain/(loss) on disposal of equity instrument transfrred from oci 1,230.18 638.71 Balance at the end of the year (2,436.49) (2,564.00)
re-measurement of equity instrument at fair value/gain on sale of such instruments (net of deferred tax)Balance at the beginning of the reporting year 3,718.59 3,159.52 Add: Re-measurement during the year (net of tax) (2,192.64) 1,197.78 Less : transferred to retained earnings on disposal of equity investments (1,230.18) (638.71)
295.77 3,718.59 reserve & surplus 6,876.08 9,070.45
equity contribution in compounded financial instruments 535.57 535.57 7,411.65 9,606.02
description of nature and purpose of each reserve:
capital reserve - Created on account of merger of companies pursuant to and in accordance with the court approved
scheme of amalgamation.
general reserve - Created by way of transfer of surplus for statement of profit and loss. The reserve is to be utilised in
accordance with the provisions of the Act.
securities premium reserve - Created to record the premium on issue of shares. The reserve is to be utilised in
accordance with the provisions of the Act.
retained earnings - Created from the profit / loss and other comprehensive income (OCI) of the Company, as adjusted for
distributions to owners, transfers to other reserves, etc.
Particulars as at 31.03.2020
as at 31.03.2019
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
(` in millions)
Annual Report 2019-20 | RJ Corp Limited 67
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
20. Borrowings
a. Non-current borrowings:
Particulars as at 31.03.2020
as at 31.03.2019
debentures-Compulsorily convertible debentures (unsecured) 600.00 592.70 term loans (secured) '-Indian rupee loans from banks 1,909.31 2,164.31 '-Indian rupee loan from a financial institutions/others 3,375.99 4,371.58
5,885.30 7,128.59
For detail regarding repyament terms, rate of interest of term loans refer note 20C.
The Company has complied with all the loan covenants.
B. Non current lease liabilities:
Particulars as at 31.03.2020
as at 31.03.2019
Carried at amortised cost (unsecured) 322.36 - 322.36 -
c. terms and conditions/details of securities for loans are as under:
Name of the bank/instrument 31.03.2020 31.03.2019Non-current current Non-current current
term Loansindian rupee loan from banks (secured)Loans taken from Yes bank carrying rate of interest of 10.80% This loan is repayable as follows: Two instalments of Rs. 25 each in June 18 and July 18, Two instalments of Rs. 50 each in June 19 and July 19, Two instalments of Rs. 50 each in June 20 and July 20, Two instalments of Rs. 62.5 each in June 21 and July 21, Two instalments of Rs. 62.5 each in June 22 and July 22.
This Loan is secured by:
a) subservient charge on all current asset and Movable fixed assets including security deposits.
b) Pledge of unquoted equity shares held by the company, and
c) Personal guarantee of some of the directors of the company and their concerns.
243.98 100.00 339.56 100.00
Loans taken from Yes bank carrying rate of interest of 10.27% . This loan is repayable in 16 quarterly installments of 31.25 starting from March 2019.
This Loan is secured by:
a) subservient charge on all current asset and Movable fixed assets including security deposits.
b) Pledge of equity shares of the Company held by Promoters, and
d) Personal guarantee of one of the director of the company.
216.65 125.00 340.07 125.00
(` in millions)
(` in millions)
Annual Report 2019-20 | RJ Corp Limited 68
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Loans taken from Indusind bank carrying rate of interest of 9.90%. This loan is repayable in 16 installment as follows: 4 monthly installments of Rs.50 starting from April 2019 to July 2019, 4 monthly installments of Rs.50 starting April 2020 to July 2020, 4 monthly installments of Rs.70 starting from April 2021 o July 2021 and 4 monthly installments of Rs. 75 starting from April 2022 to July 2022.
Term Loans from Indusind Bank is secured by:
a) subservient charge on all current asset and Movable fixed assets
b) Pledge of fully paid-up unencumbered equity shares of the Company as held by one of the promoters.
c) Personal guarantee of some of the directors of the company and their concerns.
572.46 100.00 766.89 200.00
Loans taken from Indusind bank carrying rate of interest of 10.75%. This loan is repayable in 36 installment as follows: 3 monthly installments of Rs.5 starting from January 2020 to March 2020, 30 monthly installments of Rs.20.80 starting April 2020 to September 2022, 3 monthly installments of Rs.36.70 starting from October 2022 to December 2022.
Term Loans from Indusind Bank is secured by:
a) subservient charge on all current asset and Movable fixed assets
b) Pledge of fully paid-up unencumbered equity shares of the Company as held by one of the promoters.c) Personal guarantee of some of the directors of the company and their concerns.
474.68 249.60 717.79 15.00
Loans taken from Indusind bank carrying rate of interest of 11.75%. This loan is repayable in 36 installment as follows: 12 monthly installments of Rs.1.88 starting from October 2019 to September 2020, 12 monthly installments of Rs.2.81 starting from October 2020 to September 2021, 12 monthly installments of Rs.3.75 starting from October 2021 to September 2022, 12 monthly installments of Rs.4.69 starting from October 2022 to September 2023, 24 monthly installments of Rs.7.50 starting from October 2023 to September 2025, 12 monthly installments of Rs.9.38 starting from October 2025 to September 2026.
Term Loans from Indusind Bank is secured by:
a) Subservient charge on all current asset and Movable fixed assets
b) Pledge of fully paid-up unencumbered equity shares of the Company as held by one of the promoters.
c) Personal guarantee of some of the directors of the company and their concerns.
401.52 28.13 - -
(` in millions)
Name of the bank/instrument 31.03.2020 31.03.2019Non-current current Non-current current
Annual Report 2019-20 | RJ Corp Limited 69
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
indian rupee loan from others (secured)Loan taken from Kotak Mahindra Prime Limited carrying rate of interest rate of 11.70%. This loan is repayable in monthly installments of Rs. 35 starting from sep 30, 2016 to March 31, 2017 (Except for Novemeber 2016), monthly installments of Rs. 100 for November 2016, monthly installments of Rs. 50 staring from April 2017 to May 31, 2019 (Except for January 2019), monthly installments of Rs. 100 for January 2019 and monthly installment of Rs.40 for June 2019.
- - - 139.90
Loan taken from Kotak Mahindra Prime Limited carrying rate of interest rate of 11.70%.
This loan is repayable in 48 monthly installments of Rs. 20.83 starting from January 2018 to Decemeber 2021.
185.31 229.17 432.82 250.00
Loan taken from Kotak Mahindra Prime Limited carrying rate of interest of 11.70%. This loan is repayable in 42 monthly installments of Rs. 23.81 starting from May 2019 to October 2022.
476.19 238.10 738.10 261.90
Above Term Loans from Kotak Mahindra Prime Ltd. is secured by : a) Equitable Mortgage on the Land & Building of the company situated at Plot No. 31, Sector-44, Gurgaon. b) Pledge of some of the Quoted/Unquoted Equity Shares held by the company and associates.c) Pledge of 6% equity shares of the Company as held by promoters. c) Personal guarantee of RK Jaipuria & Sons (HUF).Loan taken from Kotak Mahindra Prime Limited carrying rate of interest of 12.45%. This loan is repayable in bullet within 90 Days of disbursement . This Term Loan is secured by Corporate Guarantee of RK Jaipuria & Sons (HUF).
- - - 100.00
Loan taken from Kotak Mahindra Prime Limited carrying rate of interest of 11.70%. This loan is repayable in 48 monthly installments of Rs. 29.16 starting from June 2019 to May 2023.
758.33 291.67 1,108.33 291.67
Loan taken from Kotak Mahindra Prime Limited carrying rate of interest of 12.45%. This loan is repayable in 48 monthly installments of Rs. 12.50 starting from March 2020 to February 2024.
437.50 125.00 587.50 12.50
Above Term Loans from Kotak Mahindra Prime Ltd. is secured by :a) Equitable Mortgage on the Land & Building of the company situated at Plot No. 31, Sector-44, Gurgaon. b) Extension of First charge by way of pledge of 6% total equity shares of the Company.c) Extension of charge by way of pledge on 6.75% of total equity shares of Lemon Tree Hotels Limited (LTHL).c) Corporate guarantee of RK Jaipuria & Sons (HUF).
(` in millions)
Name of the bank/instrument 31.03.2020 31.03.2019Non-current current Non-current current
Annual Report 2019-20 | RJ Corp Limited 70
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Loan from Clix Capital Services Private Limited carrying rate of interest 10.90%. This loan is repayable as follows: Two instalments of Rs. 42.5 each in October 17 and January 18, Four instalments of Rs. 53.12 each in April 18, July 18, October 18 and January 19, Four instalments of Rs. 63.75 each in April 19, July 19, October 19 and January 20, and Four instalments of Rs. 74.38 each in April 20, July 20, October 20 and January 21.
- 223.13 297.50 255.00
Loan from Clix Capital Services Private Limited carrying rate of interest 11.25%. This loan is repayable as follows: Two instalments of Rs. 32.5 each in May 18 and August 18, Four instalments of Rs. 40.63 each in Novemeber 18, February 19, May 19 and August 19, Four instalments of Rs. 48.75 each in Novemeber 19, February 20, May 20 and August 20, and Four instalments of Rs. 56.87 each in Novemeber 20, February 21, May 21 and August 21.
65.00 211.25 325.00 178.75
Above Term Loans from Clix Capital Services Private Limited is secured by :
a) subservient charge on all current asset and Movable fixed assets.
b) Pledge of Unquoted Equity Shares as held by the company of one of the subsidiary company.
c) Personal guarantee of one of the Directors of the company and its concern.Loan from Axis Finance Limited carrying rate of interest 9.80%. This loan is repayable in 12 Quarterly instalments of Rs.83.33 starting from June 19 to March 2022.
This Loan is secured by :
a) Second pari passu charge on all current asset and Movable fixed assets.
b) Pledge of unencumbered equity shares of Devyani International Limited to the extend of 2X of Facility amount.
c) Personal guarantee of one of the directors of the company and its concern
331.07 333.33 662.05 333.33
Loan from Axis Finance Limited carrying rate of interest 9.75%. This loan is repayable in 12 Quarterly instalments of Rs.25 starting from September 19 to June 2022.
This Loan is secured by :
a) Second pari passu charge on all current asset and Movable fixed assets.
b) Pledge of unencumbered equity shares of Devyani International Limited to the extend of 2X of Facility amount.
c) Personal guarantee of one of the directors of the company and its concern
122.59 100.00 220.29 75.00
(` in millions)
Name of the bank/instrument 31.03.2020 31.03.2019Non-current current Non-current current
Annual Report 2019-20 | RJ Corp Limited 71
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Loan from Hero Fincorp Limited carrying rate of interest 13.50%. This loan is repayable in bullet at the end of Tenor i.e. September 2022.
This Loan is secured by :
a) subservient charge on the entire asset of the company.
b) Pledge of Unquoted Equity Shares of the company on fully diluted basis.
c) Personal guarantee of one of the directors of the company and its concern
1,000.00 - - -
Loan from Hero Fincorp Limited carrying rate of interest 13.50%. This loan is repayable in bullet at the end of Tenor i.e. November 2020.
This Loan is secured by :
a) subservient charge on the entire assets of the company.
b) Pledge of Unquoted Equity Shares of the company on fully diluted basis.
c) Personal guarantee of one of the directors of the company and its concern
- 1,000.00 - -
compulsorily convertible debentures (unsecured)a) Terms and conditions of issue and conversion of Compulsorily Convertible Debentures (CCD’s) are as under: No of debentures Date of issue Face Value 600000 26-03-2015 1000 b) The CCD's carry a rate of Interest of 12% from the date of allotment.
c) The CCD's shall have a initial tenure of 5 years from the date of their allotment after that they shall be convertible into such number of equity shares of the company as may be determined on the basis of fair market value calculated on the basis of provision of section 56 of Income Tax Act, 1961. The same has been extended for a further period of 5 years.i.e. till 24 March 2025.
600.00 - 592.70 -
total 5,885.30 3,354.36 7,128.59 2,338.05
there has been no defaults in repayment of any of the loans or interest thereon as at the end of the year.
d. current borrowings:
Particulars as at 31.03.2020
as at 31.03.2019
Loans repayable on demandLoan from related party (unsecured) carrying rate of interest @12% 356.84 91.97 Others loan carrying rate of interest @12% 20.80 0.80
377.64 92.77
(` in millions)
Name of the bank/instrument 31.03.2020 31.03.2019Non-current current Non-current current
(` in millions)
Annual Report 2019-20 | RJ Corp Limited 72
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
e. current lease liabilities:
Particulars as at 31.03.2020
as at 31.03.2019
Carried at amortised cost (unsecured) 97.39 - 97.39 -
21. other non-current financial liabilities
Particulars as at 31.03.2020
as at 31.03.2019
Security deposit 35.96 32.89 35.96 32.89
22. Provisions
Particulars as at 31.03.2020
as at 31.03.2019
Non-currentDefined benefit liability (net) (refer note 35) 6.39 4.17 Other long term employee obligations 5.06 3.42
11.45 7.59 currentDefined benefit liability (net) 0.09 0.06 Other short term employee obligations 0.10 0.08
0.20 0.14
23. trade payables
Particulars as at 31.03.2020
as at 31.03.2019
total outstanding dues of--due to micro, small and medium enterprises (refer note 42) 0.81 0.29 -due to others 80.84 68.91
81.65 69.20
24. other current financial liabilities
Particulars as at 31.03.2020
as at 31.03.2019
Current maturities of long-term debts 3,354.36 2,338.05 Interest accrued but not due on borrowings 41.35 121.51 Employee related payables 3.51 3.85 Retention money payable - 0.90 Other payable - 0.01 Capital Creditor 4.13 3.10
3,403.35 2,467.42
(` in millions)
(` in millions)
(` in millions)
(` in millions)
(` in millions)
Annual Report 2019-20 | RJ Corp Limited 73
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
(` in millions)
(` in millions)
(` in millions)
(` in millions)
25. other current liabilities
Particulars as at 31.03.2020
as at 31.03.2019
Advances from customers 10.48 38.08 Statutory dues payable 42.98 20.64 Deferred income 69.36 54.92
122.82 113.64
26. revenue from operations
Year ended 31.03.2020
Year ended 31.03.2019
revenue from operations (gross)sale of products Traded goods 785.59 767.86 sale of services Commission income - 11.48 other operating revenue Lease rental income 125.62 107.61
911.21 886.95
27. other income
Year ended 31.03.2020
Year ended 31.03.2019
interest income on items at amortised cost:-bank deposits 0.47 0.22 -loan to subsidiaries/associates 108.26 127.47 -loan to others - 73.22 -Compulsary convertible debentures 133.16 72.00 -other financial instruments 10.24 8.70 -others 1.75 25.03 Net gain on foreign currency transactions and translations 130.64 93.21 Excess provisions written back 0.53 3.69 Dividend income from non-current investment 210.86 139.72 Gain on sale of investments 78.11 - Gain on derecognition of financial instruments 20.69 - Guarantee Commission income from subsidiary and associates 41.23 15.92 Miscellaneous Income 10.10 0.47
746.04 559.66
28. Purchases of traded goods
Year ended 31.03.2020
Year ended 31.03.2019
Traded Goods 435.40 404.09 435.40 404.09
Annual Report 2019-20 | RJ Corp Limited 74
29. changes in inventories of traded goods
Year ended 31.03.2020
Year ended 31.03.2019
as at the beginning of the reporting yearTraded goods 175.23 163.25
175.23 163.25 as at the closing of the reporting yearTraded goods 206.20 175.23
206.20 175.23 (30.97) (11.98)
30. employee benefits expense
Year ended 31.03.2020
Year ended 31.03.2019
Salaries and wages 101.36 91.53 Contribution to provident and other funds 6.60 5.72 Staff welfare expenses 5.38 5.54
113.34 102.79
31. finance costs
Year ended 31.03.2020
Year ended 31.03.2019
interest on items at amortised cost:-Term loans 985.04 841.64 -Compulasary convertible debentures 79.30 251.30 -Compulasary convertible preference shares - 379.46 -Lease liabilities 55.48 - -Others 172.11 16.43
1,291.93 1,488.83
32. depreciation and amortisation expense
Year ended 31.03.2020
Year ended 31.03.2019
Depreciation on property, plant and equipment 28.20 25.69 Depreciation on right of use 110.07 - Amortisation of intangible assets 1.52 1.15
139.79 26.84
33. other expenses
Year ended 31.03.2020
Year ended 31.03.2019
Power and fuel 13.43 13.88 Repairs to buildings 3.15 2.35 Other repairs 30.14 25.82 Consumption of stores and spares 1.26 1.25 Rent 26.10 168.39 Rates and taxes 3.86 3.62
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
(` in millions)
(` in millions)
(` in millions)
(` in millions)
(` in millions)
Annual Report 2019-20 | RJ Corp Limited 75
Insurance 0.66 0.47 Printing and stationery 0.55 0.78 Communication 4.65 5.17 Travelling and conveyance 7.15 5.14 Directors' sitting fee 0.60 1.60 Payment to the auditors as Audit and reviews 1.00 0.99 Other matters 0.40 0.41 Vehicle running and maintenance 1.32 1.25 Lease and hire 1.77 0.60 Security and service charges 0.97 0.94 Professional and consultancy 30.63 14.07 Bank charges 8.91 8.96 Advertisement and sales promotion 2.74 1.39 Provision for doubtful advances 19.70 - Bad debts written off - 3.65 Donations 0.01 0.01 Loss on disposal of property, plant and equipment (net) 12.91 3.18 Loss on remeasurment of equity instruments at FVTPL 2.46 1.67 Impairment of lnvestment in associate (refer note 52) 9.83 - Impairment of loan to associate (refer note 52) 533.23 - General office and other miscellaneous 6.88 3.42
724.32 269.01
34. income tax
(a) amounts recognised in the statement of Profit and Loss comprises:
Year ended 31.03.2020
Year ended 31.03.2019
current tax:Current tax - -
- -
deferred tax expense:Attributable to Origination and reversal of temporary differences - -
- -
(b) income tax recognised in other comprehensive income
Year ended 31.03.2020
Year ended 31.03.2019
Income tax relating to other comprehencive income (380.59) 61.93 (380.59) 61.93
Year ended 31.03.2020
Year ended 31.03.2019
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
(` in millions)
Annual Report 2019-20 | RJ Corp Limited 76
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
(c) reconciliation of tax expense between accounting profit at applicable tax rate and effective tax rate:
Year ended 31.03.2020
Year ended 31.03.2019
Profit/(Loss) before tax (1,016.56) (832.97)
Tax using the Company's domestic tax rate (25.168%) (31 March 2019: 22.88%) (255.85) (190.58)effect of :Change in unrecognised temporary differences 170.21 9.18 Unrecognised tax losses 39.32 142.92 Unrecognised capital losses (48.78) - Rate change impact on deferred tax * (40.61) (31.64)Items chargeable to tax at special rate 207.22 - Income not chargeable to tax (53.07) - Permanent differences 11.86 83.18 Others (30.29) (13.06)income tax expense at effective tax rate reported in the statement of Profit and Loss
- -
(d) deferred tax assets/liabilities
deferred tax assets (deferred tax liabilities)Net deferred tax assets /
(liabilities)as at
31.03.2020as at
31.03.2019as at
31.03.2020as at
31.03.2019as at
31.03.2020as at
31.03.2019Property, plant and equipment and intangible assets (net)
(80.96) 6.10 - (80.96) 6.10
Employee related provisions and liabilities
2.93 1.77 2.93 1.77
Allowances for impairment of loans and advances
141.64 - 141.64 -
Lease liabilities 105.64 - 105.64 - Financial instruments at amortised cost/FVTPL
(5.37) (14.20) (5.37) (14.20)
MAT Credit 27.10 27.10 27.10 27.10 Equity instruments as Fair Value - (29.76) (410.35) (29.76) (410.35)Tax losses 451.78 412.46 451.78 412.46 Capital losses 48.78 - - 48.78
642.76 482.01 (29.76) (410.35) 613.00 71.66 Deferred tax liabilities (29.76) (410.35)Deferred tax assets 642.76 482.01 deferred tax assets (not recognised)
642.76 482.01
* As at 31 March 2020 and As at 31 March 2019, the Company has significant unabsorbed depreciation and carry forward
losses. The company has not recognised deferred tax assets in respect of deductible temporary difference, unused tax
losses and unabsorbed depreciation as of 31 March, 2020 and 31 March, 2019 respectivley it is not probable that taxable
profit would be available.
Annual Report 2019-20 | RJ Corp Limited 77
(e) Movement of temporary differences (recognised)
as at31 March
2018
recognised in Profit or Loss during
2018-19
recognised in oci during
2018-19
as at31 March
2019
recognised in Profit or Loss during
2019-20
recognised in oci during
2019-20
as at31 March
2020
Equity instruments as Fair Value
(348.41) - (61.93) (410.35) - 380.59 (29.76)
(348.41) - (61.93) (410.35) - 380.59 (29.76)
(f). tax losses and tax credits for which no deferred tax asset was recognised expire as follows:
31.03.2020 31.03.2019gross amount unrecognised
tax effectgross amount unrecognised
tax effect
Unabsorbed depreciation never expire
62.86 15.82 76.38 19.86
LossesFY 2012-13 upto
FY 2020-21 29.86 7.52 29.86 7.76
FY 2014-15 upto FY 2022-23
50.50 12.71 50.50 13.13
FY 2015-16 upto FY 2023-24
153.93 38.74 153.93 40.02
FY 2016-17 upto FY 2024-25
504.23 126.90 504.23 131.10
FY 2017-18 upto FY 2025-26
472.17 118.84 472.17 122.76
FY 2018-19 upto FY 2026-27
521.48 131.25 515.59 134.05
1,732.17 435.96 1,726.28 448.82
1,795.03 451.79 1,802.66 468.69
35 gratuity and other post-employment benefit plans
gratuity:
The Company has a defined benefit gratuity plan governed by the Payments of Gratuity Act, 1972. Every employee who
has completed five years or more of services is eligible for gratuity on separation at 15 days salary (last drawn salary)
for each completed year of service. The Company makes a provision of unfunded liability based on actuarial valuation in
the Balance Sheet as part of employee cost.
compensated absences:
The Company recognises the compensated absences expenses in the Statement of Profit and Loss based on actuarial
valuation.
The following tables summaries the components of net benefit expense recognized in the Statement of Profit and Loss
and the funded status and amounts recognized in the balance sheet:
(All amount in ` millions, unless otherwise stated)
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 78
gratuity compensated absences31.03.2020 31.03.2019 31.03.2020 31.03.2019
changes in present value are as follows: Balance at the beginning of the year 4.22 4.63 3.50 3.38 Past service cost - - - - Current service cost 1.60 1.11 1.48 1.13 Interest cost 0.32 0.36 0.27 0.26 Benefits settled (0.17) (0.80) (0.70) (1.24)Actuarial loss/(gain) 0.50 (1.08) 0.61 (0.03)Balance at the end of the year 6.48 4.22 5.16 3.50
gratuity compensated absences31.03.2020 31.03.2019 31.03.2020 31.03.2019
change in fair value of plan assets are as follows:Plan assets at the beginning of the year, at fair value
- - - -
Expected income on plan assets - - - - Actuarial gain/(loss) - - - - Contributions by employer - - - - Benefits settled - - - - Plan assets at the end of the year, at fair value
- - - -
gratuity compensated absences31.03.2020 31.03.2019 31.03.2020 31.03.2019
reconciliation of present value of the obligation and the fair value of the plan assets:Present value of obligation 6.48 4.22 5.16 3.50 Fair value of plan assets - - - - Net liability recognised in the Balance sheet
6.48 4.22 5.16 3.50
gratuity compensated absences31.03.2020 31.03.2019 31.03.2020 31.03.2019
amount recognised in statement of Profit and Loss:Current/past service cost 1.60 1.11 1.48 1.13 Interest expense 0.32 0.36 0.27 0.26 Expected return on plan assets - - - - Actuarial loss/(gain) - - 0.61 (0.03)Net cost recognised 1.92 1.47 2.36 1.36
(All amount in ` millions, unless otherwise stated)
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 79
gratuity compensated absences31.03.2020 31.03.2019 31.03.2020 31.03.2019
amount recognised in other comprehensive income:Actuarial (Gain)/Loss on arising from Change in Demographic Assumption
(0.00) - - -
Actuarial changes arising from changes in financial assumptions
0.62 0.07 - -
Actuarial changes arising from Experience Adjustment
(0.12) (1.15) - -
amount recognised 0.50 (1.08) - -
gratuity compensated absences31.03.2020 31.03.2019 31.03.2020 31.03.2019
assumptions used:Mortality IALM (2012-14)
ultimateIALM (2006-08)
ultimateIALM (2012-14)
ultimateIALM (2006-08)
ultimateDiscount rate 6.76% 7.65% 6.76% 7.65%Withdrawal rate 1-3% 1-3% 1-3% 1-3%Salary increase 6.00% 6.00% 6.00% 6.00%Rate of availing leave in the long run - - 5.00% 5.00%Retirement age (Years) 58 58 58 58 Rate of return on plan assets - - - -
a quantitative sensitivity analysis for significant assumption as at 31 March 2020 and 31 March 2019 is as shown
below:
sensitivity level gratuity compensated absences31.03.2020 31.03.2019 31.03.2020 31.03.2019 31.03.2020 31.03.2019
Discount rate +1% +1% (0.78) (0.48) (0.68) (0.45)-1% -1% 0.87 0.53 0.76 0.49
Salary increase +1% +1% 0.87 0.54 0.76 0.50 -1% -1% (0.79) (0.49) (0.69) (0.45)
The sensitivity analysis above has been determined based on reasonably possible changes of the assumptions occurring
at the end of the reporting period, while holding all other assumptions constant.
risk associated:
Investment risk The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to Government Bonds Yield. If plan liability is funded and return on plan assets is below this rate, it will create a plan deficit.
Interest risk (discount rate risk)
A decrease in the bond interest rate (discount rate) will increase the plan liability.
(All amount in ` millions, unless otherwise stated)
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 80
Mortality risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants. For this report we have used Indian Assured Lives Mortality (2012-14) ultimate table. A change in mortality rate will have a bearing on the plan’s liability.
Salary risk The present value of the defined benefit plan liability is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan’s liability.
the following payments are maturity profile of defined Benefit obligations in future years:
gratuity compensated absences31.03.2020 31.03.2019 31.03.2020 31.03.2019
i) Weighted average duration of the defined benefit obligation
21.01 years 20.98 years 21.01 years 20.98 years
ii) Duration of defined benefit obligationDuration (years)1 0.09 0.06 0.10 0.08 2 1.63 0.06 0.69 0.07 3 0.08 1.28 0.09 0.07 4 0.09 0.05 0.09 0.54 5 0.09 0.06 0.08 0.05 6 0.09 0.05 0.08 0.05 Above 6 4.41 2.66 4.04 2.63
6.49 4.23 5.16 3.51
defined contribution plan:
Contribution to defined contribution plans, recognised as expense for the year is as under:
Employer’s contribution to provident and other funds ` 6.60 (31 March 2019 : ` 5.72)
36 earnings per share (ePs)
as at 31.03.2020
as at 31.03.2019
Profit attributable to the equity shareholders (1,017.24) (832.97)Weighted average number of equity shares outstanding during the year for calculating basic earning per share (nos.)
214,580 193,778
Weighted average number of equity shares for calculation of diluted earnings per share (nos.)
214,580 193,778
Nominal value per equity shares (`) 10.00 10.00 Basic earnings per share (`) (4,740.59) (4,298.55)Diluted earnings per share (`) (4,740.59) (4,298.55)
The diluted earnings per share do not include the potential impact of conversion of the compulsorily convertible
debentures, since the conversion is dependent on future events which are currently uncertain. Accordingly the potential
dilutive equity shares cannot be estimated reliably at this stage.
(` in millions)
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 81
(` in millions)37 contingent liabilities and commitments
as at 31.03.2020
as at 31.03.2019
a. Guarantees issued on behalf of subsidiary and other companies# 3,512.70 3,116.14 b. Claims against the Company not acknowledged as debts (being contested):-
i ) For excise and service tax 138.11 138.11 ii) For sales tax / entry tax 13.86 13.66 iii) For income tax 70.02 69.22
Note : Further, the company has provided a letter of support for financial and operational assistance to Devyani
International Limited and Devyani Food Industries Limited for ongoiing operations for atleast 12 months.
38 capital commitments
as at 31.03.2020
as at 31.03.2019
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances).
5.09 1.35
39 Pursuant to transfer pricing legislations under the Income-tax Act, 1961, the Company is required to use specified
methods for computing arm’s length price in relation to specified international and domestic transactions with its
associated enterprises. Further, the Company is required to maintain prescribed information and documents in
relation to such transactions. The appropriate method to be adopted will depend on the nature of transactions/ class
of transactions, class of associated persons, functions performed and other factors, which have been prescribed. The
Company is in the process of updating its transfer pricing documentation for the current financial year. Based on the
preliminary assessment, the management is of the view that the update would not have a material impact on the tax
expense recorded in these financial statements. Accordingly, these financial statements do not include any adjustments
for the transfer pricing implications, if any.
40. related party transactions
Following are the related parties and transactions entered with related parties for the relevant financial year:
a. List of related parties and relationships
i ultimate controlling party
R.K. Jaipuria & Sons HUF
ii key Management Personnel
Mr. Varun Jaipuria Director
Mr. Raj P. Gandhi Director
Ms. Rashmi Dhariwal Director
Mr. Girish Ahuja Director
Mr. Ravi Kant Jaipuria Director
Mr. Lalit Singh CFO
Mr. Mahavir Prasad Garg Company Secretary
iii Wholly owned subsidiaries
- Wellness Holdings Limited
- Arctic International Private Limited - Mauritius
- AccorBev (Telangana) Private Limited
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 82
iV subsidiaries
-Anuj Traders Private Limited (upto 01/04/2019)
-Cryoviva Biotech Private Limited
-Devyani Foods Industries Limited
-Devyani International Limited
-Diagno Labs India Private Limited (upto 27/03/2020)
-Modern Montessorie ( India) International Private Limited
-Snowpeak Enterprises Private Limited (upto 01/04/2019)
-SVS (India) Private Limited
-Cryoviva International PTE Limited - Singapore
-Alisha Retail Private Limited (upto 19/02/2020)
-Varun Beverages Limited
-Accor Developers Private Limited
V. associates**
-Lineage Healthcare Limited (upto 11/03/2020)
-Africare Limited
-Parkview City Limited
-Capital Infracon Private Limited
Vi. entities where kMPs or relatives of kMPs exercise significant influence**
-Empire Stocks Private Limited
-Shabnam Properties Private Limited (upto 01/04/2019)
-Diagno Labs India Private Limited (w.e.f 28/03/2020)
-Alisha Retail Private Limited (w.e.f 20/02/2020)
-Lineage Healthcare Limited (w.e.f 12/03/2020)
Vii. relatives of kMPs**
-Meenu Singh
*The status above is given based on merged holding of the transferee company including holding of transferor
companies. However the actual transfer is effected w.e.f 30/06/2020 i.e. the date of filing of the order of Hon’ble
National Company Law Tribunal, Special Bench, New Delhi with Registrar of Companies.
**With whom the Company had transactions during the current year and previous year.
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 83
No
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Annual Report 2019-20 | RJ Corp Limited 84
No
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Annual Report 2019-20 | RJ Corp Limited 85
Pur
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Annual Report 2019-20 | RJ Corp Limited 86
-Wel
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Annual Report 2019-20 | RJ Corp Limited 87
-Cap
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31.0
3.20
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2019
Annual Report 2019-20 | RJ Corp Limited 88
41. Leases
a. Leases where the company is a lessee
The Company leases several assets including buildings for retail outlets and warehouse. Lease payments are generally
fixed or are linked to revenue with minimum guarantee and average lease term is 8 years.
i. right-of-use asset
Right-of-use assets related to leased properties that do not meet the definition of investment property are presented on
face of balance sheet below property, plant and equipment.
Buildings
Recognised as at 1 April 2019 (refer note 4B) 518.72
Additions 7.19
Derecognition (50.49)
Depreciation (110.07)
Closing balance as at 31 March 2020 365.35
ii. for lease liabilities refer note 20B and 20e.
iii. amounts recognised in the statement of profit or loss
Note for the year ended 31 March 2020
Depreciation 32 110.07
Interest on lease liabilities 31 55.48
(Gain) on derecognition of Right of use asset 27 (20.69)
Expense relating to short term lease/variable lease payments not included in the measurement of the lease liability
26 26.10
Net impact on statement of profit and loss 170.96
iv. amounts recognised in the cash flow statement
for the year ended 31 March 2020
Payment for finance cost 55.48
Principal repayments 81.06
total cash outflows 136.54
v. Payments associated with short-term leases of premises and all leases of low-value assets are recognised on a
straight-line basis as an expense in profit or loss.
Short-term leases are leases with a lease term of 12 months or less.
B. changes in accounting policies:
Except for the changes below, the Company has consistently applied the accounting policies to all periods presented
in these consolidated financial statements. The Company applied Ind AS 116 with a date of initial application of 1 April
2019. As a result, the Company has changed its accounting policy for lease contracts as detailed below. The adoption of
(` in million)
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 89
this new Standard has resulted in the Company recognising a right-of-use asset and related lease liability in connection
with all former operating leases except for those identified as low-value or having a remaining lease term of less than 12
months from the date of initial application.The Company applied Ind AS 116 using the modified retrospective approach,
under which the cumulative effect of initial application is recognised in retained earnings at 1 April 2019. Prior periods
have not been restated. The details of the changes in accounting policies are disclosed below.
i. definition of a lease
On transition to Ind AS 116, the Company elected to apply the practical expedient to grandfather the assessment of which
transactions are leases. It applied Ind AS 116 only to contracts that were previously identified as leases. Contracts that
were not identified as leases under Ind AS 17 were not reassessed for whether there is a lease. Therefore, the definition
of a lease under Ind AS 116 was applied only to contracts entered into or changed on or after 1 April 2019.
ii. as a lessee
As a lessee, the Company previously classified leases as operating or finance leases based on its assessment of whether
the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the
Company. Under Ind AS 16, the Company recognises right-of-use assets and lease liabilities for most leases – i.e. these
leases are on-balance sheet.
a. Leases classified as operating leases under ind as 17
The Company has elected not to include initial direct costs in the measurement of the right-of-use asset for operating
leases in existence at the date of initial application of Ind AS 116, being 1 April 2019. At this date, the Company has also
elected to measure the right-of-use assets at an amount equal to the lease liability adjusted for any prepaid or accrued
lease payments that existed at the date of transition.
The Company used the following practical expedients when applying Ind AS 116 to leases previously classified as
operating leases under Ind AS 17.
-Instead of performing an impairment review on the right-of-use assets at the date of initial application, the Company has
relied on its historic assessment as to whether leases were onerous immediately before the date of initial application of
Ind AS 116.
-Applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease
term.
-Used hindsight when determining the lease term if the contract contains options to extend or terminate the lease.
b. There were no leases previously classified as finance leases.
iii. impacts on the standalone financial statements
On transition to Ind AS 16, the Company recognised Rs 487.05 as right-of-use assets (refer below) and Rs 571.97 of lease
liabilities, with corresponding impact of Rs. 84.93 on retained earnings as at 1 April 2019 and reclassification of deferred
rent of Rs. 31.67 to right-of-use assets. When measuring lease liabilities, the Company discounted lease payments using
its incremental borrowing rate at 1 April 2019. The weighted-average rate applied is 11.62%.
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 90
Measurement of lease liabilities
Total operating lease commitments disclosed at 31 March 2019
824.47
Short term lease payments not recognised (34.20)
Operating lease liabilities before discounting 790.26
Discounted using incremental borrowing rate 571.97
Total lease liabilities recognised under Ind AS 116 at 1 April 2019:
-current lease liabilities 87.21
-non current lease liabilities 484.76
571.97
*Operating lease commitment amount disclosed in previous year was inclusive of GST which has been excluded from
lease consideration under IND AS 116.
adjustments recognised in the balance sheet on 1 april 2019
The change in accounting policy affected the following items in the balance sheet on 1 April 2019:
Particulars sub note amounts reported as at31 March 2019
impacts of adoption
ind as 116
adjusted amounts as at1 april 2019
Retained earnings 19 (2,564.00) (84.93) (2,649.00)
Other assets (refer to note 7) a 31.67 (31.67) -
Lease liabilities (including current liabilities) (refer to note 20B and 20E)
- 571.97 571.97
Right of use assets (refer to note 4B) - 518.72 518.72
sub note:
a) The Company has recognised Rs 487.05 as right-of-use assets and Rs 571.97 of lease liabilities, with corresponding
impact of Rs. 84.93 on retained earnings as at 1 April 2019 and reclassification of deferred rent Rs. 31.67 to right-of-use
assets.
42. dues to Micro and small enterprises
The micro and small enterprises have been identified by the Company on the basis of information collected by the
management. This has been relied by the auditor. According to such identification, the disclosures in respect to Micro,
Small and Medium Enterprise Development (MSMED) Act, 2006 is as follows:
details of dues to micro and small enterprises as per MsMed act, 2006
as at 31.03.2020
as at 31.03.2019
The principal amount and the interest due thereon remaining unpaid to any supplier as at the end of each accounting year
-Principal amount 0.81 0.29
-Interest amount - -
The amount of interest paid by the buyer in terms of section 16, of the Micro Small and Medium Enterprise Development Act, 2006 along with the amounts of the payment made to the supplier beyond the appointed day during each accounting year.
- -
(` in million)
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 91
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 the year) but without adding the interest specified under Micro Small and Medium Enterprise Development Act, 2006.
- -
The amount of interest accrued and remaining unpaid at the end of each 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 paid to the small enterprise for the purpose of disallowance as a deductible expenditure under section 23 of the Micro Small and Medium Enterprise Development Act, 2006
- -
43. details of corporate social responsibility (csr) expenditure
In accordance with the provisions of section 135 of the Companies Act, 2013, the Board of Directors of the Company had
constituted CSR Committee. The details for CSR activities is as follows.
Particulars Year ended 31.03.2020
Year ended 31.03.2019
a) Gross amount required to be spent by the Company during the year Nil Nil
b) Amount spent during the year on the following
1. Construction / Acquisition of any asset Nil Nil
2. On purpose other than 1 above Nil Nil
44. capital management
For the purpose of the Company’s capital management, capital includes issued equity share capital, instruments
compulsorily convertible into equity, share premium and all other equity reserves. The primary objective of the Company’s
capital management is to maximise the shareholder value and provide adequate returns to shareholders.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions, the
requirements of the financial covenants and the risk characteristics of the underlying assets.
The amounts managed as capital by the Company for the reporting periods are summarised as follows:
Particulars as at 31.03.2020
as at 31.03.2019
Non-current borrowings other than compulsorily convertible preference shares and compulsorily convertible debentures (Refer note 20A)
5,285.30 6,535.89
Current borrowings (Refer note 20B) 377.64 92.77
Current maturities of long-term debts (Refer note 20C) 3,354.36 2,338.05
9,017.30 8,966.71
Less: Cash and cash equivalents (Refer note 14) 25.67 83.46
Net debt 8,991.63 8,883.25
Equity share capital (Refer note 18) 2.17 2.12
Other equity (Refer note 19) 6,876.08 9,070.45
Compulsorily convertible debentures (Refer note 20A) 600.00 592.70
total capital 7,478.25 9,665.27
capital and net debt 16,469.88 18,548.52
gearing ratio 54.59% 47.89%
(` in million)
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 92
(Figures in million)
45. financial instruments risk
financials risk management objectives and policies
The Company is exposed to various risks in relation to financial instruments. The main types of financial risks are market
risk, credit risk and liquidity risk.
The management of the Company monitors and manages the financial risks relating to the operations of the Company
on a continuous basis. The Company’s risk management is coordinated at its head office, in close cooperation with the
management, and focuses on actively securing the Company’s short to medium-term cash flows and simultaneously
minimising the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting
returns.
The Company does not engage in the trading of financial assets for speculative purposes. The most significant financial
risks to which the Company is exposed are described below.
45.1 Market risk analysis
Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises two types of risk namely: currency risk and interest rate risk. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The functional currency of the Company is Indian Rupees (‘INR’ or ‘`’). Most of the Company’s
transactions are carried out in Indian Rupees. Exposures to currency exchange rates mainly arise from the lending to
overseas subsidiary companies which are primarily denominated in US Dollars (‘USD’) and Singapore Dollars .
The Company has limited exposure to foreign currency risk and thereby it mainly relies on natural hedge. To further
mitigate the Company’s exposure to foreign currency risk, non-INR cash flows are continuously monitored.
The carrying amounts of the Company’s foreign currency denominated monetary items are restated at the end of each
reporting period. Foreign currency denominated financial assets and liabilities which expose the Company to currency
risk are as follows:
usd sgd
31 March 2020
Financial assets
-Loans to related parties 28.65 4.94
total financial assets 28.65 4.94
31 March 2019
Financial assets
-Loans to related parties 26.96 4.81
total financial assets 26.96 4.81
The following table illustrates the foreign currency sensitivity of profit and equity in regards to the Company’s financial
assets and financial liabilities considering ‘all other things being equal’ and ignoring the impact of taxation. It assumes
a +/- 1% change of the INR/USD exchange rate (31 March 2019: 1%) and a +/- 1% change is considered for the INR/SGD
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 93
exchange rate (31 March 2019: 1%). These are the sensitivity rates used when reporting foreign currency exposures
internally to the key management personnel and represents management’s assessment of the reasonably possible
changes in the foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated
monetary items at end of each period reported upon. A positive number indicates an increase in profit or equity and vice-
versa.
If the INR had strengthened against the USD by 1% (31 March 2019: 1%) and SGD by 1% (31 March 2019: 1%), the following
would have been the impact:
Profit for the year equity
usd sgd usd sgd
31 March 2020 (21.59) (2.59) (21.59) (2.59)
31 March 2019 (18.65) (2.46) (18.65) (2.46)
If the INR had weakened against the USD by 1% (31 March 2019: 1%) and SGD by 1% (31 March 2019: 1%), the following
would have been the impact:
Profit for the year equity
usd sgd usd sgd
31 March 2020 21.59 2.59 21.59 2.59
31 March 2019 18.65 2.46 18.65 2.46
Exposures to foreign exchange rates vary during the year depending on the volume of the overseas transactions.
Nonetheless, the analysis above is considered to be representative of the Company’s exposure to currency risk.
interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company’s policy is to minimise interest rate cash flow risk exposures on long-
term financing. The Company is exposed to changes in market interest rates as some of the bank and other borrowings
are at variable interest rates and also loans have been advanced to subsidiary companies at variable interest rates. All
the Company’s term deposits are at fixed interest rates.
The following table illustrates the sensitivity of profit and equity to a reasonably possible change in interest rates of
+/- 1% (31 March 2019: +/- 1%). These changes are considered to be reasonably possible based on management’s
assessment. The calculations are based on a change in the average market interest rate for each period, and the financial
instruments held at each reporting date that are sensitive to changes in interest rates. All other variables are held
constant.
Profit for the year equity
+1% -1% +1% -1%
31 March 2020 (86.40) 86.40 (86.40) 86.40
31 March 2019 (88.74) 88.74 (88.74) 88.74
45.2 credit risk analysis
Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this
risk for various financial instruments, for example loans granted, receivables from customers, deposits placed etc. The
Company’s maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at end of
each reporting period, as summarised below:
(` in million)
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 94
as at 31.03.2020
as at 31.03.2019
Classes of financial assets-carrying amounts:
Investments (non-current) 3,649.61 6,463.19
Loans to related parties 1,975.02 3,203.33
Trade receivables 0.38 0.45
Loans 78.34 67.19
Cash and cash equivalents 25.67 83.46
Other financial assets (current and non-current) 86.99 144.84
5,816.01 9,962.46
The maximum exposure to the credit risk at the reporting date is primarily from loan to subsidiaries/associates and
security deposit receivables . Trade receivables are typically unsecured and are derived from revenue earned from
customers located in India. In respect of trade and other receivables, the Company is not exposed to any significant credit
risk exposure to any single counterparty. Most of the Company sale is to retail customer and on cash basis .The Company
does monitor the economic enviorment in which it operates.
The credit risk for cash and cash equivalents and bank deposits including interest accrued thereon is considered
negligible, since the counterparties are reputable banks with high quality external credit ratings. The credit risk for loans
advanced to subsidiary companies including interest accrued thereon is also considered negligible since operations of
these entities are regularly monitored by the Company.. The loans primarily represents security deposits given to lessors
for property taken on rent.Such deposits will be returned to the Company on vacation of the property or termination of
the agreement whichever is earlier.Investments primarly include investement in quoted and unquoted equity shares of
various companies, most of these investments are for startegic purpose with the intension to hold for long term.
In respect of financial guarantees provided by the Company, the maximum exposure which the Company is exposed to
is the maximum amount which the Company would have to pay if the guarantee is called upon. Based on the expectation
at the end of each reporting period, the Company considers that it is more likely than not that such an amount will not be
payable under the guarantees provided.
45.3 Liquidity risk analysis
Liquidity risk is that the Company might be unable to meet its obligations. The Company manages its liquidity needs by
monitoring scheduled debt servicing payments for long-term financial liabilities and considering the maturity profiles
of financial assets and other financial liabilities as well as forecast of operational cash inflows and outflows. Liquidity
needs are monitored in various time bands, on a day-to-day basis, a week-to-week basis and a month-to-month basis.
Long-term liquidity needs for a 180-day and a 360-day lookout period are identified monthly. Net cash requirements are
compared to available borrowing facilities in order to determine headroom or any shortfalls.
Funding for long-term liquidity needs is additionally secured by an adequate amount of committed credit facilities and
the Company’s ability to avail further credit facilities subject to creation of requisite charge on its assets. The Company
assessed the concentration of risk with respect to refinancing its debt and concluded it to be low.
(` in million)
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 95
As at 31 March 2020, the Company’s non-derivative financial liabilities have contractual maturities (excluding interest
payments thereon) as summarised below:
31 March 2020 0 to 1 year 1 to 5 years Later than 5 years
Borrowings (current and non-current) 3,732.00 5,885.30 -
Lease Liabilities 97.39 292.84 29.52
Trade payables 81.65 - -
Other financial liabilities (current and non-current) 48.98 35.96 -
total 3,960.02 6,214.10 29.52
This compares to the maturity of the Company’s non-derivative financial liabilities in the previous reporting periods as
follows:
31 March 2019 0 to 1 year 1 to 5 years Later than 5 years
Borrowings (current and non-current) 2,426.55 7,128.59 -
Trade payables 69.16 - -
Other financial liabilities (current and non-current) 161.80 - -
total 2,657.51 7,128.59 -
46 fair value measurements
financial instruments by categories
The carrying values and fair values of financial instruments by categories are as follows:
Particularsfair Value
Measurement using Level
carrying value fair value/amortised cost
31 March 2020
31 March 2019
31 March 2020
31 March 2019
financial assets
fair value through profit and loss ('fVtPL')
(i) Non-current financial assets
(a) Investment (non-current) Level 1 4.72 7.17 4.72 7.17
fair value through other comprehencive income ('fVtoci')
(i) Non-current financial assets
(a) Investment (non-current) Level 1 1,037.37 4,823.48 1,037.37 4,823.48
Level 3 1,011.77 1,032.53 1,011.77 1,032.53
amortised cost
(i) Non-current financial assets
(` in million)
(` in million)
(` in million)
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 96
(a) Investment in Compulsorily convertible debenture in Subsidiary/Associates
1,595.76 600.00 1,595.76 600.00
(b) Loans 78.34 67.19 78.34 67.19
(c) Other 7.96 3.32 7.96 3.32
(ii) Current financial assets
(a) Trade receivables 0.38 0.45 0.38 0.45
(b) Cash and cash equivalents 25.67 83.46 25.67 83.46
(c) Loan 1,975.02 3,203.33 1,975.02 3,203.33
(d) Other 79.03 141.52 79.03 141.52
total 5,816.02 9,962.45 5,816.02 9,962.45
financial liabilities
amortised cost
(i) Non-current borrowings (excluding those disclosed under FVTPL category above)
5,885.30 7,128.59 5,885.30 7,128.59
(ii) Lease Liabilities 419.74 - 419.74
(iii) Others Non Current financial liabilities
35.96 32.89 35.96 32.89
(iv) Current financial liabilities
(a) Borrowings 377.64 92.77 377.64 92.77
(b) Trade payables 81.65 69.20 81.65 69.20
(c) Other 3,403.35 2,467.42 3,403.35 2,467.42
total 10,203.64 9,790.87 10,203.64 9,790.87
Valuation technique to determine fair value
Cash and cash equivalents, other bank balances, trade receivables, other current financial assets, trade payables,
current borrowings and other current financial liabilities approximate their carrying amounts largely due to the short-
term maturities of these instruments. The fair value of the financial assets and liabilities is the amount at which the
instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The Company’s borrowings, except through Compulsorily convertible preference shares and Compulsorily
convertible debentures have been contracted at floating rates of interest, which resets at short intervals.
Accordingly, the carrying value of such borrowings (including interest accrued but not due) approximates fair value:
The following methods and assumptions were used to estimate the fair values:
- The fair values of the long term borrowing (Compulsorily convertible preference shares and Compulsorily convertible
debentures) are determined by using discounted cash flow method using the appropriate discount rate. The discount rate
is determined using other similar instruments incorporating the risk associated.
- The fair values of Investment in unquoted equity shares is done as follows :
Particularsfair Value
Measurement using Level
carrying value fair value/amortised cost
31 March 2020
31 March 2019
31 March 2020
31 March 2019
(` in million)
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 97
Equity share of Global Health Private Limited (Formerly Dr.Naresh Trehan and Associates Health Services Pvt. Ltd.) -
Price estimated by using discounted cash flow method by discounting forcasted cash flow to their present value at a rate
of return that incorporates the risk free rate for the use of fund plus the expected rate of inflation and the risk associated
with the particular investment
Cost of other unquoted equity instruments has been considered as an appropriate estimate of fair value because of a
wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.
- The fair values of Investment in Compulsorily convertible debentures have been estimated by using discounted cash
flow method by discounting the expected cash flows using the appropriate discount rate. The discount rate is determined
using other similar instruments incorporating the risk associated and probabilities are based on management’s
expectations.
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value
hierarchy together with a quantitative sensitivity analysis are as shown below.
type Valuation technique significant observable input
inter-relationship between significant observable
input and fair value measurement
Investment in unquoted Equity Shares
Discounted cash flow method by discounting forcasted cash flow to their present value at a rate of return that incorporates the risk free rate for the use of fund plus the expected rate of inflation and the risk associated with the particular investment
Forecast Profitability, Risk Adjusted Discount rate.
Estimated fair value would increase (Decrease) - if forcased profitability was higher (lower) - risk adjusted discount rate were lower (higher)
Compulsorily convertible debentures ('CCDs') - Borrowings
Discounted cash flow method by discounting the expected cash flow using approriate rate.
Discount rate. Estimated fair value would increase (Decrease) - if discount rate was higher (lower)
The following table presents the changes in level 3 items (Measured at fair value) for the periods ended 31 March 2020
and 31 March 2019:
Particulars investment in unquoted equity shares
as at 31 March 2018 1,283.02
Impact of fair value movement (250.49)
as at 31 March 2019 1,032.53
Sold during the year (0.02)
Impact of fair value movement (17.30)
Impact of merger (3.44)
as at 31 March 2020 1,011.77
(` in million)
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 98
47. equity share designated at fair value through other comprehensive income
The company designated the investment shown below as equity shares at FVOCI because these equity share represent
investments that the company intends to hold for long term for stratgic purposes
fair value at dividend income recognised
during
fair value at
31 March 2020 2019-20 31 March 2019
"Global Health Private Limited (Formerly Dr.Naresh Trehan and Associates Health Services Pvt. Ltd.)"
1,011.76 - 1,029.06
Shabnam Properties Private Limited - - 3.44
"Empire Stocks Pvt Limited" 0.01 - 0.01
Lemon Tree Hotels Limited 713.41 - 4,308.95
Capital India Finance Limited 323.96 - 514.53
Sellwell Foods & Beverages Pvt.Ltd. - - 0.02
Pinnacle Infracon Ltd. - - 0.00
2,049.14 - 5,856.01
48. In the opinion of management current assets, loan and advances have a value on realisation in the ordinary course of
business at least cost equal to the amount at which they are stated except where indicated otherwise.
49. Merger & amalgamation
As per the scheme of amalgamation filed in the Hon’ble National Company Law Tribunal, Special Bench, New Delhi under
section 230 to 232 of the Companies Act, 2013 read with the companies (Compromise, arrangement and amalgamations)
Rules, 2016 and the National Company Law Tribunal Rules, 2016, between the company “RJ Corp Ltd.” (transferee)
with Pinnacle Infracon Limited (transferor no. 1), Anuj Traders Private Limited (transferor no. 2), Accor Solar Energy
Private Limited (transferor no 3), Shabnam Properties Private Limited (transferor no 4), Capital Towers Private Limited
(transferor no 5), D.J. Agri Industries Private Limited (transferor no 6), Snowpeak Enterprises Private Limited (transferor
no 7), Pinnacle Constructions Private Limited (transferor no 8), Pinnacle Township Private Limited (transferor no 9) and
Pinnacle Town Planners Private Limited (transferor no 10). The Hon’ble National Company Law Tribunal, Special Bench,
New Delhi approved the scheme as per order dated 08 June 2020. The scheme became effective from 01st April 2019
(“Acquisition Date”) on completion of all regulatory formalities.
All the assets and liabilities of transferor companies as on 01st April 2019 were transferred to and vested with the
transferee company
The investment held by transferor companies 10 equity shares holding in RJ Corp Limited stands cancelled on
amalgamation and fresh equity of 235 shares amounting to ̀ 2,350/-will be issued by RJ Corp Limited to the shareholders
of transferor companies.
Acquisitions of businesses of the companies Pinnacle Infracon Limited (Transferor Company No.-1), Accor Solar Energy
Private Limited (Transferor Company No.-3), Shabnam Properties Private Limited (Transferor Company No.-4), Capital
Towers Private Limited (Transferor Company No.-5), D.J. Agri Industries Private Limited (Transferor Company No.-6),
Pinnacle Constructions Private Limited (Transferor Company No.-8), Pinnacle Township Private Limited (Transferor
Company No.-9) and Pinnacle Town Planners Private Limited (Transferor Company No.-10) are accounted using the
(` in million)
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 99
Acquisition method as per Ind AS 103 – Business Combinations. The company has accounted for assets and liabilities of
transferor companies as on acquisition date at fair value based on the management judgements. The difference between
the excess of consideration paid (equity capital to be issued, investment held by transferee company) and fair value
of all assets and liabilities of the transferor companies taken over as on acquisition date is transferred to goodwill.
Accordingly the difference between the excess of fair value of all assets and liabilities of the transferor companies taken
over as on acquisition date and consideration paid (equity capital to be issued, investment held by transferee company)
is transferred to capital resrve.
Particulars
Acquisition date 01-april-2019
Net Assets acquired (1,394.55)
Investment in transferor companies in financial statements of transferee company 0.0010
Purchase consideration settled through issue of equity shares 0.0001
amount transferred to goodwill 1,394.55
Particulars
Acquisition date 01-april-2019
Net Assets acquired 104.38
Investment in transferor companies in financial statements of transferee company 3.44
Purchase consideration settled through issue of equity shares 0.00
amount transferred to capital reserve 100.94
Acquisitions of businesses of the companies Anuj Traders Private Limited (Transferor Company No.-2), Snowpeak
Enterprises Private Limited (Transferor Company No.-7) under common control are accounted using the Pooling of
Interest Method as per Ind AS 103 – Business Combinations. The company has accounted for assets, liabilities and
reserves of transferor companies as on 01 April 2018 at their respective carrying values. The difference between the
consideration paid (equity capital to be issued, investment held by transferee company) and carrying value of all assets,
liabilities and reserves of the transferor companies taken over as on acquisition date is transferred to capital reserve
account.
Particulars
Acquisition date 01-april-2019
Accounting date 01-april-2018
Net Assets acquired 0.71
Retained earnings acquired (1.00)
Investment in transferor companies in financial statements of transferee company 3.51
Purchase consideration settled through issue of equity shares 0.00
amount transferred to capital reserve (1.33)
50. Balance of certain debtors, creditors, loans and advances are subject to confirmation.
51. segment reporting: Ind AS 108 on ‘Segment Reporting’ requires the Company to disclose certain information about
operating segments. Trading business is the company’s only business segment and domestic operations is the only
geographical segment, which represent the primary segment of the Company. There are no separately reportable
business or geographical segments that meet the criteria prescribed in Ind AS 108 on Operating Segments.
(` in million)
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 100
52. impairment of loan and investment in associates
The Company hold 25% of equity share capital in Africare Limited (An associate company). Africare Limited is engaged
in the business of healthcare services. During the current and previous year, Africare Limited has incurred significant
cash losses, Its net worth is negative and current liabilities is exceeding its current assets. Basis which and due to
deterioration of expected future cash flows, the management has impaired the following investment made in Africare
Limited:
Equity Investment 0.03
Equity contribution of guarantee given 9.80
Loan given 533.23
543.06
53. impact of coVid-19 on the company
The COVID-19 virus continues to spread globally including India, which has resulted in significant decline and volatility
and disruption in economic/financial activities in global markets. On 11 March 2020, COVID -19 was declared as global
pandemic by World Health Organisation.
Amidst the tumult of this unprecedented age of virus, the company has allowed its employees to “Work from Home” after
declaration of national lockdown for prevention and safeguard of the employees of the company. Nevertheless, business
activities from the date of lockdown were suspended. In the meanwhile, government of India and other regulators e.g.
Reserve Bank of India, Income tax authorities came up with variety of measures to mitigate the impact of economic and
financial disruptions. Inventory as at end of the year has been taken on the basis of physical verification after lifting
the lockdown and impact has been affected in valuation considered in the financial statement, if any, due to change in
quantity/quality of the inventories.
Though the pandemic is still evolving and impact on working of the company is uncertain, management is of the view
that looking into its nature of business and steps being taken to provide support by various means from the regulators/
governments, there are no reason the believe that current crisis will have any significant impact on the ability of the
company to maintain its normal business operations including the assessment of going concern for the company.
However, the extent to which the pandemic will impact working of the company, which is highly uncertain.
As per our report of even date attached.
sumit kathuria
Partner
Membership No.: 520078
raj Pal gandhi
Director
DIN: 00003649
Lalit kumar singh
Chief Financial Officer
Varun Jaipuria
Director
DIN: 02465412
Mahavir Prasad garg
Company Secretary
For aPas & co.
Chartered Accountants
Firm Registration No.: 000340C
For and on behalf of the Board of directors of
rJ corp Limited
Place: New delhidate: 30 september 2020
(` in million)
Notes forMiNg Part of tHe staNdaLoNe fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 101
iNdePeNdeNt auditors’ rePort
To the Members of
rJ corp Limited
Report on the Audit of Consolidated Financial Statements
opinion
We have audited the consolidated financial statements of RJ Corp Limited (hereinafter referred to as the “Holding Company”)
and its subsidiaries (Holding Company and its subsidiaries together referred to as “the Group”), its joint venture and its
associates, which comprise the Consolidated Balance Sheet as at 31 March 2020, and the Consolidated Statement of Profit
and Loss (including Other Comprehensive Income), the Consolidated Statement of Changes in Equity and the Consolidated
Cash Flow Statement for the year then ended, and notes to the 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 the consideration
of reports of other auditors and management accounts on separate financial statements of such subsidiaries, associates
and joint venture as were audited by the other auditors and provided by the management and the aforesaid consolidated
financial statements give the information required by the Companies Act, 2013 (“Act”) in the manner so required and give a
true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs
of the Group, its associates and its joint venture as at 31 March 2020, of its consolidated profit/loss and other comprehensive
income, consolidated changes in equity and consolidated cash flows for the year then ended.
Basis for opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act.
Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements section of our report. We are independent of the Group in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India, and we have fulfilled our other ethical responsibilities in accordance with the
provisions of the Act. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
emphasis of matter
We draw attention to Note No. 61 of the accompanying consolidated financial statements regarding the impact of COVID-19
pandemic on the Group. Management is of the view that there are no reasons to believe that the pandemic will have any
significant impact on the ability of the Group to continue as a going concern. Nevertheless, the impact in sight of evolvement
of pandemic in future period is uncertain.
Our opinion is not modified in respect of this matter.
information other than the consolidated financial statements and auditors’ report thereon
The Holding Company’s management and Board of Directors are responsible for the other information. The other information
comprises the information included in the Holding Company’s annual report, but does not include the consolidated financial
statements and our auditors’ report thereon. The Holding Company’s annual report is expected to be made available to us
after the date of this auditors’ report.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 102
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
identified above as it becomes available and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
The Annual Report is not made available to us at the date of this auditor’s report. 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 management and Board of Directors are responsible for the preparation and presentation of these
consolidated financial statements in term of the requirements of the Act that give a true and fair view of the consolidated
state of affairs, consolidated profit/ loss and other comprehensive income, consolidated statement of changes in equity
and consolidated cash flows of the Group including its joint venture in accordance with the accounting principles generally
accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. The respective
Board of Directors of the companies included in the Group, its associates and of its joint venture are responsible for
maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of
each company, and for preventing and detecting frauds and other irregularities; the 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 accuracy and 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, which have 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 management and Board of Directors of the companies
included in the Group, its associates and of its joint venture are responsible for assessing the ability of each company to
continue 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 respective Board of Directors of the companies included in the Group, its associates and of its joint venture are responsible
for overseeing the financial reporting process of each company.
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 auditors’ report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
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 Standards on Auditing, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identifyandassesstherisksofmaterialmisstatementoftheconsolidatedfinancialstatements,whetherduetofraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Annual Report 2019-20 | RJ Corp Limited 103
• Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriate
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.
• Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelated
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting in preparation of
consolidated financial statements and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the appropriateness of this assumption. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditors’ 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 auditors’ report. However, future events or conditions may
cause the Group as well as joint venture to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
• Obtainsufficientappropriateauditevidenceregardingthefinancial informationofsuchentitiesorbusinessactivities
within the Group to express an opinion on the consolidated financial statements, of which we are the independent auditors.
We are responsible for the direction, supervision and performance of the audit of financial information of such entities.
For the other entities included in the consolidated financial statements, which have been audited by other auditors, such
auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain
solely responsible for our opinion. Our responsibilities in this regard are further described in paragraph (1 to 4) of the
Other Matters section in this audit report.
We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their
reports referred to in sub-paragraph of the Other Matters paragraph below, is sufficient and appropriate to provide a basis
for our audit opinion on the consolidated Ind AS financial statements.
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, the planned
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 ethical requirements
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.
other Matters
1. The consolidated Ind AS financial statements, include the Group share of net profit (including other comprehensive
income) of ` 8.29 million for the year ended 31 March 2020, as considered in the consolidated financial statements,
in respect of four overseas associates and one Indian associate whose financial statements have not been audited by
us. These financial statements are unaudited and have been furnished to us by the management and our opinion on
the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of this
associates, and our report in terms of sub section (3) and (11) of section 143 of the Act, in so far as it relates to the
aforesaid overseas associates is based solely on such unaudited financial statements.
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 104
2. The consolidated Ind AS financial statements also include the Group share of net profit (including other comprehensive
income) of ` (2.87) million for the year ended 31 March 2020, as considered in the consolidated financial statements, in
respect of two associates and one joint venture, whose financial statements have not been audited by us. These financial
statements have been audited by other auditors whose report have been furnished to us by the managements and our
opinion on the consolidated Ind AS financial statements, in so far as it relates to the amounts and disclosures included
in respect of these associates, and our report in terms of sub section (3) and (11) of section 143 of the Act, in so far as it
relates to the aforesaid associates is based solely on the reports of the other auditors.
3. In case of fourteen overseas subsidiaries (including eleven step subsidiaries), included in the consolidated Ind AS financial
statements, whose financial statements reflect total assets of ` 20378.01 million as at 31 March 2020, Net assets of `
5111.16 million total revenue of ` 19171.58 million and net cash flows amounting to ` 13.82 million for the year ended on
that date. These financial statements are unaudited since they follow different accounting year based on requirement of
the respective jurisdiction in which they operate. The audited accounts alongwith management accounts for the balance
period upto March 2020 have been furnished to us by the management and our opinion on the consolidated Ind AS
financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries
(including step subsidiaries), and our report in terms of sub section (3) and (11) of section 143 of the Act, in so far as it
relates to the aforesaid overseas subsidiaries (including step subsidiaries) is based solely on such financial statements.
4. We did not audit the financial statements of two Indian subsidiaries, included in the consolidated Ind AS financial
statements, whose financial statements reflect total assets of ` 737.97 million as at 31 March 2020, Net assets of `
(2732.97) million total revenue of ` 1079.82 million and net cash flows amounting to ` 12.47 million for the year ended on
that date. These financial statements are unaudited and have been furnished to us by the management and our opinion,
in so far as it relates to the aforesaid subsidiaries and our audit report in terms of sub section (3) of section 143 of the
Act in so far as it relates to the aforesaid subsidiaries, are based solely on such unaudited financial statements. In our
opinion and according to the information and explanation given to us by the management, these financial statements are
not material to the Group.
5. The financial statements and other financial information of six step subsidiaries, which are located outside India, as
drawn up in accordance with the generally accepted accounting principles of the respective countries (‘the local GAAP’),
and which have been audited by other auditors duly qualified to act as auditors in those countries. The financial statement
of these step subsidiaries reflect total assets of ` 13116.75 million as at 31 March 2020, Net assets of ` 1562.61 million,
total revenue of ` 5583.54 million and net cash inflows amounting to ` 47.88 million for the year ended on that date, as
considered in the consolidated Ind AS financial statements. The Company’s management has converted the financial
statements of such subsidiaries located outside India from accounting principles generally accepted in their respective
countries to accounting principles generally accepted in India. These conversion adjustments made by the Company’s
management, have been audited by us and other auditor. Our opinion in so far as it relates to the balances and affairs of
such step subsidiaries located outside India is based on the audit report of other auditors and the conversion adjustments
prepared by the management of the Company.
Our opinion above on the consolidated Ind AS 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 reports of the
other auditors and the Ind AS financial statements/ financial information certified and furnished to us by the managements.
Annual Report 2019-20 | RJ Corp Limited 105
report on other Legal and regulatory requirements
A. As required by section 197(16) of the Act, based on our audit and on the consideration of the reports of the statutory
auditors of other subsidiaries companies incorporated in India, the remuneration paid during the current year by the
Holding Company and its subsidiary companies incorporated in India to its directors is in accordance with the provisions
of Section 197 of the Act. The remuneration paid to any director by the Holding Company and its subsidiary companies
incorporated in India is not in excess of the limit laid down under Section 197 read with Schedule V to the Act. Further, we
report that the provision of section 197 read with schedule V of the Act are not applicable to twenty subsidiary companies
(including seventeen step subsidiaries), since none of the companies is a public company as defined under section 2(71)
of the Act.
B. As required by Section 143(3) of the Act, based on our audit and on the consideration of reports of the other auditors on
separate financial statements and the other financial information of its subsidiaries, joint venture and its associates, as
noted in the Other Matters paragraph above, we report, to the extent applicable, that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit of the aforesaid consolidated financial statements.
b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated Ind
AS financial statements have been kept so far as it appears from our examination of those books and the reports of
the other auditors.
c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss (including Other Comprehensive
Income), the Consolidated Statement of Changes in Equity and the Consolidated Cash Flow Statement dealt with by
this Report are in agreement with the relevant 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 Ind AS specified under Section 133 of
the Act.
e) The matters described in Emphasis of Matter, 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 31 March
2020 taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors of
its subsidiary companies and joint venture incorporated in India, none of the directors of the Group companies, its
associates and its joint venture incorporated in India, is disqualified as on 31 March 2020 from being appointed as a
director in terms of Section 164(2) of the Act.
g) With respect to the adequacy of the internal financial controls with reference to financial statements of the Holding
Company, its subsidiary companies, joint venture and its associates incorporated in India and the operating
effectiveness of such controls, refer to our separate report in “Annexure A”.
h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to
the explanations given to us and based on the consideration of the report of other auditors on separate financial
statements as also the other financial information of the subsidiaries and the joint venture:
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 106
i. The consolidated financial statements disclose the impact of pending litigations as at 31 March 2020 on the
consolidated financial position of the Group and its joint venture - Refer Note 43 to the consolidated financial
statements.
ii. Provision has been made in the consolidated financial statements, as required under the applicable law or Ind
AS, for material foreseeable losses, on long-term contracts including derivative contracts – as defined in Note 23
to the consolidated financial statements in respect of such items as it relates to the Group and its joint venture;
iii. there were no amounts which were required to be transferred to the Investor Education and Protection Fund by
the Group; and
Place: New delhidate: 30 september, 2020
For aPas & co.Chartered AccountantsFirm Registration No.: 000340C
(sumit kathuria)PartnerM No. 520078 UDIN: 20520078AAAAIA6904
Annual Report 2019-20 | RJ Corp Limited 107
In conjunction with our audit of the consolidated financial statements of rJ corp Limited (hereinafter referred to as “the
Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”) and
its joint venture and associates as at and for the year ended March 31, 2020, we have audited the internal financial controls
over financial reporting (‘IFCoFR’) with reference to financial statements of Holding Company, its subsidiaries companies, its
joint ventures and associates, which are companies covered under the Act, as at date.
responsibility of Management and those charged with governance for internal financial controls
The respective company’s management and the Board of Directors are responsible for establishing and maintaining internal
financial controls with reference to consolidated financial statements based on the criteria established by the respective
company considering the essential components of internal control stated in the Guidance Note. 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 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 the timely preparation of reliable financial information, as required under the Act.
auditor’s responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting based on our audit. We
conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the
“Guidance Note”) issued by the Institute of Chartered Accountants of India and the Standards on Auditing, prescribed under
Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 over financial reporting 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 system over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial
controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud
or error.
We believe that the audit evidence we have obtained and other auditors in terms of their reports 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
system over financial reporting with reference to financial statements of the Holding Company, its subsidiary companies and
its joint venture company as aforesaid.
Meaning of internal financial controls over financial reporting
A company’s internal financial control over financial reporting is a process designed to provide 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 control over financial reporting includes those
policies and procedures that:-
annexure a to the independent auditor’s report(referred to in paragraph 2 (f) under ‘report on other Legal and regulatory requirements’ section of our report to the
Members of rJ corp Limited of even date)
report on the internal financial controls over financial reporting under clause (i) of sub-section 3 of section 143 of the companies act, 2013 (“the act”)
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 108
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded 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 authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized 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 over financial reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion
or improper management override of controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to
the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
opinion
In our opinion, to the best of our information and according to the explanations given to us and based on the consideration
of the reports of other auditor referred to in the Other Matters section below, the Holding Company and such companies
incorporated in India which are its subsidiary companies, its associates and joint venture company, have, in all material
respects, adequate internal financial controls with reference to consolidated financial statements and such internal
financial controls were operating effectively as at 31 March 2020, based on the internal financial controls with reference
to consolidated financial statements criteria established by such companies considering the essential components of such
internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the
Institute of Chartered Accountants of India (the “Guidance Note”).
other Matters
Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial
controls with reference to consolidated financial statements insofar as it relates to three associates and one joint venture
company, which are companies incorporated in India, is based on the corresponding reports of the auditors of such companies
incorporated in India, who have issued unmodified opinion on the internal financial controls with reference to financial
statements of these companies.
Place: New delhidate: 30 september, 2020
For aPas & co.Chartered AccountantsFirm Registration No.: 000340C
(sumit kathuria)PartnerM No. 520078 UDIN: 20520078AAAAIA6904
Annual Report 2019-20 | RJ Corp Limited 109
coNsoLidated BaLaNce sHeetas at 31 March 2020
Notes as at 31 March 2020
as at 31 March 2019
assets
Non-current assets
(a) Property, plant and equipment 4A 73,985.33 57,066.16
(b) Capital work in progress 4A 2,015.60 2,287.50
(c) Right of use assets 4B 11,481.71 -
(d) Investment properties 4C 413.99 -
(e) Other intangible assets 5A 8,526.69 8,247.48
(f) Intangible assets under development 5B 3.50 2.33
(e) Goodwill 5C 2,004.80 180.73
(h) Investment in associates 6 46.45 187.48
(i) Financial assets
(i) Investments 7 2,654.04 6,463.38
(ii) Loans 8 1,169.38 1,205.66
(iii) Others 9 201.05 51.73
(j) Deferred tax assets (Net) 39 559.49 666.49
(k) Income tax assets (net) 10 361.54 380.90
(l) Other non-current assets 11 1,106.48 958.70
total non-current assets 104,530.05 77,698.54
current assets
(a) Inventories 12 15,334.24 10,646.05
(b) Financial assets
(i) Trade receivables 13 3,706.58 3,367.82
(ii) Cash and cash equivalents 14 1,678.14 1,950.05
(iii) Bank balances other than (ii) above 15 548.36 556.69
(iv) Loan 16 1,647.75 3,764.98
(v) Others 17 1,398.18 1,835.60
(c) Current tax assets (Net) 10A 53.39 35.43
(d) Other current assets 18 3,875.57 3,570.88
total current assets 28,242.21 25,727.50
assets classified as held for sale 19 - 4.02
totaL assets 132,772.26 103,430.06
equity and liabilities
(i) equity
(a) Equity share capital 20 2.17 2.12
(b) Other equity
Reserve and Surplus 21 7,387.84 6,332.34
Equity contribution in compounded financial instruments 535.57 535.57
equity attributable to owners of the company 7,925.58 6,870.03
(ii) Non-controlling interests 22,999.95 14,354.65
total equity 30,925.53 21,224.68
(` in millions, except for share data and if otherwise stated)
Particulars
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 110
coNsoLidated BaLaNce sHeetas at 31 March 2020
Notes as at 31 March 2020
as at 31 March 2019
Particulars
sumit kathuria
Partner
Membership No.: 520078
raj Pal gandhi
Director
DIN: 00003649
Lalit kumar singh
Chief Financial Officer
Varun Jaipuria
Director
DIN: 02465412
Mahavir Prasad garg
Company Secretary
For aPas & co.
Chartered Accountants
Firm Registration No.: 000340C
For and on behalf of the Board of directors of
rJ corp Limited
Place: New delhidate: 30 september 2020
Liabilities
Non-current liabilities
(a) Financial liabilities
(i) Borrowings 22A 36,930.78 37,879.54
(ii) Lease liabilities 22B 12,658.50 -
(iii) Other financial liabilities 23 1,128.46 1,071.02
(b) Other Non-current liabilities 24 398.84 525.38
(c) Provisions 25 2,042.64 1,447.48
(d) Deferred tax liabilities (Net) 39 2,068.00 2,568.20
total non- current liabilties 55,227.22 43,491.62
current liabilities
(a) Financial liabilities
(i) Borrowings 22C 12,705.56 10,152.73
(ii) Lease liabilities 22D 1,441.25 -
(iii) Trade payables 26
-Total outstanding dues of micro enterprises and small enterprises 70.15 27.65
-Total outstanding dues of creditors other than micro enterprises and
small enterprises 9,729.07 7,802.43
(iv) Other financial liabilities 27 17,960.31 15,650.33
(b) Other current liabilities 28 4,325.62 4,675.18
(c) Provisions 25 349.23 261.14
(d) Current tax liabilities (Net) 29 38.32 144.30
total current liabilties 46,619.51 38,713.76
total liabilities 101,846.73 82,205.38
totaL equitY aNd LiaBiLities 132,772.26 103,430.06
Significant accounting policies 3
The accompanying notes are an integral part of these consolidated financial statements.
As per our report of even date attached.
(` in millions, except for share data and if otherwise stated)
Annual Report 2019-20 | RJ Corp Limited 111
coNsoLidated stateMeNt of Profit aNd Lossfor the Year ended 31 March 2020
Notes for the year ended31.03.2020
for the year ended31.03.2019
Particulars
financial statem
ents
income
Revenue from operations 30 102,611.56 78,711.96
Other income 31 4,716.49 2,019.66
total income 107,328.05 80,731.62
expenses
Cost of materials consumed 32 40,995.98 29,185.00
Excise duty 1,260.85 1,190.76
Purchases of stock-in-trade 33 4,150.66 3,379.27
Changes in inventories of finished goods,
stock-in-trade and work-in-progress 34 (1,819.76) (229.78)
Employee benefits expense 35 13,469.86 10,396.13
Finance costs 36 7,676.92 5,063.34
Depreciation and amortization expense 37 8,791.64 5,508.21
Impairment of non-financial assets 37A 38.77 265.87
Other expenses 38 27,989.77 24,043.00
total expenses 102,554.69 78,801.80
Profit before exceptional items and tax 4,773.36 1,929.82
Exceptional items 38A 324.40 19.13
Profit before share of profit of equity accounted investees 4,448.96 1,910.69
share of Profit of equity accounted investees (Net of income tax) 41.34 38.20
Profit before tax 4,490.30 1,948.89
tax expense
(a) Current tax 39 979.81 1,196.59
(b) Adjustment of tax relating to earlier periods 39 163.29 16.22
(c) Deferred tax 39 182.73 72.43
total tax expense 1,325.83 1,285.24
Profit for the year 3,164.47 663.65
other comprehensive income 38B
Items that will not to be reclassified to Statement of Profit and Loss:
(i) Re-measurement gains/(losses) on defined benefit plans (58.41) (44.79)
(ii) Re-measurement of equity instrument at fair value (2,573.23) 1,259.71
(iii) Gain from a bargain purchase 344.43 -
(iv) Income tax relating to items that will not be
reclassified to Statement of Profit and Loss 398.42 (45.52)
Items that will be reclassified to profit or loss:
(i) Exchange differences arising on translation of foreign operations 414.25 117.38
(ii) Income tax relating to items that will be
reclassified to Statement of Profit and Loss (0.23) 10.61
total other comprehensive income (1,474.77) 1,297.39
total comprehensive income for the year 1,689.70 1,961.04
(` in millions, except for share data and if otherwise stated)
Annual Report 2019-20 | RJ Corp Limited 112
Profit attributable to:
(i) Owners of the Company 292.57 (939.12)
(ii) Non-controlling interests 2,871.90 1,602.77
Profit/(loss) for the year 3,164.47 663.65
other comprehensive income attributable to:
(i) Owners of the Company (1,732.93) 1,390.07
(ii) Non-controlling interests 258.17 (92.68)
other comprehensive income for the year (1,474.76) 1,297.39
total comprehensive income for the year attributable to:
(i) Owners of the Company (1,440.36) 450.94
(ii) Non-controlling interests 3,130.07 1,510.09
other comprehensive income/(loss) for the year 1,689.71 1,961.04
earnings per equity share of face value of ` 10 each
Basic (`) 42 1,363.45 (4,846.36)
Diluted (`) 42 1,363.45 (4,846.36)
Significant accounting policies 3
The accompanying notes are an integral part of these consolidated financial statements.
As per our report of even date attached.
coNsoLidated stateMeNt of Profit aNd Lossfor the Year ended 31 March 2020
Notes for the year ended31.03.2020
for the year ended31.03.2019
Particulars
(` in millions, except for share data and if otherwise stated)
sumit kathuria
Partner
Membership No.: 520078
raj Pal gandhi
Director
DIN: 00003649
Lalit kumar singh
Chief Financial Officer
Varun Jaipuria
Director
DIN: 02465412
Mahavir Prasad garg
Company Secretary
For aPas & co.
Chartered Accountants
Firm Registration No.: 000340C
For and on behalf of the Board of directors of
rJ corp Limited
Place: New delhidate: 30 september 2020
Annual Report 2019-20 | RJ Corp Limited 113
cash flow from operating activities:
Profit before tax, share of profit in associate but
after exceptional items 4,448.96 1,910.69
adjustments for:
Depreciation and Amortisation Expense 7,059.36 5,508.21
Depreciation on right of use 1,679.55 -
Depreciation on investment property 52.73 -
Impairment loss 38.77 265.87
Finance Cost 7,676.92 5,063.34
Interest Income (464.61) (605.36)
Employee stock option scheme expenses (11.60) 2.10
Allowance for doubtful debts 212.36 100.14
Dividend Income (1.55) (0.35)
Net Profit on Sale of Property, Plant & Equipment - (0.25)
Property, Plant & Equipment Written-Off - 166.51
Loss on disposal of property, plant and equipment (net) 166.52 92.35
Profit on Disposal of Unquoted (Others)
Current Investments & financial assets (2,130.23) (0.48)
Impairment of loan to associate 989.78 -
Debts / Advances Written off 2.80 110.29
Provision for Doubtful Loans and
Advances and Other Current Assets 19.70 56.07
Net gain/(loss) on foreign currency
transactions and translations 172.32 771.07
Profit on dilution of control in subsidiary (1,163.93) -
Gain on net investment in finance lease (18.76) -
Gain on derecognition of financial instruments (59.65) -
Gain on acquisition of control over existing associate (158.11) -
Profit on disposal of Investment in JV company - (976.50)
Excess provisions written back (228.57) (108.24)
13,833.79 10,444.77
operating Profit before changes in operating assets and liabilities 18,282.75 12,355.46
changes in operating assets and liabilities:
- Decrease/(Increase) in Trade Receivables (636.51) 319.84
- Decrease/(Increase) in Non Current Assets (1,967.23) 182.99
- Decrease/(Increase) in Current Assets (84.16) (1,821.98)
- Decrease/(Increase) in Inventories (3,687.03) (502.71)
- Increase in Non Current Liabilities 510.99 426.97
- Increase/(Decrease) in Current Liabilities 2,356.20 (3,507.73) 1,406.38 11.48
cash from operations 14,775.02 12,366.94
coNsoLidated casH fLoW stateMeNtfor the Year ended 31 March 2020
Year ended31 March 2020
Year ended31 March 2019
Particulars
(` in millions, except for share data and if otherwise stated)
1
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 114
- Taxes (Paid)/Received (Net of Tax Deducted at Source) (1,358.73) (1,061.98)
Net cash flow from operating activities (a) 13,416.30 11,304.96
cash flow from investing activities:
adjustments for changes in:
Payment for Property, Plant and Equipment
(including Intangible Assets) (8,271.08) (11,532.03)
Proceeds from Sale of Property, Plant and Equipment 1,906.40 485.66
Proceeds from Sale of Investments 2,536.33 1,107.07
Purchase of Non Current Investments - (26.00)
Acquisition under business combination (16,251.55) -
Redemption from/(Investment in) Bank Deposits
(with more than 12 months maturity) 14.50 2.33
Proceed from/(Investment in) Deposits with original
maturity more than 3 months but less than 12 months 7.39 (254.27)
Loan Given 1,162.54 (508.52)
Dividend Received on Current Investments 1.55 0.35
Interest Received 586.92 591.62
(18,307.00) (10,133.78)
Net cash used in investing activities (B) (18,307.00) (10,133.78)
cash flow from financing activities:
Proceeds from issue of share capital in a Subsidiary
(including share premium thereon) to Non Controlling Interest 0.05 0.26
Proceeds from long term borrowings (Net) 2,065.40 701.22
Proceeds from Short term borrowings (Net) 3,268.50 3,530.32
Interest Paid (6,465.75) (5,102.92)
Dividend Paid/Amount Transferred to
Investor Education & Protection Fund (476.66) (321.68)
Corporate Dividend Distribution Tax Paid (90.70) (55.73)
Securities premium 8,939.65 -
Repayment of lease liabilities (2,491.02) -
Share issue expenses paid (164.36) -
4,585.11 (1,248.54)
Net cash outflow flow financing activities (c) 4,585.11 (1,248.54)
Net increase/(decrease) in cash and cash equivalents d=(a+B+c) (305.59) (77.36)
Opening Balance of Cash and Cash Equivalents (e) 1,950.05 1,916.08
Cash and cash equivalents acquired on
consolidation of new subsidiaries (f) 111.32
Cash and cash equivalents due to
dilution of control in subsidiaries (g) 20.00 -
Cash and cash equivalents acquired on
Year ended31 March 2020
Year ended31 March 2019
Particulars
(` in millions, except for share data and if otherwise stated)
Annual Report 2019-20 | RJ Corp Limited 115
amalgmation (refer note 55A) (H) 13.68
Closing Balance of Cash and Cash Equivalents (d+e+f+g+H) 1,678.14 1,950.05
cash and cash equivalents comprise of
Balance with banks in current accounts 978.90 1,843.70
Balance in deposits with original maturity of less than three months 639.69
Cheques/drafts on hand 13.90 4.91
Cash in transit 0.75 12.92
Cash on hand 44.90 88.52
cash and cash equivalents as per cash flow statements 1,678.14 1,950.05
Notes :-
a) amendment to iNd as 7
The amendments to IND AS 7 “ Statement of Cash Flows” requires the entities to provide disclosures that enable users
of Financial Statements to evaluate changes in liabilities arising from financing activities, including both changes arising
from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances
in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement.
Particulars Non-current Borrowings
current Borrowings
Balance as at 01 April 2019 47,112.57 10,152.73
Cash Flows (Net) 624.76 2,546.47
Non cash changes
Impact of fair value changes 164.61 -
Impact of exchange fluctuations 100.44 -
Impact on acquisition of control over exisiting associate - 6.37
Balance as at 31 March 2020 48,002.38 12,705.57
Figures in brackets indicate cash outflow.
The accompanying notes are an integral part of the financial statements.
As per our report of even date attached.
Year ended31 March 2020
Year ended31 March 2019
Particulars
(` in millions, except for share data and if otherwise stated)
sumit kathuria
Partner
Membership No.: 520078
raj Pal gandhi
Director
DIN: 00003649
Lalit kumar singh
Chief Financial Officer
Varun Jaipuria
Director
DIN: 02465412
Mahavir Prasad garg
Company Secretary
For aPas & co.
Chartered Accountants
Firm Registration No.: 000340C
For and on behalf of the Board of directors of
rJ corp Limited
Place: New delhidate: 30 september 2020
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 116
sta
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-
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Annual Report 2019-20 | RJ Corp Limited 117
(` in
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73)
Tran
sfer
to
debe
ntur
e re
dem
ptio
n re
serv
e
-
-
-
47.
18
-
-
-
-
(47.
18)
-
-
-
-
Tran
sfer
to
gene
ral r
eser
ve -
1
05.0
3 (1
05.0
3) -
-
-
-
-
-
-
-
-
Add
ition
to
Cap
ital R
eser
ve
on a
cqui
sitio
n of
co
ntro
lling
sta
ke
in o
ne o
f the
su
bsid
iary
304
.74
-
-
-
-
-
-
-
-
-
304
.74
-
304
.74
Par
ticul
ars
Att
ribu
tabl
e to
the
Ow
ners
of t
he C
ompa
nyA
ttri
buta
ble
to N
CI
Tota
l
Res
erve
and
sur
plus
Re-
mea
sure
men
t of
equ
ity
inst
rum
ent
at fa
ir v
alue
th
roug
h O
CI
(net
of d
efer
red
tax)
Exch
ange
di
ffer
ence
s on
tr
ansl
atin
g th
e fi
nanc
ial
stat
emen
ts
of fo
reig
n op
erat
ions
Tota
l A
ttri
buta
ble
to O
wne
rs
Cap
ital
rese
rve
Cap
ital
rese
rve
on
Con
solid
atio
n
Gen
eral
re
serv
e
Deb
entu
re
rede
mpt
ion
rese
rve
Sec
urity
pr
emiu
m
rese
rve
Sha
re
base
d pa
ymen
t re
serv
e
Tran
sact
ion
with
NC
I R
eser
ve
Fore
ign
curr
ency
m
onet
ary
item
tr
ansl
atio
n di
ffer
ence
ac
coun
t
Ret
aine
d ea
rnin
gs
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 118
Par
ticul
ars
Att
ribu
tabl
e to
the
Ow
ners
of t
he C
ompa
nyA
ttri
buta
ble
to N
CI
Tota
l
Res
erve
and
sur
plus
Re-
mea
sure
men
t of
equ
ity
inst
rum
ent
at fa
ir v
alue
th
roug
h O
CI
(net
of d
efer
red
tax)
Exch
ange
di
ffer
ence
s on
tr
ansl
atin
g th
e fi
nanc
ial
stat
emen
ts
of fo
reig
n op
erat
ions
Tota
l A
ttri
buta
ble
to O
wne
rs
Cap
ital
rese
rve
Cap
ital
rese
rve
on
Con
solid
atio
n
Gen
eral
re
serv
e
Deb
entu
re
rede
mpt
ion
rese
rve
Sec
urity
pr
emiu
m
rese
rve
Sha
re
base
d pa
ymen
t re
serv
e
Tran
sact
ion
with
NC
I R
eser
ve
Fore
ign
curr
ency
m
onet
ary
item
tr
ansl
atio
n di
ffer
ence
ac
coun
t
Ret
aine
d ea
rnin
gs
Am
ount
tr
ansf
erre
d on
am
alga
mat
ion
of
com
mon
con
trol
en
titie
s (r
efer
not
e 49
)
(1.3
3) (1
.00)
(2.3
3) (2
.33)
Add
ition
mad
e in
FC
MIT
DA
for
the
year
end
ed
-
-
-
-
-
-
-
(9.1
3) -
-
(9
.13)
(20.
74)
(29.
87)
FCM
ITD
A c
harg
ed
to S
tate
men
t of
Pro
fit a
nd L
oss
-
-
-
-
-
-
-
(5.7
6) -
-
(5
.76)
(13.
08)
(18.
84)
Add
ition
s m
ade
on c
onve
rsio
n of
com
puls
orily
co
nver
tible
de
bent
ures
into
eq
uity
sha
res
-
-
-
-
2,0
99.9
4 -
-
-
-
-
2
,099
.94
-
2,0
99.9
4
Add
ition
s m
ade
on c
onve
rsio
n of
com
puls
orily
co
nver
tible
pr
efer
ence
sha
res
into
equ
ity s
hare
s
-
-
-
-
2,9
58.8
8 -
-
-
-
-
2
,958
.88
-
2,9
58.8
8
Add
ition
s m
ade
pers
uant
to
exer
cise
of
empl
oyee
sto
ck
optio
ns
-
-
-
-
-
1.9
3 -
-
-
-
1
.93
0.1
7 2
.10
Tran
sfer
to
Sec
urity
pre
miu
m
rese
rve
on
exer
cise
of
empl
oyee
sto
ck
optio
ns
-
-
-
-
-
(0.1
9) -
-
-
-
(0
.19)
-
(0.1
9)
(` in
mill
ions
, exc
ept f
or s
hare
dat
a an
d if
oth
erw
ise
stat
ed)
Annual Report 2019-20 | RJ Corp Limited 119
Par
ticul
ars
Att
ribu
tabl
e to
the
Ow
ners
of t
he C
ompa
nyA
ttri
buta
ble
to N
CI
Tota
l
Res
erve
and
sur
plus
Re-
mea
sure
men
t of
equ
ity
inst
rum
ent
at fa
ir v
alue
th
roug
h O
CI
(net
of d
efer
red
tax)
Exch
ange
di
ffer
ence
s on
tr
ansl
atin
g th
e fi
nanc
ial
stat
emen
ts
of fo
reig
n op
erat
ions
Tota
l A
ttri
buta
ble
to O
wne
rs
Cap
ital
rese
rve
Cap
ital
rese
rve
on
Con
solid
atio
n
Gen
eral
re
serv
e
Deb
entu
re
rede
mpt
ion
rese
rve
Sec
urity
pr
emiu
m
rese
rve
Sha
re
base
d pa
ymen
t re
serv
e
Tran
sact
ion
with
NC
I R
eser
ve
Fore
ign
curr
ency
m
onet
ary
item
tr
ansl
atio
n di
ffer
ence
ac
coun
t
Ret
aine
d ea
rnin
gs
Par
ticul
ars
Att
ribu
tabl
e to
the
Ow
ners
of t
he C
ompa
nyA
ttri
buta
ble
to N
CI
Tota
l
Res
erve
and
sur
plus
Re-
mea
sure
men
t of
equ
ity
inst
rum
ent
at fa
ir v
alue
th
roug
h O
CI
(net
of d
efer
red
tax)
Exch
ange
di
ffer
ence
s on
tr
ansl
atin
g th
e fi
nanc
ial
stat
emen
ts
of fo
reig
n op
erat
ions
Tota
l A
ttri
buta
ble
to O
wne
rs
Cap
ital
rese
rve
Cap
ital
rese
rve
on
Con
solid
atio
n
Gen
eral
re
serv
e
Deb
entu
re
rede
mpt
ion
rese
rve
Sec
urity
pr
emiu
m
rese
rve
Sha
re
base
d pa
ymen
t re
serv
e
Tran
sact
ion
with
NC
I R
eser
ve
Fore
ign
curr
ency
m
onet
ary
item
tr
ansl
atio
n di
ffer
ence
ac
coun
t
Ret
aine
d ea
rnin
gs
Cre
ated
on
acqu
isiti
on o
f co
ntro
lling
sta
ke
in s
ubsi
diar
y
-
-
-
-
-
-
-
-
-
-
-
1,2
05.2
3 1
,205
.23
Tran
sact
ion
with
N
CI/
Cha
nge
in
cont
rolli
ng s
take
-
-
-
-
-
-
(567
.39)
-
-
-
(567
.39)
597
.13
29.
74
Bal
ance
as
at 3
1 M
arch
201
9 2
,531
.27
1,7
61.0
6 2
01.6
5 0
.00
5,6
58.9
5 7
5.78
(1
,151
.24)
26.
21
(6,8
17.2
5) 3
,718
.59
327
.29
6,3
32.3
1 1
4,35
4.65
2
0,68
6.96
(` in
mill
ions
, exc
ept f
or s
hare
dat
a an
d if
oth
erw
ise
stat
ed)
Bal
ance
as
at 3
1 M
arch
201
9 2
,531
.27
1,7
61.0
6 2
01.6
5 0
.00
5,6
58.9
5 7
5.78
(1
,151
.24)
26.
21
(6,8
17.2
5) 3
,718
.59
327
.29
6,3
32.3
1 1
4,35
4.65
2
0,68
6.96
Pro
fit f
or th
e ye
ar
ende
d -
-
-
-
-
-
-
-
2
92.5
7 -
2
92.5
7 2
,871
.90
3,1
64.4
7
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 120
Par
ticul
ars
Att
ribu
tabl
e to
the
Ow
ners
of t
he C
ompa
nyA
ttri
buta
ble
to N
CI
Tota
l
Res
erve
and
sur
plus
Re-
mea
sure
men
t of
equ
ity
inst
rum
ent
at fa
ir v
alue
th
roug
h O
CI
(net
of d
efer
red
tax)
Exch
ange
di
ffer
ence
s on
tr
ansl
atin
g th
e fi
nanc
ial
stat
emen
ts
of fo
reig
n op
erat
ions
Tota
l A
ttri
buta
ble
to O
wne
rs
Cap
ital
rese
rve
Cap
ital
rese
rve
on
Con
solid
atio
n
Gen
eral
re
serv
e
Deb
entu
re
rede
mpt
ion
rese
rve
Sec
urity
pr
emiu
m
rese
rve
Sha
re
base
d pa
ymen
t re
serv
e
Tran
sact
ion
with
NC
I R
eser
ve
Fore
ign
curr
ency
m
onet
ary
item
tr
ansl
atio
n di
ffer
ence
ac
coun
t
Ret
aine
d ea
rnin
gs
(` in
mill
ions
, exc
ept f
or s
hare
dat
a an
d if
oth
erw
ise
stat
ed)
Oth
er
com
preh
ensi
ve
inco
me
for
the
year
end
edR
e-m
easu
rem
ent
gain
s/(lo
sses
) on
defi
ned
bene
fit
plan
s (N
et o
f de
ferr
ed ta
xes)
-
-
-
-
-
-
-
-
(47.
34)
-
-
(47.
34)
6.7
7 (4
0.57
)
Re-
mea
sure
men
t of
equ
ity
inst
rum
ents
on
fair
val
ue/g
ain
on s
ale
of s
uch
inst
rum
ents
. (N
et
of d
efer
red
taxe
s)
-
-
-
-
-
-
-
-
-
(2,1
92.6
4) -
(2
,192
.64)
-
(2,1
92.6
4)
Gai
n fr
om a
ba
rgai
n pu
rcha
se
(ref
er n
ote
55D
)
105
.27
-
-
-
-
-
-
-
-
-
-
105
.27
239
.16
344
.43
Tran
sfer
red
to r
etai
ned
earn
ings
on
disp
osal
of e
quity
in
vest
men
ts
-
-
-
-
-
-
-
-
1,2
30.1
8 (1
,230
.18)
-
-
-
-
Exch
ange
di
ffer
ence
s ar
isin
g on
tran
slat
ion
of
fore
ign
oper
atio
ns
(Net
of t
ax )
-
-
-
-
-
-
-
-
-
-
401
.78
401
.78
12.
24
414
.02
Div
iden
d pa
id -
-
-
-
-
-
-
-
-
-
-
-
(4
76.7
0) (4
76.7
0)D
ivid
end
dist
ribu
tion
tax
-
-
-
-
-
-
-
-
(27.
72)
-
-
(27.
72)
(62.
98)
(90.
70)
Annual Report 2019-20 | RJ Corp Limited 121
Par
ticul
ars
Att
ribu
tabl
e to
the
Ow
ners
of t
he C
ompa
nyA
ttri
buta
ble
to N
CI
Tota
l
Res
erve
and
sur
plus
Re-
mea
sure
men
t of
equ
ity
inst
rum
ent
at fa
ir v
alue
th
roug
h O
CI
(net
of d
efer
red
tax)
Exch
ange
di
ffer
ence
s on
tr
ansl
atin
g th
e fi
nanc
ial
stat
emen
ts
of fo
reig
n op
erat
ions
Tota
l A
ttri
buta
ble
to O
wne
rs
Cap
ital
rese
rve
Cap
ital
rese
rve
on
Con
solid
atio
n
Gen
eral
re
serv
e
Deb
entu
re
rede
mpt
ion
rese
rve
Sec
urity
pr
emiu
m
rese
rve
Sha
re
base
d pa
ymen
t re
serv
e
Tran
sact
ion
with
NC
I R
eser
ve
Fore
ign
curr
ency
m
onet
ary
item
tr
ansl
atio
n di
ffer
ence
ac
coun
t
Ret
aine
d ea
rnin
gs
(` in
mill
ions
, exc
ept f
or s
hare
dat
a an
d if
oth
erw
ise
stat
ed)
Tran
sitio
nal
impa
ct o
n ad
optio
n of
In
d A
S 1
16
appl
ying
mod
ified
re
tros
pect
ive
appr
oach
(ref
er
note
47
)
-
-
-
-
-
-
-
-
(1,2
41.8
7) -
-
(1
,241
.87)
(356
.66)
(1,5
98.5
3)
Am
ount
tr
ansf
erre
d on
am
alga
mat
ion
(ref
er n
ote
55A
)
100
.94
-
-
-
-
-
-
-
-
-
-
100
.94
-
100
.94
Add
ition
mad
e in
FC
MIT
DA
for
the
year
end
ed
-
-
-
-
-
-
-
(15.
11)
-
-
-
(15.
11)
(34.
34)
(49.
45)
FCM
ITD
A c
harg
ed
to S
tate
men
t of
Pro
fit a
nd L
oss
-
-
-
-
-
-
-
14.
98
-
-
-
14.
98
34.
02
49.
00
Add
ition
s m
ade
on is
sue
of e
quity
sh
ares
pur
suan
t to
QIP
-
-
-
-
2,7
05.0
1 -
-
-
-
2
,705
.01
6,1
47.9
2 8
,852
.93
Add
ition
s m
ade
pers
uant
to
exer
cise
of
empl
oyee
sto
ck
optio
ns
-
-
-
-
0.1
8 (9
.31)
-
-
-
-
-
(9.1
3) (2
.47)
(11.
60)
Add
ition
s m
ade
pers
uant
to
exer
cise
of r
ight
is
sue
-
-
-
-
1,0
00.0
0 -
-
-
-
-
-
1
,000
.00
-
1,0
00.0
0
Am
ount
util
ised
fo
r bo
nus
issu
e -
-
-
-
(2
79.1
2) -
-
-
-
-
-
(2
79.1
2) (6
34.1
6) (9
13.2
8)
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 122
(` in
mill
ions
, exc
ept f
or s
hare
dat
a an
d if
oth
erw
ise
stat
ed)
Par
ticul
ars
Att
ribu
tabl
e to
the
Ow
ners
of t
he C
ompa
nyA
ttri
buta
ble
to N
CI
Tota
l
Res
erve
and
sur
plus
Re-
mea
sure
men
t of
equ
ity
inst
rum
ent
at fa
ir v
alue
th
roug
h O
CI
(net
of d
efer
red
tax)
Exch
ange
di
ffer
ence
s on
tr
ansl
atin
g th
e fi
nanc
ial
stat
emen
ts
of fo
reig
n op
erat
ions
Tota
l A
ttri
buta
ble
to O
wne
rs
Cap
ital
rese
rve
Cap
ital
rese
rve
on
Con
solid
atio
n
Gen
eral
re
serv
e
Deb
entu
re
rede
mpt
ion
rese
rve
Sec
urity
pr
emiu
m
rese
rve
Sha
re
base
d pa
ymen
t re
serv
e
Tran
sact
ion
with
NC
I R
eser
ve
Fore
ign
curr
ency
m
onet
ary
item
tr
ansl
atio
n di
ffer
ence
ac
coun
t
Ret
aine
d ea
rnin
gs
Am
ount
util
ised
fo
r sh
are
issu
e ex
pens
es
-
-
-
-
(50.
23)
-
-
-
-
-
-
(50.
23)
(114
.13)
(164
.36)
Tran
sfer
to
Sec
urity
pre
miu
m
rese
rve
on
exer
cise
of
empl
oyee
sto
ck
optio
ns
-
-
-
-
-
(0.0
7) -
-
-
-
-
(0
.07)
(0.1
6) (0
.23)
Acq
uisi
tion
of
cont
rol o
ver
exis
ting
asso
ciat
e
-
-
-
-
-
-
-
-
-
-
-
-
196
.83
196
.83
Tran
sact
ion
with
N
CI/
Cha
nge
in
cont
rolli
ng s
take
(146
.46)
-
-
-
-
-
471
.88
(26.
08)
-
-
-
299
.34
818
.04
1,1
17.3
8
Bal
ance
as
at 3
1 M
arch
202
0 2
,591
.02
1,7
61.0
6 2
01.6
5 0
.00
9,0
34.7
9 6
6.40
(6
79.3
6) (0
.00)
(6,6
11.4
3) 2
95.7
7 7
27.9
4 7
,387
.84
22,
999.
95
30,
387.
79
The
acco
mpa
nyin
g no
tes
are
an in
tegr
al p
art o
f the
se c
onso
lidat
ed fi
nanc
ial s
tate
men
ts.
As
per
our
repo
rt o
f eve
n da
te a
ttac
hed.
sum
it k
athu
ria
Part
ner
Mem
bers
hip
No.
: 520
078
raj
Pal
gan
dhi
Dir
ecto
r
DIN
: 000
0364
9
Lalit
kum
ar s
ingh
Chie
f Fin
anci
al O
ffice
r
Varu
n Ja
ipur
ia
Dir
ecto
r
DIN
: 024
6541
2
Mah
avir
Pra
sad
gar
g
Com
pany
Sec
reta
ry
For
aPa
s &
co.
Char
tere
d A
ccou
ntan
ts
Firm
Reg
istr
atio
n N
o.: 0
0034
0C
For
and
on b
ehal
f of t
he B
oard
of d
irec
tors
of
rJ
corp
Lim
ited
Pla
ce: N
ew d
elhi
dat
e: 3
0 s
epte
mbe
r 20
20
Annual Report 2019-20 | RJ Corp Limited 123
Am
ount
util
ised
fo
r sh
are
issu
e ex
pens
es
-
-
-
-
(50.
23)
-
-
-
-
-
-
(50.
23)
(114
.13)
(164
.36)
Tran
sfer
to
Sec
urity
pre
miu
m
rese
rve
on
exer
cise
of
empl
oyee
sto
ck
optio
ns
-
-
-
-
-
(0.0
7) -
-
-
-
-
(0
.07)
(0.1
6) (0
.23)
Acq
uisi
tion
of
cont
rol o
ver
exis
ting
asso
ciat
e
-
-
-
-
-
-
-
-
-
-
-
-
196
.83
196
.83
Tran
sact
ion
with
N
CI/
Cha
nge
in
cont
rolli
ng s
take
(146
.46)
-
-
-
-
-
471
.88
(26.
08)
-
-
-
299
.34
818
.04
1,1
17.3
8
Bal
ance
as
at 3
1 M
arch
202
0 2
,591
.02
1,7
61.0
6 2
01.6
5 0
.00
9,0
34.7
9 6
6.40
(6
79.3
6) (0
.00)
(6,6
11.4
3) 2
95.7
7 7
27.9
4 7
,387
.84
22,
999.
95
30,
387.
79
The
acco
mpa
nyin
g no
tes
are
an in
tegr
al p
art o
f the
se c
onso
lidat
ed fi
nanc
ial s
tate
men
ts.
As
per
our
repo
rt o
f eve
n da
te a
ttac
hed.
1. corporate information
RJ Corp Limited (‘the Holding Company’) was
incorporated on 01st March 1980. The Holding Company
is primarily engaged in the business of trading in Shoes
& Apparels of ‘Nike’ and ‘Rookie’ brand and in investment
activities.
The Company together with its subsidiaries (hereinafter
referred to as ‘the Group’) has presence majorly in
Asia, Africa, and Singapore. The principal activities
of the Group, its joint ventures and associates consist
of manufacturing, selling, bottling and distribution of
beverages, developing, and managing and operating
quick services restaurants, providing healthcare
services, education services, manufacturing and selling
of dairy products & ice cream, retail, trading and real
estate businesses.
2. Basis of preparation
The Consolidated Financial Statements (“the CFS”) of
the Group have been prepared in accordance with the
Indian Accounting Standards (‘‘Ind AS’’) notified under
the Companies (Indian Accounting Standard) Rules,
2015 and stipulations contained in Schedule III (revised)
as applicable under Section 133 of the Companies Act,
2013 (“the Act”) as amended from time to time and other
pronouncements/ provisions of applicable laws.
The CFS of the Group are authorised for issue on 30
September 2020 in accordance with a resolution of the
Board of Directors. The revision to financial statements
are permitted by Board of Directors after obtaining
necessary approvals or at the instance of regulatory
authorities as per provisions of Companies Act, 2013.
The CFS have been prepared on a historical cost basis,
except for the following assets and liabilities which have
been measured at fair value:
i. Derivative financial instruments;
ii. Certain financial assets and liabilities measured
at fair value (refer accounting policy regarding
financial instruments);
iii. Defined benefit plans- plan assets measured at fair
value; and
iv. Share based payments;
The Group presents assets and liabilities in the balance
sheet based on current/non-current classification.
An asset is treated as current if it satisfies any of the
following conditions:
i. Expected to be realised or intended to sold or
consumed in normal operating cycle
ii. Held primarily for the purpose of trading
iii. Expected to be realised within twelve months after
the reporting period,
iv. 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 if it satisfies any of the following
conditions:
i. It is expected to be settled in normal operating
cycle;
ii. It is held primarily for the purpose of trading;
iii. It is due to be settled within twelve months after the
reporting period, or
iv. There is no unconditional right to defer the
settlement of the liability for at least twelve months
after the reporting 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 the time between the acquisition
of assets for processing and its realisation in cash
and cash equivalents. The Group has identified twelve
months as its operating cycle.
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 124
All amounts disclosed in the CFS and notes have been
rounded off to the nearest million as per the requirement
of Schedule III to the Act, unless otherwise stated.
2.1. Basis of consolidation
The consolidated financial statements comprise the
financial statements of the Company, its subsidiaries,
associate and joint ventures. 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 the investee);
• 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. To support this presumption and
when the Group has less than a majority of the voting
or similar rights of an investee, the Group considers all
relevant facts and circumstances in assessing whether
it has power over an investee, including:
a) The contractual arrangement with the other vote
holders of the investee;
b) The rights arising from other contractual
arrangements;
c) The Group’s voting rights and potential voting
rights; and
d) The size of the Group’s holding of voting rights
relative to the size and dispersion of the holdings of
the other voting rights holders.
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 the three elements of
control. Consolidation of a subsidiary begins when
the Group obtains control over the subsidiary and
ceases when the Group loses control of the subsidiary.
Assets, liabilities, income and expenses of a subsidiary
acquired or disposed of during the year are included in
the consolidated financial statements from the date the
Group gains control until the date the Group ceases to
control the subsidiary.
Consolidated financial statements are prepared using
uniform accounting policies for like transactions and
other events in similar circumstances. If a member of
the Group uses accounting policies other than those
adopted in the consolidated financial statements for
like transactions and events in similar circumstances,
appropriate adjustments are made to that member’s
financial statements in preparing the consolidated
financial statements to ensure conformity with the
Group’s accounting policies.
An associate is an entity over which the Group has
significant influence, i.e., the power to participate in the
financial and operating policy decisions of the investee
but not control or joint control over those policies.
A joint venture is a joint arrangement whereby the
parties that have joint control of the arrangement have
rights to the net assets of the joint arrangement.
The financial statements of all entities used for the
purpose of consolidation are drawn up to same
reporting date as that of the parent company, i.e., year
ended 31 March. When the end of the reporting period
of the parent is different from that of a subsidiary/
associate/joint ventures, the subsidiary/ associate/
joint ventures prepares, for consolidation purposes,
additional financial information as of the same date
as the financial statements of the parent to enable the
parent to consolidate the financial information of the
subsidiary, unless it is impracticable to do so.
The following consolidation procedures are adopted:
Subsidiary:
a) Combine like items of assets, liabilities, equity,
income, expenses and cash flows of the parent with
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 125
those of its subsidiaries. For this purpose, income
and expenses of the subsidiary are based on the
amounts of the assets and liabilities recognised
in the consolidated financial statements at the
acquisition date;
b) Offset (eliminate) the carrying amount of the
parent’s investment in each subsidiary and the
parent’s portion of equity of each subsidiary.
Business combinations policy explains how to
account for any related goodwill; and
c) 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 recognised in assets, such as inventory
and fixed assets, are eliminated in full). Ind AS 12
‘Income Taxes’ applies to temporary differences
that arise from the elimination of profits and losses
resulting from intragroup transactions.
Profit or loss and each component of 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:
• Derecognises the assets (including goodwill) and
liabilities of the subsidiary;
• Derecognises the carrying amount of any non-
controlling interests;
• Derecognisesthecumulativetranslationdifferences
recorded in equity;
• Recognises the fair value of the consideration
received;
• Recognises the fair value of any investment
retained;
• Recognises any surplus or deficit in Consolidated
Statement of Profit and Loss;
• Reclassifies the parent’s share of components
previously recognised in OCI to profit or loss or
retained earnings, as appropriate, as would be
required if the Group had directly disposed of the
related assets or liabilities
When the Group loses control over a subsidiary, it
derecognises the assets and liabilities of the subsidiary,
and any related NCI and other components of equity. Any
interest retained in the former subsidiary is measured
at fair value at the date the control is lost. Any resulting
gain or loss is recognised in consolidated profit or loss.
Associates and Joint ventures:
Interests in associates and joint ventures are accounted
for using the equity method, after initially being
recognised at cost in the consolidated balance sheet.
When a member of the Group transacts with an associate
or joint ventures of the Group, profits and losses from
transactions with the associate are recognised in the
CFS only to the extent of interests in the associate that
are not related to the Group.
The carrying amount of the investment is adjusted to
recognise changes in the Group’s share of net assets
of the associate since the acquisition date. Goodwill
relating to the associate is included in the carrying
amount of the investment.
The Consolidated Statement of Profit and Loss reflects
the Group’s share of the results of operations of
the associate. Any change in OCI of those investees
is presented as part of the Group’s OCI. In addition,
when there has been a change recognised directly in
the equity of the associate/joint ventures, the Group
recognises its share of any changes, when applicable, in
the statement of changes in equity. Unrealised gains and
losses resulting from transactions between the Group
and the associate/joint ventures are eliminated to the
extent of the interest in the associate. The aggregate
of the Group’s share of profit or loss of an associate
is shown on the face of the Consolidated Statement of
Profit and Loss.
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 126
After application of the equity method, the Group
determines whether it is necessary to recognise an
impairment loss on its investment in its associate/joint
ventures. At each reporting date, the Group determines
whether there is objective evidence that the investment
in the associate/joint ventures is impaired. If there
is such evidence, the Group calculates the amount of
impairment as the difference between the recoverable
amount of the associate/joint ventures and its carrying
value, and then recognises the loss as ‘Share of profit
of an associate’ in the Consolidated Statement of Profit
and Loss.
If an entity’s share of losses of an associate or a joint
venture equals or exceeds its interest in the associate
or joint venture, the entity discontinues recognising
its share of further losses. After the entity’s interest
is reduced to zero, additional losses are provided for,
and a liability is recognised, only to the extent that the
entity has incurred legal or constructive obligations
or made payments on behalf of the associate or joint
venture. If the associate or joint venture subsequently
reports profits, the entity resumes recognising its share
of those profits only after its share of the profits equals
the share of losses not recognised
Upon loss of significant influence over the associate, the
Group measures and recognises any retained investment
at its fair value. Any difference between the carrying
amount of the associate upon loss of significant and the
fair value of the retained investment and proceeds from
disposal is recognised in the Consolidated Statement of
Profit and Loss.
3. summary of significant accounting policies
a) fair value measurements
The Group measures financial instruments at fair value
which is the price that 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:
• Intheprincipalmarketfortheassetorliability,or
• In the absence of a principalmarket, in themost
advantageous market for the asset or liability.
All assets and liabilities for which fair value is measured
or disclosed in the consolidated 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;
• Level2-Valuationtechniquesforwhichthelowest
level input that is significant to the fair value
measurement is directly or indirectly observable;
and
• Level3-Valuationtechniquesforwhichthelowest
level input that is significant to the fair value
measurement is unobservable.
The Group uses valuation techniques that are appropriate
in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of
relevant observable inputs and minimising the use of
unobservable inputs.
For assets and liabilities that are recognised 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.
For the purpose of fair value disclosures, the Group has
determined classes of assets and liabilities on the basis
of the nature, characteristics and risks of the asset
or liability and the level of the fair value hierarchy as
explained above.
b) revenue recognition
Under Ind AS 115, revenue is recognised upon transfer
of control of promised goods or services to customers.
Revenue is measured at the fair value of the consideration
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 127
financial statem
ents
received or receivable, excluding discounts, incentives,
performance bonuses, price concessions, amounts
collected on behalf of third parties, or other similar
items, if any, as specified in the contract with the
customer. Revenue is recorded provided the recovery of
consideration is probable and determinable.
sale of goods
Revenue from the sale of manufactured and traded
goods products is recognised upon transfer of control
of products to the customers which coincides with their
delivery to customer and is measured at fair value of
consideration received/receivable, net of discounts,
amount collected on behalf of third parties and
applicable taxes.
In case of real estate business, the Group follows the
percentage of completion method of accounting to the
eligible projects. As per this method the revenue in
the Profit & Loss Account at the end of the accounting
year is recognized in proportion to the actual cost
incurred as against the total estimated cost of project
under execution with the Group subject to actual cost
being 25% / 30% or more of the total estimated cost.
The estimates relating to saleable area, sales value,
estimated cost etc. are updated periodically by the
management and necessary adjustments are made in
respective year(s). As regards projects where land is to
be sold as plots, the sale is recognized on execution of
sale deed/handing over of possession of land.
sale of services
Revenue from outdoor catering services is recognised
on completion of the respective services agreed to be
provided, the consideration is reliably determinable and
no significant uncertainty exists regarding the collection.
The amount recognised as revenue is net of applicable
taxes.
Service income and management fee
Revenue from marketing support services and business
support services are in terms of agreements with the
customers and are recognised are recognised on the
basis of satisfaction of performance obligation over the
duration of the contract from the date the contracts are
effective or signed provided the consideration is reliably
determinable and no significant uncertainty exists
regarding the collection. The amount recognised as
revenue is net of applicable taxes.
Treatment, Consultancy & Room Charges
Revenue from Treatment and consultancy is recognized
at the time services are rendered, revenue from Room
charges is recognized on a day to day basis after the
patient checks into the Centre as IPD patient. Revenue
is recognized to the extent that it is probable that the
economic benefits will flow to the Group and the revenue
can be reliably measured.
Tuition Fee
Revenue from tuition fee is recognized monthly on
accrual basis.
Revenue from royalty is recognised over the period
of the contract provided the consideration is reliably
determinable and no significant uncertainty exists
regarding the collection. The amount recognised as
revenue is net of applicable taxes.
other income
Interest income
Interest income is recognised on time proportion
basis taking into account the amount outstanding and
rate applicable. For all debt instruments measured
at amortised cost, interest income is recorded using
the effective interest rate (“EIR”). EIR is the rate that
exactly discounts the estimated future cash payments
or receipts over the expected life of the financial
instrument or a shorter period, where appropriate,
to the gross carrying amount of the financial assets.
When calculating the effective interest rate, the Group
estimates the expected cash flows by considering
all the contractual terms of the financial instrument
(for example, prepayment, extension, call and similar
options) but does not consider the expected credit
losses. Interest income is included in finance income in
the Consolidated Statement of Profit and Loss.
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 128
Dividends
Dividend is recognised when the Group’s right to receive
the payment is established, which is generally when
shareholders approve the dividend.
Services rendered
Revenue from service related activities is recognised
as and when services are rendered and on the basis of
contractual terms with the parties.
c) inventories
Inventories are valued as follows:
i. raw materials, components and stores and
spares: At lower of cost and net realisable value.
Cost represents purchase price and other direct
costs and is determined on a moving weighted
average cost basis. However, materials and other
items held for use in the production of inventories
are not written down below cost if the finished
products in which they will be incorporated are
expected to be sold at or above cost.
ii. Work-in-progress: At lower of cost and net
realisable value. Cost for this purpose includes
material, labour and appropriate allocation
of overheads including depreciation. Cost is
determined on a weighted average basis.
iii. intermediate goods/ finished goods:
a) self-manufactured - At lower of cost and net realisable
value. Cost for this purpose includes material, labour and
appropriate allocation of overheads. Cost is determined
on a weighted average basis.
b) traded - At lower of cost and net realisable value. Cost
represents purchase price and other direct costs and is
determined on a weighted average cost basis.
Net realisable value is the estimated selling price in the
ordinary course of business, less estimated costs of
completion and estimated costs necessary to make the
sale. Provision for obsolescence is determined based
on management’s assessment and is charged to the
Consolidated Statement of Profit and Loss.
d) Property, plant and equipment
Property, plant and equipment and capital work
in progress is stated at cost, net of accumulated
depreciation and accumulated impairment losses, if
any. Such cost includes the cost of replacing part of the
plant and equipment and borrowing costs for long-term
construction projects if the recognition criteria are met.
Cost comprises the purchase price, borrowing costs
if capitalization criteria are met and any directly
attributable cost of bringing the asset to its working
condition for the intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price.
The cost of an item of property, plant and equipment is
recognised as an asset if, and only if:
a. it is probable that future economic benefits
associated with the item will flow to the entity; and
b. the cost of the item can be measured reliably.
Subsequent expenditure related to an item of property,
plant and equipment is added to its book value only if
it increased the future benefits from the existing asset
beyond its previously assessed standard of performance.
All other expenses on existing assets, including day-
to- day repair and maintenance expenditure and cost
of replacing parts, are charged to the Consolidated
Statement of Profit and Loss for the period during
which such expenses are incurred. Expenditure directly
relating to construction activity is capitalized. Indirect
expenditure incurred during construction period is
capitalized as a part of indirect construction cost to
the extent the expenditure is related to construction
or is incidental thereto. Other indirect costs incurred
during-the construction periods which are not related
to construction activity nor are incidental thereto are
charged to the Consolidated Statement of Profit and
Loss.
Value for individual assets acquired for a consolidated
price, the consideration is apportioned to the various
assets on a fair value basis as determined by competent
valuers.
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 129
financial statem
ents
The management has estimated, supported by
technical assessment, the useful lives of property,
plant and equipment. The management believes that
these estimated useful lives are realistic and reflect
fair approximation of the period over which the assets
are likely to be used. Depreciation is calculated on a
straight-line basis over the estimated useful lives of the
assets as follows:
description useful Life
Leasehold land Period of lease
Leasehold improvements*
Period of lease/ 10 years
Building – Factory and others
20-60 years
Plant and equipment 4-20 years
Furniture & fixtures 5-11 years
Electrical fittings 9-10 years
Office equipment’s 4-11 years
Computers 3-7 years
Utensil and Kitchen equipment
10 years
Vehicles including delivery vehicles
4-11 years
Post-mix vending machines and refrigerators(Visi-Coolers)
7-10 years
Container 4-10 years
Crates 6 years
Marketing assets 5-8 years
Aircraft 20 years
Construction equipment 12 years
*In case of Devyani International Limited-Leasehold
improvements are depreciated on a straight line basis
over the period of the initial lease term or 10 years,
whichever is lower
Depreciation on property, plant and equipment is
provided over the useful life of assets as specified in
Schedule II to the Act, except where the management,
based on independent technical assessment,
depreciates certain assets
Overestimated useful lives which are different from the
useful life prescribed in the Schedule II to the Act. The
Group has used the remaining useful lives to compute
depreciation on its property, plant and equipment,
acquired under the business transfer agreement based
on external technical evaluation.
Depreciation on property, plant and equipment which
are added/disposed off during the year is provided on a
pro-rata basis with reference to the month of addition/
deletion. 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 income statement when the asset is
derecognised.
The Group has technically evaluated all the property,
plant and equipment for determining the separate
identifiable assets having different useful lives under
the component approach. On technical evaluation of all
separate identifiable components, the management is of
the opinion that they do not have any different useful life
from that of the principal asset.
In case of revaluation of leasehold land, the resulting
amortisation of the total revalued amount is expensed
off to the Consolidated Statement of Profit and Loss.
Breakages of containers are adjusted on ‘first bought
first broken’ basis, since it is not feasible to specifically
identify the broken containers in the fixed assets
records.
e) investment properties
(Recognition and initial measurement)
Investment properties are properties held to earn
rentals or for capital appreciation, or both. Investment
properties are measured initially at their cost of
acquisition, including transaction costs. Subsequent
costs are included in the asset’s carrying amount or
recognized as a separate asset, as appropriate, only
when it is probable that future economic benefits
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 130
associated with the asset will flow to the Group. All
other repair and maintenance costs are recognized in
Statement of Profit and Loss as incurred.
Properties held under leases are classified as
investment properties when it is held to earn rentals or
for capital appreciation or for both, rather than for sale in
the ordinary course of business or for use in production
or administrative functions. In case of subleases, where
the Group is immediate lessor, the right of use arising
out of related sub leases is assessed for classification
as investment property.
Subsequent measurement (depreciation and useful lives)
Investment properties are subsequently measured at
cost less accumulated depreciation and accumulated
impairment losses, if any. Depreciation on investment
properties is provided on the straight-line method over
the lease period of the right-of-use assets.
Though, the Group measures investment properties
using cost based measurement, the fair value of
investment property is disclosed in the notes. Fair
values are determined based on an annual evaluation
performed by an accredited external independent valuer
applying a valuation model acceptable internationally.
De-recognition
Investment properties are de-recognized either when
they have been disposed of or when they are permanently
withdrawn from use and no future economic benefit is
expected from their disposal. The difference between
the net disposal proceeds, if any, and the carrying
amount of the asset is recognized in the Statement of
Profit and Loss in the period of de-recognition.
f) 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
Consolidated Statement of Profit and Loss in the period
in which the expenditure is incurred.
The useful lives of intangible assets are assessed as
either finite or indefinite. Intangible assets with finite
lives are amortised 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 with a finite useful life 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 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 with finite
lives is recognised in the Consolidated Statement of
Profit and Loss.
Intangible assets are amortized on straight line basis
using the estimated useful life as follows:
description useful Life
Software 2-7 years
Business Marketing Rights
3-5 years
License fees Period of license
The franchise rights, and trademarks acquired as part of
business combinations normally have a remaining legal
life of not exceeding ten years but is renewable every
ten years at little cost and is well established. The Group
intends to renew these rights continuously and evidence
supports its ability to do so. An analysis of product life
cycle studies, market and competitive trends provides
evidence that the product will generate net cash inflows
for the Group for an indefinite period. Therefore, these
rights have been carried at cost without amortization,
but is tested for impairment annually, at the cash-
generating unit level. The assessment of indefinite
life is reviewed annually to determine whether the
indefinite life continues to be supportable. If not, the
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change in useful life from indefinite to finite is made on
a prospective basis.
The brand acquired as part of business combinations
has an indefinite life, since there is no foreseeable limit
to the period over which they are expected to generate
net cash flows. An analysis of product life cycle studies,
market and competitive trends provides evidence that
the product will generate net cash inflows for the Group
for an indefinite period. Therefore, these brands have
been carried at cost without amortisation, but is tested
for impairment annually, at the cash-generating unit
level. The assessment of indefinite life is reviewed
annually to determine whether the indefinite life
continues to be supportable. If not, the change in useful
life from indefinite to finite is made on a prospective
basis.
Gains or losses arising from de-recognition of 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 Consolidated Statement
of Profit and Loss when the asset is derecognised.
g) 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 borrowing of funds. Borrowing cost also includes
exchange differences to the extent regarded as an
adjustment to the borrowing costs.
h) Leases
Accounting policy applicable from 1 April 2019 onwards:
The Group as a lessee
Right of use assets and lease liabilities
(the transition approach has been explained and
disclosed in Note 47)
The Group mainly has lease arrangements for food
outlets, retail stores, running pre-schools, plant
and equipment’s and warehouse spaces. the Group
considers whether a contract is, or contains a lease. A
lease is defined as ‘a contract, or part of a contract, that
conveys the right to use an asset (the underlying asset)
for a period of time in exchange for consideration’.
Classification of leases
The Group enters into leasing arrangements for various
assets. The assessment of the lease is based on
several factors, including, but not limited to, transfer of
ownership of leased asset at end of lease term, lessee’s
option to extend/purchase etc.
Recognition and initial measurement
At lease commencement date, the Group recognizes a
right-of-use asset and a lease liability on the balance
sheet. The right-of-use asset is measured at cost, which
is made up of the initial measurement of the lease
liability, any initial direct costs incurred by the Group, an
estimate of any costs to dismantle and remove the asset
at the end of the lease (if any), and any lease payments
made in advance of the lease commencement date (net
of any incentives received).
Subsequent measurement
The Group depreciates the right-of-use assets on a
straight-line basis from the lease commencement date
to the earlier of the end of the useful life of the right-of
use asset or the end of the lease term. The Group also
assesses the right-of-use asset for impairment when
such indicators exist.
At lease commencement date, the Group measures the
lease liability at the present value of the lease payments
unpaid at that date, discounted using the interest rate
implicit in the lease if that rate is readily available or the
Group’s incremental borrowing rate. Lease payments
included in the measurement of the lease liability are
made up of fixed payments (including in substance fixed
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payments) and variable payments based on an index or
rate. Subsequent to initial measurement, the liability
will be reduced for payments made and increased for
interest. It is re-measured to reflect any reassessment
or modification, or if there are changes in-substance
fixed payments.
When the lease liability is re-measured, the
corresponding adjustment is reflected in the right-of-
use asset. The Group has elected to account for short-
term leases and leases of low-value assets using the
practical expedients. Instead of recognizing a right-of-
use asset and lease liability, the payments in relation
to these are recognized as an expense in standalone
statement of profit and loss on a straight-line basis over
the lease term.
In the comparative period, as a lessee, the Group
classified leases that transferred substantially all of
the risks and rewards of ownership as finance leases.
Leases of property, plant and equipment in which
significant portion of risks and rewards of ownership
were not transferred were classified as operating
leases. In determining the appropriate classification, the
substance of the transaction rather than the form was
considered. In case, the lease arrangement includes
other consideration, it was separated at the inception of
the lease arrangement or upon a reassessment of the
lease arrangement into those for the lease and those for
other elements on the basis of their relative fair values.
Lease classification was made at the inception of the
lease. Lease classification was changed only if, at any
time during the lease, the parties to the lease agreement
agree to revise the terms of the lease (without renewing
it) in a way that it would have been classified differently,
had the changed terms been in effect at inception. The
revised agreement involves renegotiation of original
terms and conditions and were accounted prospectively
over the remaining term of the lease. Lease payments in
respect of assets taken on operating lease are charged
to the profit or loss on a straight line basis over the
period of the lease unless the payments are structured
to increase in line with the expected general inflation
to compensate the lessor’s expected inflationary cost
increase.
The Group as a lessor
When the Group acts as a lessor, it determines at lease
inception whether each lease is a finance lease or an
operating lease. To classify each lease, the Group makes
an overall assessment of whether the lease transfers
substantially all of the risks and rewards incidental to
ownership of the underlying asset. If this is the case,
then the lease is a finance lease; if not, then it is an
operating lease. As part of this assessment, the Group
considers certain indicators such as whether the lease
is for the major part of the economic life of the asset.
When the Group is an intermediate lessor, it accounts
for its interests in the head lease and the sub-lease
separately. It assesses the lease classification of a sub-
lease with reference to the right-of-use asset arising
from the head lease, not with reference to the underlying
asset. If a head lease is a short-term lease to which the
Group applies the exemption described above, then it
classifies the sub-lease as an operating lease.
The Group recognises lease payments received under
operating leases as income on a straight-line basis over
the lease term as part of ‘other income’.
The accounting policies applicable to the Group as a
lessor in the comparative period were not different
from Ind AS 116. However, when the Group was an
intermediate lessor the sub-leases were classified with
reference to the underlying asset.
The Group recognises lease payments received under
operating leases as income on a straight-line basis
over the lease term. In case of a finance lease, finance
income is recognised over the lease term based on a
pattern reflecting a constant periodic rate of return on
the lessor’s net investment in the lease. When the Group
is an intermediate lessor it accounts for its interests in
the head lease and the sub-lease separately. It assesses
the lease classification of a sub-lease with reference to
the right-of-use asset arising from the head lease, not
with reference to the underlying asset. If a head lease
is a short term lease to which the Group applies the
exemption described above, then it classifies the sub-
lease as an operating lease.
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i) employee benefits
Contribution to provident and other funds
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 recognises 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 the contribution already
paid, the deficit payable to the scheme is recognised as
a liability after deducting the contribution already paid.
If the contribution already paid exceeds the contribution
due for services received before the balance sheet date,
then excess is recognised as an asset to the extent that
the pre-payment will lead to, for example, a reduction in
future payment or a cash refund.
Gratuity
Gratuity is a defined benefit scheme. The cost of
providing benefits under the defined benefit plan is
determined using the projected unit credit method. The
Group recognises termination benefit as a liability and
an expense when the Group has a present obligation as
a result of past 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. If the termination
benefits fall due more than twelve months after the
balance sheet date, they are measured at present value
of future cash flows using the discount rate determined
by reference to market yields at the balance sheet date
on government bonds.
Gratuity liability is accrued on the basis of an actuarial
valuation made at the end of the year except in two foreign
subsidiaries companies namely Wellness Holdings
limited and Arctic International Pvt. Ltd. where gratuity
liability is provided as per local applicable laws of the
country Limited and Modern Montessori International
(India) Pvt. Ltd., where valuation has been done based
on last drawn salary of each employee considering the
size of business and number of employees. The actuarial
valuation is performed by an independent actuary as
per projected unit credit method.
Re-measurements, comprising 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
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 profit or loss
in subsequent periods.
Past service costs are recognised in Consolidated
Statement of Profit and Loss on the earlier of:
• Thedateoftheplanamendmentorcurtailment,and
• The date that the Group recognises related
restructuring cost
Net interest is calculated by applying the discount rate
to the net defined benefit liability or asset.
The Group recognises the following changes in the
net defined benefit obligation as an expense in the
Consolidated Statement of Profit and Loss:
• Service costs comprising current service costs,
past-service costs, gains and losses on curtailments
and non-routine settlements; and
• Netinterestexpenseorincome
Compensated absences
The Group treats accumulated leave expected to be
carried forward beyond twelve months, as long-term
employee benefit which are computed based on the
actuarial valuation using the projected unit credit method
at the year-end except for few subsidiary companies
where accumulated leave liability is provided on full
cost basis. Actuarial gains/losses are immediately
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taken to the Consolidated Statement of Profit and Loss
and are not deferred. The Group presents the leave 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 Group
has the unconditional legal and contractual right to
defer the settlement for a period beyond twelve months,
the balance is presented as a non-current liability.
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.
All other employee benefits payable/available within
twelve months of rendering the service are classified as
short-term employee benefits. Benefits such as salaries,
wages, bonus, etc. are recognised in the Consolidated
Statement of Profit and Loss in the period in which the
employee renders the related service.
j) share-based payments
Employees (including senior executives) of the Group
receive remuneration in the form of share-based
payments, whereby employees render services as
consideration for equity instruments, which are
classified as equity-settled transactions.
The cost of equity-settled transactions is determined by
the fair value at the date when the grant is made using
an appropriate valuation model. That cost is recognised
as an employee benefit expense with a corresponding
increase in ‘Share- Based Payment Reserves’ in other
equity, over the period in which the performance and/or
service conditions are fulfilled. The cumulative expense
recognised for equity-settled transactions at each
reporting date until the vesting date reflects the extent
to which the vesting period has expired and the Group’s
best estimate of the number of equity instruments that
will ultimately vest.
Service and non-market performance conditions are
not taken into account when determining the grant
date fair value of awards, but the likelihood of the
conditions being met is assessed as part of the Group’s
best estimate of the number of equity instruments that
will ultimately vest. Market performance conditions
are reflected within the grant date fair value. Any
other conditions attached to an award, but without an
associated service requirement, are considered to be
non-vesting conditions. Non-vesting conditions are
reflected in the fair value of an award and lead to an
immediate expensing of an award unless there are also
service and/or performance conditions.
No expense is recognised for awards that do not
ultimately vest because non-market performance
and/or service conditions have not been met. Where
awards include a market or non-vesting condition,
the transactions are treated as vested irrespective
of whether the market or non-vesting condition is
satisfied, provided that all other performance and/or
service conditions are satisfied.
When the terms of an equity-settled award are modified,
the minimum expense recognised is the expense had
the terms had not been modified, if the original terms of
the award are met. An additional expense is recognised
for any modification that increases the total fair value of
the share-based payment transaction, or is otherwise
beneficial to the employee as measured at the date of
modification. Where an award is cancelled by the entity
or by the counterparty, any remaining element of the
fair value of the award is expensed immediately through
Consolidated Statement of Profit and Loss.
k) foreign currencies
The Group’s consolidated financial statements are
presented in INR (`), which is also the parent company’s
functional currency. Transactions in foreign currencies
are initially recorded by the Group’s entities at their
respective functional currency spot rates at the date the
transaction first qualifies for recognition. However, for
practical reasons, the Group uses an average rate if the
average approximates the actual rate at the date of the
transaction.
Monetary assets and liabilities denominated in foreign
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currencies are translated at the functional currency
spot rates of exchange at the reporting date. Non-
monetary items which are carried in terms of historical
cost denominated in a foreign currency are reported
using the exchange rate at the date of the transaction.
Exchange differences arising on settlement or
translation of monetary items are recognised in the
Consolidated Statement of Profit and Loss.
Exchange differences pertaining to long-term foreign
currency monetary items obtained or given on or before
31 December 2016: Exchange differences arising on
conversion of long term foreign currency monetary
items used for acquisition of depreciable fixed assets
are added to the cost of fixed assets and is depreciated
over the remaining life of the respective fixed asset
and in other cases, is recorded under the head ‘Foreign
Currency Monetary Item Translation Difference
Account’ and is amortised over the period of maturity of
underlying long term foreign currency monetary items,
in accordance with the option available under Ind AS
101.
Exchange differences pertaining to long-term foreign
currency monetary items obtained or given on or after
01 January 2017: Exchange differences arising on
conversion of long term foreign currency monetary
items obtained or given is recorded in the Consolidated
Statement of Profit and Loss.
Group companies
On consolidation, the assets and liabilities of foreign
operations are translated into INR at the rate of
exchange prevailing at the reporting date and their
statements of profit and loss are translated at exchange
rates prevailing at the dates of the transactions. For
practical reasons, the group uses an average rate to
translate income and expense items, if the average
rate approximates the exchange rates at the dates of
the transactions. The exchange differences arising on
translation for consolidation are recognised in OCI. On
disposal of a foreign operation, the component of OCI
relating to that particular foreign operation is recognised
in profit or loss.
l) Business combinations and goodwill
Business combinations are accounted for using
the acquisition method. The cost of an acquisition
is measured as the aggregate of the consideration
transferred measured at acquisition date fair value
and the amount of any non-controlling interests in the
acquiree. For each business combination, the Group
elects whether to measure the non-controlling interests
in the acquiree at fair value or at the proportionate share
of the acquiree’s identifiable net assets. Acquisition-
related costs are expensed as incurred.
At the acquisition date, the identifiable assets acquired
and the liabilities assumed are recognised at their
acquisition date fair values. For this purpose, the
liabilities assumed include contingent liabilities
representing present obligation and they are measured
at their acquisition fair values irrespective of the
fact that outflow of resources embodying economic
benefits is not probable. However, deferred tax assets
or liabilities, and the assets or liabilities related to
employee benefit arrangements are recognised and
measured in accordance with Ind AS 12 ‘Income Taxes’
and Ind AS 19 ‘Employee Benefits’ respectively.
When the Group acquires a business, it assesses the
financial assets and liabilities assumed for appropriate
classification and designation in accordance with
the contractual terms, economic circumstances and
pertinent conditions as at the acquisition date. This
includes the separation of embedded derivatives in host
contracts by the acquiree.
If the business combination is achieved in stages, any
previously held equity interest is re-measured at its
acquisition date fair value and any resulting gain or loss
is recognised in profit or loss or OCI, as appropriate.
Any contingent consideration to be transferred by the
acquirer is recognised at fair value at the acquisition
date. Contingent consideration classified as an asset
or liability that is a financial instrument and within the
scope of Ind AS 109 ‘Financial Instruments’ (“Ind AS
109”), is measured at fair value with changes in fair
value recognised in Consolidated Statement of Profit
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and Loss. If the contingent consideration is not within the
scope of Ind AS 109, it is measured in accordance with
the appropriate Ind AS. Contingent consideration that is
classified as equity is not re-measured at subsequent
reporting dates and subsequent its settlement is
accounted for within equity.
Goodwill is initially measured at cost, being the excess
of the aggregate of the consideration transferred and
the amount recognised for non-controlling interests,
and any previous interest held, over the net identifiable
assets acquired and liabilities assumed. If the fair value
of the net assets acquired is in excess of the aggregate
consideration transferred, the Group re-assesses
whether it has correctly identified all of the assets
acquired and all of the liabilities assumed and reviews
the procedures used to measure the amounts to be
recognised at the acquisition date. If the reassessment
still results in an excess of the fair value of net assets
acquired over the aggregate consideration transferred,
then the gain is recognised in OCI and accumulated in
equity as capital reserve. However, if there is no clear
evidence of bargain purchase, the entity recognises the
gain directly in equity as capital reserve, without routing
the same through OCI.
After initial recognition, goodwill is measured at cost
less any accumulated impairment losses. For the
purpose of impairment testing, goodwill acquired in
a business combination is, from the acquisition date,
allocated to each of the Group’s cash-generating units
that are expected to benefit from the 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 Consolidated Statement
of Profit and Loss. An impairment loss recognised for
goodwill is not reversed in subsequent periods.
Where goodwill has been allocated to a cash-generating
unit and part of the operation within that unit is disposed
of, the goodwill associated with the disposed operation
is included in the carrying amount of the operation
when determining the gain or loss on disposal. Goodwill
disposed in these circumstances is measured based on
the relative values of the disposed operation and the
portion of the cash-generating unit retained.
If the initial accounting for a business combination is
incomplete by the end of the reporting period in which
the combination occurs, the Group reports provisional
amounts for the items for which the accounting is
incomplete. Those provisional amounts are adjusted
through goodwill during the measurement period, or
additional assets or liabilities are recognised, to reflect
new information obtained about facts and circumstances
that existed at the acquisition date that, if known, would
have affected the amounts recognised at that date.
These adjustments are called as measurement period
adjustments. The measurement period does not exceed
one year from the acquisition date.
Business combinations involving entities that are
controlled by the Group are accounted for using the
‘pooling of interests’ method as follows:
• Theassetsandliabilitiesofthecombiningentities
are reflected at their carrying amounts;
• Except for adjustments made to harmonise
accounting policies, no adjustments are made to
reflect fair values, or recognise any new assets or
liabilities;
• Thebalanceoftheretainedearningsappearinginthe
financial statements of the transferor is aggregated
with the corresponding balance appearing in the
financial statements of the transferee or is adjusted
against general reserve;
• The identity of the reserves is preserved and the
reserves of the transferor become the reserves of
the transferee; and
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• The difference, if any, between the amounts
recorded as share capital issued plus any additional
consideration in the form of cash or other assets
and the amount of share capital of the transferor
is transferred to capital reserve and is presented
separately from other capital reserves.
m) government grants
Government grants are recognised where there is
reasonable assurance that the grant will be received
and all attached conditions will be complied with and
that the grant will be received.
When loans or similar assistance are provided by
governments or related institutions, with an interest
rate below the current applicable market rate, the effect
of this favourable interest is regarded as a government
grant. The loan or assistance is initially recognised and
measured at fair value and the government grant is
measured as the difference between the initial carrying
value of the loan and the proceeds received. That grant
is recognised in the Consolidated Statement of Profit
and Loss under ‘revenues’. The loan is subsequently
measured as per the accounting policy applicable to
financial liabilities.
Government grants related to assets, including non-
monetary grants at fair value, are presented in the
balance sheet by recording the grant as deferred
income which is released to the Consolidated Statement
of Profit and Loss on a systematic basis over the useful
life of the asset.
Grants related to income are recognised as income on
a systematic basis in the Consolidated Statement of
Profit and Loss over the periods necessary to match
them with the related costs, which they are intended
to compensate and are presented as ‘other operating
revenues’.
n) taxes
Tax expense is the aggregate amount included in
the determination of profit or loss for the period and
comprises current and deferred tax.
Current income tax
Current income tax is measured at the amount expected
to be paid to the tax authorities in accordance with the
Income-tax Act, 1961 and respective local jurisdictions
of members of the Group.
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 in the
countries where the Group operates and generates
taxable income.
Current income tax relating to items recognised outside
profit or loss is recognised outside profit or loss (either
in OCI or in equity). Current tax items are recognised
in correlation to the underlying transaction either in
OCI or directly in equity. Management periodically
evaluates positions taken in the tax returns 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 book bases. 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 profit or loss is recognised outside
profit or loss. Deferred tax items are recognised in
correlation to the underlying transaction either in OCI or
directly in equity. 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.
Deferred tax liabilities are recognised for all taxable
temporary differences except:
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• Whenthedeferredtaxliabilityarisesfromtheinitial
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 the
accounting profit nor taxable profit or loss;
• In respect of taxable temporary differences
associated with investments in subsidiaries and
associate, when the timing of the reversal of the
temporary differences can be controlled and it is
probable that the temporary differences will not
reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax
assets are recognised to the extent that 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 can
be utilised, except:
• When the deferred tax asset relating to the
deductible temporary difference arises from
the initial recognition of an asset or liability in a
transaction that is not a business combination and,
at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss;
• In respect of deductible temporary differences
associated with investments in subsidiaries and
associate, deferred tax assets are recognised only
to the extent that it is probable that the temporary
differences will reverse in the foreseeable future
and taxable profit will be available against which
the temporary differences can be utilised.
Deferred income taxes are not provided on the
undistributed earnings of subsidiaries where it is
expected that the earnings of the subsidiary will not be
distributed in the foreseeable future.
The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will
be available to allow all or part of the deferred tax asset
to be utilised. Unrecognised deferred tax assets are
re-assessed at each reporting date and are recognised
to the extent that it has become probable that future
taxable profits will allow the deferred tax asset to be
recovered.
Minimum Alternate Tax (“MAT”) credit is recognised as
an asset only when and to the extent there is convincing
evidence that the relevant members of the Group will
pay normal income tax during the specified period. Such
asset is reviewed at each reporting period end and the
adjusted based on circumstances then prevailing.
o) segment reporting
Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker, who is responsible for
allocating resources and assessing performance of
the operating segments. The business activities of the
Group fall in following segments:
• TradingActivity
• CharterHiringServices
• HealthcareServices
• RealEstate
• DairyProducts
• EducationServices
• Quickservicesrestaurants
• RetailsBusiness
• Manufacturingandsaleofbeverages
The Group operates in two principal geographical areas,
namely, India and other countries or ‘outside India’. The
Group prepares its segment information in conformity
with the accounting policies adopted for preparing the
CFS.
p) discontinued operations
A discontinued operation is a component of the Group
that either has been disposed of, or is classified as held
for sale, and:
• Represents a separate major line of business or
geographical area of operations;
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
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Annual Report 2019-20 | RJ Corp Limited 139
• Ispartofasingleco-ordinatedplan todisposeof
a separate major line of business or geographical
area of operations; or
• Isasubsidiaryacquiredexclusivelywithaviewto
resale.
Discontinued operations are excluded from the results
of continuing operations and are presented as a single
amount as profit or loss after tax from discontinued
operations in the Consolidated Statement of Profit and
Loss
q) 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
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 those from 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
are corroborated by valuation multiples, quoted share
prices for publicly traded companies or other available
fair value indicators.
The Group bases its impairment calculation on detailed
budgets and forecast calculations, which are prepared
separately for each of the Group’s CGUs to which the
individual assets are allocated. These budgets 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 Group extrapolates 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 or countries 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
Consolidated Statement of Profit and Loss.
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 Group estimates
the asset’s or CGU’s recoverable amount. A previously
recognised impairment loss is reversed only if there has
been a change in the assumptions used to determine the
asset’s recoverable amount since 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
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.
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
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
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Annual Report 2019-20 | RJ Corp Limited 140
plus, in the case of financial assets not recorded at fair
value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset.
For purposes of subsequent measurement, financial
assets are classified as follows:
a) Debt instruments at amortised cost
A ‘debt instrument’ is measured at the amortised
cost where the asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows; and contractual terms of the
asset give rise to cash flows on specified dates that
are solely payments of principal and interest.
After initial measurement, such financial assets are
subsequently measured at amortised cost using the
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 interest income from these financial assets is
included in other income in the profit or loss. The
losses arising from impairment are recognised in
the profit or loss. This category generally applies to
trade and other receivables.
b) Debt instruments at Fair Value Through Other
Comprehensive Income
Assets that are held for collection of contractual
cashflows and for selling the financial assets,
where the cash flow represent solely payments of
principal and interest, are measured at fair value
through other comprehensive income (“FVOCI”). The
Group has not designated any debt instrument in
this category.
c) Debt instruments at Fair Value Through Profit or
Loss
Fair Value Through Profit or Loss (“FVTPL”) is a
residual category for debt instruments. Any debt
instrument, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is
classified as at FVTPL.
In addition, the Group may elect to designate a debt
instrument which otherwise meets amortized cost or
FVTOCI criteria, as at FVTPL. However, such election
is allowed only if doing so reduces or eliminates
a measurement or recognition inconsistency
(referred to as ‘accounting mismatch’).
Debt instruments included within the FVTPL
category are measured at fair value with all changes
recognised in the Consolidated Statement of Profit
and Loss. The Group has not designated any debt
instrument in this category.
d) Equity instruments
All equity investments in scope of Ind AS 109 are
measured at fair value. Equity instruments which
are held for trading and contingent consideration
recognised by an acquirer in a business combination
to which Ind AS 103 ‘Business Combinations’
applies are Ind AS classified as at FVTPL. Equity
instruments included within the FVTPL category are
measured at fair value with all changes recognised
in the Consolidated Profit and Loss.
For all other equity instruments, the Group may
make an irrevocable election to present in other
comprehensive income subsequent changes in the
fair values. The Group makes such election on an
instrument-by-instrument basis. The classification
is made on initial recognition and is irrevocable.
If the Group decides to classify an equity instrument
as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognised in
the OCI. There is no recycling of the amounts from
OCI to profit or loss, even on sale of investment.
However, the Group may transfer the cumulative
gain or loss within equity.
De-recognition
A financial asset is derecognised when the contractual
rights to receive cash flows from the asset have expired
or the Group has transferred its rights to receive the
contractual cash flows from the asset in a transaction
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
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Annual Report 2019-20 | RJ Corp Limited 141
in which substantially all the risks and rewards of
ownership of the asset are transferred.
Impairment of financial assets
The Group measures the Expected Credit Loss (“ECL”)
associated with its assets based on historical trends,
industry practices and the general business environment
in which it operates. The impairment methodology
applied depends on whether there has been a significant
increase in credit risk. ECL impairment loss allowance
(or reversal) recognised during the period is recognised
as income/ expense in the Consolidated Statement of
Profit and Loss under the head ‘other expenses’.
financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, or as derivatives
designated as hedging instruments in an effective hedge
as appropriate.
All financial liabilities are recognised initially at fair
value and in the case of loans and borrowings and
payables net of directly attributable transaction costs.
The Group’s financial liabilities include trade and
other payables, loans and borrowings including bank
overdrafts and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on
their classification, as described below:
a) Financial liabilities at FVTPL
Financial liabilities at FVTPL include financial
liabilities held for trading and financial liabilities
designated upon initial recognition as at 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 includes derivative financial instruments
entered into by the Group that are not designated
as hedging instruments in hedge relationships as
defined by Ind AS 109.
Financial liabilities designated upon initial
recognition at fair value through profit or loss are
designated as such at the initial date of recognition
and only if the criteria in Ind AS 109 are satisfied.
For liabilities designated as FVTPL, fair value gains/
losses are recognised in the Consolidated Statement
of Profit or Loss except for those attributable to
changes in own credit risk which are recognised
in OCI. These gains/ loss are not subsequently
transferred to the profit or loss.
b) Financial liabilities at amortised cost
After initial recognition, financial liabilities
designated at amortised costs are subsequently
measured at amortised cost using the EIR method.
Gains and losses are recognised in profit or loss
when the liabilities are derecognised as well as
through the EIR amortisation process. 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 amortisation
is included as finance costs in the Consolidated
Statement of Profit and Loss.
De-recognition
A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. 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 is treated as
the de-recognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
Consolidated Statement of Profit and Loss.
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
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Annual Report 2019-20 | RJ Corp Limited 142
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.
derivative financial instruments
Derivatives are initially recognised at fair value on
the date of executing a derivative contract and are
subsequently remeasured to their fair value at the
end of each reporting period. Derivatives are carried
as financial assets when the fair value is positive
and as financial liabilities when the fair value is
negative. Changes in the fair value of derivatives
that are designated and qualify as fair value hedges
are recognised in the profit or loss immediately,
together with any changes in the fair value of the
hedged asset or liability that are attributable to the
hedged risk.
s) Non-current assets and liabilities classified as held
for sale
Non-current assets classified as held for sale are
presented separately in the Balance Sheet and measured
at the lower of their carrying amounts immediately prior
to their classification as held for sale and their fair value
less costs to sell. Once classified as held for sale, the
assets are not subject to depreciation or amortisation.
Any gain or loss arises on remeasurement or sale is
included in Consolidated Statement of Profit and Loss
t) cash and cash equivalents
Cash and cash equivalent in the balance sheet 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.
For the purpose of the consolidated statement of
cash flows, cash and cash equivalents consist of cash
and short-term deposits, as defined above, net of
outstanding bank overdrafts as they are considered an
integral part of the Group’s cash management.
u) dividend distribution to equity holders of the parent
The Group recognises a liability to make cash or non-
cash distributions to equity holders of the parent 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.
v) Provisions
Provisions are recognised when the Group has a
present obligation (legal or constructive) as a result of
a past 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 Group expects some
or all of a provision to be reimbursed, for example, under
an insurance contract, 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 rate
that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a
finance cost.
w) contingent liabilities
A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non–occurrence of one or more
uncertain future events beyond the control of the Group
or a present obligation that is not recognised because
it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability
also arises in extremely rare cases where there is a
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
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Annual Report 2019-20 | RJ Corp Limited 143
liability that cannot be recognised because it cannot
be measured reliably. The Group does not recognize
a contingent liability but discloses its existence in
the financial statements. Contingent assets are only
disclosed when it is probable that the economic benefits
will flow to the entity.
x) earnings per share
Basic earnings/ (loss) per share are calculated by
dividing the net profit or loss for the year attributable to
equity shareholders by the weighted average number of
equity shares outstanding during the year. The weighted
average number of equity shares outstanding during
the year is adjusted for events other than conversion of
potential equity shares, that have changed the number
of equity shares outstanding without a corresponding
change in resources.
For the purpose of calculating diluted earnings/(loss) per
share, the net 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.
3.1. significant accounting judgements, estimates and
assumptions
The preparation of the Group’s financial statements
requires management to make judgements, estimates
and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and
the accompanying disclosures, and the disclosure of
contingent liabilities. Estimates and assumptions are
continuously evaluated and are based on management’s
experience and other factors, including expectations of
future events that are believed to be reasonable under
the circumstances. 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.
In particular, the Group has identified the following
areas where significant judgements, estimates and
assumptions are required. Further information on
each of these areas and how they impact the various
accounting policies are described below and also in the
relevant notes to the consolidated financial statements.
Changes in estimates are accounted for prospectively.
i) Judgements
In the process of applying the Group’s accounting
policies, management has made the following
judgements, which have the most significant effect on
the amounts recognised in the consolidated financial
statements:
a) contingencies
Contingent liabilities may arise from the ordinary
course of business in relation to claims against the
Group, including legal, contractor, land access and
other claims. By their nature, contingencies will be
resolved only when one or more uncertain future
events occur or fail to occur. The assessment of the
existence, and potential quantum of contingencies
inherently involves the exercise of significant
judgments and the use of estimates regarding the
outcome of future events.
b) recognition of deferred tax assets
The extent to which deferred tax assets can be
recognised is based on an assessment of the
probability that future taxable income will be
available against which the deductible temporary
differences and tax loss carry-forward can be
utilised. In addition, significant judgement is
required in assessing the impact of any legal or
economic limits or uncertainties in various tax
jurisdictions.
c) classification of leases
The Group has various leasing arrangements and its
classification between finance or operating leases
is based on assessment of several factors such as
lessee’s option to purchase including estimated
certainty of exercise of such option, proportion of
lease term to the asset’s economic life proportion
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
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financial statem
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Annual Report 2019-20 | RJ Corp Limited 144
of present value of minimum lease payments to fair
value of leased assets and transfer of ownership of
leased asset at end of lease term.
ii) estimates and assumptions
The key assumptions concerning the future and other
key sources of estimation uncertainty at the reporting
date that have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described
below. The Group bases its assumptions and estimates
on parameters available when the consolidated financial
statements were prepared. Existing circumstances and
assumptions about future developments, however, may
change due to market change or circumstances arising
beyond the control of the Group. Such changes are
reflected in the assumptions when they occur.
a) useful lives of depreciable assets
The Group reviews its estimate of the useful lives of
depreciable assets at each reporting date, based on
the expected utility of the assets.
b) defined benefit obligation
The cost of the defined benefit plan and other
post-employment benefits and the present value
of such obligation are determined using actuarial
valuations. An actuarial valuation involves making
various assumptions that may differ from actual
developments in the future. These include the
determination of the discount rate, future salary
increases, mortality rates and future pension
increases. In view of 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 reporting date.
c) inventories
The Group estimates the net realisable values of
inventories, taking into account the most reliable
evidence available at each reporting date. The future
realisation of these inventories may be affected by
future technology or other market-driven changes
that may reduce future selling prices.
d) Business combinations
The Group uses valuation techniques when
determining the fair values of certain assets and
liabilities acquired in a business combination. In
particular, the fair value of contingent consideration
is dependent on the outcome of many variables
including the acquirees’ future profitability.
e) impairment of non-financial assets and goodwill
In assessing impairment, the Group estimates
the recoverable amount of each asset or cash-
generating units based on expected future cash
flows and uses an interest rate to discount them.
Estimation uncertainty relates to assumptions about
future operating results and the determination of a
suitable discount rate.
f) fair value measurement of financial instruments
When the fair values of financial assets and
financial liabilities recorded in the Balance Sheet
cannot be measured based on quoted prices
in active markets, their fair value is measured
using valuation techniques including the DCF
model. The inputs to these models are taken from
observable markets where possible, but where this
is not feasible, a degree of judgment is required
in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit
risk and volatility. Changes in assumptions about
these factors could affect the reported fair value of
financial instruments.
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
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Annual Report 2019-20 | RJ Corp Limited 145
(` in
mill
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, exc
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oth
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ed)
gro
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and
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tot
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Bal
ance
as
at
1 A
pril
2018
4,4
11.8
5 4
,562
.18
9,0
87.9
7 -
2
7,81
5.62
1
,776
.37
281
.39
630
.31
1,6
13.8
7 4
01.1
9 1
,923
.19
0.1
5 5
18.8
7 5
,690
.00
454
.92
9,5
79.1
3 6
8,74
7.01
Acq
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bus
ines
s ac
quis
ition
/su
bsid
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es
acqu
isiti
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duri
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ar
53.
32
-
530
.36
-
2,1
87.4
4 1
79.8
9 2
3.52
2
8.59
-
1
77.9
0 5
1.72
-
1
9.02
-
-
-
3
,251
.76
Add
ition
s fo
r th
e ye
ar 9
0.76
3
1.75
2
,904
.33
-
5,4
58.2
9 4
62.8
1 1
23.1
1 2
76.4
4 1
44.0
7 1
67.1
4 2
48.7
0 -
1
30.1
3 8
84.0
1 -
1
,546
.60
12,
468.
14
Dis
posa
ls/
Adj
ustm
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fo
r th
e ye
ar -
-
(7
.29)
-
(889
.68)
(113
.64)
(1.7
9) (2
9.34
) (3
01.3
6) (4
8.86
) (1
26.8
7) -
(8
8.97
) (1
,408
.65)
-
(369
.39)
(3,3
85.8
4)
Ass
ets
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345
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0.0
2 2
5.46
-
(0
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-
-
(12.
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-
(23.
77)
-
-
(11.
27)
-
-
-
323
.16
Tran
sfer
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just
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-
-
163
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-
(163
.32)
-
-
-
(0.4
8) -
-
-
-
-
-
-
(0
.48)
Fore
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n fo
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(87.
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(0.0
2) (1
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9) -
(4
55.0
2) 2
1.24
0
.02
(10.
29)
-
5.4
6 (3
3.40
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(0
.01)
(87.
76)
31.
48
(80.
28)
(882
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Bal
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as
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1 M
arch
20
19 4
,814
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4,5
93.9
3 1
2,51
7.16
-
3
3,95
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2
,326
.67
426
.25
883
.51
1,4
56.1
0 6
79.0
6 2
,063
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5 5
67.7
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,077
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10,
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80,
521.
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/su
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54.4
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0.00
8
,255
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-
18.
22
-
9.0
5 2
0.25
-
9
.21
312
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-
721
.66
17,
418.
73
Add
ition
s fo
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36.1
1 1
12.0
1 6
56.4
9 -
4
,082
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268
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8 8
9.50
2
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1
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-
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-
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-
-
-
-
-
-
-
-
-
(251
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(4
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(2
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3) -
(7
7.04
) (1
,418
.08)
Tran
sfer
/ ad
just
men
t du
ring
the
year
-
-
-
-
7.0
9 -
-
(0
.02)
-
(0.3
3) -
-
(0
.01)
-
-
-
6.7
3
su
MM
ar
Y o
f s
igN
ific
aN
t a
cc
ou
Nti
Ng
Po
Lic
ies
aN
d o
tHe
r e
XP
LaN
ato
rY
iNfo
rM
ati
oN
oN
tH
e c
oN
so
Lid
ate
d f
iNa
Nc
iaL
sta
teM
eN
ts f
or
tH
e Y
ea
r e
Nd
ed
31 M
ar
cH
202
0
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 146
Fore
ign
exch
ange
fl
uctu
atio
n fo
r th
e ye
ar
(128
.40)
(0.0
3) 1
94.0
0 -
3
21.2
4 2
6.50
0
.14
15.
55
-
17.
30
(19.
13)
-
(0.0
4) (1
02.8
1) 3
7.96
(3
2.75
) 3
29.5
4
Adj
ustm
ent
on a
ccou
nt o
f ce
ssat
ion
of
subs
idia
ries
-
-
-
-
(169
.64)
(11.
18)
(12.
17)
(10.
29)
-
(29.
66)
-
-
(8.8
7) -
-
-
(2
41.8
1)
Bal
ance
as
at 3
1 M
arch
20
20 7
,169
.67
6,6
35.7
1 1
7,50
8.08
6
0.00
4
5,77
1.88
2
,456
.21
463
.69
888
.31
1,6
23.3
4 7
39.5
2 2
,263
.84
0.1
5 7
39.7
8 5
,863
.97
524
.36
11,
733.
77
104
,442
.30
acc
umul
ated
dep
reci
atio
n B
alan
ce a
s at
1
Apr
il 20
18 -
1
42.2
3 1
,622
.86
-
7,9
09.9
5 5
59.6
3 8
6.93
2
61.7
7 6
76.2
3 1
96.2
0 1
,276
.84
0.1
5 2
98.6
7 2
,379
.94
49.
28
4,7
61.6
4 2
0,22
2.32
Acq
uire
d on
bus
ines
s ac
quis
ition
/su
bsid
iari
es
acqu
isiti
on
duri
ng th
e ye
ar
-
-
8.9
9 -
3
87.5
7 -
-
8
.34
-
76.
60
30.
48
-
9.1
0 -
-
-
5
21.0
9
Dep
reci
atio
n ch
arge
for
the
year
-
41.
15
368
.52
-
2,0
25.2
4 2
49.6
0 2
9.35
1
18.6
1 1
94.2
8 6
8.26
2
13.8
3 -
1
01.6
9 8
17.5
1 2
4.47
1
,130
.07
5,3
82.5
8
Impa
irem
ent
char
ge fo
r th
e ye
ar
2018
-19
-
-
0.3
1 -
5
7.30
1
09.8
8 1
.01
19.
94
-
10.
35
(0.9
5) -
2
.64
-
-
-
200
.47
Tran
sfer
/ ad
just
men
t fo
r th
e ye
ar -
-
1
3.42
-
(1
3.42
) -
-
-
-
-
-
-
-
-
-
-
-
Rev
ersa
l on
disp
osal
of
asse
ts fo
r th
e ye
ar
-
-
(1.3
6) -
(6
32.3
2) (6
9.64
) (1
.56)
(12.
47)
(277
.82)
(35.
58)
(108
.30)
-
(82.
29)
(1,1
13.1
9) -
(3
26.2
9) (2
,660
.82)
Ass
ets
clas
sifi
ed a
s he
ld fo
r S
ale
-
0.0
2 1
1.55
-
(0
.36)
-
-
(10.
84)
-
(21.
91)
-
-
(10.
59)
-
-
-
(32.
13)
Fore
ign
exch
ange
fl
uctu
atio
n fo
r th
e ye
ar
-
(0.0
1) (1
3.90
) -
(7
0.97
) 1
0.10
(0
.06)
(3.5
0) -
(0
.71)
(15.
47)
-
(0.6
7) (4
6.92
) 3
.26
(39.
75)
(178
.60)
Bal
ance
as
at 3
1 M
arch
20
19 -
1
83.3
8 2
,010
.38
-
9,6
63.0
0 8
59.5
6 1
15.6
8 3
81.8
5 5
92.6
9 2
93.2
1 1
,396
.44
0.1
5 3
18.5
4 2
,037
.34
77.
01
5,5
25.6
7 2
3,45
4.91
(` in
mill
ions
, exc
ept f
or s
hare
dat
a an
d if
oth
erw
ise
stat
ed)
su
MM
ar
Y o
f s
igN
ific
aN
t a
cc
ou
Nti
Ng
Po
Lic
ies
aN
d o
tHe
r e
XP
LaN
ato
rY
iNfo
rM
ati
oN
oN
tH
e c
oN
so
Lid
ate
d f
iNa
Nc
iaL
sta
teM
eN
ts f
or
tH
e Y
ea
r e
Nd
ed
31 M
ar
cH
202
0g
ross
blo
ck f
reeh
old
Land
L
ease
hold
La
nd#
Bui
ldin
gs^
spa
ce in
co
mm
erci
al
com
plex
*
Pla
nt &
eq
uipm
ent
Lea
seho
ld
impr
ovem
ents
e
lect
rica
l in
stal
lati
ons
and
equi
pmen
t
fur
nitu
re
and
fixt
ures
Mar
keti
ng
ass
ets
offi
ce
equi
pmen
ts
Veh
icle
s B
ooks
c
ompu
ter
equi
pmen
ts
con
tain
ers
air
craf
t P
ost-
mix
ve
ndin
g m
achi
nes
and
refr
iger
ator
s (v
isi c
oole
r)
tot
al
Annual Report 2019-20 | RJ Corp Limited 147
Acq
uire
d on
bus
ines
s ac
quis
ition
/su
bsid
iari
es
acqu
isiti
on
duri
ng th
e ye
ar
-
-
4.2
2 1
.90
322
.80
-
-
0.9
8 -
1
.96
3.5
5 -
0
.59
-
-
-
336
.00
Dep
reci
atio
n ch
arge
for
the
year
-
68.
69
563
.74
1.9
0 2
,984
.95
322
.72
40.
37
125
.20
193
.55
78.
49
185
.68
-
113
.56
853
.24
24.
83
1,3
57.3
9 6
,914
.31
Impa
irem
ent
char
ge fo
r th
e ye
ar
2019
-20
-
-
(18.
10)
-
81.
47
(11.
67)
(0.3
3) (1
.09)
-
(0.2
1) (0
.61)
-
(3.5
2) 5
69.0
2 -
-
6
14.9
5
Rev
ersa
l on
disp
osal
of
asse
ts fo
r th
e ye
ar
-
-
(6.8
6) -
(1
57.3
2) (1
65.5
0) 2
.50
(52.
41)
(101
.60)
(6.3
5) (4
7.50
) -
(2
3.01
) (2
66.9
0) -
(5
8.60
) (8
83.5
4)
Adj
ustm
ent
on a
ccou
nt o
f ce
ssat
ion
of
subs
idia
ries
-
-
-
-
(29.
53)
(8.7
4) (3
.44)
(3.5
0) -
(1
3.68
) -
-
(1
0.67
) -
-
-
(6
9.56
)
Fore
ign
exch
ange
fl
uctu
atio
n fo
r th
e ye
ar
-
-
13.
33
-
119
.83
11.
79
0.0
4 4
.54
-
14.
51
(17.
32)
-
0.6
9 (4
1.47
) 7
.40
(23.
42)
89.
90
Bal
ance
as
at 3
1 M
arch
20
20 -
2
52.0
7 2
,566
.71
3.8
0 1
2,98
5.20
1
,008
.15
154
.83
455
.58
684
.64
367
.92
1,5
20.2
3 0
.15
396
.18
3,1
51.2
3 1
09.2
4 6
,801
.04
30,
456.
97
Net
blo
ckB
alan
ce a
s at
31
Mar
ch
2019
4,8
14.2
3 4
,410
.55
10,
506.
78
-
24,
289.
85
1,4
67.1
1 3
10.5
6 5
01.6
6 8
63.4
1 3
85.8
5 6
66.9
0 0
.00
249
.22
3,0
40.2
6 4
09.3
9 5
,150
.39
57,
066.
16
Bal
ance
as
at 3
1 M
arch
20
20 7
,169
.67
6,3
83.6
4 1
4,94
1.37
5
6.20
3
2,78
6.68
1
,448
.06
308
.87
432
.74
938
.69
371
.60
743
.61
0.0
0 3
43.5
9 2
,712
.73
415
.12
4,9
32.7
3 7
3,98
5.33
(` in
mill
ions
, exc
ept f
or s
hare
dat
a an
d if
oth
erw
ise
stat
ed)
su
MM
ar
Y o
f s
igN
ific
aN
t a
cc
ou
Nti
Ng
Po
Lic
ies
aN
d o
tHe
r e
XP
LaN
ato
rY
iNfo
rM
ati
oN
oN
tH
e c
oN
so
Lid
ate
d f
iNa
Nc
iaL
sta
teM
eN
ts f
or
tH
e Y
ea
r e
Nd
ed
31 M
ar
cH
202
0g
ross
blo
ck f
reeh
old
Land
L
ease
hold
La
nd#
Bui
ldin
gs^
spa
ce in
co
mm
erci
al
com
plex
*
Pla
nt &
eq
uipm
ent
Lea
seho
ld
impr
ovem
ents
e
lect
rica
l in
stal
lati
ons
and
equi
pmen
t
fur
nitu
re
and
fixt
ures
Mar
keti
ng
ass
ets
offi
ce
equi
pmen
ts
Veh
icle
s B
ooks
c
ompu
ter
equi
pmen
ts
con
tain
ers
air
craf
t P
ost-
mix
ve
ndin
g m
achi
nes
and
refr
iger
ator
s (v
isi c
oole
r)
tot
al
* Th
e H
oldi
ng C
ompa
ny h
ad a
cqui
red
spac
e in
com
mer
cial
com
plex
at m
ohal
i mal
l, w
hich
is y
et to
be
regi
ster
ed in
the
nam
e of
the
com
pany
.
^Bui
ldin
g ac
quir
ed o
n am
alga
mat
ion
incl
udes
am
ount
ing
to R
s. 8
50.4
9 (3
1 M
arch
201
9 : N
il) o
f com
mer
cial
ret
ail s
pace
acq
uire
d at
Mum
bai,
whi
ch is
yet
to b
e re
gist
ered
in th
e
nam
e of
the
Hol
ding
Com
pany
.
#One
of t
he S
ubsi
diar
y ha
d ac
quir
ed le
aseh
old
land
s at
Pat
hank
ot (P
unja
b), S
onar
pur
(Kol
kata
) and
San
gli (
Mah
aras
htra
) am
ount
ing
to R
s 20
0.15
(31
Mar
ch 2
019:
Rs
200.
15) a
nd
free
hold
land
at N
elam
anga
la (K
arna
taka
) am
ount
ing
to R
s 1,
316.
60 (3
1 M
arch
201
9: N
il) w
hich
are
yet
to b
e re
gist
ered
in th
e na
me
of th
e re
spec
tive
com
pany
.
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 148
i. asset under construction/ capital work in progress
Capital work in progress as at 31 March 2020 comprised capital expenditure mainly for the set-up of new plant,
construction of building & set up of new restaurents.
Particulars 31-March-2020 31-March-2019Capital work-in-progress 2,015.60 2,287.50 total 2,015.60 2,287.50
ii. Pre-operative expenses incurred and capitalised during the year are as under:
Particulars 31-March-2020 31-March-2019Balance at the beginning of the year 174.26 13.65 add: incurred during the year
Net gain on foreign currency transactions (84.69) (0.90)Employee benefits expense 25.65 23.92 Finance costs 44.11 200.93 Other expenses 92.46 359.78
Less: Capitalised during the year 242.60 359.14 amount carried over 9.20 174.26
iii. the above schedule includes assets taken on finance lease in one of the subsidiary, details of assets wise are as under:
Plant & equipment
Vehicles
Post-mix vending machines and
refrigerators (Visi cooler)
total
gross carrying amountBalance as at 01 april 2019 13.64 235.28 58.06 306.98 Addition for the year - - - - Foreign exchange fluctuation for the year 0.36 6.22 1.54 8.12 Balance as at 31 March 2020 14.00 241.50 59.60 315.10 depreciation and impairmentBalance as at 01 april 2019 5.37 210.95 34.97 251.29 Depreciation for the year 0.70 15.04 5.96 21.70 Foreign exchange fluctuation for the year 0.14 5.58 0.92 6.65 Balance as at 31 March 2020 6.21 231.57 41.85 279.64 carrying amount as at 31 March 2020 7.79 9.93 17.75 35.46
gross carrying amountBalance as at 01 april 2018 13.41 231.34 57.09 301.84 Addition for the year - - - - Foreign exchange fluctuation for the year 0.23 3.94 0.97 5.14 Balance as at 31 March 2019 13.64 235.28 58.06 306.98 depreciation and impairmentBalance as at 01 april 2018 4.61 184.08 28.67 217.36 Depreciation for the year 0.70 24.32 5.95 30.97 Foreign exchange fluctuation for the year 0.06 2.55 0.35 2.96 Balance as at 31 March 2019 5.37 210.95 34.97 251.29 carrying amount as at 31 March 2019 8.27 24.33 23.09 55.69
iv. refer Note 60 for information on property, plant and equipment pledged as security by the group
v. the amount of contractual commitments for the acquisitions of property, plant and equipment by the group are
disclosed in Note no 44.
vi. refer Note 52 for impairment.
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
(` in millions, except for share data and if otherwise stated)
Annual Report 2019-20 | RJ Corp Limited 149
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
4B. right-of- use assets
Particulars Leasehold Buildings
Addition on account of transition on Ind AS 116 10,583.92 Additions for the year 2,628.85 Adjustments on account of remeasurement/modification 379.72 Derecognition during the year (818.86)Exchange differences on translation of foreign operations 76.12 Balance as at 31st March 2020 12,849.75
accumulated depreciation and impairment lossesBalance as at 1 april 2019 - Depreciation for the year 1,679.55 Impairment charge for the year 82.86 Derecognition during the year (396.56)Exchange differences on translation of foreign operations 2.19 Balance as at 31st March 2020 1,368.04
carrying amount (net)Net carrying value as at 31 March 2019 - Net carrying value as at 31 March 2020 11,481.71
4c. investment properties
Particulars investment
properties Recognition on transition to Ind AS 116 470.66 Additions during the year 5.90 Derecognition during the year (9.07)Balance as at 31st March 2020 467.49
accumulated depreciation and impairment lossesBalance as at 1 april 2019Depreciation for the year 52.73 Impairment charge for the year 0.77 Balance as at 31st March 2020 53.50
carrying amount (net)Net carrying value as at 31 March 2019 - Net carrying value as at 31 March 2020 413.99
5a. intangible assets
gross block Business Marketing
rights
distribution network
franchise rights/
trademarks
computer software
Brand License
fees total
Balance as at 1 april 2018 424.87 - 5,491.24 406.74 - 548.16 6,871.01 Additions for the year 23.75 157.64 306.64 64.79 - 131.25 684.07 Disposals for the year (317.90) - - (21.12) - (12.06) (351.08)
(` in millions, except for share data and if otherwise stated)
right-of- use
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 150
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Acquired on business acquisition during the year
- - - 29.82 2,443.63 20.60 2,494.05
Foreign exchange fluctuation for the year
9.52 - (0.14) 0.15 - 2.31 11.84
Balance as at 31 March 2019 140.24 157.64 5,797.74 480.38 2,443.63 690.26 9,709.89 Additions for the year - - - 73.23 - 92.50 165.73 Disposals for the year - - - (1.74) - (44.59) (46.33)Acquired on business acquisition during the year
- - 235.10 - - 33.91 269.01
Adjustment on account of cessation of subsidiary
- - - (20.07) - - (20.07)
Foreign exchange fluctuation for the year
1.92 - 11.04 (10.99) - 2.59 4.56
Balance as at 31 March 2020 142.16 157.64 6,043.88 520.81 2,443.63 774.67 10,082.79
accumulated amortisationBalance as at 1 april 2018 409.39 - 657.23 270.21 - 282.16 1,618.99 Acquired on acquisition of subsidiaries during the year
- - - 48.41 - - 48.41
Amortisation charge for the year
9.73 5.94 0.04 66.17 - 43.73 125.61
Impairement charge for the year 2018-19*
- - - 0.55 - 10.52 11.07
Reversal on disposal of assets for the year
(317.90) - - (28.75) - (5.45) (352.10)
Foreign exchange fluctuation for the year
9.23 - (0.05) 0.15 - 1.10 10.43
Balance as at 31 March 2019 110.45 5.94 657.22 356.74 - 332.06 1,462.41 Amortisation charge for the year
8.14 19.74 0.02 61.60 - 55.56 145.06
Impairement charge for the year 2019-20*
- - - - - (6.48) (6.48)
Reversal on disposal of assets for the year
- - - (1.42) - (31.01) (32.43)
Adjustment on account of cessation of subsidiary
- - - (15.16) - - (15.16)
Foreign exchange fluctuation for the year
1.23 - (0.07) 0.22 - 1.33 2.71
Balance as at 31 March 2020 119.82 25.68 657.17 401.98 - 351.45 1,556.10
Net blockBalance as at 31 March 2019 29.79 151.70 5,140.52 123.64 2,443.63 358.20 8,247.48 Balance as at 31 March 2020 22.34 131.96 5,386.70 118.83 2,443.63 423.22 8,526.69
Note : The Group has considered the related provisions of Ind AS 38 on ‘Intangibles Assets’ which permit certain
intangible assets to have an indefinite life and accordingly the carrying value of the franchisee rights and brand have
been considered to have an indefinite life. These franchisee rights meet the prescribed criteria of renewal at nominal
cost, renewal with no specific conditions attached and is supported by evidences of being renewed. Management is of the
opinion that, based on an analysis of all of the relevant factors, there is no foreseeable limit to the period over which the
franchisee rights and brand are expected to generate net cash inflows for the Group.
gross block Business Marketing
rights
distribution network
franchise rights/
trademarks
computer software
Brand License
fees total
(` in millions, except for share data and if otherwise stated)
Annual Report 2019-20 | RJ Corp Limited 151
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
The useful life of an intangible asset with an indefinite useful life is reviewed annually to determine whether the useful
life assessment continues to be supportable.
The assumptions used in this impairment assessment are most sensitive to following:
(a) Weighted average cost of capital ‘’WACC’’ of 12.14% - 18%.
(b) For arriving at the terminal value, approximate growth rate of 5% is considered.
(c) Number of years for which cash flows were considered are 5 years.
No impairment loss was identified on the above assessment.
5B. intangible assets under development:
Particulars computer softwareBalance as at 1 april 2018 0.70 Additions for the year 3.45 Asset capitalised during the year 1.82 Balance as at 31 March 2019 2.33 Additions for the year 3.17 Asset capitalised during the year 2.00 Balance as at 31 March 2020 3.50
5c. goodwill
goodwill on consolidation
goodwill on business
combination
amount
gross carrying amountBalance as at 01 April 2019 206.17 28.89 235.06 Aquired during the year (refer note 55A, B and C) - 1,836.03 1,836.03 Balance as at 31 March 2020 206.17 1,864.92 2,071.09
amortisation and impairmentBalance as at 01 April 2019 54.33 - 54.33 Impairment loss (refer below) 11.96 - 11.96 Balance as at 31 March 2020 66.29 - 66.29 carrying amount as at 31 March 2020 139.88 1,864.92 2,004.80
goodwill on consolidation
goodwill on business
combination
amount
gross carrying amountBalance as at 01 April 2018 206.17 19.40 225.57 Aquired during the year (refer note 55) - 9.49 9.49 Balance as at 31 March 2019 206.17 28.89 235.06
amortisation and impairmentBalance as at 01 April 2018 - - - Impairment loss (refer below) 54.33 - 54.33 Balance as at 31 March 2019 54.33 - 54.33 carrying amount as at 31 March 2019 151.84 28.89 180.73
(` in millions, except for share data and if otherwise stated)
financial statem
ents
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impairment testing for goodwill
Goodwill on consolidation
The Group tests goodwill on consolidation for impairment annually. For the purposes of impairment testing, goodwill on
consolidation is allocated to respective subsidiary entity “CGU” within the Group.
The carrying amount of goodwill is attributable to the following CGU / group of CGUs:
Particulars as at 31 March 2020
as at 31 March 2019
Devyani Food Street Private Limited (Subsidiary of Devyani International Ltd. "DIL")
139.88 139.88
Devyani Airport Services (Mumbai) Private Limited (Subsidiary of "DIL") 54.33 54.33 RV Enterprizes Pte. Limited (Subsidiary of "DIL") 11.96 11.96 total 206.17 206.17
For CGU’s containing goodwill, management conducts impairment assessment and compares the carrying amount of such
CGU with its recoverable amount. Recoverable amount is value in use of the CGU computed based upon discounted cash
flow projections. The key assumptions used for computation of value in use are the sales growth rate and discount rate
as specified below. The key assumptions have been determined based on management’s calculations after considering,
past experiences and other available internal information and are consistent with external sources of information to the
extent applicable.
key assumptionsas at
31 March 2020as at
31 March 2019Discount rate 12.11% - 29.90 12.97% - 24.48%Sales growth rate Nil - 20%. 5% -18%
Discount rate is the weighted average cost of capital of the respective subsidiary (CGU).
As at 31 March 2020, for CGU, the Group has considered it appropriate to undertaken the impairment assessment
with reference to the latest business plan which includes a 5 years (approximately) cash flow forecast and
applicable terminal growth rate. Terminal growth is used to extrapolate the cash flows beyond the projected period.
Based on management’s impairment assessment in respect of RV Enterprizes Pte. Limited, recoverable amount was
lower than the carrying amount for such CGU due to higher operating costs and this resulted in provision for impairment
loss of goodwill of Rs. 11.96 during the current year and the provision for impairment loss has been disclosed under
“”Impairment on non-financial assets”” in the Consolidated Statement of Profit and loss.
During the previous year ended 31 March 2019, based on management’s impairment assessment in respect of Devyani
Airport Services (Mumbai) Limited, recoverable amount was lower than the carrying amount for such CGU due to higher
operating costs and this resulted in provision for impairment of goodwill of Rs. 54.33 and such provision amount had
been disclosed under “Impairment on non-financial assets” in the Consolidated Statement of Profit and loss.
For other CGUs containing goodwill, the impairment assessment did not result in any impairment loss and the management
believes that any reasonably possible change in the key assumptions would not cause the carrying amount to exceed the
recoverable amount of the said CGUs.
(` in millions, except for share data and if otherwise stated)
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6. investments in associates
Particulars
face value per
shares/ debenture
in rs.
as at 31.03.2020 as at 31.03.2019
Number of shares/
debenturesValue
Number of shares/
debenturesValue
investment in associates (unquoted)in equity shares Lineage Healthcare Limited* 10 - - 24,900 0.25 Add: Share in Profit/loss) - (0.25)
Parkview City Limited 10 228,000 2.28 228,000 2.28 Add: Share in Profit/loss) (2.28) (2.28)
Capital Infracon Private Limited 10 990,000 6.91 990,000 6.91 Add: Share in Profit/loss) (6.91) (4.05)
Ratnakar Foods & Beverages Private Limited** 10 - - 5,000 0.05 Add: Share in Profit/loss) - (0.05)
Africare Limited 100 KSHS 550 0.03 550 0.03 Add: Share in Profit/loss) (0.03) (0.03)
Agarwal Cold Drinks Private Limited** 10 - - 2,500 0.03 Add: Share in Profit/loss) - 0.08
Angelica Technologies Private Limited# 10 - - 35,474 12.56 Add: Share in Profit/loss) - 107.78
The Minor Food Group (India) Private Limited 10 7,223,144 72.19 7,223,144 72.19 Add: Share in Profit/loss) (47.19) (47.19)Less: Provision for imparement loss (25.00) (25.00)
Iclinic Healthcare Private Limited*** 10 - - 2,600,000 26.00 Add: Share in Profit/loss) - 0.00
Cryoviva Thailand Ltd. 10 BAHT 1,050,000 20.26 1,050,000 20.26 Add: Share in Profit/loss) 26.19 17.90
total 9,491,694 46.45 12,159,568 187.48 Aggregate book value of quoted investments - - Aggregate market value of quoted investments - - Aggregate value of unquoted investments 46.45 187.48
* During the year, the Holding Company has divested its entire equity holdings in Lineage healthcare Limited which
included existing holdings alongwith shares subscribed during the year amounting to `249.50 respectively.
** Investment has been written off due to disolutiion of company during the finacial year 2019-20.
*** During the year, the Holding Company has divested its entire equity holdings in Diagno Labs India Private Limited
“Diagno” which includes existing holding of shares of Iclinic Healthcare Private Limited, an associate Company of Diagno.
(` in millions, except for share data and if otherwise stated)
financial statem
ents
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# Lunarmech Technologies Private Limited (subsidiary of Angelica Technologies Private Limited) became subsidiary
of Varun Beverages Limited “VBL” on account of increase in stake from 35% to 55%, post which the VBL has acquired
the board control of its associate, Angelica Technologies Private Limited. Consequently, both the entities have become
subsidiaries of the VBL with effect from 04 November 2019.
For details towards pledge of some of above shares refer note no. 22 E
7. investments
Particulars
face value per
shares/ debenture
in rs.
as at 31.03.2020 as at 31.03.2019
Number of shares/
debenturesValue
Number of shares/
debenturesValue
investment in equity shares (unquoted) (at fair value through oci) Global Health Private Limited 10 2,000,000 1,011.76 2,000,000 1,029.06 Shabnam Properties Private Limited^ 10 - - 15,680 3.44 Empire Stocks Private Limited 10 1,900 0.01 1,900 0.01 Sellwell Foods & Beverages Private Limited 10 - - 2,000 0.02 Pinnacle Infracon Limited^ 10 - - 200 0.00 Lineage Healthcare Limited 10 1,000 0 - - Shivalik Solid Waste Management Ltd. 10 18,000 0.18 18,000 0.18
investment in equity shares (quoted) (at fair value through oci) Lemon Tree Hotels Limited 10 32,427,784 713.41 53,427,784 4,308.95 Capital India Finance Limited 10 3,811,320 323.96 3,811,320 514.53
investment in equity shares (quoted) (at fair value through profit & loss ) Cosmo Films Ltd. 10 110 0.02 110 0.02 Cosmo Ferrites Ltd. 10 200,000 0.62 200,000 2.96 Jaykay Enterprises Limited 1 9,877 0.03 9,877 0.06 J.K.Cement Ltd. 10 2,233 2.09 2,233 1.94 Jamna Auto Industries Ltd 5 6,900 0.16 1,380 0.09 Pasupati Acrylon Limited 10 45 0.00 45 0.00 Rama Vision Ltd. 10 33,100 0.11 33,100 0.19 Welcure Drugs Ltd. 10 28,900 0.01 28,900 0.02 ICICI Bank Ltd. 2 4,950 1.60 4,500 1.80 Aravali Securities and Finance Ltd. 10 25,000 0.07 25,000 0.10 Reliance Industries Limited 10 4 0.00 2 0.00
investment in equity shares (unquoted) (at fair value through profit & loss ) The Margao Urban Co-operative Bank Limited 50 200 0.01 200 0.01 The Goa Urban Co-operative Bank Limited 10 250 0.00 250 0.00
in compulsorily convertible debentures(at amortised cost) in associates6 Year Compulsorily Convertible Debentures (Fully Paid up)Parkview City Limited 1,000 600,000 600.00 600,000 600.00
total 39,171,573 2,654.04 60,182,481 6,463.38 Aggregate book value of quoted investments 1,042.09 4,830.65 Aggregate market value of quoted investments 1,042.09 4,830.65 Aggregate value of unquoted investments 1,611.95 1,632.73
(` in millions, except for share data and if otherwise stated)
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^The investment has been cancelled due to merger of companies as per the order of Hon’ble National Company Law
Tribunal, Special Bench, New Delhi which is effective from 01 April 2019. However the actual transfer is effected wef
30/06/2020 i.e. the date of filing of the order of Hon’ble National Company Law Tribunal, Special Bench, New Delhi with
Registrar of Companies. (refer note 55A )
For details towards pledge of some of above shares refer note no. 22E
8. Loans
as at 31.03.2020
as at 31.03.2019
Loans carried at amortised cost Unsecured, considered good Security Deposit 975.70 920.01 Loan to others 69.57 170.00 Loan to related parties 124.11 115.65
1,169.38 1,205.66 Loan to related parties includes amounts due by companies in which directors of the Company are also director: Pinnacle Infracon Pvt Ltd - 170.00 Parkview City Ltd - 76.20 Empire Stock Private. Limited. 124.11 39.45
124.11 285.65
Note:
These loans granted were tested for impairment in accordance with Ind AS 36 “ Impairement of Assets”.
9. others
as at 31.03.2020
as at 31.03.2019
financial assets at amortised cost Balance in deposit accounts with more than 12 months maturity* 37.23 51.73 Lease rental receivables 21.59 - Finance Lease receivable 142.23 -
201.05 51.73
* Include receipts with lien marked with banks against guarantees issued in favour of various government departments.
10. income tax assets (net)
as at 31.03.2020
as at 31.03.2019
Income tax assets 361.54 380.90 361.54 380.90
10a. current tax assets (net)
as at 31.03.2020
as at 31.03.2019
Income tax assets 53.39 35.43 53.39 35.43
(` in millions, except for share data and if otherwise stated)
financial statem
ents
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11. other non-current assets
as at 31.03.2020
as at 31.03.2019
(Unsecured, considered good) Capital advances 610.70 296.07 Security deposits 7.76 8.88 Income tax paid (includes amount paid under protest) - 40.24 Balance with statutory authorities (includes amount paid under protest) 368.65 235.27 Prepaid expenses# 118.91 378.10 Advances to contractors and suppliers 0.46 0.14
1,106.48 958.70
#The Group has adopted Ind AS 116, leases w.e.f 01 April 2019 and reclassified prepaid rent related to outlet, building
and warehouses amounting to Rs. 254.56 to right-of-use assets on transition date. Refer Note 47 for details.
12. inventories
as at 31.03.2020
as at 31.03.2019
(valued at lower of cost or net realisable value) Raw materials 7,369.97 4,748.69 Work-in-progress 1,044.11 1,119.01 Finished goods 3,740.42 2,211.39 Intermediate goods 1,409.56 1,227.86 Stores and spares 1,770.18 1,339.10
15,334.24 10,646.05
13. trade receivables
as at 31.03.2020
as at 31.03.2019
Unsecured, considered good 3,289.38 3,083.84 Secured, considered good 417.20 152.54 Unsecured, considered doubtful 789.37 901.06
4,495.95 4,137.44 Less : Allowance for doubtful debts 789.37 769.62
3,706.58 3,367.82
14. cash and cash equivalents
as at 31.03.2020
as at 31.03.2019
Balance with banks in current accounts 978.90 1,843.70 Balance in deposits with original maturity of less than three months 639.69 - Cheques/drafts on hand 13.90 4.91 Cash in transit 0.75 12.92 Cash on hand 44.90 88.52
1,678.14 1,950.05
(` in millions, except for share data and if otherwise stated)
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15. Bank balances other than cash and cash equivalents
as at 31.03.2020
as at 31.03.2019
Deposits with original maturity more than 3 months but less than 12 months *
547.75 556.04
Unpaid dividend account 0.61 0.65 548.36 556.69
*represent deposit held as margin money, fixed deposit with bank for issuing bank guarantee and fixed deposit under
lien.
16. Loans
as at 31.03.2020
as at 31.03.2019
Loans carried at amortised cost Security Deposit 283.48 248.39 Loan to related parties 2,338.49 1,628.76 Loan to others - 1,887.83 Less : Provision for impairment (refer note 52A) (974.22) -
1,647.75 3,764.98
as at 31.03.2020
as at 31.03.2019
Loan to related parties includes amounts due by companies in which directors of the company are also director: Arctic Overseas Pte. Ltd. 75.12 69.67 Africare Limited 974.22 870.89 Loan to other related parties Parkview City Limited 1,152.59 688.20 Capital Infracon Private Limited 136.57 -
2,338.49 1,628.76
Note:
These loans granted were tested for impairment in accordance with Ind AS 36 “ Impairement of Assets”.
17. other financial assets
as at 31.03.2020
as at 31.03.2019
(Unsecured, considered good) Interest accrued on:
-Loan given 230.66 355.98 -Term deposits 5.65 2.64 -Others 26.42 14.34
Finance lease receivable 11.19 - Government grant receivable 733.04 1,356.63 Claim receivables 247.87 44.91 Other receivables 143.35 61.10
1,398.18 1,835.60
interest accured includes amounts due by companies in which directors of the company are also director: Empire Stock Private Limited 13.77 - Arctic Overseas Pte Ltd 53.70 6.11
(` in millions, except for share data and if otherwise stated)
financial statem
ents
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interest accrued include amount due by associate companies Capital Infracon Private Limited 14.74 - Parkview City Limited 148.45 100.22 Afrricare Limited - 41.61
230.66 147.94
18. other current assets
as at 31.03.2020
as at 31.03.2019
(Unsecured, considered good) Security deposits 9.91 58.91 Other advances : -Employees 132.48 105.93 -Contractors and suppliers 2,040.78 1,329.80 Prepaid expenses 262.16 310.64 Balance with statutory/government authorities 1,314.02 1,546.19 Other advances 116.22 219.41
3,875.57 3,570.88
19. assets classified as held for sale
as at 31.03.2020
as at 31.03.2019
Property, plant and equipment Furniture and fixtures - 1.35 Office equipment - 1.85 Plant and equipment - 0.14 Computers - 0.68
- 4.02
20. equity share capital
as at 31.03.2020
as at 31.03.2019
authorised share capital 1,287,800,000 (March 31, 2019: 1,281,850,000) equity shares of `10 each
12,878.00 12,818.50
12,878.00 12,818.50 issued, subscribed and fully paid-up 216,745 (March 31, 2019: 212,005) equity shares of `10 each 2.17 2.12 Add : Equity Share Suspense Account 0.00 0.00 Note : 245 equity shares (March 31 2019 : 20) of `10 each are to be alloted as fully paid up for consideration other than cash and 10 equity shares (31 March 2019 : Nil) are to be cancelled pursuant to scheme of amalgamation as duly approved by Hon'ble National Company Law Tribunal, Special Bench, New Delhi.
2.17 2.12
(` in millions, except for share data and if otherwise stated)
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a) reconciliation of share capital
Particulars No. of shares amount Balance as at 01 April 2019 212,005 2,120,050 Add: Share to be alloted on amalgamation (net of cancellation) on account of merger (refer note 55)
215 2,150
Add: Additions made on due to exercise of right shares# 4,760 47,600 Balance as at 31 March 2020 216,980 2,169,800
Particulars No. of shares amount Balance as at 01 April 2018 187,820 1,878,200 Add: Share to be alloted on amalgamation (net of cancellation) for common control entities (refer note 55)
20 200
Add: Additions made on conversion of compulsorily convertible debentures into equity shares*
10,031 100,310
Add: Additions made on conversion of compulsorily convertible preference shares into equity shares**
14,134 141,340
Balance as at 31 March 2019 212,005 2,120,050
#During the year, the Company has allotted 4,760 equity shares of face value of `10 each at an issue price of `210,095
each on right issue. These shares are pari-passu with the existing equity shares of the company, in all respects.
*During the previous year, the Company has allotted 10,031 equity shares of face value of `10 each at an issue price
of `209,355 each on conversion of compulsorily convertible debentures. These shares are pari-passu with the existing
equity shares of the company, in all respects.
**During the previous year, the Company has allotted 14,134 equity shares of face value of `10 each at an issue price
of `209,355 each on conversion of compulsorily convertible preference shares. These shares are pari-passu with the
existing equity shares of the company, in all respects.
b) terms/rights attached to shares
The Company has only one class of equity shares having a par value of `10 each. Each holder of equity share is entitled
to one vote per share. In the event of liquidation of the Company, holders of equity shares will be entitled to receive any of
the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion
to the number of equity shares held by the shareholders. The dividend, if any, proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual General Meeting.
c) List of shareholders holding more than 5% of the equity share capital of the company at the beginning and at the
end of the year:
shareholders as at 31 March 2020 No. of shares % Ravi Kant Jaipuria & Sons (HUF) 189,221.00 87.21% Mr. Varun Jaipuria 19,966.00 9.20%
shareholders as at 31 March 2019 No. of shares % Ravi Kant Jaipuria & Sons (HUF) 184,455.00 87.01% Mr. Varun Jaipuria 19,751.00 9.32%
As per records of the Company, including its register of shareholders/members and other declaration received from the
shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of
shares.
(` in millions, except for share data and if otherwise stated)
financial statem
ents
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d) aggregate number of equity shares issued as bonus, shares issued for consideration other than cash and shares
bought back during the period of five years immediately preceding the reporting date:
During the year ended 31 March 2018, the company has alloted 63796 equity shares of `10 each as fully paid up for
consideration other than cash pursuant to scheme of amalgamation as duly approved by Hon’ble National Company Law
Tribunal, Special Bench, New Delhi.
During the year ended 31 March 2020, 235 equity shares (net of cancellation)of `10 each are to be alloted as fully paid up
for consideration other than cash pursuant to scheme of amalgamation as duly approved by Hon’ble National Company
Law Tribunal, Special Bench, New Delhi.
Further the company has not issued any bonus shares during the last preceding 5 years.
e) Preference share capital
The Company also has authorised preference share capital of 18,000,000 (31 March 2019: 18,000,000) preference shares
of `100 each. During the previous year, the Company has allotted 14,134 equity shares of face value of `10 each at an
issue price of `209,355 each on conversion of 8,999,950 compulsorily convertible preference shares of `100 each.
21. other equity
as at 31.03.2020
as at 31.03.2019
capital reserve Balance at the beginning of the reporting period/year 2,531.27 2,227.86 For the year (146.46) 304.74 Add : Transferred due to merger (refer note 55A) 100.94 (1.33) Gain from a bargain purchase (refer note 55D) 105.27 - Balance at the end of the reporting year 2,591.02 2,531.27
capital reserve on consolidation Balance at the beginning of the reporting period/year 1,761.06 1,761.06 Balance at the end of the reporting period/year 1,761.06 1,761.06
general reserve Balance at the beginning of the reporting period/year 201.65 96.62 Add: Transfer from debenture redemption reserve - 105.03 Balance at the end of the reporting period/year 201.65 201.65
debenture redemption reserve Balance at the beginning of the reporting period/year - 57.85 Add: Additions made during the reporting period/year - 47.18 Less: Transfer to general reserve - 105.03 Balance at the end of the reporting period/year - -
securities premium reserve Balance at the beginning of the reporting period/year 5,658.95 600.13 Add: Additions made on issue of equity shares pursuant to QIP 2,705.01 - Add: Additions made on conversion of compulsorily convertible debentures into equity shares
- 2,099.94
(` in millions, except for share data and if otherwise stated)
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Add: Additions made on conversion of compulsorily convertible preference shares into equity shares
- 2,958.88
Add: Additions made persuant to exercise of employee stock options 0.18 - Add: Additions made persuant to exercise of right issue 1,000.00 - Add: Amount utilised for bonus issue (279.12) - Less: Amount utilised for share issue expenses (50.23) - Balance at the end of the reporting period/year 9,034.79 5,658.95
surplus in the statement of profit and loss Balance at the beginning of the reporting period/year (6,817.25) (6,485.33) Amount transferred on amalgamation of common control entities (refer note 55A)
- (1.00)
Add :Transitional impact on adoption of Ind AS 116 applying modified retrospective approcah (refer note 47)
(1,241.87) -
Less: Dividend distribution tax 27.72 17.03 Less: Transfer to debenture redemption reserve - 47.18 Add: Profit for the reporting year 292.57 (939.12)
(7,794.27) (7,489.66)
add: items of other comprehensive income (''oci'') recognised directly in retained earnings Gain on disposal of equity instruments transferred from OCI 1,230.18 638.71 Remeasurement of post-employment benefit obligation, net of tax (47.34) 33.70 Balance at the end of the year (6,611.43) (6,817.25)
share based payment reserve Balance at the beginning of the reporting period/year 75.78 74.04 Add: Employee stock option scheme expense (9.31) 1.93 Add: Movement during the reporting period/year (0.07) (0.19) Balance at the end of the reporting period/year 66.40 75.78
foreign currency monetary item translation difference account Balance at the beginning of the year 26.21 41.10 Add: Additions made during the reproting period/year (15.11) (9.13) Less Amortised During the year (14.98) 5.76 Less Transferred to transaction with NCI Reserve 26.08 - Balance at the end of the year - 26.21
re-measurement of equity instrument at fair value/gain on sale of such instruments (net of deferred tax) Balance at the beginning of the reporting year 3,718.59 3,159.52 Add: Re-measurement during the year (net of tax) (2,192.64) 1,197.78 Less : Transferred to retained earnings on disposal of equity investments
(1,230.18) (638.71)
295.77 3,718.59 transaction with Nci reserve Balance at the beginning of the year (1,151.24) (583.85) Add: Movement during the year 471.88 (567.39) Balance at the end of the year (679.36) (1,151.24)
exchange differences on translating the financial statements of foreign operations
(` in millions, except for share data and if otherwise stated)
financial statem
ents
as at 31.03.2020
as at 31.03.2019
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Balance at the beginning of the reporting year 327.29 168.65 Add: Exchange differences arising on translation of foreign operations 401.78 158.64 Balance at the end of the reporting year 727.94 327.29
7,387.84 6,332.34 Promoter contribution in equity Balance at the beginning of the reporting period/year 535.57 535.57 Add: Movement during the reporting period/year - - Balance at the end of the reporting period/year 535.57 535.57
description of nature and purpose of each reserve:
capital reserve -
(i) Created on account of merger of companies pursuant to and in accordance with the court approved scheme of
amalgamation. Includes gain from bargain purchases.
(ii) Created on purchase of shareholding from Sameer ICT Limited (‘minority shareholder of Devyani Food Industries
(Kenya) Limited’).
general reserve -
Created by way of transfer of surplus for statement of profit and loss. The reserve is to be utilised in accordance with the
provisions of the Act.
securities premium reserve -
Created to record the premium on issue of shares. The reserve is to be utilised in accordance with the provisions of the
Act.
retained earnings -
Created from the profit / loss of the Company, as adjusted for distributions to owners, transfers to other reserves, etc.
debenture redemption reserve -
Created as per provisions of the Companies Act, 2013 (as applicable to Holding Company) out of the distributable profits
and can only be utilised for redemption of debentures.
exchange differences on translating the financial statements of foreign operations -
Exchange differences arising on translation of the foreign operations of the Group, recognised in other comprehensive
income as described in accounting policy and accumulated in a separate reserve within equity. The cumulative amount is
reclassified to profit or loss when the net investment is disposed.
share based payment reserve -
Created for recording the grant date fair value of options issued to employees under employee stock option schemes and
is adjusted on exercise/ forfeiture of options.
foreign currency monetary item translation difference account -
Created for recording exchange differences arising on restatement of long term foreign currency monetary items, other
than for acquisition of fixed assets, and is being amortised over the maturity period of such monetary items.
(` in millions, except for share data and if otherwise stated)
as at 31.03.2020
as at 31.03.2019
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transaction with Nci reserve -
Any difference between the consideration paid to NCI over the carrying value of the interest acquired or consideration
paid by NCI over the carrying value of the interest acquired by NCI has been recognized in transaction with NCI reserve,
a component of equity.
22. Borrowings
a. Non-current borrowings:
as at 31.03.2020
as at 31.03.2019
debentures Compulsorily convertible debentures (unsecured) 600.00 592.70 Term loans (secured)
Foreign currency loans from banks 2,665.09 2,767.29 Indian rupee loans from banks 28,781.64 28,378.69 Indian rupee loan from a financial institutions/others 4,369.28 5,209.03
Redeemable, non-cumulative, non-convertible preference shares (unsecured)*
47.91 104.30
Deferred value added tax (unsecured) - 55.97 Term loans (Unsecured) loan from body corporate/others carrying interest rate ranging from 5-29 %
466.86 771.56
36,930.78 37,879.54
Refer note 22E for terms & condition of term loans, issue and redemption of Compulsorily convertible debentures,
deffered value tax and loan from body corporate/others
The group has complied with all the loan covenants.
B. Non current lease liabilities:
as at 31.03.2020
as at 31.03.2019
Carried at amortised cost (unsecured) 12,658.50 - 12,658.50 -
c. current borrowings:
as at 31.03.2020
as at 31.03.2019
Loans repayable on demand Banks-working capital, cash credit and overdraft facilities (secured) 7,196.27 6,188.56 Banks-working capital, cash credit and overdraft facilities (unsecured) 3,100.00 1,900.00 Corporate loan taken from bank (Secured) refer note 22H 731.00 - Buyer's credit from a bank (unsecured) 251.93 - Loan from related party (unsecured) carrying interest rate @ 11.50% to 12%/(2%+ 1 year LIBOR)
1,232.73 1,317.69
Letter of credit (LC) payable to a bank (unsecured) - 502.08 Others Loan (unsecured) carrying interest rate ranging from 0-12%/(2%+1 year LIBOR)
193.64 244.40
12,705.57 10,152.73
(i) The working capital facilities from banks and financial institution are secured against current assets of respective
(` in millions, except for share data and if otherwise stated)
financial statem
ents
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fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
companies and in respect of some subsidiaries the entire assets of the companies, These working capital facilities
carry interest rates ranging between 7 to 20.83 %.
(ii) LC payable to a bank carries rate of interest of 8.65% for 120 days. The outstanding amount of previous year was
repaid during the year.
(iii) Buyer’s credit from a bank carries rate of interest of six month LIBOR+0.55% per annum for 97-100 days.
d. current lease liabilities:
as at 31.03.2020
as at 31.03.2019
Carried at amortised cost (unsecured) 1,441.25 - 1,441.25 -
e. Borrowings
terms and conditions/details of securities for loans are as under:
Name of the bank/instrument 31 March 2020 31 March 2019 Non-
current current
Non-current
current
compulsorily convertible debentures (unsecured)a) Terms and conditions of issue and conversion\redemption of Compulsorily Convertible Debentures (CCD’s) are as under:
No of debentures Date of issue Face Value 600000 26-03-2015 1000
b) The CCD’s carry a rate of Interest of 12% from the date of allotment.
c) The CCD’s shall have a initial tenure of 5 years from the date of their allotment after that they shall be convertible into such number of equity shares of the company as may be determined on the basis of fair market value calculated on the basis of provision of section 56 of Income Tax Act, 1961. The same has been extended for a further period of 5 years.i.e. till 24 March 2025.
600.00 - 592.70 -
total (a) 600.00 - 592.70 -
foreign currency loans from banks
(` in millions, except for share data and if otherwise stated)
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fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
The term loan amounting to USD 3.09 million was taken from Yes Bank Limited during the year ended 31 March 2018. The tenure of the loan is 60 months from the date of first disbursement including the 15 months moratorium period.
The interest rate applicable is fixed rate of 5.25% p.a ( previous year: 5.25% p.a) payable monthly.
The term loan is secured by :
First pari passu charge by way of hypothecation of the Company’s entire moveable property, plant and equipment both present and future.
Pari passu first charge by way of equitable mortgage on the immovable property, plant and equipment of the Company’s industrial land at Plot No. 18, Sector-35, Industrial estate, Gurugram-122004.
Note: The outstanding balance of borrowings is net of unamortised transaction cost of INR 0.86 (previous year : INR 1.50).
The Holding Company has entered into interest rate swap with Yes Bank Limited basis which floating interest rate i.e. LIBOR + 2.5% p.a have been exchanged with fixed interest rate of 5.25% p.a
117.10 56.78 159.37 52.93
The term loan amounting to USD 3.08 million was taken from Yes Bank Limited during the year ended 31 March 2018. The tenure of the loan is 60 months from the date of first disbursement including the 15 months moratorium period.
USD 0.43 million was repaid during the financial year 2018-19 and the repayment of quarterly installments was rescheduled. The interest rate applicable is fixed 5.50% p.a. payable monthly. ( previous year: 5.50% p.a, payable monthly)
The term loan is secured by :
First pari passu charge by way of hypothecation of the Holding Company’s entire moveable property, plant and equipments, both present and future.
Pari passu first charge by way of equitable mortgage on the immovable property, plant and equipment of the Company’s industrial land at Plot No. 18, Sector-35, Industrial estate, Gurugram-122004.
Note: The outstanding balance of borrowings is net of unamortised transaction cost of INR 0.76 (previous year : INR 1.48).
The Company has entered into Interest rate swap with Yes Bank Limited basis which floating interest rate i.e. LIBOR + 2.5% p.a have been exchanged with fixed interest rate of 5.50% p.a.
99.74 49.87 137.10 45.24
Name of the bank/instrument 31 March 2020 31 March 2019 Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
financial statem
ents
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fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
The term loan amounting to NPR 100,00,000 was taken from Everest Bank Limited during the year ended 31 March 2019. The tenure of the loan is 18 months .
The rate of Interest is 11.70 % (previous year: 11.70%) linked to BR quarterly rest
The term loan is secured by :
Primary security: First pari passu charge on the entire moveable fixed and current assets of the Company.
Further the loan is secured by the corporate guarantee of Devyani International Limited and personal guarantee of the directors.
- - - 4.03
The term loan amounting to NPR 304,93,505 was taken from Everest Bank Limited during the year ended 31 March 2019. The tenure of the loan is 60 months .
The rate of Interest is 11.70 % (previous year: 11.70 %) linked to BR quarterly rest
The term loan is secured by :
Primary security: First pari passu charge on the entire moveable fixed and current assets of the Company.
Further the loan is secured by the corporate guarantee of Devyani International Limited and personal guarantee of the directors.
10.19 3.93 14.04 3.91
The term loan amounting to NPR 21,583,603 was taken from Everest Bank Limited during the year ended 31 March 2019. The tenure of the loan is 60 months .
The rate of Interest is 11.70 % (previous year : 11.70 %) linked to BR quarterly rest
The term loan is secured by :
Primary security: First pari passu charge on the entire moveable fixed and current assets of the Company.
Further the loan is secured by the corporate guarantee of Devyani International Limited and personal guarantee of the Directors.
8.08 3.37 10.71 2.68
Term loan taken from NIC bank by DFIL Tenure of 5 years 6 months inclusive of moratorium period of 6 months
Repayment is made in Every Month. Rate of interest is 13.00%
Repayment is monthly
In FY 2020-21 -159.22 In FY 2021-22 -382.13 In FY 2022-23- 331.71 The loan is secured by First Pari Passu all assets debenture over Devyani Food Industries (Kenya) Limited for Rs 2.32bn
691.50 181.56 752.43 399.21
Name of the bank/instrument 31 March 2020 31 March 2019 Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
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fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Loan carrying rate of interest of LIBOR+1.60% (31 March 2019: LIBOR+1.60%) and is repayable in two equal instalments of SGD 16.56 million each in May 2021 and May 2022. The Company has executed a cross currency swap to hedge total loan of SGD 33.13 million to USD 25 million and interest rate swap to hedge its exposure.
This loan is secured on first pari-passu charge on the entire movable and immovable property, plant and equipment of the Company including the territory/franchisee rights acquired under the acquisition under slump sale basis except vehicles.
1,738.48 - 1,693.64 -
total (B) 2,665.09 295.52 2,767.29 508.00
term LoansLoan from banks (secured)Vehicles loan taken from HDFC Bank carrying rate of interest ranging between 8.10% to 8.75% p.a. They are repayable generally over a period of three to five years in equal monthly instalments as per the terms of the respective agreements.
1.20 1.18 2.52 1.38
The term loan amounting to INR 300.00 was taken from Yes Bank Limited during the year ended 31 March 2016. The tenure of the loan is 73 months.
The interest rate applicable is 10.40% p.a payable monthly (previous year: 9.60% p.a payable monthly).
The term loan was secured by :
First pari passu charge on all movable property, plant and equipment of the Holding Company both present and future.
Second pari passu charge over all current assets of the Holding Company both present and future.
First pari passu charge on immovable property situated at Plot No. 18, Sector-35, Industrial estate, Gurugram-122004.
120.00 61.59 179.99 62.04
The term loan amounting to INR 1,000.00 was taken from Axis Bank Limited. Loan amounting to INR 500.00 was drawn down during the year ended 31 March 2017 and INR 500 during the year ended 31 March 2016. The tenure of the loan is 72 months.
The interest rate applicable is Axis Bank base rate +1.30 % presently 10.05% p.a. payable monthly (previous year: 9.85% p.a. payable monthly). Interest rate to be reset on an annual basis.
The term loan is secured by :
First pari passu charge by way of hypothecation of the Holding Company’s entire moveable property, plant and equipment both present and future.
Pari passu first charge by way of equitable mortgage on the Holding Company’s unit setup at Plot No. 18, Sector-35, Industrial estate, Gurugram-122004.
Second pari passu charge by way of hypothecation on the entire current assets of the Holding Company.
Note : The outstanding balance of borrowings is net of unamortised transaction cost of INR. 0.90 (previous year : INR.2.06).
180.00 243.18 419.09 244.76
Name of the bank/instrument 31 March 2020 31 March 2019 Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
financial statem
ents
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fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
The term loan amounting to INR 800.00 was taken from Ratnakar Bank Limited during the year ended 31 March 2014. The tenure of loan is 66 months including moratorium period of 6 months.
The interest rate applicable is 1.25% above RBL base rate presently 10.25 % p.a . (previous year: 10.25 % p.a).
The term loan is secured by :
First pari passu charge by way of hypothecation of the Holding Company’s entire moveable property, plant and equipment both present and future.
Pari passu first equitable mortgage by way of charge on the Holding Company’s unit setup at Plot No. 18, Sector-35, Industrial estate, Gurugram-122004.
Note: The outstanding balance of borrowings is net of unamortised transaction cost of INR. Nil (previous year : INR. 0.01).
- - - 19.68
The term loan amounting to INR 150.00 was taken from Yes Bank Limited during the year ended 31 March 2016. The tenure of the loan is 60 months from the date of first disbursement including the 12 month moratorium period.
The interest rate applicable was 10.40% (previous year: 9.60% p.a., payable monthly ).
The term loan was secured by :
First pari passu charge on all property, plant and equipment of the Holding Company (both present and future) with minimum 1.0x cover.
Unconditional and irrevocable personal guarantee of Mr. Ravi Kant Jaipuria and Ravi Kant Jaipuria & Sons (HUF).
Negative lien on industrial property situated at Plot No. 18, Sector-35, Industrial estate, Gurugram-122004 till 31 January 2015 post which the lender will have First pari passu charge by way of equitable mortgage.
Note: The outstanding balance of borrowings is net of unamortised transaction cost of INR. Nil (previous year : INR. 0.03).
- - - 9.35
The term loan amounting to INR 750.00 was taken from Ratnakar Bank Limited during the year ended 31 March 2018. The tenure of the loan is 72 months including six months moratorium.
The interest rate applicable is 9.10% p.a payable monthly (previous year: 9.70% p.a.).
The term loan is secured by :
First pari passu charge by way of hypothecation of the Holding Company’s entire moveable property, plant and equipment, both present and future.
Pari passu first charge by way of equitable mortgage on the immovable property, plant and equipment of the Holding Company’s industrial land at Plot No. 18, Sector-35, Industrial estate, Gurugram-122004. Note : The outstanding balance of borrowings is net of unamortised transaction cost of INR. 1.89 (previous year : INR. 2.97).
373.76 135.84 509.47 135.29
Name of the bank/instrument 31 March 2020 31 March 2019 Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
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fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
The term loan amounting to INR 1,000 was taken from IndusInd Bank Limited during the year ended 31 March 2019. The tenure of the loan is 72 months with moratorium of 12 months.
The interest rate applicable is as follows:
- 8.85% p.a. linked to MIBOR, for first drawdown of INR 250, payable monthly (previous year: Nil)
- 9.10% p.a. linked to MIBOR, for second drawdown of INR 500, payable monthly (previous year: Nil)
- 9.93% p.a. linked to MIBOR, for third drawdown of INR 250, payable monthly (previous year: Nil)
The term loan is secured by :
First pari passu charge by way of hypothecation of the Company’s entire moveable property, plant and equipment both present and future.
Second pari passu charge by way of hypothecation on the entire current assets of the Company.
First pari passu charge by way of extension of mortgage on the immovable properties, property, plant and equipment of the Company’s industrial land situated at Plot No. 18, Sector-35, Industrial estate, Gurugram-122004.
825.00 125.21 925.00 75.00
The term loan amounting to INR 150 was taken by Devyani Food Street Private Limited from Yes Bank Limited during the year ended 31 March 2018.
The interest rate applicable is 10.00% p.a. payable monthly ( previous year : 9.50% p.a). The tenure of the loan is 84 months.
The term loan is secured by :
First pari passu charge over entire movable property, plant and equipment and current assets of the company.
Unconditional and irrevocable corporate guarantee of Devyani International Limited.
Non Disposable Undertaking (NDU) from Devyani International Limited for its shareholding in the Company.
75.00 25.90 100.00 26.11
Vehicle loans from Tata Motors Finance Limited represent four vehicle loans taken by DIL during the year ended 31 March 2017. The tenure of the loans is 36 months. Loans from Tata Motors Finance Limited is repayable in 35 monthly instalments. The loans are secured against the respective vehicles.
The interest rate applicable to the loans is 9.25% p.a. payable monthly (previous year : 9.25% p.a)
The amount of instalment ranging from Rs. 0.35 to Rs. 0.40 per month The loan is fully repaid during the year ended 31 March 2020
- - - 1.17
Name of the bank/instrument 31 March 2020 31 March 2019 Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
financial statem
ents
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fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
The term loan amounting to INR 800.00 was taken from IndusInd Bank Limited during the year ended 31 March 2020. The tenure of the loan is 81 months with moratorium of 12 months.
The interest rate applicable is as follows:
Amount upto INR 20 cr - 9.70% p.a. payable monthly linked to MCLR,(previous year: Nil)
Over and Above INR 20 cr - 9.72% p.a. payable monthly linked to MCLR,(previous year: Nil)
The term loan is secured by :
First pari passu charge by way of hypothecation of the Holding Company’s entire moveable property, plant and equipment both present and future.
Second pari passu charge by way of hypothecation on the entire current assets of the Holding Company both present and future.
First pari passu first charge on the Holding Company’s industrial land at Plot No. 18, Sector-35, Industrial estate, Gurugram-122004.
780.00 20.26 - -
The term loan amounting to INR. 400 was taken from IDFC Bank Limited during the year ended 31 March 2019. The tenure of the loan is 72 months with moratorium of 12 months.
The interest rate applicable is 10.15 % p.a., payable monthly (previous year: 9.90 %)
The term loan is secured by :
First pari passu charge on the entire moveable property, plant and equipment of the Company.
First pari passu charge on the immovable Property, plant and equipment of the Company situated at Plot No. 18, Sector-35, Industrial estate, Gurugram-122004 and immovable property, plant and equipment of the Company.
300.00 100.12 400.01 0.11
The unsecured term loan amounting to INR 57.63 was taken by Devyani Airport Services (Mumbai) Private Limited from High Street Food Services Private Limited during the year ended 31 March 2014.
The interest rate applicable is 12% p.a. payable quarterly ( previous year : 12% p.a, payable quarterly)
The tenure of the loan is 60 months including moratorium period of 24 months.
- 0.39 - 0.39
Name of the bank/instrument 31 March 2020 31 March 2019 Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
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fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Term loan taken by Alisha Retail Pvt Ltd from Yes Bank with outstanding ` Nil* (Previous year ` 553.12) is secured by :
(i)Exclusive charge over entire Current assets (including security deposits and loans & advances provided during the normal course of business) and movable fixed assets of the company (Both present and future) providing minimum security coverage of 1.0x of the facility amount at all times.
(ii) Pledge over equity shares of Group Company.
(iii) Unconditional and irrevocable personal guarantee of Mr. Ravi Kant Jaipuria and M/s Ravi Kant Jaipuria & Sons HUF. (iv) Unconditional and irrevocable corporate guarantee of RJ Corp Limited. The term loan carrying rate of interest is 9.50 - 10.25% p.a.
*During the year ended 31 March 2020 the Holding Company divested its entire stake in Alisha Retail Private Limited.
- - 341.67 211.45
Term loan taken by Alisha Retail Pvt Ltd from Yes Bank with outstanding ` Nil* (Previous year `405.21) is secured by :
(i) Exclusive second charge over entire Current assets and movable fixed assets of the company (Both present and future). (ii) Unconditional and irrevocable personal guarantee of Mr. Ravi Kant Jaipuria.
(iii) Unconditional and irrevocable corporate guarantee of RJ Corp Limited.
(iv) Share pledge on 3000 shares of RJ Corp Limited. The term loan carrying rate of interest is 10.50% p.a.
*During the year ended 31 March 2020 the Holding Company divested its entire stake in Alisha Retail Private Limited.
- - 333.33 71.88
“The term loan from Yes Bank taken by Diagno Labs India Private Limited with outstanding ` Nil* (Previous year `432.54) is repayable by way of 16 quarterly instalments after a moratorium period of twenty four months as per the terms of the agreements. The Rate of interest charged is 10.10 % to 10.38% currently.
Term loan from Yes Bank is secured by -
a) Exclusive charge on all the Immovable & Movable Fixed Assets of the company and all the current assets of the company, security deposits with M/s Linage Healthcare Ltd. and M/s Pinnacle Infracon Pvt. Ltd.
b) The loan is further secured against residential property of M/s R.K.Jaipuria & Sons (HUF) situated at Goa, Pledge of shares of M/s Varun Beverages Ltd By M/s RJ Corp. Ltd.
c) It is further secured by negative lien on Immovable Property being developed at Mumbai by M/s Pinnacle Infracon Pvt. Ltd. & unconditional irrevocable personal guarantee of Sh. R.K.Jaipuria & M/s R.K. Jaipuria & Sons ( HUF).
*During the year ended 31 March 2020 the Holding Company divested its entire stake in Diagno Labs India Private Limited.
- - 170.04 262.50
Name of the bank/instrument 31 March 2020 31 March 2019 Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
financial statem
ents
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fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Term loan from IDFC Bank with outstanding ` Nil* (Previous year `512.52) by Diagno Labs India Private Limited is secured by second pari passu charge on current and moveable fixed assets of the company and . The loan is further secured against pledge of shares of M/s RJ Corp. Ltd. It is further secured by corporate guanatee of RJ Corp Ltd. and personal guarantee of Sh. R.K.Jaipuria .The term loan from IDFC Bank is repayable by way of 6 half yearly instalments after 6 months from the date of disbusement. The Rate of interest charged is 9.30 %to 11% currently
*During the year ended 31 March 2020 the Holding Company divested its entire stake in Diagno Labs India Private Limited.
- - 329.19 183.33
The term loan from Yes Bank by Cryoviva Biotech Pvt. Ltd. is repayable over a period of Seventy Two Months after a moratorium period of Twenty Four Months in 16 quarterly instalments as per the terms of the agreements. The Rate of interest charged is 11.50% currently.
Loan is secured by -
a) Second charge on fixed assets of the borrower (both present and future) including land & building of the company to be set up in Plot No. 19, Sector 35, Gurugram along with Second charge on current assets of the company (both present and future).
b) The Loan is further secured by pledging of shares of associate concern to an extent of 1.5x of total facility amount and personal guarantee of R.K. Jaipuria and R.K. Jaipuria and Sons (HUF). The loan got repaid in the current year ended 31 March 2020.
- - - 74.73
Vehicle loans are secured by Cryoviva Biotech Pvt. Ltd. charge on respective vehicles. These are repayable in 60 monthly instalments and carry an interest rate of 8.70%.
2.82 0.96 3.78 0.88
Term Loan taken from Axis Bank by DFIL. The Rate of interest charged is 10% (31 March 2019 9.35%) currently having tenure of 5 years 5 months. Six instalments of ̀ 70 each from financial year 2020-21 to financial year 2022-23
Loan is secured by -
(i) Prime: First Pari-passu charge over entire movable and immovable fixed assets of the company (both present and future).
(ii) Collateral: Pari-passu first charge by way of hypothecation of brand ""Cream Bell"" owned by the company.
(iii) Second Pari Passu charge over entire current assets of the Company.
(iii) Guarantee: Personal guarantees of Mr. Ravi Kant Jaipuria and Ravi Kant Jaipuria & Sons (HUF)
280.00 140.00 420.00 140.00
Name of the bank/instrument 31 March 2020 31 March 2019 Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
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fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Term Loan taken from Yes Bank by DFIL. The Rate of interest charged is 9.65% currently having tenure of 49 months.
(i) First Pari-passu charge over entire movable fixed assets and immovable fixed assets of the company (both present and future)
(ii) First pari-passu charge over ""Creambell"" brand of the company
(iii) Second Pari-passu charge over entire current assets of the company (both present and future)
(iv) Personal Guarantee of Mr. R. K. Jaipuria and M/s Ravi Kant Jaipuria & Sons (HUF)
The loan got repaid in the current year.
- - 99.00 -
Term Loan taken from Yes Bank by DFIL. The Rate of interest charged is 9.65% currently having tenure of 66 months.
(i) First Pari-passu charge over entire movable fixed assets and immovable fixed assets of the company (both present and future)
(ii) First pari-passu charge over ""Creambell"" brand of the company
(iii) Second Pari-passu charge over entire current assets of the company (both present and future)
(iv) Personal Guarantee of Mr. R. K. Jaipuria and M/s Ravi Kant Jaipuria & Sons (HUF)
400.00 - 550.00 -
Term Loan taken from IDFC Bank by DFIL. The Rate of interest charged is 9.25% currently.Tenure of 5 years and 1 month Repayment to be made in the month of May and July of each financial year.
Loan is secured by:-
(i)First Pari Passu charge over movable and immovable fixed assets of the borrower (both present and future)
(ii) First Pari Passu charge over brand ""Cream Bell"" of the Company.
(iii) Unconditional and irrecoverable personal guarantee of Mr. Ravi Kant Jaipuria and Ravi Kant Jaipuria and Sons (HUF) .
(iv) Second Pari Passu charge over current assets of the Company both present and future.
187.38 - 374.71 -
Name of the bank/instrument 31 March 2020 31 March 2019 Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
financial statem
ents
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fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Term Loan taken from HDFC bank by DFIL, The rate of interest is 9.45% (31 March 2019 9.15%) currently.Tenure of 5 years (including moratorium of 9 months). Repayment to be made in the month of June, July and August of each financial year.
Loan is secured by:-
(i) First Pari-passu charge over entire movable fixed assets of the company (except the assets exclusively charged in favour of specific lenders)
(ii)First Pari Passu charge over brand Creambell of the borrower.
(iii) First pari-passu charge by way of equitable mortgage over immovable properties of the company.
(iv) Second Pari Passu charge over entire current assets of the Company.
(v) Unconditional and irrecoverable personal guarantee of Mr. Ravi Kant Jaipuria.
450.59 176.32 626.90 117.55
Term Loan taken from HDFC bank by DFIL, The rate of interest is 9.10% currently.Tenure of 6 years (including moratorium of 9 months). Repayment to be made in the month of May and July of each financial year.
The loan is secured by
(i) First Pari-passu charge over entire movable and immovable fixed assets of the company both present & future.
(ii) First Pari Passu charge over brand ""Cream Bell"" of the borrower.
(iii) Second Pari Passu charge over entire current assets of the Company both present and future.
(iv) Personal guarantee of Mr. Ravi Kant Jaipuria.
210.00 70.00 280.00 70.00
Term Loan taken from Kotak Mahindra Bank bank by DFIL, The rate of interest is 8.9% currently. Tenure of 3 years. Repayment to be made in the month of April, May, June, July and August of each financial year.
Loan is secured by:-
(i) Exclusive charge on Varun Beverages Limited's receivables.
(ii) Subservient charge on current assets and movable fixed assets (excluding assets charged exclusively to specific lenders) of the company.
(iii) Personal guarantee of Mr. Ravi Kant Jaipuria and Ravi Kant Jaipuria and Sons (HUF)
(iv) Corporate Guarantee of R J Corp Limited.
333.33 133.33 - -
Name of the bank/instrument 31 March 2020 31 March 2019 Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
Annual Report 2019-20 | RJ Corp Limited 175
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Term Loan taken from RBL bank by DFIL, The rate of interest is 10.3% (31 March 2019 10.25%) currently. Tenure of 5 years (including moratorium of 6 months). Repayment to be made quarterly in the month of may, august, november and february of each financial year.
Loan is secured by:-
(i) First Pari-passu charge over entire movable fixed assets of the company (except the assets exclusively charged in favour of specific lenders)
(ii)First Pari Passu charge over cream bell brand of the borrower.
(iii) First pari-passu charge by way of equitable mortgage over immovable properties of the company at Baddi, Goa and Kosi and Asansol unit.
(iv) Second Pari Passu charge over entire current assets of the Company.
(v) Unconditional and irrecoverable personal guarantee of Mr. Ravi Kant Jaipuria & M/s. Ravi Kant Jaipuria & Sons (HUF) .
290.25 125.00 455.75 125.00
Term Loan taken from RBL bank by DFIL, The rate of interest is 9.7% (31 March 2019 8.50%) currently.
(i) Tenure of 5 years and 6 months (including moratorium of 6 months)
(ii) Repayment to be made quarterly in the month of may, august, november and february of each financial year.
Loan is secured by:-
(i) Subservient charge over entire current assets and movable fixed assets of the company both present & future.(ii) Subservient charge over ""Cream Bell"" brand of the borrower.
(iii) Pledge on unlisted equity shares of RJ Corp Ltd. providing share cover of 2x.
(iv) Unconditional and irrecoverable corporate guarantee of RJ Corp Ltd.
(v) Unconditional and irrecoverable personal guarantee of Mr. Ravi Kant Jaipuria
462.59 155.56 616.40 77.78
Term Loan taken from Induslnd Bank by DFIL. Principal amount to be repaid in 88 equal installments. Repayment to be made in the month of May and June of each financial year. Rate of interest 10.75%
(i) Subservient charge on entire movable fixed assets of the Company.
(ii) Lien on the ""Cream Bell"" brand on a 1st PP basis with the other term lenders.
(iii) Subservient charge on the entire current assets with other lenders.
(iv) Personal guarantee of Mr. Ravi Kant Jaipuria & Ravi Kant Jaipuria & Sons (HUF) .
(v) Pledge of fully paid-up unencumbered equity shares of RJ Corp Ltd. owned by R.K.Jaipuria & sons HUF, to the extent of 2.5x securty cover of the facility amount.
950.00 25.00 975.00 25.00
Name of the bank/instrument 31 March 2020 31 March 2019 Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
financial statem
ents
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Vehicle loan from HDFC bank by DFIL. They are repayable generally over a period of three to five years in equal monthly instalments as per the terms of the respective agreements. Secured against hypothecation of vehicles purchased thereunder.
14.00 18.21 32.21 16.80
Loans taken by Holding Company from Indusind bank carrying rate of interest of 10.75%. This loan is repayable in 36 installment as follows: 3 monthly installments of Rs.5 starting from January 2020 to March 2020, 30 monthly installments of Rs.20.80 starting April 2020 to September 2022, 3 monthly installments of Rs.36.70 starting from October 2022 to December 2022.
'Term Loans from Indusind Bank is secured by:
a) subservient charge on all current asset and Movable fixed assets
b) Pledge of fully paid-up unencumbered equity shares of the Company as held by one of the promoters.
c) Personal guarantee of some of the directors of the company and their concerns.
474.68 249.60 717.79 15.00
Loans taken by Holding Company from Yes bank carrying rate of interest of 10.80%
This loan is repayable as follows: Two instalments of Rs. 25 each in June 18 and July 18, Two instalments of Rs. 50 each in June 19 and July 19, Two instalments of Rs. 50 each in June 20 and July 20, Two instalments of Rs. 62.5 each in June 21 and July 21, Two instalments of Rs. 62.5 each in June 22 and July 22.
This Loan is secured by:
a) subservient charge on all current asset and Movable fixed assets including security deposits.
b) Pledge of unquoted equity shares held by the company, and
c) Personal guarantee of some of the directors of the company and their concerns.
243.98 100.00 339.56 100.00
Loans taken by Holding Company from Yes bank carrying rate of interest of 10.27% . This loan is repayable in 16 quarterly installments of 31.25 starting from March 2019.
This Loan is secured by:
a) subservient charge on all current asset and Movable fixed assets including security deposits.
b) Pledge of equity shares of the Company held by Promoters, and
d) Personal guarantee of one of the director of the company.
216.65 125.00 340.07 125.00
Name of the bank/instrument 31 March 2020 31 March 2019 Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
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Loans taken by Holding Company from Indusind bank carrying rate of interest of 9.90%. This loan is repayable in 16 installment as follows: 4 monthly installments of Rs.50 starting from April 2019 to July 2019, 4 monthly installments of Rs.50 starting April 2020 to July 2020, 4 monthly installments of Rs.70 starting from April 2021 o July 2021 and 4 monthly installments of Rs. 75 starting from April 2022 to July 2022.
Term Loans from Indusind Bank is secured by:
a) subservient charge on all current asset and Movable fixed assets
b) Pledge of fully paid-up unencumbered equity shares of the Company as held by one of the promoters.
c) Personal guarantee of some of the directors of the company and their concerns.
572.46 100.00 766.89 200.00
Loans taken by Holding Company from Indusind bank carrying rate of interest of 11.75%. This loan is repayable in 36 installment as follows: 12 monthly installments of Rs.1.88 starting from October 2019 to September 2020, 12 monthly installments of Rs.2.81 starting from October 2020 to September 2021, 12 monthly installments of Rs.3.75 starting from October 2021 to September 2022, 12 monthly installments of Rs.4.69 starting from October 2022 to September 2023, 24 monthly installments of Rs.7.50 starting from October 2023 to September 2025, 12 monthly installments of Rs.9.38 starting from October 2025 to September 2026.
Term Loans from Indusind Bank is secured by:
a) Subservient charge on all current asset and Movable fixed assets
b) Pledge of fully paid-up unencumbered equity shares of the Company as held by one of the promoters.
c) Personal guarantee of some of the directors of the company and their concerns.
401.52 28.13 - -
Loans carrying rate of interest in range of 7.90-10.33% (31 March 2019: 7.90-10.15%). They are repayable generally over a period of three to five years in instalments as per the terms of the respective agreements. Vehicle loans are secured against respective asset financed.
154.84 63.66 17.00 41.21
Loans taken by VBL carrying weighted average rate of interest 8.22% (31 March 2019: 8.5%) depending upon tenure of the loans.
These loan are secured on first pari-passu charge on the entire movable and immovable property, plant and equipment of the Company including the territory /franchisee rights acquired under the business acquisition except vehicles.
For repayment terms refer note 22F(a).
19,895.96 4,762.70 16,837.47 3,375.23
Loans of Varun Beverages (Zimbabwe) (Private) Limited, carry rate of interest of LIBOR + 2.50% (31 March 2019: 5.26% to 6.76%).
One of these loans is secured by charge on subsidiary company's land and other loan is secured by corporate guarantee of the Holding Company (Varun Beverages Limited).
For repayment terms refer note 22F (b).
300.85 301.54 553.26 268.97
Name of the bank/instrument 31 March 2020 31 March 2019 Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
financial statem
ents
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Loans of Varun Beverages (Zimbabwe) (Private) Limited, carry rate of interest of LIBOR + 3% (31 March 2019: LIBOR + 3%). One of these loans is secured by charge on subsidiary company's land and other loan is secured by corporate guarantee of the Holding Company (Varun Beverages Limited).
For repayment terms refer note 22F (b).
284.78 392.23 529.33 302.30
Loans from banks at Varun Beverages Lanka (Private) Limited carry rate of interest of Nil (31 March 2019 13%) which were repid during the year.
These term loans (other than vehicle loans) are secured by mortgage of moveable and immovable assets of the subsidiary company and corporate guarantee of the Holding Company and subsidiary company. Vehicle loan is secured by charge over respective vehicles financed.
For repayment terms refer note 22F (c).
- - 0.88 0.64
"Loans from banks at Varun Beverages (Nepal) Private Limited carry rate of interest of Nil (31 March 2019 - 8.80%). For repayment terms refer note 22F (d)."
- - 132.36 117.08
total (c) 28,781.64 7,680.91 28,378.69 6,497.62
Loan from financial institution/othersInterest free loan from The Director of Industries and Commerce, Government from Haryana taken by VBL is repayable in one installment after expiry of five years from the date of disbursement. The loan is discounted at the weighted average rate of borrowings, i.e., 8.33%. Loan is secured against bank guarantee equivalent to 100% of loan amount valid upto the repayment date of loan plus six months grace period.
482.63 - 367.13 -
Interest free loan from The Pradeshiya Industrial & Investment Corporation of U.P. Limited taken by VBL are repayable in one instalment after expiry of seven years from the date of disbursement. Loan is secured against bank guarantee equivalent to 100% of loan amount valid upto the repayment date of loan plus six months grace period.The loans are recognised at amortised cost basis using weighted average rate of borrowing on date of receipt, i.e., 8.52%-9.72%.
364.38 - 334.39 -
These are repayable over a period of time as per the terms of respective lease agreements. The loans are recognised at amortised cost basis using weighted average rate of borrowing. These loans are secured against respective asset financed
- - 2.52 10.66
Interest free loan from The Director of Industries and Commerce, Haryana are repayable in one instalment after expiry of Seven years from the date of disbursement.The loans are recognised at amortised cost basis using weighted average rate of borrowing on date of receipt, i.e., 9.00%-11.51%.
The Loan is repayable in one installment after 7 years from the date of disbursement.
Loan is secured against bank guarantee equivalent to 100% of loan amount.
146.28 - 133.41 -
Name of the bank/instrument 31 March 2020 31 March 2019 Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
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Loan from financial institutions taken by Holding companyLoan taken from Kotak Mahindra Prime Limited carrying rate of interest rate of 14%. This loan is repayable in monthly installments of Rs. 35 starting from sep 30, 2016 to March 31, 2017 (Except for Novemeber 2016), monthly installments of Rs. 100 for November 2016, monthly installments of Rs. 50 staring from April 2017 to June 30, 2019 and monthly installment of Rs.40 for July 2019.
- - - 139.90
Loan taken from Kotak Mahindra Prime Limited carrying rate of interest rate of 11.70%.
This loan is repayable in 48 monthly installments of Rs. 20.83 starting from January 2018 to Decemeber 2021.
185.31 229.17 432.82 250.00
Loan taken from Kotak Mahindra Prime Limited carrying rate of interest of 11.70%. This loan is repayable in 42 monthly installments of Rs. 23.81 starting from May 2019 to October 2022.
Term Loans from Kotak Mahindra Prime Ltd. is secured by :
a) Equitable Mortgage on the Land & Building of the company situated at Plot No. 31, Sector-44, Gurgaon.
b) Pledge of some of the Quoted/Unquoted Equity Shares held by the company and associates.
c) Pledge of 6% equity shares of the Company as held by promoters.
c) Personal guarantee of RK Jaipuria & Sons (HUF)."
476.19 238.10 738.10 261.90
Loan taken from Kotak Mahindra Prime Limited carrying rate of interest of 12.45%. This loan is repayable in bullet within 90 Days of disbursement . This Term Loan is secured by Corporate Guarantee of RK Jaipuria & Sons (HUF).
- - - 100.00
Loan taken from Kotak Mahindra Prime Limited carrying rate of interest of 11.70%. This loan is repayable in 48 monthly installments of Rs. 29.16 starting from June 2019 to May 2023.
758.33 291.67 1,108.33 291.67
Loan taken from Kotak Mahindra Prime Limited carrying rate of interest of 12.45%. This loan is repayable in 48 monthly installments of Rs. 12.50 starting from March 2020 to February 2024. Term Loans from Kotak Mahindra Prime Ltd. is secured by :
a) Equitable Mortgage on the Land & Building of the company situated at Plot No. 31, Sector-44, Gurgaon.
b) Extension of First charge by way of pledge of 6% total equity shares of the Company.
c) Extension of charge by way of pledge on 6.75% of total equity shares of Lemon Tree Hotels Limited (LTHL).
c) Corporate guarantee of RK Jaipuria & Sons (HUF).
437.50 125.00 587.50 12.50
Loan from Clix Capital Services Private Limited carrying rate of interest 10.90%. This loan is repayable as follows: Two instalments of Rs. 42.5 each in October 17 and January 18, Four instalments of Rs. 53.12 each in April 18, July 18, October 18 and January 19, Four instalments of Rs. 63.75 each in April 19, July 19, October 19 and January 20, and Four instalments of Rs. 74.38 each in April 20, July 20, October 20 and January 21.
- 223.13 297.50 255.00
Name of the bank/instrument 31 March 2020 31 March 2019 Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
financial statem
ents
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Loan from Clix Capital Services Private Limited carrying rate of interest 11.25%. This loan is repayable as follows: Two instalments of Rs. 32.5 each in May 18 and August 18, Four instalments of Rs. 40.63 each in Novemeber 18, February 19, May 19 and August 19, Four instalments of Rs. 48.75 each in Novemeber 19, February 20, May 20 and August 20, and Four instalments of Rs. 56.87 each in Novemeber 20, February 21, May 21 and August 21. Term Loans from Clix Sapital Services Private Limited is secured by :
a) subservient charge on all current asset and Movable fixed assets.
b) Pledge of Unquoted Equity Shares as held by the company of one of the subsidiary company .
c) Personal guarantee of one of the Directors of the company and its concern.
65.00 211.25 325.00 178.75
Loan from Axis Finance Limited carrying rate of interest 9.80%. This loan is repayable in 12 Quarterly instalments of Rs.83.33 starting from June 19 to March 2022.
This Loan is secured by :
a) Second pari passu charge on all current asset and Movable fixed assets.
b) Pledge of unencumbered equity shares of Devyani International Limited to the extend of 2X of Facility amount.
c) Personal guarantee of one of the directors of the company and its concern
331.07 333.33 662.05 333.33
Loan from Axis Finance Limited carrying rate of interest 9.75%. This loan is repayable in 12 Quarterly instalments of Rs.25 starting from September 19 to June 2022.
This Loan is secured by :
a) Second pari passu charge on all current asset and Movable fixed assets.
b) Pledge of unencumbered equity shares of Devyani International Limited to the extend of 2X of Facility amount.
c) Personal guarantee of one of the directors of the company and its concern
122.59 100.00 220.29 75.00
Loan from Hero Fincorp Limited carrying rate of interest 13.50%. This loan is repayable in bullet at the end of Tenor i.e. September 2022.
This Loan is secured by :
a) subservient charge on the entire asset of the company.
b) Pledge of Unquoted Equity Shares of the company on fully diluted basis.
c) Personal guarantee of one of the directors of the company and its concern
1,000.00 - - -
Name of the bank/instrument 31 March 2020 31 March 2019 Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
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Loan from Hero Fincorp Limited carrying rate of interest 13.50%. This loan is repayable in bullet at the end of Tenor i.e. November 2020.
This Loan is secured by :
a) subservient charge on the entire assets of the company.
b) Pledge of Unquoted Equity Shares of the company on fully diluted basis.
c) Personal guarantee of one of the directors of the company and its concern
- 1,000.00 - -
total (d) 4,369.28 2,751.64 5,209.03 1,908.71
compulsorily convertible preference shares (unsecured)2.25 million redeemable preference shares were issued during the year 2017-2018 as fully paid with a par value of Rs. 10. The redeemable preference shares are mandatorily redeemable at par and Devyani International Limited is obliged to pay holders of these shares dividends at the rate of 8 % of the par amount per annum, subject to availability of distributable profits .The preference shares are redeemable at the end of 5 years from the date of issue and maturity period has been extended by another term of five years for certain number of preference shares.
47.91 59.68 104.30 -
total (e) 47.91 59.68 104.30 -
Loan from body corporate/others (unsecured) The unsecured term loan was taken from Chellarams Plc during the period 31 March 2010 to 31 March 2017.
The interest rate applicable is 5% p.a. (previous year : 5% p.a)
465.39 248.08 365.75 197.69
Loans taken by Devyani Food Industries (Kenya) Ltd. from Sameer ICT Limited carrying rate of interest LIBOR +3.5% payable on quarterly basis Further the facility is repayable over a period of two years from the date of full repayment of borrowing facilities taken from NCBA Bank Kenya PLC.
- - 401.47 -
Loan taken by SVS India (P) Limited From Akshay Jindal carrying rate of interest 12%
0.80 - 0.80 -
Loan taken by Diagno Labs India Private Limited from Sky Drive Consultants Pvt. Ltd. Carrying rate of interest 29.15% repayble 62 monthly installments as per the terms of the agreemnt. During the year ended 31 March 2020 the Holding Company divested its entire stake in Diagno Labs India Private Limited.
- - 1.36 -
Loan taken by Varun Developers (P) Limited from Arctic International Nepal Pvt. Ltd. Carrying rate of interest 29.15% repayble 62 monthly installments as per the terms of the agreemnt
0.67 - 2.17 -
total (f) 466.86 248.08 771.56 197.69
deferred value added tax (unsecured) Deferred value added tax and deferred excise relating to Varun Beverages (Zambia) Limited will be repayable within one year. These are interest free loan.
- 35.78 55.97 50.07
total (g) - 35.78 55.97 50.07 total (a+B+c+d+e+f+g) 36,930.78 11,071.60 37,879.54 9,162.09
Name of the bank/instrument 31 March 2020 31 March 2019 Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
financial statem
ents
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22f repayment terms:
s. No. description 31 March 2020 31 March 2019repayment terms Non-
current current
Non-current
current
a) Loans carrying weighted average rate of interest 8.22% (31 March 2019: 8.5%) depending upon tenure of the loans.
1 Term loan - 1 57.68 114.60 372.05 85.95 Two instalments of ` 57.30 each due in May 2020 and June 2020 and one instalment of ` 57.84 due in May 2021.
2 Term loan - 2 700.00 350.00 1,050.00 350.00
Two instalments of ` 175 each due in May 2020 and June 2020, two instalments of ` 175 each due in May 2021 and June 2021, two instalments of ` 175 each due in May 2022 and June 2022.
3 Term loan - 3 750.00 240.00 990.00 210.00
Three instalments of `80.00 each due in May 2020, June 2020 and July 2020, three instalments of ̀ 80.00 each due in May 2021, June 2021 and July 2021, three instalments of ` 90.00 each due in May 2022, June 2022 and July 2022 and an installment of ` 90.00 due in May 2023 and of ` 150.00 due in June 2023.
4 Term loan - 4 996.94 - 995.46 -
Two instalments of ` 150 due in May 2021 and ` 250 due in June 2021 and two instalments of ` 300 each due in May 2022 and June 2022.
5 Term loan - 5 499.33 50.00 548.95 -
One instalment of ` 50 due in June 2020, two instalments of ` 125 each due in May 2021 and June 2021 and two instalments of ` 125 each due in May 2022 and June 2022.
6 Term loan - 6 300.00 300.00 600.00 260.00 Two instalments of ` 150 each due in May 2020 and June 2020 and two instalments of ` 150 each due in May 2021 and June 2021.
7 Term loan - 7 1,178.51 392.82 1,567.75 200.00
Two instalments of ` 196.41 each due in May 2020 and June 2020, two instalments of ` 294.63 each due in May 2021 and June 2021 and two instalments of ` 294.63 each due in May 2022 and June 2022.
8 Term loan - 8 395.00 150.00 545.00 140.00
Two instalments of `75.00 each due in June 2020 and July 2020, two instalments of ` 75.00 each due in May 2021 and June 2021, two instalments of ` 80.00 each due in June 2020 and July 2022 and one instalment of ` 85.00 due in May 2023.
9 Term loan - 9 581.36 - 581.36 -
Two instalments of ` 76.96 millions due in May 2021 and of ` 183.31millions due in June 2021 instalment of ` 183.31 due in May 2022 and ` 137.78 due in June 2022.
10 Term loan - 10 217.50 115.90 333.40 101.40
Two instalments of ` 57.95 each due in May 2020 and June 2020, two instalments of ` 57.95 each due in May 2021 and June 2021 and instalment of ` 57.95 due in May 2022 and ` 43.65 due in June 2022.
(` in millions, except for share data and if otherwise stated)
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11 Term loan - 11 666.80 166.60 833.40 125.00
Two instalments of ` 83.30 each due in May 2020 and June 2020, two instalments of ` 111.10 each due in May 2021 and June 2021, two instalments of ` 111.10 each due in May 2022 and June 2022 and two instalments of ` 111.10 due in May 2023 of ` 111.30 and June 2023
12 Term loan - 12 150.00 150.00 300.00 100.00 Two instalments of ` 75 each due in April 2020 and May 2020 and two instalments of ` 75 each due in April 2021 and May 2021.
13 Term loan - 13 536.18 297.88 834.06 297.88
Two instalments of ` 148.94 each due in May 2020 and June 2020, two instalments of ` 148.94 each due in May 2021 and June 2021 and two instalments of ` 119.15 each due in May 2022 and June 2022.
14 Term loan - 14 - - 300.00 100.00
The loan was originally repayable in two instalments of ` 50 each due in May 2020 and June 2020, two instalments of ` 50 each due in May 2021 and June 2021 and one instalment of ` 50 due in May 2022.The outstanding amount of ` 400 was repaid during the year.
15 Term loan - 15 - - 320.00 80.00
The loan was originally repayable in two instalments of ` 40 each due in May 2020 and June 2020, two instalments of ` 40 each due in May 2021 and June 2021, two instalments of ` 40 each due in May 2022 and June 2022 and two instalments of ` 40 each due in May 2023 and June 2023. The outstanding amount of ` 400 was repaid during the year.
16 Term loan - 16 600.00 200.00 800.00 100.00
Two instalments of ` 100 each due in May 2020 and June 2020, two instalments of ` 150 each due in May 2021 and June 2021 and two instalments of ` 150 each due in May 2022 and June 2022.
17 Term loan - 17 - - 1,300.00 325.00
The loan was originally repayable in two instalments of ` 162.50 each due in June 2019 and July 2019, two instalments of `162.50 each due in June 2020 and July 2020, two instalments of ` 162.5 each due in June 2021 and July 2021, two instalments of ` 162.50 each due in June 2022 and July 2022 and two instalments of ` 162.50 each due in June 2023 and July 2023. The outstanding amount of ` 1,625 was repaid during the year.
s. No. description 31 March 2020 31 March 2019repayment terms Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
financial statem
ents
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18 Term loan - 18 350.00 100.00 450.00 50.00
Two instalments of ` 50 each due in May 2020 and June 2020, two instalments of ` 50 each due in May 2021 and June 2021, two instalments of ` 50 each due in May 2022 and June 2022 and two instalments of ` 75 each due in May 2023 and June 2023.
19 Term loan - 19 1,499.72 500.00 1,999.56 500.00
Two instalments of ̀ 250.00 each due in May 2020 and June 2020, two instalments of ` 250.00 each due in May 2021 and June 2021, two instalments of ` 250.00 each due in May 2022 and June 2022 and two instalments of ` 250.00 each due in May 2023 and June 2023.
20 Term loan - 20 628.21 193.30 816.48 150.00
One instalment of `193.30 due in May 2020, one instalment of ` 193.30 due in May 2021, one instalment of ` 193.30 due in May 2022 and one instalment of ` 241.62 due in May 2023.
21 Term loan - 21 - - 800.00 200.00
The loan was originally repayable in two instalments of ` 100.00 each due in June 2019 and July 2019, two instalments of `100.00 each due in June 2020 and July 2020, two instalments of ` 100.00 each due in June 2021 and July 2021, two instalments of ` 100.00 each due in June 2020 and July 2022 and two instalments of ` 100.00 due in June 2023 and July 2023. The outstanding amount of ` 1,000 was repaid during the year.
22 Term loan - 22 - - 500.00 -
The loan was originally repayable in two instalments of ` 41.67 each due in June 2020 and July 2020, two instalments of `41.67 each due in June 2021 and July 2021, two instalments of ` 41.67 each due in June 2022 and July 2022, two instalments of ` 41.67 each due in June 2023 and July 2023 two instalments of ` 41.66 due in June 2024 and July 2024 and two instalments of ` 41.66 due in June 2025 and July 2025.The outstanding amount of ` 500 was repaid during the year.
23 Term loan - 23 1,594.97 400.00 - -
Two instalments of ̀ 200.00 each due in May 2020 and June 2020, two instalments of ` 200.00 each due in May 2021 and June 2021, two instalments of ` 300.00 each due in May 2022 and June 2022 and two instalments of ` 300.00 each due in May 2023 and June 2023.
s. No. description 31 March 2020 31 March 2019repayment terms Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
Annual Report 2019-20 | RJ Corp Limited 185
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
24 Term loan - 24 850.00 150.00 - -
Two instalments of ` 75.00 each due in May 2020 and June 2020, two instalments of ` 75.00 each due in May 2021 and June 2021, two instalments of ` 75.00 each due in May 2022 and June 2022 ,two instalments of ` 75.00 each due in May 2023 and June 2023, two instalments of ` 100.00 each due in May 2024 and June 2024 and two instalments of ` 100.00 each due in May 2025 and June 2025.
25 Term loan - 25 1,457.61 291.60 - -
Two instalments of ` 145.80 each due in June 2020 and July 2020, two instalments of ` 145.80 each due in June 2021 and July 2021, two instalments of ` 145.80 each due in June 2022 and July 2022, two instalments of ` 145.80 each due in June 2023 and July 2023, two instalments of ` 145.90 each due in June 2024 and July 2024 and two instalments of ` 145.90 each due in June 2025 and July 2025.
26 Term loan - 26 1,495.71 - - -
Two instalments of ` 375.00 each due in May 2022 and June 2022 and two instalments of ` 375.00 each due in May 2023 and June 2023.
27 Term loan - 27 2,495.30 500.00 - -
Two instalments of ̀ 250.00 each due in May 2020 and June 2020, two instalments of ` 250.00 each due in May 2021 and June 2021, two instalments of ` 250.00 each due in May 2022 and June 2022 ,two instalments of ` 250.00 each due in May 2023 and June 2023, two instalments of ` 250.00 each due in May 2024 and June 2024 and two instalments of ` 250.00 each due in May 2025 and June 2025.
28 Term loan - 28 895.14 100.00 - -
Two instalments of ` 50.00 each due in May 2020 and June 2020, two instalments of ` 50.00 each due in May 2021 and June 2021, two instalments of ` 100.00 each due in May 2022 and June 2022, two instalments of ` 100.00 each due in May 2023 and June 2023, two instalments of ` 100.00 each due in May 2024 and June 2024 and two instalments of ` 100.00 each due in May 2025 and June 2025.
29 Term loan - 29 1,000.00 - - -
Three instalments of ` 166.70 each due in May 2021,June 2021 and July 2021,and Three instalments of ` 166.70 each due in May 2022, June 2022 and July 2022.
total (22f (a)) 19,895.96 4,762.70 16,837.47 3,375.23
s. No. description 31 March 2020 31 March 2019repayment terms Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 186
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
b) Loans of Varun Beverages (Zimbabwe) (Private) Limited, carry rate of interest of LiBor + 2.5% to 3% (31 March 2018: 5.26% to 6.76% ):
1 Term loan - 1 300.85 301.54 553.26 268.97
Balance amount as at 31 March 2020 is repayable in 8 quarterly instalments of Zimbabwe Dollar ("ZWL") 24.97 million each (equivalent instalment of USD 1 million each).
2 Term loan - 2 284.78 392.23 529.33 302.30
Balance amount as at 31 March 2020 is repayable in 7 quarterly instalments of ZWL 32.07 Million each (equivalent instalment of USD 1.28 million each).
total (22f (b)) 585.63 693.77 1,082.59 571.27 c) Loans from banks at Varun Beverages Lanka (Private) Limited carry rate of interest of Nil (31 March 2019: 13%)
1 Term Loan - 1 - - 0.88 0.64
The outstanding amount of ` 1.52 were repaid during the year.
total (22f (c)) - - 0.88 0.64 d) Loans from banks at Varun Beverages (Nepal) Private Limited carry rate of interest of Nil (31 March 2019: 8.80%)
1 Term Loan - 1 -
- 132.36 117.08
The loan was originally repayable in six instalments of NPR 62.50 million each during April-June 2019 and April-June 2020 and one instalment of NPR 25.00 million in April 2021. The outstanding amount of ` 249.44 were repaid during the year.
total (22f (d)) - - 132.36 117.08 grand total 22f (a+b+c+d)
20,481.59 5,456.47 18,053.30 4,064.22
22g. deferred payment liabilities (secured)
description Loan outstanding Loan outstanding31 March 2020 31 March 2019
Non-current
current Non-
current current
(i) Plant and equipment acquired under deferred payment termsThe payments were secured against a letter of credit issued by the Company's banker. The outstanding amount of `70.94 was repaid during the year.
- - - 70.94
total - - - 70.94
22H.term & condition for short term loans
Particular & term of repayment security & guarantee as at
31 March 2020 as at
31 March 2019IDFC Bank :-
Tenure of 6 months from the date of drawdown. Rate of interest 10.50%
(i) Subservient charge on current assets and movable fixed assets of the company.
(ii) Corporate guarantee of R J Corp Limited.
(iii) Personal guarantees of Mr. Ravi Kant Jaipuria.
350.00 -
s. No. description 31 March 2020 31 March 2019repayment terms Non-
current current
Non-current
current
(` in millions, except for share data and if otherwise stated)
Annual Report 2019-20 | RJ Corp Limited 187
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fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Induslnd Bank :-
Tenure of 6 months from the date of drawdown. Rate of interest 10.75%
(i) Second pari passu charge on the entire movable fixed assets with the other working capital lenders (excluding assets exclusively charged to other lender).
(ii) Second pari passu charge on the entire immovable fixed assets with the other working capital lenders.
(iii) Corporate Guarantee of R J Corp Limited.
50.00 -
NCBA Bank Kenya PLC :-
Tenure of 5 years and 6 months. Rate of interest 13.00%
First ranking charge over all assets of the borrower. 331.00 -
total 731.00 -
23. other non-current financial liabilities
as at 31.03.2020
as at 31.03.2019
Deferred revenue on government grant 9.65 45.40 Security deposit 1,100.12 1,015.85 Derivatives (interest rate swap) 13.98 5.36 Other deposit 4.71 4.41
1,128.46 1,071.02
24. other non-current liabilities
as at 31.03.2020
as at 31.03.2019
Non-current Deferred income 10.49 6.90 Provision for contingent liability (Net of tax paid under protest) 380.27 23.42 Other Payable 8.08 6.88 Lease equalisation reserve - 488.18
398.84 525.38
25. Provisions
as at 31.03.2020
as at 31.03.2019
Non-current Defined benefit liability (net) (refer note 41) 1,495.63 1,004.71 Other long term employee obligations 547.01 442.77
2,042.64 1,447.48 current Defined benefit liability (net) (refer note 41) 122.81 70.98 Other long term employee obligations 226.42 190.16
349.23 261.14
Particular & term of repayment security & guarantee as at
31 March 2020 as at
31 March 2019
(` in millions, except for share data and if otherwise stated)
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 188
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
26. trade payables
as at 31.03.2020
as at 31.03.2019
total outstanding dues of- Micro and small enterprises (refer note 48) 70.15 27.65 Others 9,729.07 7,802.43
9,799.22 7,830.08
27. other current financial liabilities
as at 31.03.2020
as at 31.03.2019
Current maturities of long-term debts (Refer note 22E) 11,071.60 9,162.09 Interest accrued but not due on borrowings 340.05 379.62 Interest accrued and due on borrowings - 28.11 Current portion of deferred payment liabilities (Refer note 22G) - 70.94 Employee related payables 615.09 436.73 Unpaid dividends 3.52 4.61 Security deposits 3,523.80 3,394.58 Liability for foreign currency derivative contract 194.37 88.08 Deferred revenue on government grant 201.70 173.81 Retention money payable 4.23 5.38 Other payables 149.59 168.70 Capital creditors 1,715.61 1,592.64 Insurance claim receivable(advance against restoration expenses) 140.75 145.04
17,960.31 15,650.33
28. other current liabilities
as at 31.03.2020
as at 31.03.2019
Advances from customers 847.54 852.87 Statutory dues payables 1,726.05 2,180.89 Advance discount received 27.27 3.81 Deferred revenue 1,723.28 1,630.64 Other payable 1.48 6.97
4,325.62 4,675.18
29 current tax liabilities (net)
as at 31.03.2020
as at 31.03.2019
Provision for tax, net of prepaid taxes 38.32 144.30 38.32 144.30
30. revenue from operations
for the year ended 31.03.2020
for the year ended 31.03.2019
revenue from operations (gross) Sale of products (inclusive of excise duty) 100,093.33 76,011.57 Sale of services 1,108.17 1,296.48 Other operating revenue 1,410.06 1,403.91
102,611.56 78,711.96
(` in millions, except for share data and if otherwise stated)
Annual Report 2019-20 | RJ Corp Limited 189
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
31. other income
for the year ended 31.03.2020
for the year ended 31.03.2019
interest income on items at amortised cost: -bank deposits 43.95 23.36 -Compulsary convertible debentures 72.00 72.00 -others 348.66 510.00 Net gain on foreign currency transactions and translations - 46.35 Profit on sale of current investments and financial assets (refer note 55G)
2,130.23 0.48
Excess provisions written back 228.57 108.24 Dividend income from non-current investment 1.55 0.35 Gain on acquisition of control over existing associate 158.11 - Profit on sale of property, plant & equipment (net) - 0.42 Profit on dilution of control in subsidiary (refer note 55F) 1,163.93 - Rental income 219.80 138.85 Gain on net investment in finance lease 18.76 - Profit on disposal of Investment in JV Company - 976.50 Gain on derecognition of financial instruments 59.65 - Miscellaneous 271.28 143.11
4,716.49 2,019.66
32. cost of materials consumed
for the year ended 31.03.2020
for the year ended 31.03.2019
raw material and packing material consumed Inventories at beginning of the reporting period/year 4,748.69 4,131.46 Acquired on acquisition of control over existing associate 50.57 - Purchases during the reporting year (net) 46,203.66 30,804.64
51,002.92 34,936.10 Sold during the reporting year 2,636.97 1,002.41 Inventories at end of the reporting year 7,369.97 4,748.69
40,995.98 29,185.00
33. Purchases of traded goods
for the year ended 31.03.2020
for the year ended 31.03.2019
Traded Goods 3,868.57 3,247.62 Others 282.09 131.65
4,150.66 3,379.27
34. changes in inventories of traded goods
for the year ended 31.03.2020
for the year ended 31.03.2019
as at the beginning of the reporting year Finished/Traded goods 2,225.85 2,394.69 Intermediate goods 1,213.41 1,043.49 Work in progress 1,119.01 1,063.13
4,558.27 4,501.31 adjustment of dilution / acquistion
(` in millions, except for share data and if otherwise stated)
financial statem
ents
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suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Finished/Traded goods 16.46 (70.70) Work in progress 7.35 -
23.81 (70.70) as at the closing of the reporting year Finished/Traded goods 3,740.42 2,211.41 Intermediate goods 1,409.56 1,227.86 Work in progress 1,044.11 1,119.01
6,194.09 4,558.28 finished goods used as fixed assets (207.74) (243.51)
(1,819.75) (229.78)
35. employee benefits expense
for the year ended 31.03.2020
for the year ended 31.03.2019
Salaries and wages 12,348.83 9,498.27 Contribution to provident and other funds 675.83 571.43 Employee stock option scheme expenses - 2.52 Staff welfare expenses 445.20 323.91
13,469.86 10,396.13
36. finance costs
for the year ended 31.03.2020
for the year ended 31.03.2019
interest on items at amortised cost: -Term loans 5,011.05 3,416.31 -Working capital facilities 543.50 402.87 -Compulasary convertible debentures 132.58 210.75 -Non-convertible debentures - 56.96 -Compulasary convertible preference shares - 379.46 -Lease liabilities 1,234.92 - - Others 507.62 458.07 Exchange difference regarded as an adjustment to borrowing cost 185.45 73.78 other ancillary borrowing costs: - Processing fees 61.80 65.14
7,676.92 5,063.34
37. depreciation and amortisation expense
for the year ended 31.03.2020
for the year ended 31.03.2019
Depreciation on property, plant and equipment (refer note 4A) 6,914.31 5,382.61 Depreciation on right of use (refer note 4B) 1,679.55 - Depreciation on investment property (refer note 4C) 52.73 - Amortisation of intangible assets (refer note 5A) 145.05 125.60
8,791.64 5,508.21
for the year ended 31.03.2020
for the year ended 31.03.2019
(` in millions, except for share data and if otherwise stated)
Annual Report 2019-20 | RJ Corp Limited 191
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
37a. impairment of non-financial assets
for the year ended 31.03.2020
for the year ended 31.03.2019
(Reversal)/impairment on property, plant and equipment (refer note 4A)
(50.34) 200.48
Impairment on right-of-use assets (refer note 4B) 82.86 - Impairment on investment properties (refer note 4C) 0.77 - (Reversal)/impairment of other intangible assets (refer note 5B) (6.48) 11.07 Impairment of goodwill (refer note 5C) 11.96 54.33
38.77 265.87
38. other expenses
for the year ended 31.03.2020
for the year ended 31.03.2019
Power and fuel 4,471.62 3,243.54 Repairs to plant and equipment 1,613.87 1,265.03 Repairs to buildings 511.96 399.67 Other repairs 818.44 514.95 Consumption of stores and spares 1,192.02 937.53 Rent (Refer note 47) 1,420.78 3,330.65 Rates and taxes 252.53 160.79 Insurance 122.88 82.04 Printing and stationery 108.43 81.77 Communication 209.97 218.59 Travelling and conveyance 981.49 828.48 Directors' sitting fee 10.42 9.93 Payment to the auditors as Audit and reviews 38.19 35.59 Taxation matters 2.58 1.46 Other matters 2.57 3.63 Reimbursement of expenses 1.50 2.62 Vehicle running and maintenance 252.80 258.34 Lease and hire 206.18 127.43 Security and service charges 624.67 393.33 Professional and consultancy 745.36 390.57 Bank charges 208.57 174.74 Advertisement and sales promotion 2,501.34 2,390.87 Meeting and conference 102.82 26.02 Franchisee Collection Fees 53.22 53.72 Commission Expense 0.82 13.60 Credit card commission and cash pickup charges 517.90 115.60 Royalty paid 962.83 1,010.99 Freight, octroi and insurance paid (net) 5,604.36 3,945.83 Delivery vehicle running and maintenance 937.45 607.42 Distribution expenses 341.56 340.03 Loading and unloading charges 378.25 292.65 Property, plant and equipment written off - 166.51 Intangible assets written off - 11.86 Loss on disposal of property, plant and equipment (net) 166.52 92.35 Loss on remeasurment of equity/derivative instruments at FVTPL 11.08 7.03 Bad debts and advances written off 2.80 110.29
(` in millions, except for share data and if otherwise stated)
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 192
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
for the year ended 31.03.2020
for the year ended 31.03.2019
Allowance for doubtful debts 212.36 100.14 Corporate Social Responsibility expenditure 58.19 48.23 Net loss on foreign currency transactions and translations 554.01 1,661.39 Provision for doubtful advances 19.70 56.07 Transplant Expenses Paid 0.98 0.85 Medical & chemical expenses 1.12 1.20 Other operating expenses 207.15 263.46 Impairment of loan to associate (refer note 52A) 989.78 - General office and other miscellaneous 568.70 266.20
27,989.77 24,043.00
38a. exceptional items
for the year ended 31.03.2020
for the year ended 31.03.2019
Provision for impairment loss of property, plant and equipment (refer note 4A)
665.29 -
Relocation cost and travelling expenses 4.89 - Loss on disposal of Property, plant and equipment/Capital Advance - 19.13 Gain on termination of lease # (345.78) -
324.40 19.13
#During the year ended 31 March 2020, one of the subsidiary of the Devyani International Limited has booked a gain of
INR 345.78 on account of termination of a significant lease.
38B. other comprehensive income (oci)
for the year ended 31.03.2020
for the year ended 31.03.2019
retained earnings Re-measurement losses on defined benefit plans (58.41) (44.79) Re-measurement of equity instrument at fair value (2,573.23) 1,259.71 Tax impact on re-measurement losses on defined benefit plans 398.42 (45.52) Exchange differences arising on translation of foreign operations 414.25 117.38 Tax impact on exchange differences arising on translation of foreign operations
(0.23) 10.61
(1,819.20) 1,297.39 capital reserve 344.43 - Gain from a bargain purchase (refer note 55D) 344.43 -
(1,474.77) 1,297.39
39. income tax
(a) amounts recognised in the statement of Profit and Loss comprises:
for the year ended 31.03.2020
for the year ended 31.03.2019
current tax:Current tax 1,143.10 1,212.80
1,143.10 1,212.80 deferred tax expense:Attributable to Origination and reversal of temporary differences 182.73 72.43
1,325.83 1,285.23
(` in millions, except for share data and if otherwise stated)
Annual Report 2019-20 | RJ Corp Limited 193
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
(b) income tax recognised in other comprehensive income
for the year ended 31.03.2020
for the year ended 31.03.2019
Income tax relating to remeasurement of equity instrument at fair value (380.59) 30.58 Income tax relating to remeasurement of defined benefit plans (17.83) 14.94 Income tax relating to exchange difference in translating financial statements of foreign operations
0.23 (10.61)
(398.19) 34.91
(c) reconciliation of tax expense between accounting profit at applicable tax rate and effective tax rate:
for the year ended 31.03.2020
for the year ended 31.03.2019
Profit/(Loss) before tax 4,490.30 1,948.89 Tax using the Company's domestic tax rate (25.168%) (31 March 2019: 22.88%)
1,130.12 445.91
effect of :Change in unrecognised temporary differences 111.20 45.87 Unrecognised tax losses 99.74 418.10 Unrecognised capital losses (48.78) - Rate change impact on deferred tax * (357.10) 78.09 Tax rate differential for taxes provided in subsidiaries 954.73 635.82 Income tax pertaining to previous years 19.50 20.58 Non deductible expenses/Non Taxable Income (net) 24.10 1.96 Deduction claimed u/s 80 IE of Income-tax Act, 1961 at Holding Company
(268.53) (275.24)
Effect of deferred tax on liabilities under business combinations - 7.67 Effect of deferred tax on capital gain on assets classified as assets held for sale in Parent Company
- (59.14)
Impact of reversal of deferred tax on exempted manufacturing unit (31.74) - Tax impact of dividend distributed by a subsidiary taxable in hands of Holding Company
35.34 25.43
Others (342.74) (59.82)income tax expense at effective tax rate reported in the statement of Profit and Loss
1,325.83 1,285.24
(` in millions, except for share data and if otherwise stated)
* Represents the change in enacted tax rate as on the reporting date.
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 194
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5
5.25
5
5.25
Oth
ers
(73.
70)
-
(10.
61)
(59.
71)
(144
.02)
0.2
3 1
73.9
2 3
0.13
Fo
reig
n cu
rren
cy m
onet
ary
item
tr
ansl
atio
n di
ffer
ence
acc
ount
19.
58
-
-
(38.
23)
(18.
65)
16.
62
(2.0
3)
Gov
ernm
ent g
rant
251
.02
-
-
28.
24
279
.26
(6.9
2) 2
72.3
4 Fo
reig
n cu
rren
cy lo
ss o
n re
stat
emen
t of b
alan
ces
in
subs
idia
ry -
-
-
(1
68.4
6) (1
68.4
6) (1
2.00
) -
1
68.4
6 (1
2.00
)
tota
l 1
,877
.57
(67.
82)
34.
91
57.
05
1,9
01.7
1 (1
34.5
7) (3
98.1
9) 1
39.5
7 1
,508
.51
* A
s at
31
Mar
ch 2
020
and
as a
t 31
Mar
ch 2
019,
the
Gro
up h
as s
igni
fica
nt u
nabs
orbe
d de
prec
iatio
n an
d ca
rry
forw
ard
loss
es. T
he G
roup
has
not
rec
ogni
sed
defe
rred
tax
asse
ts in
res
pect
of d
educ
tible
tem
pora
ry d
iffer
ence
, unu
sed
tax
loss
es a
nd u
nabs
orbe
d de
prec
iatio
n in
the
hold
ing
com
pany
and
som
e of
sub
sidi
arie
s, a
s it
is
not p
roba
ble
that
taxa
ble
profi
t wou
ld b
e av
aila
ble.
#
Incl
udes
fore
ign
exch
ange
fluc
tuat
ion
amou
ntin
g to
Rs.
(43.
61) m
illio
n (M
arch
31,
201
9 R
s. (1
5.83
) mill
ion)
**
Def
erre
d Ta
x A
sset
acq
uire
d fo
r D
evya
ni F
ood
Indu
stri
es (K
enya
) Ltd
. (Ea
rlie
r kn
own
as S
amee
r A
gric
ultu
re &
Liv
esto
ck (K
enya
) Ltd
.)
(` in
mill
ions
, exc
ept f
or s
hare
dat
a an
d if
oth
erw
ise
stat
ed)
Annual Report 2019-20 | RJ Corp Limited 195
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
(d
) d
efer
red
tax
liabi
litie
s/(a
sset
s) r
ecog
nise
d
as
at
01 a
pril
2018
on
acq
usit
ion
ofs
ubsi
diar
y**
rec
ogni
sed
in o
cir
ecog
nise
d in
sta
tem
ent
of P
rofi
t and
lo
ss#
as
at
31 M
arch
20
19
rec
ogni
sed
in o
ther
eq
uity
rec
ogni
sed
in o
cir
ecog
nise
d in
sta
tem
ent
of P
rofi
t and
lo
ss#
as
at
31 M
arch
20
20
Pro
pert
y, p
lant
and
equ
ipm
ent a
nd
inta
ngib
le a
sset
s (n
et)
3,7
24.9
7 1
7.65
-
1
90.3
5 3
,932
.97
15.
93
(151
.65)
3,7
97.2
5
Empl
oyee
rel
ated
pro
visi
ons
and
liabi
litie
s (3
58.4
3) -
1
4.94
(1
34.1
7) (4
77.6
6) (1
30.8
1) (1
7.84
) 1
58.5
3 (4
67.7
8)
Allo
wan
ces
for
Dou
btfu
l Deb
ts (1
02.3
6) -
-
(5
4.71
) (1
57.0
7) 1
7.03
(1
40.0
4)Fi
nanc
ial i
nstr
umen
ts a
t am
ortis
ed
cost
/FVT
PL
(218
.09)
-
-
31.
56
(186
.53)
14.
04
(172
.49)
Leas
e lia
bilit
ies
(net
of r
ight
of u
se
asse
ts)
-
(5.5
8) -
(3
4.08
) (3
9.66
)
Diff
eren
ce in
rig
ht-o
f-us
e as
set a
nd
leas
e lia
bilit
ies
-
(2.1
1) -
(0
.51)
(2.6
2)
MAT
Cre
dit
(1,4
72.3
0) -
-
3
29.8
2 (1
,142
.48)
(127
.62)
(1,2
70.1
0)Eq
uity
inst
rum
ents
as
Fair
Val
ue 3
48.4
1 -
3
0.58
3
1.36
4
10.3
5 (3
80.5
9) 2
9.76
Ta
x lo
sses
(174
.21)
(41.
91)
-
24.
49
(191
.63)
(191
.63)
Pro
visi
on fo
r Im
pair
men
t -
(4
1.06
) -
4
1.06
-
-
U
nrea
lised
For
eign
Exc
hang
e (g
ain)
/lo
ss -
(2
.51)
-
2.5
1 -
-
Una
bsor
bed
depr
ecia
tion
and
carr
y fo
rwar
d lo
sses
(67.
32)
-
-
(167
.05)
(234
.37)
(143
.50)
(377
.87)
Gai
n on
acq
uisi
tion
of c
ontr
ol o
ver
exis
ting
asso
ciat
e -
5
5.25
5
5.25
Oth
ers
(73.
70)
-
(10.
61)
(59.
71)
(144
.02)
0.2
3 1
73.9
2 3
0.13
Fo
reig
n cu
rren
cy m
onet
ary
item
tr
ansl
atio
n di
ffer
ence
acc
ount
19.
58
-
-
(38.
23)
(18.
65)
16.
62
(2.0
3)
Gov
ernm
ent g
rant
251
.02
-
-
28.
24
279
.26
(6.9
2) 2
72.3
4 Fo
reig
n cu
rren
cy lo
ss o
n re
stat
emen
t of b
alan
ces
in
subs
idia
ry -
-
-
(1
68.4
6) (1
68.4
6) (1
2.00
) -
1
68.4
6 (1
2.00
)
tota
l 1
,877
.57
(67.
82)
34.
91
57.
05
1,9
01.7
1 (1
34.5
7) (3
98.1
9) 1
39.5
7 1
,508
.51
* A
s at
31
Mar
ch 2
020
and
as a
t 31
Mar
ch 2
019,
the
Gro
up h
as s
igni
fica
nt u
nabs
orbe
d de
prec
iatio
n an
d ca
rry
forw
ard
loss
es. T
he G
roup
has
not
rec
ogni
sed
defe
rred
tax
asse
ts in
res
pect
of d
educ
tible
tem
pora
ry d
iffer
ence
, unu
sed
tax
loss
es a
nd u
nabs
orbe
d de
prec
iatio
n in
the
hold
ing
com
pany
and
som
e of
sub
sidi
arie
s, a
s it
is
not p
roba
ble
that
taxa
ble
profi
t wou
ld b
e av
aila
ble.
#
Incl
udes
fore
ign
exch
ange
fluc
tuat
ion
amou
ntin
g to
Rs.
(43.
61) m
illio
n (M
arch
31,
201
9 R
s. (1
5.83
) mill
ion)
**
Def
erre
d Ta
x A
sset
acq
uire
d fo
r D
evya
ni F
ood
Indu
stri
es (K
enya
) Ltd
. (Ea
rlie
r kn
own
as S
amee
r A
gric
ultu
re &
Liv
esto
ck (K
enya
) Ltd
.)
40 composition of the group
These consolidated financial statements include the respective financial statements of RJ Corp Limited (the ‘Parent
Company’ or the ‘Holding Company’), its subsidiaries and the results of operations of its associates as listed below.
Name of subsidiary/ step subsidiarycountry of
incorporation and principal
place of business
Proportion of ownership interests held by the group at
year endas at
31 March 2020as at
31 March 2019 Wellness Holdings Limited UAE 100.00% 100.00% arctic international Pvt. Ltd. ("aiPL") Mauritius 100.00% 100.00% Varun Food & Beverages (Zambia) Ltd. (Subsidiary of "AIPL") Zambia 100.00% 100.00% Varun Developers Pvt. Ltd. (Subsidiary of "AIPL") Nepal 100.00% 100.00% devyani food industries Ltd. ("dfiL") India 99.92% 99.92% Accor Developers (Private) Ltd. ("ADPL")(Subsidiary of "DFIL") Sri Lanka 99.94% 99.94% Devyani Food Industries (Kenya) Ltd. Kenya 99.92% 62.45% Ole Marketing Private Ltd (Subsidiary of "ADPL") Sri Lanka 66.67% 66.67% devyani international Ltd. ("diL") India 76.40% 76.40% Devyani International (Nepal) Private Limited (Subsidiary of "DIL") Nepal 76.40% 76.40% Devyani Food Street Private Limited (Subsidiary of "DIL") India 76.40% 76.40% RV Enterprizes Pte. Limited ("RVPEL") (Subsidiary of "DIL") Singapore 66.47% 66.47% Devyani International (Nigeria) Limited (Subsidiary of "RVEPL") Nigeria 52.34% 52.34% Devyani Airport Services (Mumbai) Private Limited (Subsidiary of "DIL")
India 38.96% 38.96%
Devyani International (UK) PVT Ltd (Subsidiary of "DIL") UK 76.40% 76.40% cryoviva Biotech Pvt Ltd ("cBPL") India 87.46% 87.46% Cryoviva Banglasdesh Private Limited (Subsidiary of "CBPL") Bangladesh 67.34% 67.34% Varun Beverages Limited ("VBL") India 27.69% 30.56% Varun Beverages (Nepal) Private Limited (Subsidiary of "VBL") Nepal 27.69% 30.56% Varun Beverages Lanka (Private) Limited ("VB Lanka")(Subsidiary of "VBL")
Sri Lanka 27.69% 30.56%
Varun Beverages Morroco SA (Subsidiary of "VBL") Morocco 27.69% 30.56% Ole Spring Bottlers (Private) Limited (Subsidiary of "VB Lanka") Sri Lanka 27.69% 30.56% Varun Beverages (Botswana) (Prorietary) Limited (Subsidiary of "VBL")^
Botswana NA 27.50%
Varun Beverages (Zambia) Limited (Subsidiary of "VBL") Zambia 24.92% 27.50% Varun Beverages (Zimbabwe) Private Limited (Subsidiary of "VBL") Zimbabwe 23.54% 25.98% Angelica Technologies Private Limited ("ATPL") (Subsidiary of "VBL")*
India NA 14.45%
Lunarmech Technologies Private Limited (Subsidiary of "ATPL")* India 15.23% 16.81% accorbev (telangana) Private Limited India 100.00% 100.00% sVs india Private Limited India 72.00% 72.00% diagno Labs Private Limited** India NA 99.97% Modern Montessori international (india) Pvt Ltd India 50.20% 50.20% alisha retail Private Limited** India NA 99.95% cryoviva international Pte Ltd ("ciPL") Singapore 56.00% 56.00%Cryoviva Singapore Pte Ltd (Subsidiary of "CIPL") Singapore 47.65% 47.65%
(` in millions, except for share data and if otherwise stated)
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 196
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Name of associates/Joint Venture
country of incorporation and principal
place of business
Proportion of ownership interests held by the group
at year endas at
31 March 2020
as at 31 March
2019 Africare Limited Kenya 27.50% 27.50% Lineage Healthcare Limited*** India NA 49.80% Parkview City Limited India 38.00% 38.00% Agarwal Cold Drinks Pvt.Ltd.^ India NA 25.00% Capital Infracon Private Limited India 49.50% 49.50% Ratnakar Foods & Beverages Pvt. Ltd.^ India NA 50.00% Angelica Technologies Private Limited ("ATPL")(Associate of "VBL")* India NA 14.45% Lunarmech Technologies Private Limited (Subsidiary of "ATPL")* India NA 10.70% Cryoviva Thailand Pvt Ltd(Associate of "AIPL") Thailand 50.00% 50.00% Iclinic Healthcare Private Limited (Associate of Diagno Labs Pvt. Ltd.) # India NA 37.13% The Minor Food Group (India) Private Limited (JV of "DIL") India 22.92% 22.92%
^ Varun Beverages (Botswana) (Proprietary) Limited ceases to be subsidiary of VBL Zambia w.e.f 11 March 2020
* Lunarmech Technologies Private Limited (subsidiary of Angelica Technologies Private Limited) became subsidiary of
Varun Beverages Limited “VBL” on account of increase in stake from 35% to 55%, post which the VBL has acquired
the board control of its associate, Angelica Technologies Private Limited. Consequently, both the entities have become
subsidiaries of the VBL with effect from 04 November 2019.
**Diagno Labs Private Limited and Alisha Retail Private Limited ceases to be subsidiary of the Holding Company with
effect from 28 March 2020 and 20 February 2020.
***Lineage Healthcare Limited ceases to be an accociate of the Holding Company with effect from 12 March 2020.
# Iclinic Healthcare Private Limited ceases to be an accociate of Holding Company with effect from 28 March 2020
41 gratuity and other post-employment benefit plans
gratuity:
The Group has a defined benefit gratuity plan governed by the Payments of Gratuity Act, 1972. Every employee who has
completed five years or more of services is eligible for gratuity on separation at 15 days salary (last drawn salary) for
each completed year of service. The Group makes a provision of unfunded liability based on actuarial valuation in the
Balance Sheet as part of employee cost.
The following tables summaries the components of net benefit expense recognized in the Statement of Profit and Loss
and the funded status and amounts recognized in the balance sheet:
gratuity31 March 2020 31 March 2019
changes in present value are as follows: Balance at the beginning of the year 1,148.93 955.06 Acquired on business combination 294.35 9.90 Current service cost 201.89 138.13 Adjustment on account of acquisition/(disposal) (13.15) - Interest cost 98.62 71.82 Benefits settled (39.73) (68.07)Exchange differences on transition (0.64) (2.39)Actuarial loss/(gain) 21.89 44.49 Balance at the end of the year 1,712.16 1,148.93
(` in millions, except for share data and if otherwise stated)
Annual Report 2019-20 | RJ Corp Limited 197
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
gratuity31 March 2020 31 March 2019
change in fair value of plan assets are as follows:Plan assets at the beginning of the year, at fair value 72.97 91.26 Expected income on plan assets 4.54 6.32 Fund Charges (0.12) (0.12)Actuarial gain/(loss) (0.17) (0.53)Contributions by employer 57.07 11.84 Benefits settled (40.56) (35.80)Plan assets at the end of the year, at fair value 93.72 72.97
gratuity31 March 2020 31 March 2019
reconciliation of present value of the obligation and the fair value of the plan assets:Present value of obligation 1,712.16 1,148.93 Fair value of plan assets (93.72) (72.97)Net liability recognised in the Balance sheet 1,618.44 1,075.97
gratuity31 March 2020 31 March 2019
amount recognised in statement of Profit and Loss:Current/Past service cost 201.89 138.13 Interest expense 98.62 71.82 Expected return on plan assets 4.54 6.32 Net cost recognised 305.05 216.26
gratuity31 March 2020 31 March 2019
amount recognised in other comprehensive income:Actuarial changes arising from changes in financial assumptions 78.35 8.26 Actuarial changes arising from changes in demographic assumptions (81.27) 4.49 Experience adjustments 61.16 31.51 Return on plan assets 0.17 0.53 amount recognised 58.41 44.79
gratuity31 March 2020 31 March 2019
assumptions used:
MortalityIALM (2012-14)
ultimateIALM (2006-08)
ultimateDiscount rate 5-14.00% 6.52-14.00%Withdrawal rate 1-11% 3-11%Salary increase 6-12% 6-12%Rate of return on plan assets 7.36-7.65% 7.29-7.55%Rate of availing leave in the long run - - Retirement age (Years) 55-70 years 55-65 years
(` in millions, except for share data and if otherwise stated)
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 198
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
a quantitative sensitivity analysis for significant assumption as at 31 March 2019 is as shown below:
sensitivity level gratuity31 March 2020 31 March 2019 31 March 2020 31 March 2019
Discount rate +1% +1% (108.36) (66.64)-1% -1% 123.37 75.06
Salary increase +1% +1% 117.36 71.37 -1% -1% (105.51) (64.83)
Withdrawal rate +1% +1% (30.01) (61.95)-1% -1% 33.12 107.95
The sensitivity analysis above has been determined based on reasonably possible changes of the assumptions occurring
at the end of the reporting period, while holding all other assumptions constant.
risk associated:
Investment riskThe present value of the defined benefit plan liability is calculated using a discount rate determined by reference to Government Bonds Yield. If plan liability is funded and return on plan assets is below this rate, it will create a plan deficit.
Interest risk (discount rate risk) A decrease in the bond interest rate (discount rate) will increase the plan liability.
Mortality risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants. For this report we have used Indian Assured Lives Mortality (2006-08) ultimate table. A change in mortality rate will have a bearing on the plan's liability.
Salary risk
The present value of the defined benefit plan liability is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan's liability.
defined contribution plan:
Contribution to defined contribution plans, recognised as expense for the year is as under:
31 March 2020 31 March 2019 Employer’s contribution to provident and other funds 675.83 571.43
31 March 2020 31 March 2019 The Group has not accounted gratuity based on the acturial valuation as prescribed under Indian Accounting standard 19- ‘Employee Benefits’ for some of its subsidiaries, considering the size of business and number of employees. Provision for gratuity has been accounted on accrual basis, based on the last drawn salary of each employee and has the following amounts:
1.50 2.68
(` in millions, except for share data and if otherwise stated)
Annual Report 2019-20 | RJ Corp Limited 199
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
42 earnings per share (ePs)
as at 31 March 2020
as at 31 March 2019
Profit/(Loss) attributable to the equity shareholders 292.57 (939.12)Weighted average number of equity shares outstanding during the year for calculating basic earning per share (nos.)
214,580 193,778
Weighted average number of equity shares for calculation of diluted earnings per share (nos.)
214,580 193,778
Nominal value per equity shares (`) 10.00 10.00 Basic earnings per share (`) 1,363.45 (4,846.36)Diluted earnings per share (`) 1,363.45 (4,846.36)
The diluted earnings per share do not include the potential impact of conversion of the compulsorily convertible
preference shares and debentures, since the conversion is dependent on future events which are currently uncertain.
Accordingly the potential dilutive equity shares have not been considered for determining earnings per share attributable
to shareholders.
43 contingent liabilities and commitments
as at 31 March 2020
as at 31 March 2019
a. Guarantees issued on behalf of companies 1,066.30 445.65 b. Claims against the Company not acknowledged as debts (being contested):-
i Goods and service tax 0.31 - ii For excise and service tax 425.91 713.80 iii For sales tax / entry tax 1,243.78 551.68 iv For income tax 1,224.36 561.05 v Others* 461.32 348.12
*excludes pending matters where amount of liability is not ascertainable.
44 capital commitments
as at 31 March 2020
as at 31 March 2019
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances).
3,554.31 999.59
45 Pursuant to transfer pricing legislations under the Income-tax Act, 1961, the Group is required to use specified methods
for computing arm’s length price in relation to specified international and domestic transactions with its associated
enterprises. Further, the Group is required to maintain prescribed information and documents in relation to such
transactions. The appropriate method to be adopted will depend on the nature of transactions/ class of transactions, class
of associated persons, functions performed and other factors, which have been prescribed. The Group is in the process
of updating its transfer pricing documentation for the current financial year. Based on the preliminary assessment, the
management is of the view that the update would not have a material impact on the tax expense recorded in these
financial statements. Accordingly, these financial statements do not include any adjustments for the transfer pricing
implications, if any.
(` in millions, except for share data and if otherwise stated)
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 200
46 related party transactions
Following are the related parties and transactions entered with related parties for the relevant financial year:
a List of related parties and relationships:-
i. ultimate controlling party
R.K. Jaipuria & Sons HUF
ii. key Management Personnel
Mr. Varun Jaipuria Director
Mr. Raj P. Gandhi Director
Ms. Rashmi Dhariwal Director
Mr. Girish Ahuja Director
Mr. Ravi Kant Jaipuria Director
Mr. Lalit Singh CFO
Mr. Mahavir Prasad Garg Company Secretary
iii. associate (or an associate of any member of a group)
- Lineage Healthcare Ltd. (upto 11 March 2020)
- Africare Limited
- ParkView City Limited
- Capital Infracon Private Limited
- Angelica Technology Private Limited (upto 03 November 2019)
- Cryoviva (Thailand) Limited
- Lunarmech Technologies Private Limited (upto 03 November 2019)
- The Minor Food Group (India) Private Limited
- iClinic Healthcare Private Limited (upto 27 March 2020)
iV. entities in which a director or his/her relative is a member or director*
- Empire Stocks Pvt Limited
- Shabnam Properties Private Limited (upto 01/04/2019)
- Champa Devi Jaipuria Charitable Trust
- Accor Solar Energy Private Limited (formerly Devyani Agri Business Pvt. Ltd) (upto 01/04/2019)
- Arctic Overseas Pte. Ltd.
- Mala Jaipuria Foundation
- Pinnacle Town Planners Private Limited (upto 01/04/2019)
- Pinnacle Township Private Limited (upto 01/04/2019)
- Capital Tower Private Limited (upto 01/04/2019)
- Pinnacle Constructions Private Limited (upto 01/04/2019)
- Alisha Torrent Closure Private Limited
- Diagno Labs India Private Limited (w.e.f 28/03/2020)
- Lineage Healthcare Limited (w.e.f 12/03/2020)
- Nector Beverages Private Limited
- Steel City Beverages Private Limited
- Jai Beverages Private Limited
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 201
- Accor Industries (Private) Limited
- SMV Beverages Private Limited
- SMV Agencies Private Limited
- Sagacito Technology Pvt. Ltd.
V. relatives of kMPs**
- Meenu Singh
- Devyani Jaipuria
- Smt. Dhara Jaipuria
Vi. entities which are post employment benefits plans
VBL Employees Gratuity Trust
DIL Employee Gratuity Trust
*The status above is given based on merged holding of the transferee company including holding of transferor
companies. However the actual transfer is effected w.e.f 30/06/2020 i.e. the date of filing of the order of Hon’ble
National Company Law Tribunal, Special Bench, New Delhi with Registrar of Companies.
**With whom the Group had transactions during the current year and previous year.
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 202
su
MM
ar
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31. 0
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3.
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31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
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31. 0
3.
2020
31. 0
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sal
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sal
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Pur
chas
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Pur
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Annual Report 2019-20 | RJ Corp Limited 203
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31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
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2019
div
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126
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Mr.
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Mrs
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Mrs
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31. 0
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3
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Annual Report 2019-20 | RJ Corp Limited 205
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31. 0
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2020
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3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
Loan
take
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uria
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Em
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3
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8.83
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C
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2
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S
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rel
ativ
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a
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ties
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ploy
men
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nefi
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te (o
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as
soci
ate
of a
ny
mem
ber
of a
gro
up)
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
Paym
ent t
o gr
atui
ty tr
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VBL
Empl
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D
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5
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10.
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(exp
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curr
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by
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half
of t
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narm
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mite
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-
-
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(0.0
1)
Nec
tor
Bev
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adv
ance
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r ac
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3.0
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capi
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Mar
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test
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2.4
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31. 0
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2020
31. 0
3.
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31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
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3.
2019
rem
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Mr.
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3
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9 -
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M
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Mrs
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Nec
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Bev
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S
MV
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com
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31. 0
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31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
Pro
fess
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and
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burs
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ts p
aid
Sag
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1
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8 A
fric
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The
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31. 0
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31. 0
3.
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3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
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2020
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2019
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to s
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7.6
9 -
-
-
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M
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avi K
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6.3
0 1
8.81
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5 -
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8
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7.62
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S
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Luna
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(56.
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Acc
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Alis
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Ja
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Sag
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S
habn
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Annual Report 2019-20 | RJ Corp Limited 209
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31. 0
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31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
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3.
2019
31. 0
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2020
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2019
cont
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0 1
8.81
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Em
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P
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Bal
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(601
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Luna
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Lim
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-
-
-
-
(56.
90)
Acc
or In
dust
ries
(Pri
vate
) Lim
ited
-
-
-
-
33.
63
34.
83
-
-
-
-
SM
V B
ever
ages
Pri
vate
Lim
ited
-
-
-
-
32.
85
210
.58
-
-
-
-
Alis
ha T
orre
nt C
losu
re P
riva
te L
imite
d -
-
-
-
6
.61
0.3
4 -
-
-
-
N
ecto
r B
ever
ages
Pri
vate
Lim
ited
-
-
-
-
0.3
8 (1
45.5
6) -
-
-
-
Ja
i Bev
erag
es P
riva
te L
imite
d -
-
-
-
1
2.99
5
.87
-
-
-
-
Sag
acito
Tec
hnol
ogy
Pvt
. Ltd
. -
-
-
-
-
(2
.16)
-
-
-
-
Mr.
Rav
i Kan
t Jai
puri
a -
-
(4
56.1
1) (4
50.5
9) -
-
-
-
-
-
S
habn
am P
rope
rtie
s P
vt L
imite
d -
-
-
-
-
(3
8.07
) -
-
-
-
C
ham
pa D
evi J
aipu
ria
Cha
irita
ble
Trus
t -
-
-
-
6
.74
6.2
1 -
-
-
-
des
crip
tion
tota
l
ult
imat
e co
ntro
llin
g Pa
rty
kM
P a
nd th
eir
rela
tive
s
enti
ties
in w
hich
a
dire
ctor
or
his/
her
rel
ativ
e is
a
mem
ber
or d
irec
tor
enti
ties
whi
ch a
re
post
em
ploy
men
t be
nefi
ts p
lans
ass
ocia
te (o
r an
as
soci
ate
of a
ny
mem
ber
of a
gro
up)
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
31. 0
3.
2020
31. 0
3.
2019
Bal
ance
out
stan
ding
at t
he e
nd o
f the
yea
r r
ecei
vabl
es /
(Pay
able
s)M
ala
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uria
Fou
ndat
ion
-
-
-
-
0.2
7 1
.24
-
-
-
-
The
Min
or F
ood
Gro
up (I
ndia
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vate
Li
mite
d -
-
-
-
-
-
-
-
(0
.29)
(0.2
9)
iClin
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ealt
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riva
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imite
d -
-
-
-
-
-
-
-
-
4
.94
Arc
tic O
vers
eas
Pte
. Ltd
. -
-
-
-
8
6.08
8
1.96
-
-
-
-
C
ryov
iva(
Thai
land
) Ltd
. -
-
-
-
-
-
-
-
-
(2
42.2
9)M
rs. D
hara
Jai
puri
a -
-
1
.80
-
-
-
-
-
-
-
Mrs
. Dev
yani
Jai
puri
a -
-
-
0
.04
-
-
-
-
-
-
Afr
icar
e Li
mite
d -
-
-
-
-
-
-
-
1
,027
.92
931
.17
Line
age
Hea
lthc
are
Lim
ited
-
-
-
-
0.0
4 -
-
-
-
5
4.99
Em
pire
Sto
cks
Pri
vate
Lim
ited
-
-
-
-
(4.9
2) (9
5.29
) -
-
-
-
C
apita
l Inf
raco
n P
riva
te L
imite
d -
-
-
-
-
-
-
-
1
51.3
1 -
D
iagn
o La
bs P
riva
te L
imite
d -
-
-
-
(0
.05)
-
-
-
-
-
Mr.
Mah
avir
Pra
sad
Gar
g -
-
0
.27
-
-
-
-
-
-
-
Par
kvie
w C
ity L
imite
d -
-
-
-
-
-
-
-
9
43.3
7 7
24.1
5
Bal
ance
of c
ompu
lsar
y co
nver
tibl
e de
bent
ures
Em
pire
Sto
ck P
riva
te L
imite
d -
-
-
-
6
00.0
0 6
00.0
0 -
-
-
-
fina
ncia
l gau
rant
ees
Line
age
Hea
lthc
are
Lim
ited
-
-
-
-
325
.00
-
-
-
-
425
.00
Dia
gno
Labs
Indi
a P
riva
te L
imite
d -
-
-
-
3
20.8
0 -
-
-
-
-
A
fric
are
Lim
ited
-
-
-
-
-
-
-
-
111
.30
111
.30
inve
stm
ent w
ritt
en o
ff o
n ac
coun
t of c
losu
re o
f com
pany
Rat
naka
r fo
ods
and
Bev
erag
es P
riva
te
Lim
ited
-
-
-
-
-
-
-
-
0.5
0 -
impa
irm
ent o
f loa
ns g
iven
Afr
icar
e Li
mite
d -
-
-
-
-
-
-
-
9
89.7
8 -
(` in
mill
ions
, exc
ept f
or s
hare
dat
a an
d if
oth
erw
ise
stat
ed)
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 210
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
(` in millions, except for share data and if otherwise stated)
47. Leases
a. Leases where the group is a lessee
The Group leases several assets including buildings for food outlets, retail stores, running pre-schools, plant and
equipments and warehouses. Lease payments are generally fixed or are linked to revenue with minimum guarantee and
average lease term is 1-26 years.
i. right-of-use asset
Right-of-use assets related to leased properties that do not meet the definition of investment property are presented on
face of balance sheet below property, plant and equipment.
Buildings Recognised as at 1 April 2019 (refer note 4B) 10,583.92
Additions 2,628.85 Adjustments on account of remeasurement/modification 379.72 Derecognition (422.30)Exchange differences on translation of foreign operations 73.92 Depreciation (1,679.55)Impairment (82.86)
closing balance as at 31 March 2020 11,481.71
ii. for lease liabilities refer note 22B and 22e.
iii. amounts recognised in the statement of profit or loss
Note for the year
ended 31 March 2020
Depreciation 37 1,679.55 Impairment on right of use asset 37A 82.86 Interest on lease liabilities 36 1,234.92 (Gain) on derecognition of Right of use asset 31 (59.65)Expenses relating to short-term leases 106.54 Expense relating to short term lease/variable lease payments not included in the measurement of the lease liability
38 1,623.66
Net impact on statement of profit and loss 4,667.88
iv. amounts recognised in the cash flow statement
for the year ended 31 March 2020
Payment for finance cost 1,234.92 Principal repayments 1,256.10 total cash outflows 2,491.02
v. Payments associated with short-term leases of premises and all leases of low-value assets are recognised on a
straight-line basis as an expense in profit or loss.
Short-term leases are leases with a lease term of 12 months or less.
B. Leases where the group is a lessor
The Group has sub-leased out some of its leased properties primarily in various food courts. All leases are classified as
operating leases from a lessor perspective with the exception of certain sub-leases, which the Group has classified as
Annual Report 2019-20 | RJ Corp Limited 211
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
(` in millions, except for share data and if otherwise stated)
finance subleases.
i. finance lease (sub leases classified as finance leases)
During the year ended 31 March 2020, the Group has sub-leased a portion of multiple leased properties that have been
presented as part of a right-of-use assets.
Note for the year
ended 31 March 2020
Gain on net investment in finance lease 31 18.76 Finance income on net investment in finance leases 31 12.47 Income relating to variable lease payments not included in the net investment in finance leases
31 1.77
Finance lease receivables 9 & 17 153.42
The following table sets out a maturity analysis of lease receivables, showing the undiscounted lease payments to be
received after the reporting date. Under Ind AS 17, the Group did not have any finance leases as a lessor (being sub leases
classified as finance leases).
The maturity analysis of lease receivables, including the undiscounted lease payments to be received are as follows:
amounts receivable under finance leases:
as at31 March 2020
Less than one year 25.97 One to five years 115.44 More than five years 90.95 total undiscounted lease payments receivable 232.36 Less: Unearned finance income (78.94)Net investment in the lease 153.42
ii. the incremental borrowings rate range between 9.25% - 10.85%.
The management of the Group estimates the loss allowance on finance lease receivables at the end of the reporting period
at an amount equal to lifetime expected credit loss under simplified approach. None of the finance lease receivables at
the end of the reporting period is past due, and taking into account the historical default experience and the future
prospects of the industries in which the lessees operate, together with the value of collateral held over these finance
lease receivables (see note 19), the management of the Group consider that no finance lease receivable is impaired.
The Group entered into finance leasing arrangements as a lessor for certain leased properties under sub leasing
arrangements. The average term of finance leases entered into is 9.04 years. The Group is not exposed to foreign currency
risk as a result of the lease arrangements, as all leases are denominated in INR. Residual value risk on such right of use
assets under lease is not significant.
ii. operating lease (sub leases classified as operating leases)
Operating leases, in which the Group is the lessor, relate to leased properties by the Group with lease terms of between
1 to 9 years.
The unguaranteed residual values do not represent a significant risk for the Group, as they relate to leased properties
of lessor under sub leasing contracts which are located in a location with active market for lessees. The Group did not
identify any indications that this situation will change.
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 212
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
The following table presents the amounts included in profit or loss.
Note for the year
ended 31 March 2020
Lease income on operating leases 31 144.00 Therein lease income relating to variable lease payments that do not depend on an index or rate
9.25
amounts receivable under operating leases:
as at31 March 2020
Less than one year 92.24 One to five years 287.91 More than five years 32.73 total 412.88
c. changes in accounting policies:
Except for the changes below, the Group has consistently applied the accounting policies to all periods presented in
these consolidated financial statements. The Group applied Ind AS 116 with a date of initial application of 1 April 2019.
As a result, the Group has changed its accounting policy for lease contracts as detailed below. The adoption of this new
Standard has resulted in the Group recognising a right-of-use asset and related lease liability in connection with all
former operating leases except for those identified as low-value or having a remaining lease term of less than 12 months
from the date of initial application.The Group applied Ind AS 116 using the modified retrospective approach, under which
the cumulative effect of initial application is recognised in retained earnings at 1 April 2019. Prior periods have not been
restated. The details of the changes in accounting policies are disclosed below.
i. definition of a lease
On transition to Ind AS 116, the Group elected to apply the practical expedient to grandfather the assessment of which
transactions are leases. It applied Ind AS 116 only to contracts that were previously identified as leases. Contracts that
were not identified as leases under Ind AS 17 were not reassessed for whether there is a lease. Therefore, the definition
of a lease under Ind AS 116 was applied only to contracts entered into or changed on or after 1 April 2019.
ii. as a lessee
As a lessee, the Group previously classified leases as operating or finance leases based on its assessment of whether the
lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the Group.
Under Ind AS 16, the Group recognises right-of-use assets and lease liabilities for most leases – i.e. these leases are on-
balance sheet.
a. Leases classified as operating leases under ind as 17
The Group has elected not to include initial direct costs in the measurement of the right-of-use asset for operating leases
in existence at the date of initial application of Ind AS 116, being 1 April 2019. At this date, the Group has also elected
to measure the right-of-use assets at an amount equal to the lease liability adjusted for any prepaid or accrued lease
payments that existed at the date of transition.
The Group used the following practical expedients when applying Ind AS 116 to leases previously classified as operating
leases under Ind AS 17.
(` in millions, except for share data and if otherwise stated)
Annual Report 2019-20 | RJ Corp Limited 213
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
-Instead of performing an impairment review on the right-of-use assets at the date of initial application, the Group has
relied on its historic assessment as to whether leases were onerous immediately before the date of initial application of
Ind AS 116.
-Applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease
term.
-Used hindsight when determining the lease term if the contract contains options to extend or terminate the lease.
b. there were no leases previously classified as finance leases.
iii. impacts on the consolidated financial statements
On transition to Ind AS 16, the Group recognised Rs. 10,583.92 as right-of-use assets (refer below) and Rs. 13,041.41 of
lease liabilities, with corresponding impact of Rs. 1,598.53 on retained earnings as at 1 April 2019 and reclassification
of deferred rent of Rs. 256.67 to right-of-use assets. Also, the Group has transferred lease equalisation reserve of Rs
488.18 to retained earnings as at 1 April 2019 per Ind AS transition requirements. the Group has recognised INR 72.78
as finance lease receivables and INR 470.66 as investment properties in respect of subleases. Net impact on retained
earnings amounted to Rs. 1,598.53 out of which Rs. 356.66 is attributed to NCI.When measuring lease liabilities, the Group
discounted lease payments using its incremental borrowing rate at 1 April 2019. The weighted-average rate applied is
3.41 to 19%.
total lease liabilities recognised under ind as 116 at 1 april 2019:-current lease liabilities 1,282.64 -non current lease liabilities 11,758.76
13,041.41
*Operating lease commitment amount disclosed in previous year was inclusive of GST which has been excluded from
lease consideration under IND AS 116.
adjustments recognised in the balance sheet on 1 april 2019
The change in accounting policy affected the following items in the balance sheet on 1 April 2019:
Particulars sub noteamounts
reported as at31 March 2019
impacts of adoption
ind as 116
adjusted amounts as at1 april 2019
Property, plant and equipment (Note 4) - - - Investment properties (refer to note 4C) - 470.66 470.66 Lease equalisation reserve 488.18 (488.18) - Finance lease receivables 72.78 - Retained earnings 21 (6,817.25) (1,598.53) (8,416.00)Other assets (refer to note 11) 263.88 (254.56) 9.32 Lease liabilities (including current liabilities) (refer to note 22B and 22D)
- (13,041.41) (13,041.41)
Right of use assets (refer to note 4B) - 10,583.92 10,583.92
(` in millions, except for share data and if otherwise stated)
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 214
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
48 dues to Micro and small enterprises
Particulars as at 31 March 2020
as at 31 March 2019
The amounts remaining unpaid to micro and small suppliers as at the end of the year- Principal 67.00 27.36 - Interest 3.15 0.29 The amount of interest paid by the buyer as per the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006)
- -
The amounts of the payments made to micro and small suppliers beyond the appointed day during each accounting year.
180.37 68.77
The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed date during the year) but without adding the interest specified under MSMED Act, 2006.
0.40 0.24
The amount of interest accrued and remaining unpaid at the end of each accounting year.
4.73 1.20
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 the MSMED Act, 2006.
4.76 1.20
49. details of corporate social responsibility (csr) expenditure
In accordance with the provisions of section 135 of the Companies Act, 2013, the Board of Directors of the Holding
Company had constituted CSR Committee. However, due to losses the Holding company is not required to incur for CSR
activities. The details for CSR activities is as follows.
Particularsfor the year
ended 31 March 2020
for the year ended
31 March 2019a) Gross amount required to be spent by the Company during the year Nil Nil b) Amount spent during the year on the following 1. Construction / Acquisition of any asset Nil Nil 2. On purpose other than 1 above Nil Nil
(` in millions, except for share data and if otherwise stated)
Annual Report 2019-20 | RJ Corp Limited 215
rep
orta
ble
seg
men
ts r
etai
ls
Bus
ines
s
cha
rter
H
irin
g s
ervi
ces
Hea
lthc
are
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s r
eal
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te
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crea
m
and
dai
ry
Pro
duct
s
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cati
on
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rant
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ever
ages
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ther
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enue
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even
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om e
xter
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omer
785
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191
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1,3
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1.91
9
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56.
06
15,
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57
75,
670.
99
181
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103
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Inte
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(188
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(4.8
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) (1
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56.
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22
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47
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76
102
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res
ult
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(12.
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(17.
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(445
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11.
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(714
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10.
27
(264
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9,7
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2 (5
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nce
cost
7,6
76.9
2 Fi
nanc
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1 N
on o
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4,2
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8 Ex
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(324
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x 4
,448
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oth
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tem
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and
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19.
75
24.
83
68.
35
0.5
7 8
38.1
3 5
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4 5
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120
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Impa
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s 3
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oth
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3 El
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(0.6
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(0.8
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132
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Seg
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t Lia
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ies
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283
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4,9
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89
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105
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Elim
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-
(221
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(0.2
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(0.3
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(7.3
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(3,4
23.7
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iabi
litie
s 9
9.60
6
2.16
4
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1,0
56.1
9 1
1,98
1.21
2
0.46
2
1,10
9.28
5
3,59
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8
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101
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su
MM
ar
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f s
igN
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t a
cc
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aN
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ati
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or
tHe
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de
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ar
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202
0
(` in
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oth
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ise
stat
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50. s
egm
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l rep
orti
ng:
The
Gro
up’s
ope
ratin
g se
gmen
ts a
re o
rgan
ised
and
man
aged
sep
arat
ely
thro
ugh
the
resp
ectiv
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sine
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anag
ers,
acc
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o th
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ture
of
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and
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and
geog
raph
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in w
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s ar
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ovid
ed, w
ith e
ach
segm
ent r
epre
sent
ing
a st
rate
gic
busi
ness
uni
t. Th
ese
busi
ness
uni
ts a
re r
evie
wed
by
chi
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ting
deci
sion
mak
er -
‘CO
DM
’). T
he b
usin
ess
activ
ities
of t
he G
roup
fall
in fo
llow
ing
segm
ents
:
sum
mar
y of
seg
men
tial
info
rmat
ion
for
the
year
end
ed a
nd a
s of
31
Mar
ch 2
020
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 216
su
MM
ar
Y o
f s
igN
ific
aN
t a
cc
ou
Nti
Ng
Po
Lic
ies
aN
d o
tHe
r e
XP
LaN
ato
rY
iNfo
rM
ati
oN
oN
tH
e c
oN
so
Lid
ate
d f
iNa
Nc
iaL
sta
teM
eN
ts f
or
tHe
Ye
ar
eN
de
d 3
1 M
ar
cH
202
0(`
in m
illio
ns, e
xcep
t for
sha
re d
ata
and
if o
ther
wis
e st
ated
)
50. s
egm
enta
l rep
orti
ng:
The
Gro
up’s
ope
ratin
g se
gmen
ts a
re o
rgan
ised
and
man
aged
sep
arat
ely
thro
ugh
the
resp
ectiv
e bu
sine
ss m
anag
ers,
acc
ordi
ng t
o th
e na
ture
of
prod
ucts
and
se
rvic
es p
rovi
ded
and
geog
raph
ies
in w
hich
ser
vice
s ar
e pr
ovid
ed, w
ith e
ach
segm
ent r
epre
sent
ing
a st
rate
gic
busi
ness
uni
t. Th
ese
busi
ness
uni
ts a
re r
evie
wed
by
chi
ef o
pera
ting
deci
sion
mak
er -
‘CO
DM
’). T
he b
usin
ess
activ
ities
of t
he G
roup
fall
in fo
llow
ing
segm
ents
:
sum
mar
y of
seg
men
tial
info
rmat
ion
for
the
year
end
ed a
nd a
s of
31
Mar
ch 2
019
rep
orta
ble
seg
men
ts r
etai
ls
Bus
ines
s
cha
rter
H
irin
g s
ervi
ces
Hea
lthc
are
ser
vice
s r
eal
esta
te
ice
crea
m
and
dai
ry
Pro
duct
s
edu
cati
on
ser
vice
s
qui
ck
serr
vice
s re
stau
rant
s B
ever
ages
o
ther
sto
tal
rev
enue
R
even
ue fr
om e
xter
nal
cust
omer
1,3
76.5
6 1
51.6
4 1
,216
.24
-
7,5
94.4
8 5
5.32
1
3,44
2.96
5
4,86
3.25
4
89.3
8 7
9,18
9.85
Inte
r se
gmen
t rev
enue
(7.0
8) (1
24.2
6) (1
2.71
) -
(2
9.97
) -
(6
5.62
) (1
30.6
9) (1
07.5
6) (4
77.8
9)to
tal r
even
ue 1
,369
.49
27.
38
1,2
03.5
3 -
7
,564
.52
55.
32
13,
377.
34
54,
732.
56
381
.82
78,
711.
96
res
ult
Seg
men
t Res
ult
(375
.30)
66.
94
(303
.18)
-
(763
.91)
2.9
6 (5
20.1
7) 6
,480
.92
385
.25
4,9
73.5
0 Fi
nanc
e co
st 5
,063
.33
Fina
nce
inco
me
605
.36
Non
ope
ratin
g in
com
e 1
,414
.29
Exce
ptio
nal i
tem
s (1
9.13
)P
rofi
t Bef
ore
tax
1,9
10.6
9 o
ther
seg
men
t ite
ms
Dep
reci
atio
n an
d am
ortiz
atio
n ex
pens
e 3
9.85
2
4.47
4
3.92
-
6
16.6
5 2
.67
829
.23
3,9
30.3
9 2
1.01
5
,508
.21
Impa
irm
ent o
f non
-fi
nanc
ial a
sset
s 2
47.5
3 1
8.35
2
65.8
7
oth
er in
form
atio
nS
egm
ent A
sset
s 1
17.5
9 4
45.0
8 1
,419
.55
1,0
84.5
0 1
5,90
7.14
2
2.21
7
,791
.78
66,
072.
96
20,
517.
83
113
,378
.62
Elim
inat
ion
-
-
(207
.63)
-
(225
.95)
-
-
(438
.78)
(9,0
76.2
1) (9
,948
.58)
seg
men
t ass
ets
117
.59
445
.08
1,2
11.9
1 1
,084
.50
15,
681.
18
22.
21
7,7
91.7
8 6
5,63
4.17
1
1,44
1.62
1
03,4
30.0
5
Seg
men
t Lia
bilit
ies
1,1
03.7
1 2
11.7
8 5
,262
.35
1,0
91.3
5 1
2,25
8.78
1
6.82
7
,428
.42
45,
563.
80
11,
625.
65
84,
562.
65
Elim
inat
ion
-
(168
.59)
-
-
(1,7
26.9
0) -
-
(6
8.33
) (3
93.4
4) (2
,357
.27)
seg
men
t Lia
bilit
ies
1,1
03.7
1 4
3.18
5
,262
.35
1,0
91.3
5 1
0,53
1.87
1
6.82
7
,428
.42
45,
495.
47
11,
232.
21
82,
205.
38
Annual Report 2019-20 | RJ Corp Limited 217
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Information about geographical segments :.
The following table presents revenue from external customers, segment non-current assets regarding geographical
segments:
Particulars as at 31 March 2020
as at 31 March 2019
Non-current assets*-Within India 80,737.64 50,656.74 -Outside India 19,208.45 18,654.55
99,946.09 69,311.29
* excluding financial instruments, deferred tax assets and post-employment benefit assets.
Particulars as at 31 March 2020
as at 31 March 2019
revenue from external customers-Within India 78,907.93 55,358.03 -Outside India 23,703.63 23,353.93
102,611.56 78,711.96
51 capital management
For the purpose of the Group capital management, capital includes issued equity share capital, instruments compulsorily
convertible into equity, share premium and all other equity reserves. The primary objective of the Company’s capital
management is to maximise the shareholder value and provide adequate returns to shareholders.
The Group manages its capital structure and makes adjustments in light of changes in economic conditions, the
requirements of the financial covenants and the risk characteristics of the underlying assets.
The amounts managed as capital by the Group for the reporting periods are summarised as follows:
Particulars as at 31 March 2020
as at 31 March 2019
Non-current borrowings other than compulsorily convertible debentures (Refer note 22A)
36,330.78 37,286.84
Current borrowings (Refer note 22C) 12,705.57 10,152.73 Current maturities of long-term debts (Refer note 27) 11,071.60 9,233.04
60,107.95 56,672.60 Less: Cash and cash equivalents (Refer note 14) 1,678.14 1,950.05 Net debt 58,429.81 54,722.56 Equity share capital (Refer note 20) 2.17 2.12 Other equity (Refer note 21) 7,923.41 6,867.91 Compulsorily convertible debentures (Refer note 22A) 600.00 592.70 total capital 8,525.58 7,462.73 capital and net debt 66,955.39 62,185.29 gearing ratio 87.27% 88.00%
There have been no breaches in the financial covenants of any borrowing in the reporting periods.
(` in millions, except for share data and if otherwise stated)
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 218
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
52. impairment of non-financial assets
(i) devyani international Limited
In accordance with Ind AS 36 “Impairment of Assets”, the Devyani International Limited, one of Company’s subsidiary,
has identified individual quick service restaurants (stores) as a separate cash generating unit (CGU) for the purpose of
impairment review. Management periodically assesses whether there is an indication that an asset may be impaired using
a benchmark of two-year’s history of operating losses or marginal profits for a store. In view of higher operating costs or
decline in projected sales growth, certain stores have been impaired in the current year and in the previous years. Based
on the results of impairment testing for these stores in the current year, the property, plant and equipment, right-of-use
assets, investment properties and other intangible assets value of these stores aggregating `366.92 (excluding opening
provision for impairment of `68.86) have been reduced to the recoverable amount aggregating to `78.54 by way of
impairment charge of `219.52. Recoverable amount is value in use of these stores computed based upon projected cash
flows from operations with sales growth of Nil-20% (after considering the impact of estimation uncertainty of current
Covid 19), (previous year: 5% - 20%) and salary growth rate of 6% (previous year 8%), over balance useful life of plant
and machinery being the principle asset, discounted at rate of 12.11% - 12.72% p.a. (previous year: 12.97% p.a). Carrying
value of a store includes property, plant and equipment, right-of-use assets, investment properties, intangible assets
used at a store and allocated corporate assets.
Moreover, the impairment reversal of `147.27 is primarily on account of stores where the actual sales growth rate
has exceeded the projected sales growth rate, hence the recoverable amount aggregating to `337.33 has exceeded the
written down value of these stores aggregating ̀ 190.06 (after considering impairment charge recorded in previous years
amounting to `258.59). Further, impairment reversal also occurs in respect of certain property, plant and equipment at
stores which have been closed during the year.
Goodwill amounting to `228.06 is allocated across multiple stores acquired under business combination and the amount
so allocated to each store is not significant in comparison with the Company’s total carrying amount of goodwill. However,
the entire goodwill allocated over the stores acquired under business combination agreement, is tested for impairment
wherein the recoverable amount is calculated based on the same key assumptions as mentioned above. No impairment
loss has been recorded on the goodwill amount.
The key assumptions have been determined based on management’s calculations after considering, past experiences
and other available internal information and are consistent with external sources of information to the extent applicable.
Management has identified that a reasonably possible change in the three key assumptions could cause a change in
amount of impairment loss/ (reversal). The following table shows the amount by which the impairment loss/(reversal)
would increase/ (decrease) on change in these assumptions by 1%. All other factors remaining constant.
increase/ (decrease) in impairment lossfor the year ended
31 March 2020 31 March 2019discount rate(Increase by 1%) 8.97 (7.49)(Decrease by 1%) (8.42) 7.82 sales growth rate(Increase by 1%) (30.37) (48.11)(Decrease by 1%) 29.19 52.40 salary growth rate(Increase by 1%) 3.84 12.28 (Decrease by 1%) (3.87) (11.91)
(` in millions, except for share data and if otherwise stated)
Annual Report 2019-20 | RJ Corp Limited 219
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
52a. impairment of loan given to associates
The Company holds 25% of equity share capital in Africare Limited (an associate company). Africare Limited is engaged
in the business of healthcare services. During the current and previous year, Africare Limited has incurred significant
cash losses. Its net worth is negative and current liabilities is exceeding its current assets. Basis which and due to
deterioration of expected future cash flows, the management has impaired Loan amounting to `989.78 (which includes
interest receivable of `15.56) due from Africare Limited in the current year.
53 financial instruments risk
financials risk management objectives and policies
The Group is exposed to various risks in relation to financial instruments. The main types of financial risks are market
risk, credit risk and liquidity risk.
The management of the Group monitors and manages the financial risks relating to the operations of the Group on
a continuous basis. The Group’s risk management is coordinated at its head office, in close cooperation with the
management, and focuses on actively securing the Group’s short to medium-term cash flows and simultaneously
minimising the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting
returns.
The Group does not engage in the trading of financial assets for speculative purposes. The most significant financial risks
to which the Group is exposed are described below.
53.1 Market risk analysis
Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises two types of risk namely: currency risk and interest rate risk. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The functional currency of the Holding company is Indian Rupees (‘INR’ or ``’). Most of the
transactions of holding company and Indian subsidiary are carried out in Indian Rupees and of foriegn subsidiary are
carried out in their respective local currency.
The Group has limited exposure to foreign currency risk and thereby it mainly relies on natural hedge. To further mitigate
the Group’s exposure to foreign currency risk, non-INR cash flows are continuously monitored.
The carrying amounts of the Group’s foreign currency denominated monetary items are restated at the end of each
reporting period. Foreign currency denominated financial assets and liabilities which expose the Group to currency risk
are as follows:
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 220
us
dg
BP
euro
ks
HLk
rM
ad
NP
rZM
Ws
gd
ZML
31 M
arch
202
0Fi
nanc
ial a
sset
s (a
) Loa
ns G
iven
-
-
-
-
175
.00
1.8
2 -
0
.26
-
-
(b) R
oyal
ty R
ecei
vabl
e -
-
-
-
-
-
-
-
-
-
(c
) Tra
de R
ecei
vabl
es 0
.03
-
-
341
.16
623
.42
80.
60
246
.79
141
.27
-
63.
72
(d) O
ther
fina
ncia
l ass
ets
(cur
rent
) 4
.89
0.0
1 2
.50
-
85.
13
0.0
1 2
2.09
1
.32
-
0.1
8 (e
) Cas
h an
d ca
sh e
quiv
alen
ts -
-
-
1
27.4
3 7
1.67
3
.59
513
.98
12.
81
-
39.
35
(f) O
ther
ban
k ba
lanc
es -
-
-
-
1
09.4
1 -
1
42.2
0 -
-
1
28.7
9 to
tal fi
nanc
ial a
sset
s 4
.92
0.0
1 2
.50
468
.59
1,0
64.6
3 8
6.02
9
25.0
6 1
55.6
6 -
2
32.0
4 Fi
nanc
ial l
iabi
litie
s(a
) Bor
row
ings
7.6
5 -
-
2
,334
.98
398
.65
46.
90
231
.68
15.
48
33.
13
216
.67
(b) F
orei
gn C
urre
ncy
Loan
s fr
om B
anks
4.3
1 -
-
-
-
-
4
0.96
-
-
-
(c
) Tra
de P
ayab
les
9.2
4 0
.18
1.5
6 1
,119
.87
349
.82
106
.73
1,4
08.0
3 8
1.98
-
4
00.1
4 (d
) Oth
er fi
nanc
ial l
iabi
litie
s -
-
-
6
86.7
9 2
05.0
4 1
8.84
4
07.0
6 3
3.00
0
.32
246
.16
tota
l fina
ncia
l lia
bilit
ies
21.
20
0.1
8 1
.56
4,1
41.6
4 9
53.5
1 1
72.4
7 2
,087
.73
130
.46
33.
45
862
.97
31 M
arch
201
9Fi
nanc
ial a
sset
s(a
) Loa
ns G
iven
-
-
-
-
1.9
2 -
0
.26
-
-
(b) R
oyal
ty R
ecei
vabl
e -
-
-
-
-
-
-
-
-
(c
) Tra
de r
ecei
vabl
es (c
urre
nt)
2.5
7 0
.02
-
1,1
88.7
9 4
6.52
1
93.7
3 1
18.4
6 0
.13
-
(d) O
ther
fina
ncia
l ass
ets
(cur
rent
) 0
.37
-
0.1
0 -
0
.01
13.
38
3.2
6 -
-
(e
) Cas
h an
d ca
sh e
quiv
alen
ts 3
.10
-
-
18.
42
2.9
6 4
30.0
0 9
.32
-
-
(f) O
ther
ban
k ba
lanc
es 7
.11
-
-
107
.01
-
22.
67
-
-
-
tota
l fina
ncia
l ass
ets
13.
15
0.0
2 0
.10
-
1,3
14.2
3 5
1.41
6
59.7
8 1
31.3
0 0
.13
-
Fina
ncia
l lia
bilit
ies
(a) B
orro
win
gs 3
0.45
-
-
6
,243
.34
420
.34
496
.63
195
.00
33.
13
-
(b) F
orei
gn C
urre
ncy
Loan
s fr
om B
anks
-
-
-
-
-
-
-
-
-
(c) T
rade
Pay
able
s 2
5.93
0
.11
1.9
5 4
90.0
7 7
9.56
1
,064
.10
80.
19
-
-
(d) O
ther
fina
ncia
l lia
bilit
ies
18.
45
-
-
377
.71
40.
43
1,2
36.4
9 4
9.83
0
.50
-
tota
l fina
ncia
l lia
bilit
ies
74.
83
0.1
1 1
.95
-
7,1
11.1
3 5
40.3
3 2
,797
.22
325
.02
33.
63
-
su
MM
ar
Y o
f s
igN
ific
aN
t a
cc
ou
Nti
Ng
Po
Lic
ies
aN
d o
tHe
r e
XP
LaN
ato
rY
iNfo
rM
ati
oN
oN
tH
e c
oN
so
Lid
ate
d f
iNa
Nc
iaL
sta
teM
eN
ts f
or
tHe
Ye
ar
eN
de
d 3
1 M
ar
cH
202
0
(` in
mill
ions
, exc
ept f
or s
hare
dat
a an
d if
oth
erw
ise
stat
ed)
Annual Report 2019-20 | RJ Corp Limited 221
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
The foreign currency sensitivity of profit and equity in regards to the Group’s financial assets and financial liabilities
considering ‘all other things being equal’ and ignoring the impact of taxation. It assumes a +/- 1% change of the respective
countries exchange rates (i.e. local currency to foreign currency) for the year ended at 31 March 2020 (31 March 2019: +/-
1%). These are the sensitivity rates used when reporting foreign currency exposures internally to the key management
personnel and represents respective management’s assessment of the reasonably possible changes in the foreign
exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items at end
of each period reported upon. A positive number indicates an increase in profit or equity and vice-versa.
If the INR had strengthened against respective foreign currency by 1% (31 March 2019: 1%), then profit for the year and
equity as at 31 March 2020 would have been higher by `86.85 million (31 March 2019: `143.47 million). If the INR had
weakened against respective foreign currency by 1% (31 March 2019: 1%), then profit for the year and equity as at 31
March 2020 would have been lower by `86.85 million (31 March 2019: `143.47 million).
Exposures to foreign exchange rates vary during the year depending on the volume of the overseas transactions.
Nonetheless, the analysis above is considered to be representative of the Group’s exposure to currency risk.
interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Group’s policy is to minimise interest rate cash flow risk exposures on long-term
financing. The Group is exposed to changes in market interest rates as some of the bank and other borrowings are at
variable interest rates and also loans have been advanced to subsidiary companies at variable interest rates. All the
Group’s term deposits are at fixed interest rates.
The following table illustrates the sensitivity of profit and equity to a reasonably possible change in interest rates of
+/- 1% (31 March 2019: +/- 1%). These changes are considered to be reasonably possible based on management’s
assessment. The calculations are based on a change in the average market interest rate for each period, and the financial
instruments held at each reporting date that are sensitive to changes in interest rates. All other variables are held
constant.
Profit for the year equity +1% -1% +1% -1%
31 March 2020 (434.68) 434.68 (434.68) 434.68 31 March 2019 (346.99) 346.99 (346.99) 346.99
53.2 credit risk analysis
Credit risk is the risk that a counterparty fails to discharge an obligation to the Group. The Group is exposed to this risk for
various financial instruments, for example loans granted, receivables from customers, deposits placed etc. The Group’s
maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at end of each reporting
period, as summarised below:
as at 31 March 2020 as at 31 March 2019Classes of financial assets-carrying amounts:
Investments (non-current) 2,654.04 6,463.38 Loans (non-current) 1,169.38 1,205.66 Trade receivables 3,706.58 3,367.82 Loans 1,647.75 3,764.98 Cash and cash equivalents 1,678.14 1,950.05 Bank balances other than mentioned above 548.36 556.69 Other financial assets (current and non-current) 1,599.23 1,887.33
13,003.48 19,195.90
(` in millions, except for share data and if otherwise stated)
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 222
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
The maximum exposure to the credit risk at the reporting date is primarily from Trade Receivable, security deposit
receivables, Government grant receivable and claim receivable.
The Group continuously monitors receivables and defaults of customers and other counterparties and incorporates this
information into its credit risk controls. Appropriate security deposits are kept against the supplies to customers and
balances are reconciled at regular intervals. The Group’s policy is to deal only with creditworthy counterparties.
In respect of trade and other receivables, the Group is not exposed to any significant credit risk exposure
to any single counterparty. Trade receivables consist of a large number of customers of various scales and
in different geographical areas. Based on historical information about customer default rates, respective
management considers the credit quality of trade receivables. In case the receivables are not recovered
even after regular follow up, measures are taken to stop further supplies to the concerned customers.
The credit risk for cash and cash equivalents, bank deposits including interest accrued thereon and Government grant
receivables is considered negligible, since the counterparties are reputable banks with high quality external credit
ratings and Government bodies.
In respect of financial guarantees provided by the Group, the maximum exposure which the Group is exposed to is the
maximum amount which the Group would have to pay if the guarantee is called upon. Based on the expectation at the end
of each reporting period, the Group considers that it is more likely than not that such an amount will not be payable under
the guarantees provided.
53.3 Liquidity risk analysis
Liquidity risk is that the Group might be unable to meet its obligations. The Group manages its liquidity needs by monitoring
scheduled debt servicing payments for long-term financial liabilities and considering the maturity profiles of financial
assets and other financial liabilities as well as forecast of operational cash inflows and outflows. Liquidity needs are
monitored in various time bands, on a day-to-day basis, a week-to-week basis and a month-to-month basis. Long-term
liquidity needs for a 180-day and a 360-day lookout period are identified monthly. Net cash requirements are compared
to available borrowing facilities in order to determine headroom or any shortfalls.
Funding for long-term liquidity needs is additionally secured by an adequate amount of committed credit facilities and the
Group’s ability to avail further credit facilities subject to creation of requisite charge on its assets. The Group assessed
the concentration of risk with respect to refinancing its debt and concluded it to below.
As at 31 March 2020, the Group’s non-derivative financial liabilities have contractual maturities (excluding interest
payments thereon) as summarised below:
31 March 2020 0 to 1 year 1 to 5 years Later than 5 yearsBorrowings (current and non-current) 23,777.17 34,309.57 2,621.21 Lease Liabilities 1,441.25 4,618.57 8,039.93 Trade payables 9,799.22 - - Other financial liabilities (current and non-current) 6,888.71 61.75 1,066.71 total 41,906.35 38,989.89 11,727.85
This compares to the maturity of the Group’s non-derivative financial liabilities in the previous reporting periods as
follows:
31 March 2019 0 to 1 year 1 to 5 years Later than 5 yearsBorrowings (current and non-current) 19,385.76 35,258.33 980.10 Trade payables 7,830.08 - - Other financial liabilities (current and non-current) 6,417.29 1,071.02 - total 33,633.13 36,329.35 980.10
(` in millions, except for share data and if otherwise stated)
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53 fair value measurements
financial instruments by categories
The carrying values and fair values of financial instruments by categories are as follows:
Particulars fair Value Measurement
using Level
carrying value fair value/amortised cost31 March
202031 March
201931 March
202031 March
2019financial assetsfair value through profit and loss ('fVtPL')
(i) Non-current financial assets(a) Investment (non-current) Level 1 4.72 7.17 4.72 7.17
fair value through other comprehencive income ('fVtoci')(i) Non-current financial assets(a) Investment (non-current) Level 1 1,037.37 4,823.48 1,037.37 4,823.48
Level 3 1,011.95 1,032.71 1,011.95 1,032.71 amortised cost
(i) Non-current financial assets(a) Investment in Compulsorily convertible debenture
600.00 600.00 600.00 600.00
(b) Loans 1,169.38 1,205.66 1,169.38 1,205.66 (c) Other 201.05 51.73 201.05 51.73 (ii) Current financial assets(a) Trade receivables 3,706.58 3,367.82 3,706.58 3,367.82 (b) Cash and cash equivalents 1,678.14 1,950.05 1,678.14 1,950.05 (c) Bank balances other than above 548.36 556.69 548.36 556.69 (d) Loans 1,647.75 3,764.98 1,647.75 3,764.98 (e) Other 1,398.18 1,835.60 1,398.18 1,835.60
total 13,003.48 19,195.90 13,003.48 19,195.90 financial liabilitiesfVtPL
(i) Current financial liability(a) Liability for derivative contract Level 2 194.37 88.08 194.37 88.08
amortised cost (i) Non-current borrowings (excluding those disclosed under FVTPL category above)
36,930.78 37,879.54 36,930.78 37,879.54
(ii) Others Non Current financial liabilities 1,128.46 1,071.02 1,128.46 1,071.02 (iii) Lease liabilities 14,099.75 - 14,099.75 - (iii) Current financial liabilities(a) Borrowings 12,705.56 10,152.73 12,705.56 10,152.73 (b) Trade payables 9,799.22 7,830.08 9,799.22 7,830.08 (c) Other 17,765.94 15,562.25 17,765.94 15,562.25
total 92,624.08 72,583.70 92,624.08 72,583.70
Valuation technique to determine fair value
Cash and cash equivalents, other bank balances, trade receivables, other current financial assets, trade payables,
current borrowings and other current financial liabilities approximate their carrying amounts largely due to the short-
term maturities of these instruments. The fair value of the financial assets and liabilities is the amount at which the
instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The Group’s borrowings, except through Compulsorily convertible preference shares and Compulsorily convertible
(` in millions, except for share data and if otherwise stated)
financial statem
ents
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debentures have been contracted at floating rates of interest, which resets at short intervals. Accordingly,
the carrying value of such borrowings (including interest accrued but not due) approximates fair value:
The following methods and assumptions were used to estimate the fair values:
- The fair values of the long term borrowing (Compulsorily convertible preference shares and Compulsorily convertible
debentures) are determined by using discounted cash flow method using the appropriate discount rate. The discount rate
is determined using other similar instruments incorporating the risk associated.
- The fair values of Investment in unquoted equity shares is done as follows :
Equity share of Lemon Tree Hotels Limited - March 31 2018 - Price at which the shares were issued in Inital Public offer,
issue was open during March 26,2018 to March 28, 2018.
Equity share of Global Health Private Limited (Formerly Dr.Naresh Trehan and Associates Health Services Pvt. Ltd.) -
Price estimated by using discounted cash flow method by discounting forcasted cash flow to their present value at a rate
of return that incorporates the risk free rate for the use of fund plus the expected rate of inflation and the risk associated
with the particular investment
Cost of other unquoted equity instruments has been considered as an appropriate estimate of fair value because of a
wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.
- The fair values of Investment in Compulsorily convertible debentures have been estimated by using discounted cash
flow method by discounting the expected cash flows using the appropriate discount rate. The discount rate is determined
using other similar instruments incorporating the risk associated and probabilities are based on management’s
expectations.
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value
hierarchy together with a quantitative sensitivity analysis are as shown below.
type Valuation technique significant observable input
inter-relationship between significant observable input and fair value measurement
Investment in unquoted Equity Shares
Discounted cash flow method by discounting forcasted cash flow to their present value at a rate of return that incorporates the risk free rate for the use of fund plus the expected rate of inflation and the risk associated with the particular investment
Forecast Profitability, Risk Adjusted Discount rate.
Estimated fair value would increase (Decrease) - if forcased profitability was higher (lower) - risk adjusted discount rate were lower (higher)
Compulsorily convertible preference shares ('CCDS')
Discounted cash flow method by discounting the expected cash flow using approriate rate under different conversion event, probability is then attached to each conversion event to drive final valuation
Discount rate and Probability of occurrence of conversion event.
Estimated fair value would increase (Decrease) - if discount rate was higher (lower) - probability of occurence were lower (higher)
Compulsorily convertible preference shares ('CCPS')
Discounted cash flow method by discounting the expected cash flow using approriate rate under different conversion event, probability is then attached to each conversion event to drive final valuation
Discount rate and Probability of occurrence of conversion event.
Estimated fair value would increase (Decrease) - if discount rate was higher (lower) - probability of occurence were lower (higher)
(` in millions, except for share data and if otherwise stated)
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The following table presents the changes in level 3 items for the periods ended 31 March 2020 and 31 March 2019:
Particulars investment in unquoted equity shares
investment in ccPs
Borrowings ccPs
as at 01 april 2018 1,283.19 - 1,283.19 Purchased during the year - - - Impact of fair value movement (250.48) - (250.48)Moved out from Level 3 to Level 2 - - - Moved from FVTPL to Amortised Cost - - - as at 31 March 2019 1,032.71 - 1,032.71 Sold during the year (0.02) - (0.02)Impact of fair value movement (17.30) - (17.30)Impact of merger (3.44) - (3.44)Moved from FVTPL to Amortised Cost - - as at 31 March 2020 1,011.95 - 1,011.95
54 equity share designated at fair value through other comprehensive income
The Group designated the investment shown below as equity shares at FVOCI because these equity share represent
investments that the company intends to hold for long term for stratgic purposes
Particularsfair value at dividend income
recognised duringfair value at
31 March 2020 2019-20 31 March 2019Global Health Private Limited (Formerly Dr.Naresh Trehan and Associates Health Services Pvt. Ltd.)
1,011.76 - 1,029.06
Shabnam Properties Private Limited - - 3.44 Empire Stocks Pvt Limited 0.01 - 0.01 Sellwell Foods & Beverages Pvt.Ltd. - - 0.02 Pinnacle Infracon Ltd. - - 0.00 Lineage Healthcare Limited 0.00 - Shivalik Solid Waste Management Ltd. 0.18 - 0.18 Lemon Tree Hotels Limited 713.41 - 4,308.95 Capital India Finance Limited 323.96 514.53
2,049.33 - 5,856.19
55 disposal & acquisition of subsidiaries/ business combination
a. Merger & amalgamation in Holding company
As per the scheme of amalgamation filed in the Hon’ble National Company Law Tribunal, Special Bench, New Delhi under
section 230 to 232 of the Companies Act, 2013 read with the companies (Compromise, Arrangement and Amalgamations)
Rules, 2016 and the National Company Law Tribunal Rules, 2016, between the Holding Company (transferee) and Pinnacle
Infracon Limited (transferor no. 1), Anuj Traders Private Limited (transferor no. 2), Accor Solar Energy Private Limited
(transferor no 3), Shabnam Properties Private Limited (transferor no 4), Capital Towers Private Limited (transferor no 5),
D.J. Agri Industries Private Limited (transferor no 6), Snowpeak Enterprises Private Limited (transferor no 7), Pinnacle
ConstructionsPrivate Limited (transferor no 8), Pinnacle Township Private Limited (transferor no 9) and Pinnacle Town
Planners Private Limited (transferor no 10). The Hon’ble National Company Law Tribunal, Special Bench, New Delhi
approved the scheme as per order dated 08 June 2020. The scheme became effective from 01st April 2019 (“Acquisition
Date”) on completion of all regulatory formalities.
All the assets and liabilities of transferor companies as on 01st April 2019 were transferred to and vested with the
transferee company
(` in millions, except for share data and if otherwise stated)
financial statem
ents
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The investment held by transferor companies 10 equity shares holding in RJ Corp Limited stands cancelled on
amalgamation and fresh equity of 235 shares amounting to `2,350/-will be issued by the transferee comapany to the
shareholders of transferor companies.
Acquisitions of businesses of the companies Pinnacle Infracon Limited (Transferor Company No.-1), Accor Solar Energy
Private Limited (Transferor Company No.-3), Shabnam Properties Private Limited (Transferor Company No.-4), Capital
Towers Private Limited (Transferor Company No.-5), D.J. Agri Industries Private Limited (Transferor Company No.-6),
Pinnacle Constructions Private Limited (Transferor Company No.-8), Pinnacle Township Private Limited (Transferor
Company No.-9) and Pinnacle Town Planners Private Limited (Transferor Company No.-10) are accounted using the
Acquisition method as per Ind AS 103 – Business Combinations. The company has accounted for assets and liabilities of
transferor companies as on acquisition date at fair value based on the management judgements. The difference between
the excess of consideration paid (equity capital to be issued, investment held by transferee company) and fair value
of all assets and liabilities of the transferor companies taken over as on acquisition date is transferred to goodwill.
Accordingly the difference between the excess of fair value of all assets and liabilities of the transferor companies taken
over as on acquisition date and consideration paid (equity capital to be issued, investment held by transferee company)
is transferred to capital resrve of the Group.
ParticularsAcquisition date 01-april-2019Net Assets acquired (1,394.55)Investment in transferor companies in financial statements of transferee company
0.0010
Purchase consideration settled through issue of equity shares 0.0001 amount transferred to goodwill 1,394.55
ParticularsAcquisition date 01-april-2019Net Assets acquired 104.38 Investment in transferor companies in financial statements of transferee company
3.44
Purchase consideration settled through issue of equity shares 0.00 amount transferred to capital reserve 100.94
Acquisitions of businesses of the companies Anuj Traders Private Limited (Transferor Company No.-2), Snowpeak
Enterprises Private Limited (Transferor Company No.-7) under common control are accounted using the Pooling of
Interest Method as per Ind AS 103 – Business Combinations. The fnancial statement of the Group for the previous financial
year 2018-19 have been restated with effect from 01 April 2018 (being the earliest period presented) The company has
accounted for assets, liabilities and reserves of transferor companies as on 01 April 2018 at their respective carrying
values. The difference between the consideration paid (equity capital to be issued, investment held by transferee company)
and carrying value of all assets, liabilities and reserves of the transferor companies taken over as on acquisition date is
transferred to capital reserve account of the Group.
ParticularsAcquisition date 01-april-2019Accounting date 01-april-2018Net Assets acquired 0.71 Retained earnings acquired (1.00)Investment in transferor companies in financial statements of transferee company
3.51
Purchase consideration settled through issue of equity shares 0.00 amount transferred to capital reserve (1.33)
(` in millions, except for share data and if otherwise stated)
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B. acquisition of subsidiaries during the year
Lunarmech Technologies Private Limited (subsidiary of Angelica Technologies Private Limited) became subsidiary of
Varun Beverages Limited “VBL” on account of increase in stake from 35% to 55%, post which the VBL has acquired
the board control of its associate, Angelica Technologies Private Limited. Consequently, both the entities have become
subsidiaries of the VBL with effect from 04 November 2019.
Particulars Lunarmech technologies Private LimitedDate of control 04 November 2019Percentage of the ownership stake 55.11%Net Assets on the date of acquisition (A) 438.46 Share of identifiable net assets attributable to non-controlling interest (B) 196.83 Fair value of previously held interest in existing associate on 03 November 2019 ( C )
314.15
Consideration transferred in acquisition of 20% shareholding in Lunarmech Technologies Private Limited (D)
150.38
goodwill on acquisition of control over existing associate (B+c+d-a) 222.90
c. acquisition of business during the year
During the year ended 31 March 2020, Devyani International Limited “DIL” entered into a Business Transfer Arrangement
dated 11 December 2019 (‘BTA’) with Yum Restaurants (India) Private Limited (“Yum”).
assets acquired and liabilities assumed
The fair values of the identifiable assets and liabilities as at the date of acquisition were:
Particulars for the year ended 31 March 2020 31 March 2019
assetsProperty, plant and equipment (refer note 3A) 76.32 258.20 Intangible assets (refer note 5) 33.91 20.60 Inventories 4.67 8.33 Other assets 8.86 18.38
123.76 305.51 Liabilities 3.00 3.62
3.00 3.62 total identifiable net assets (at fair value) 120.76 301.89 Purchase consideration to be transferred/transferred in cash 339.34 311.38 goodwill 218.58 9.49
d. On 01 May 2019, Varun Beverages Limited “VBL” acquired franchise rights in South and West regions from PepsiCo
India Holdings Private Limited (“PepsiCo”) for a national bottling, sales and distribution footprint in 7 states and 5 Union
Territories of India along with manufacturing units in Bharuch (Gujarat), Mahul (Maharashtra), Paithan (Maharashtra),
Roha (Maharashtra), Mamandur (Tamil Nadu), Nelamangala (Karnataka), Palakkad (Kerala), Sangareddy (Telangana) and
Sricity (Andhra Pradesh) for a total transaction value of ̀ 18,025 on slump sale basis. The aforesaid business combination
resulted in a bargain purchase due to the Company’s manufacturing capabilities/distribution network and PepsiCo’s
focus on its core activities of research, brand building and market penetration.
e. On 28 January 2020, Devyani Food Industries Limited “DFIL” entered into a share purchase agreement with Sameer ICT
Limited (‘minority shareholder of Devyani Food Industries (Kenya) Limited’ or ‘minority shareholder’ or ‘non-controlling
party’) and acquired the 37.5% stake of Sameer ICT Limited in Devyani Food Industries (Kenya) Limited for a purchase
consideration of ̀ 389.16 and hence, Devyani Food Industries (Kenya) Limited has become the wholly owned subsidiary of
financial statem
ents
(` in millions, except for share data and if otherwise stated)
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DFIL. Further, pursuant to a loan waiver agreement dated 28 January 2020, the minority shareholder has simultaneously
agreed to waive off its loans and the corresponding interest receivable from Devyani Food Industries (Kenya) Limited
amounting to `413.50 and `26.09 respectively, which has been adjusted with retained earnings, as a transaction with a
shareholder.
f. The Holding Compnay entered into an Agreement for divestment of its entire stake in Diagno Labs India Private Limited
and Alisha Retail Private Limited, subsidaries of the Company. The said transaction was concluded on 27 March 2020 and
19 February 2020.
(a) The details of subsidiaries disposed off and profit/(loss) on disposal is as below:
Particularsdiagno Labs india Private
Limited
alisha retail Private Limited
total
Sale consideration 10.00 10.00 20.00 Exchange differences recycled to consolidated statement of profit and loss
- - -
Net consideration 10.00 10.00 20.00 Carrying value of net assets disposed off (981.71) (162.22) (1,143.93)Profit/(Loss) on disposal 991.71 172.22 1,163.93
g. During the year the Group reduced the stake of Varun Beverages Limited to 27.69%, the Group also divested its stake in
its associate Lineage Healthcare Limited on 11 March, 2020.
(a) The details of subsidiary/associate and profit/(loss) on disposal is as below:
investment in Mutual funds
Varun Beverages
Limited
Lineage Healthcare
Limitedtotal
Sale consideration 731.38 2,587.72 2.50 3321.60Carrying value of net assets disposed off 730.00 211.62 249.75 1191.37Profit/(Loss) on disposal 1.38 2,376.10 (247.25) 2,130.23
disposal & acquisition of subsidiaries during last year
a. With effect from 15 October 2018, the Holding Company has acquired additional 31% equity of Diagno Labs Private
Limited, consisting of 19,980,000 shares for a consideration of ̀ 199.80 million , thereby increasing the Holding Company’s
ownership stake to 99.97%. Since Diagno Labs Private Limited, was already a subsidiary of the Holding Company, this
transaction has not resulted in change in control. Accordingly, difference between the non-controlling interest relatable
to 31% equity and the value of consideration i.e ` 419.89 million is directly recognised in other equity in Transaction with
NCI Reserve.
B. Devyani Food Industries (Kenya) Ltd. (Earlier known as Sameer Agriculture & Livestock (Kenya) Ltd. which was a Joint
Venture of DFIL ) became subsidiary of Devyani Food Industries Ltd. (“DFIL”) on account of increase in stake from 49.96%
to 62.50% with effect from 28 September 2018.
(for the year ended 31 March 2020)
(for the year ended 31 March 2020)
(` in millions, except for share data and if otherwise stated)
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Particluarsdevyani food industries (kenya) Ltd.
(earlier known as sameer agriculture & Livestock (kenya) Ltd.
Date of control 28 September 2018Percentage of the ownership stake 49.96%Net Assets on the date of acquisition 2,848.57 Net Assets attributable to Holding Company 1,423.15 Purchase consideration settled through payment 1,424.29 Amount (reduced from)/ transferred to capital reserve (1.14)share of identifiable net assets attributable to:Non-controlling interest 1,425.43 Holding Company 1,423.15 Business combination expense charged to other expenses -
56. investment in joint ventures and associates
detail of Joint Ventures :
Name of the company
Principal activities
shareholding percentage incorporated
inas at 31 March
2020
as at 31 March
2019The Minor Food Group (India) Private Limited
Business of developing, managing and operating ice cream parlours
30% 30% India
detail of associates :
Name of the company
Principal activities
shareholding percentage incorporated
inas at 31 March
2020
as at 31 March
2019Africare Limited Healthcare Services 27.5% 27.5% KenyaLineage Health Care Limited Healthcare Services NA 49.8% IndiaPark View City Limited Real Estate 38.0% 38.0% IndiaCapital Infracon Private Limited Trading 49.5% 49.5% IndiaRatnakar Foods & Beverages Pvt. Ltd. Trading NA 50.0% IndiaAggarwal Cold Drinks Pvt. Ltd. Trading NA 25.0% IndiaIclinic Healthcare Private Limited Healthcare Services NA 37.1% IndiaCryoviva Thailand Limited Healthcare Services 50% 50% ThailandAngelica Technologies Private Limited* Trading NA 47.30% India
financial statem
ents
(` in millions, except for share data and if otherwise stated)
(for the year ended 31 March 2020)
Annual Report 2019-20 | RJ Corp Limited 230
The amounts recognised in the balance sheet are as follows:
Particularsas at 31 March
2020as at 31 March
2019Joint Ventures - - Associates 46.45 187.48
46.45 187.48
The amount recognised in the statement of Profit & Loss are as follows:
Particularsas at 31 March
2020as at 31 March
2019recognised in profit and lossJoint Ventures - - Associates 41.34 38.20
41.34 38.20 recognised in other comprehensive incomeJoint Ventures - - Associates - -
- -
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
(` in millions, except for share data and if otherwise stated)
Annual Report 2019-20 | RJ Corp Limited 231
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120
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(3.0
4) (2
.40)
47.
17
40.
53
Con
solid
atio
n A
djus
tmen
t 4
38.4
6 3
02.3
3 2
89.1
5 -
-
3
.04
2.4
0 (0
.72)
(40.
53)
carr
ying
am
ount
of
inve
stm
ent
-
-
-
-
120
.34
-
-
46.
45
-
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 232
su
MM
ar
Y o
f s
igN
ific
aN
t a
cc
ou
Nti
Ng
Po
Lic
ies
aN
d o
tHe
r e
XP
LaN
ato
rY
iNfo
rM
ati
oN
oN
tH
e c
oN
so
Lid
ate
d f
iNa
Nc
iaL
sta
teM
eN
ts f
or
tH
e
Ye
ar
eN
de
d 3
1 M
ar
cH
202
0
(` in
mill
ions
, exc
ept f
or s
hare
dat
a an
d if
oth
erw
ise
stat
ed)
the
sum
mar
ised
fina
ncia
l inf
orm
atio
n of
join
t ven
ture
and
ass
ocia
tes
that
are
mat
eria
l to
the
gro
up a
re a
s fo
llow
s
sum
mar
ised
sta
tem
et o
f Pro
fit &
Los
s
Part
icul
ars
Park
Vie
w c
ity
Lim
ited
Line
age
Hea
lth
care
Li
mit
ed*
ang
elic
a te
chno
logi
es
Pri
vate
Lim
ited
**
the
Min
or f
ood
gro
up
(ind
ia) P
riva
te L
imit
edcr
yovi
va (t
haila
nd)
Lim
ited
for
the
year
end
ed
31 M
arch
20
20
for
the
year
end
ed
31 M
arch
20
19
for
the
peri
od
01 a
pril
2019
to 1
1 M
arch
202
0
for
the
year
end
ed
31 M
arch
20
19
for
the
peri
od
01 a
pril
2019
to 0
3 N
ov. 2
019
for
the
year
end
ed
31 M
arch
20
19
for
the
year
end
ed
31 M
arch
20
20
for
the
year
end
ed
31 M
arch
20
19
for
the
year
end
ed
31 M
arch
20
20
for
the
year
end
ed
31 M
arch
20
19
Rev
enue
from
ope
ratio
ns
126
.84
93.
14
135
.39
98.
32
433
.04
775
.47
-
28.
92
573
.43
446
.74
Oth
er In
com
e 8
4.34
2
9.06
4
.75
1.3
7 4
8.99
1
1.02
0
.91
0.0
3 1
5.92
9
.00
tota
l inc
ome
211
.18
122
.20
140
.15
99.
69
482
.02
786
.49
0.9
1 2
8.95
5
89.3
5 4
55.7
4 ex
pens
e C
ost o
f Mat
eria
l Con
sum
ed
-
-
252
.36
459
.74
-
Cos
t of l
and,
plot
s,
cons
truc
ted
prop
ertie
s an
d de
velo
pmen
t rig
ht
55.
42
100
.88
-
-
-
Pur
chas
es o
f sto
ck in
trad
e -
1
2.20
1
.00
-
-
Cha
nges
in in
vent
orie
s of
st
ock
in tr
ade
215
.33
167
.93
(2.3
0) 0
.28
(21.
84)
1.8
3 -
Exci
se d
uty
on s
ale
of
Goo
ds
-
-
-
-
-
Empl
oyee
ben
efits
exp
ense
8
.88
7.6
6 3
0.87
2
7.07
2
5.52
4
2.52
0
.05
-
Fina
nce
cost
2
50.6
0 1
42.1
9 6
6.40
5
0.14
1
.40
4.4
5 0
.69
0.9
5 3
.11
2.7
9 M
aint
enan
ce c
harg
es
10.
52
5.0
1 -
-
-
D
epre
ciat
ion
and
amor
tisat
ion
1.8
5 1
.10
22.
32
26.
76
27.
20
46.
84
5.9
9
Oth
er e
xpen
se
26.
39
9.7
8 1
06.5
4 1
04.4
2 6
0.02
1
23.1
7 2
.30
113
.36
569
.66
429
.57
Inco
me
tax
expe
nse
-
-
41.
46
29.
85
-
-
tota
l exp
5
68.9
8 4
34.5
5 2
36.0
4 2
09.6
7 3
86.1
2 7
08.3
9 3
.04
120
.30
572
.77
432
.36
Pro
fit/
(Los
s) fo
r th
e ye
ar
(357
.80)
(312
.35)
(95.
89)
(109
.97)
95.
90
78.
10
(2.1
3) (9
1.35
) 1
6.58
2
3.38
O
ther
com
preh
ensi
ve
inco
me
(0.0
0) (0
.76)
-
1.6
4 -
0
.60
-
-
-
-
tota
l com
preh
ensi
ve
inco
me
(357
.80)
(313
.11)
(95.
89)
(108
.34)
95.
90
78.
70
(2.1
3) (9
1.35
) 1
6.58
2
3.38
Annual Report 2019-20 | RJ Corp Limited 233
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MM
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Y o
f s
igN
ific
aN
t a
cc
ou
Nti
Ng
Po
Lic
ies
aN
d o
tHe
r e
XP
LaN
ato
rY
iNfo
rM
ati
oN
oN
tH
e c
oN
so
Lid
ate
d f
iNa
Nc
iaL
sta
teM
eN
ts f
or
tH
e
Ye
ar
eN
de
d 3
1 M
ar
cH
202
0
(` in
mill
ions
, exc
ept f
or s
hare
dat
a an
d if
oth
erw
ise
stat
ed)
Sum
mar
ised
Sta
tem
ent o
f Pro
fit &
Los
s
Pro
fit/
(Los
s) fo
r th
e ye
ar
atri
buta
ble
to N
CI
-
-
24.
95
21.
18
-
-
-
-
Pro
fit/
(Los
s) fo
r th
e ye
ar
atri
buta
ble
to o
wne
rs
(357
.80)
(312
.35)
(95.
89)
(109
.97)
70.
95
56.
92
(2.1
3) (9
1.35
) 1
6.58
2
3.38
Oth
er c
ompr
ehen
sive
in
com
e at
ribu
tabl
e to
NC
I -
-
0
.09
-
-
-
-
Oth
er c
ompr
ehen
sive
in
com
e at
ribu
tabl
e to
ow
ners
(0
.00)
(0.7
6) 0
.05
1.6
4 -
0
.52
-
-
-
-
Tota
l com
preh
ensi
ve
inco
me
atri
buta
ble
to N
CI
-
-
-
-
24.
95
21.
26
-
-
-
-
Tota
l com
preh
ensi
ve
inco
me
atri
buta
ble
to
owne
rs
(357
.80)
(313
.11)
(95.
85)
(108
.34)
70.
95
57.
44
(2.1
3) (9
1.35
) 1
6.58
2
3.38
Per
cent
age
of g
roup
's
ow
ners
hip
inte
rest
38
.00%
38.0
0%0.
00%
49.8
0%47
.30%
47.3
0%30
.00%
30.0
0%50
.00%
50.0
0%
gro
up's
sha
re in
pro
fit f
or
the
peri
od
(135
.96)
(118
.69)
-
(54.
77)
33.
56
26.
92
(0.6
4) (2
7.41
) 8
.29
11.
69
add
: sha
re o
f pro
fit
afte
r ta
x on
acq
uisi
tion
of
add
itio
nal 2
0% d
irec
t in
tere
st in
Lun
arm
ech
2.1
4
gro
up's
sha
re in
oci
for
the
peri
od
(0.0
0) (0
.29)
-
0.8
2 -
0
.24
-
-
-
-
cons
olid
atio
n a
djus
tmen
ts
135
.96
116
.70
-
53.
70
(0.0
0) 0
.00
0.6
4 2
7.41
0
.00
(0.0
0)g
roup
's s
hare
in p
rofi
t re
cogn
ised
-
(2
.28)
-
(0.2
5) 3
5.70
2
7.17
-
-
8
.29
11.
69
*On
11 M
arch
202
0, t
he H
oldi
ng C
ompa
ny h
as d
ives
ted
its e
ntir
e eq
uity
hol
ding
s in
Lin
eage
hea
lthc
are
Lim
ited
whi
ch in
clud
ed e
xist
ing
hold
ings
alo
ngw
ith s
hare
s
subs
crib
ed d
urin
g th
e ye
ar o
f the
se c
ompa
nies
am
ount
ing
to `
249.
50 r
espe
ctiv
ely.
Equ
ity in
tere
st in
ass
ocia
te h
as b
een
acco
unte
d us
ing
equi
ty m
etho
d til
l 11
Mar
ch
2020
.
**Va
run
Bev
erag
es L
imite
d “V
BL”
has
47.
30%
inte
rest
in A
ngel
ica
Tech
nolo
gies
Pri
vate
Lim
ited
(“A
ngel
ica”
) whi
ch in
turn
hol
ds 7
4% o
wne
rshi
p st
ake
in L
unar
mec
h
Tech
nolo
gies
Pri
vate
Lim
ited
(“Lu
narm
ech”
), an
d ho
lds
20%
dir
ect
inte
rest
in
Luna
rmec
h. S
uch
inte
rest
has
bee
n ac
coun
ted
for
usin
g th
e eq
uity
met
hod
till
03
Nov
embe
r 20
19,
post
whi
ch t
he V
BL
has
acqu
ired
the
boa
rd c
ontr
ol o
f its
ass
ocia
te,
Ang
elic
a. C
onse
quen
tly,
bot
h th
e en
titie
s ha
ve b
ecom
e su
bsid
iari
es o
f th
e
Gro
up.
Part
icul
ars
Park
Vie
w c
ity
Lim
ited
Line
age
Hea
lth
care
Li
mit
ed*
ang
elic
a te
chno
logi
es
Pri
vate
Lim
ited
**
the
Min
or f
ood
gro
up
(ind
ia) P
riva
te L
imit
edcr
yovi
va (t
haila
nd)
Lim
ited
for
the
year
end
ed
31 M
arch
20
20
for
the
year
end
ed
31 M
arch
20
19
for
the
peri
od
01 a
pril
2019
to 1
1 M
arch
202
0
for
the
year
end
ed
31 M
arch
20
19
for
the
peri
od
01 a
pril
2019
to 1
1 M
arch
202
0
for
the
year
end
ed
31 M
arch
20
19
for
the
year
end
ed
31 M
arch
20
20
for
the
year
end
ed
31 M
arch
20
19
for
the
year
end
ed
31 M
arch
20
20
for
the
year
end
ed
31 M
arch
20
19
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 234
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MM
ar
Y o
f s
igN
ific
aN
t a
cc
ou
Nti
Ng
Po
Lic
ies
aN
d o
tHe
r e
XP
LaN
ato
rY
iNfo
rM
ati
oN
oN
tH
e c
oN
so
Lid
ate
d f
iNa
Nc
iaL
sta
teM
eN
ts f
or
tH
e
Ye
ar
eN
de
d 3
1 M
ar
cH
202
0(`
in m
illio
ns, e
xcep
t for
sha
re d
ata
and
if o
ther
wis
e st
ated
)
57.
sum
mar
ised
fina
ncia
l in
form
atio
n of
sub
sidi
arie
s (in
clud
ing
acqu
isit
ion
date
fai
r va
luat
ion
and
adju
stm
ents
the
reto
, and
acc
ount
ing
polic
ies
alig
nmen
t)
havi
ng m
ater
ial n
on-c
ontr
ollin
g in
tere
sts
is a
s fo
llow
s:-
s
umm
aris
ed B
alan
ce s
heet
s
umm
aris
ed s
tate
men
t of P
rofi
t and
Los
s
Part
icul
ars
Varu
n B
ever
ages
Lim
ited
dev
yani
inte
rnat
iona
l Lim
ited
cryo
viva
inte
rnat
iona
l Pte
Ltd
dev
yani
foo
d in
dust
ries
Ltd
.
as
at
31.0
3.20
20a
s at
31
.03.
2019
as
at
31.0
3.20
20a
s at
31
.03.
2019
as
at
31.0
3.20
20a
s at
31
.03.
2019
as
at
31.0
3.20
20a
s at
31
.03.
2019
ass
ets
Non
-Cur
rent
Ass
ets
67,
825.
45
50,
506.
02
17,
403.
95
6,3
32.2
3 1
15.5
4 1
50.5
6 1
0,64
1.43
1
0,35
7.86
C
urre
nt A
sset
s 1
9,76
4.04
1
5,56
6.93
1
,431
.83
1,4
59.5
5 4
62.3
9 4
55.4
7 4
,565
.67
4,2
06.5
7 Li
abili
ties
Non
-Cur
rent
Lia
bilit
ies
27,
683.
15
23,
776.
10
15,
340.
25
3,9
91.6
8 -
-
5
,807
.51
5,9
38.9
6 C
urre
nt L
iabi
litie
s 2
5,92
3.84
2
1,78
7.70
5
,777
.65
3,4
36.7
5 1
,513
.79
1,3
66.9
2 6
,701
.19
5,0
91.4
9 N
on-c
ontr
ollin
g in
tere
sts
358
.22
71.
82
(391
.14)
(455
.13)
(163
.26)
(123
.74)
21.
43
1,0
68.9
1 eq
uity
33,
624.
28
20,
437.
34
(1,8
90.9
7) 8
18.4
8 (7
72.6
0) (6
37.1
5) 2
,676
.96
2,4
65.0
6 %
of o
wne
rshi
p in
tere
st
held
by
NC
I72
.31%
69.4
3%23
.60%
23.6
0%44
.00%
44.0
0%0.
08%
0.08
%
acc
umul
ated
Nci
24,
671.
94
14,
261.
47
(837
.41)
(261
.97)
(503
.21)
(404
.08)
23.
57
1,0
70.8
8
Part
icul
ars
Varu
n B
ever
ages
Lim
ited
(c
onso
l)d
evya
ni in
tern
atio
nal L
imit
ed(c
onso
lidat
ed)
cryo
viva
inte
rnat
iona
l Pte
Ltd
dev
yani
foo
d in
dust
ries
Ltd
.
for
the
year
end
ed
31.0
3.20
20
for
the
year
end
ed
31.0
3.20
19
for
the
year
end
ed
31.0
3.20
20
for
the
year
end
ed
31.0
3.20
19
for
the
year
end
ed
31.0
3.20
20
for
the
year
end
ed
31.0
3.20
19
for
the
year
end
ed
31.0
3.20
20
for
the
year
end
ed
31.0
3.20
19R
even
ue 7
6,35
4.83
5
5,01
4.22
1
5,84
0.52
1
3,67
3.60
3
16.9
4 3
71.9
3 8
,955
.31
7,7
68.6
6 N
et P
rofi
t / (L
oss)
4,9
22.2
9 3
,201
.61
(1,2
14.1
8) (6
64.3
1) (1
52.1
9) (2
08.8
7) (8
37.7
1) 5
10.7
3 O
ther
Com
preh
ensi
ve
Inco
me
/(Lo
ss)
295
.38
(57.
45)
142
.57
(30.
04)
(18.
89)
1.7
5 9
6.98
(9
2.63
)
tota
l com
preh
ensi
ve
inco
me/
(Los
s) 5
,217
.67
3,1
44.1
7 (1
,071
.61)
(694
.35)
(171
.08)
(207
.12)
(740
.74)
418
.10
Pro
fit /
(Los
s) a
lloc
ated
to
Nci
3,5
60.8
4 1
,680
.40
(261
.93)
153
.78
(59.
60)
(77.
46)
(0.4
4) (0
.04)
Annual Report 2019-20 | RJ Corp Limited 235
su
MM
ar
Y o
f s
igN
ific
aN
t a
cc
ou
Nti
Ng
Po
Lic
ies
aN
d o
tHe
r e
XP
LaN
ato
rY
iNfo
rM
ati
oN
oN
tH
e c
oN
so
Lid
ate
d f
iNa
Nc
iaL
sta
teM
eN
ts f
or
tH
e
Ye
ar
eN
de
d 3
1 M
ar
cH
202
0
(` in
mill
ions
, exc
ept f
or s
hare
dat
a an
d if
oth
erw
ise
stat
ed)
sum
mar
ised
sta
tem
ent o
f cas
h fl
ows
58
add
itio
nal i
nfor
mat
ion
, as
requ
ired
to c
onso
lidat
ed fi
nanc
ials
sta
tem
ents
pur
suan
t to
sche
dule
iii t
o co
mpa
nies
act
,201
3
Part
icul
ars
Varu
n B
ever
ages
Lim
ited
(c
onso
l)d
evya
ni in
tern
atio
nal L
imit
ed(c
onso
lidat
ed)
cryo
viva
inte
rnat
iona
l Pte
Ltd
dev
yani
foo
d in
dust
ries
Ltd
.
for
the
year
end
ed
31.0
3.20
20
for
the
year
end
ed
31.0
3.20
19
for
the
year
end
ed
31.0
3.20
20
for
the
year
end
ed
31.0
3.20
19
for
the
year
end
ed
31.0
3.20
20
for
the
year
end
ed
31.0
3.20
19
for
the
year
end
ed
31.0
3.20
20
for
the
year
end
ed
31.0
3.20
19N
et c
ash
(out
flow
) / in
flow
fr
om o
pera
ting
activ
ities
12,
220.
97
9,3
58.7
1 3
,007
.16
760
.97
(108
.45)
(217
.66)
268
.25
1,0
04.2
1
Net
cas
h (o
utfl
ow) /
infl
ow
from
inve
stin
g ac
tiviti
es (2
2,90
9.59
) (8
,543
.40)
(974
.29)
(1,6
79.7
3) (1
.14)
(28.
53)
(31.
26)
(2,8
51.3
1)
Net
cas
h (o
utfl
ow) /
infl
ow
from
fina
ncin
g ac
tiviti
es 1
0,23
6.14
(6
72.4
8) (2
,226
.15)
714
.61
102
.81
243
.03
91.
57
1,8
79.2
3
Effec
t of e
xcha
nge
rate
ch
ange
59.
81
26.
86
-
Net
cas
h (o
utfl
ow)/
infl
ow (4
52.4
8) 1
42.8
3 (1
33.4
7) (1
77.2
9) (6
.78)
(3.1
6) 3
28.5
5 3
2.13
Nam
e of
the
enti
ties
in
clud
ed in
con
solid
ated
fi
nanc
ial s
tate
men
ts
Net
ass
ets
( tot
al a
sset
s m
inus
tota
l lia
bilit
ies)
s
hare
in p
rofi
t or
(los
s)
sha
re in
oth
er c
ompr
ehen
sive
in
com
e
sha
re in
tot
al o
ther
co
mpr
ehen
sive
inco
me
as
% o
f co
nsol
idat
ed
net a
sset
s
am
ount
in
mill
ion
as
% o
f co
nsol
idat
ed
profi
t or
loss
am
ount
in
mill
ion
as
% o
f co
nsol
idat
ed
net a
sset
s
am
ount
in
mill
ion
as
% o
f co
nsol
idat
ed
profi
t or
loss
am
ount
in
mill
ion
for
the
year
end
ed 3
1 M
arch
202
0 P
aren
t com
pany
R
J C
orp
Lim
ited
23.
97
7,4
13.8
2 (3
2.15
) (1
,017
.24)
148
.71
(2,1
93.1
4) (1
90.0
0) (3
,210
.38)
sub
sidi
arie
s (f
orei
gn)
Wel
lnes
s H
oldi
ngs
Lim
ited
0.7
0 2
15.8
5 (1
.07)
(33.
77)
(1.1
1) 1
6.32
(1
.03)
(17.
45)
Arc
tic In
tern
atio
nal
(Mau
ritiu
s) P
vt. L
imite
d (c
onso
lidat
ed)
(0.2
3) (6
9.72
) (1
2.38
) (3
91.9
0) (1
3.99
) 2
06.3
6 (1
0.98
) (1
85.5
4)
Cry
oviv
a In
tern
atio
nal P
te
Ltd
(Con
solid
ated
) (2
.50)
(772
.60)
(3.6
8) (1
16.5
6) 1
.28
(18.
89)
(8.0
2) (1
35.4
5)
sub
sidi
arie
s (i
ndia
n)
Dev
yani
Inte
rnat
iona
l Li
mite
d (c
onso
lidat
ed)
(6.1
1) (1
,890
.99)
(38.
45)
(1,2
16.7
3) (7
.25)
106
.98
(65.
68)
(1,1
09.7
5)
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 236
Dia
gno
Labs
Indi
a P
riva
te
Lim
ited
0.0
0 0
.00
(14.
42)
(456
.37)
(0.0
4) 0
.60
(26.
97)
(455
.77)
Mod
ern
Mon
tess
ori
Inte
rnat
iona
l (In
dia)
Pri
vate
Lt
d.
0
.04
12.
05
0.2
7 8
.68
-
-
0.5
1 8
.68
Cry
oviv
a B
iote
ch P
vt L
td
(con
solid
ated
) (8
.84)
(2,7
32.9
7) (6
.69)
(211
.75)
(0.1
7) 2
.56
(12.
38)
(209
.19)
Dev
yani
Foo
ds In
dust
ries
Li
mite
d (c
onso
lidat
ed)
8.6
6 2
,676
.95
(20.
80)
(658
.31)
(6.5
7) 9
6.84
(3
3.23
) (5
61.4
7)
SVS
Indi
a P
vt. L
td.
0.0
1 4
.10
(0.0
2) (0
.73)
-
-
(0.0
4) (0
.73)
Acc
orB
ev (T
elan
gana
) P
riva
te L
imite
d (0
.00)
(0.3
2) (0
.00)
(0.0
5) -
-
(0
.00)
(0.0
5)
Alis
ha R
etai
l Pri
vate
Li
mite
d -
-
(0
.45)
(14.
20)
-
-
(0.8
4) (1
4.20
)
Var
un B
ever
ages
Lim
ited
(Con
solid
ated
) 1
08.7
3 3
3,62
4.27
1
51.5
9 4
,797
.00
(20.
03)
295
.40
301
.38
5,0
92.4
0
Min
ority
Inte
rest
in a
ll su
bsid
iari
es (i
nclu
ding
ste
p su
bsid
iari
es)
74.
37
22,
999.
95
90.
75
2,8
71.9
0 (1
7.51
) 2
58.1
7 1
85.2
4 3
,130
.07
Tot
al e
limin
atio
ns
(98.
80)
(30,
554.
85)
(13.
80)
(436
.84)
16.
68
(245
.96)
(40.
41)
(682
.80)
ass
ocia
tes/
Join
t ven
ture
s ( i
nves
tmen
t as
per
equi
ty
met
hod)
-
for
eign
-
A
fric
are
Lim
ited
(Con
solid
ated
) -
-
-
-
Cry
oviv
a Th
aila
nd P
vt L
td 0
.26
8.2
9 0
.49
8.2
9 in
dian
L
inea
ge H
ealt
hcar
e Li
mite
d 0
.01
0.2
5 0
.01
0.2
5 P
arkv
iew
City
Lim
ited
-
-
-
-
Cap
ital I
nfra
con
Pri
vate
Li
mite
d (0
.09)
(2.8
7) (0
.17)
(2.8
7)
Rat
naka
r Fo
ods
&
Bev
erag
es P
vt. L
td.
0.0
0 0
.05
0.0
0 0
.05
The
Min
or F
ood
Gro
up
(Indi
a) P
riva
te L
imite
d -
-
-
-
Ang
elic
a Te
chno
logi
es
Pri
vate
Lim
ited
1.1
3 3
5.70
2
.11
35.
70
Aga
rwal
Col
d D
rink
s P
vt.
Ltd.
(0.0
0) (0
.08)
(0.0
0) (0
.08)
tot
al
100
.00
30,
925.
55
100
.00
3,1
64.4
7 1
00.0
0 (1
,474
.76)
100
.00
1,6
89.7
1
su
MM
ar
Y o
f s
igN
ific
aN
t a
cc
ou
Nti
Ng
Po
Lic
ies
aN
d o
tHe
r e
XP
LaN
ato
rY
iNfo
rM
ati
oN
oN
tH
e c
oN
so
Lid
ate
d f
iNa
Nc
iaL
sta
teM
eN
ts f
or
tH
e
Ye
ar
eN
de
d 3
1 M
ar
cH
202
0(`
in m
illio
ns, e
xcep
t for
sha
re d
ata
and
if o
ther
wis
e st
ated
)
Annual Report 2019-20 | RJ Corp Limited 237
su
MM
ar
Y o
f s
igN
ific
aN
t a
cc
ou
Nti
Ng
Po
Lic
ies
aN
d o
tHe
r e
XP
LaN
ato
rY
iNfo
rM
ati
oN
oN
tH
e c
oN
so
Lid
ate
d f
iNa
Nc
iaL
sta
teM
eN
ts f
or
tH
e
Ye
ar
eN
de
d 3
1 M
ar
cH
202
0(`
in m
illio
ns, e
xcep
t for
sha
re d
ata
and
if o
ther
wis
e st
ated
)
58
add
itio
nal i
nfor
mat
ion
, as
requ
ired
to c
onso
lidat
ed fi
nanc
ials
sta
tem
ents
pur
suan
t to
sche
dule
iii t
o co
mpa
nies
act
,201
3
Nam
e of
the
enti
ties
in
clud
ed in
con
solid
ated
fi
nanc
ial s
tate
men
ts
Net
ass
ets
( tot
al a
sset
s m
inus
tota
l lia
bilit
ies)
s
hare
in p
rofi
t or
(los
s)
sha
re in
oth
er c
ompr
ehen
sive
in
com
e
sha
re in
tot
al o
ther
co
mpr
ehen
sive
inco
me
as
% o
f co
nsol
idat
ed
net a
sset
s
am
ount
in
mill
ion
as
% o
f co
nsol
idat
ed
profi
t or
loss
am
ount
in
mill
ion
as
% o
f co
nsol
idat
ed
net a
sset
s
am
ount
in
mill
ion
as
% o
f co
nsol
idat
ed
profi
t or
loss
am
ount
in
mill
ion
for
the
year
end
ed 3
1 M
arch
201
9 P
aren
t com
pany
R
J C
orp
Lim
ited
45.
27
9,6
08.1
4 (1
25.5
1) (8
32.9
7) 9
2.41
1
,198
.86
18.
66
365
.89
sub
sidi
arie
s (f
orei
gn)
Wel
lnes
s H
oldi
ngs
Lim
ited
1.1
0 2
33.3
0 (1
3.16
) (8
7.31
) 1
.64
21.
26
(3.3
7) (6
6.04
) A
rctic
Inte
rnat
iona
l (M
auri
tius)
Pvt
. Lim
ited
(con
solid
ated
) 0
.51
107
.53
(72.
12)
(478
.61)
18.
08
234
.51
(12.
45)
(244
.10)
Afr
icar
e Li
mite
d(co
nsol
idat
ed)
-
-
-
-
-
-
-
-
Cry
oviv
a In
tern
atio
nal P
te
Ltd
(Con
solid
ated
) (3
.00)
(637
.15)
(24.
10)
(159
.96)
0.1
3 1
.75
(8.0
7) (1
58.2
1)
sub
sidi
arie
s (i
ndia
n)
Dev
yani
Inte
rnat
iona
l Li
mite
d (c
onso
lidat
ed)
3.8
6 8
18.4
9 (7
2.86
) (4
83.5
4) (1
.24)
(16.
05)
(25.
48)
(499
.59)
Dia
gno
Labs
Indi
a P
riva
te
Lim
ited
(6.2
1) (1
,319
.05)
(54.
20)
(359
.70)
0.3
0 3
.96
(18.
14)
(355
.75)
Mod
ern
Mon
tess
ori
Inte
rnat
iona
l (In
dia)
Pri
vate
Lt
d.
0
.03
5.3
9 0
.43
2.8
7 -
-
0
.15
2.8
7
Cry
oviv
a B
iote
ch P
vt L
td
(con
solid
ated
) (1
1.89
) (2
,523
.78)
(34.
52)
(229
.09)
0.0
5 0
.66
(11.
65)
(228
.44)
Dev
yani
Foo
ds In
dust
ries
Li
mite
d (c
onso
lidat
ed)
11.
61
2,4
65.0
3 9
7.26
6
45.4
5 (4
.58)
(59.
48)
29.
88
585
.97
SVS
Indi
a P
vt. L
td.
0.0
2 4
.83
(0.1
5) (0
.99)
-
-
(0.0
5) (0
.99)
Acc
orB
ev (T
elan
gana
) P
riva
te L
imite
d (0
.00)
(0.2
7) (0
.01)
(0.0
9) -
-
(0
.00)
(0.0
9)
Alis
ha R
etai
l Pri
vate
Li
mite
d (4
.47)
(948
.10)
(69.
49)
(461
.15)
-
-
(23.
52)
(461
.15)
Var
un B
ever
ages
Lim
ited
(Con
solid
ated
) 9
6.29
2
0,43
7.34
4
70.2
9 3
,121
.15
(4.4
3) (5
7.45
) 1
56.2
3 3
,063
.70
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 238
Em
pire
Sto
cks
Pri
vate
Li
mite
d -
-
-
-
-
-
-
-
Lin
eage
Hea
lthc
are
Lim
ited
-
-
-
-
-
-
-
-
Par
kvie
w C
ity L
imite
d -
-
-
-
-
-
-
-
M
inor
ity In
tere
st in
all
subs
idia
ries
(inc
ludi
ng s
tep
subs
idia
ries
) 6
7.63
1
4,35
4.66
2
41.5
1 1
,602
.78
(7.1
4) (9
2.68
) 7
7.00
1
,510
.09
Tot
al e
limin
atio
ns
(100
.74)
(21,
381.
70)
(249
.13)
(1,6
53.3
7) 4
.78
62.
06
(81.
15)
(1,5
91.3
2) a
ssoc
iate
s/Jo
int v
entu
res
( inv
estm
ent a
s pe
r eq
uity
m
etho
d)
-
for
eign
-
A
fric
are
Lim
ited
(Con
solid
ated
) -
-
-
-
Sam
eer
Agr
icul
ture
&
Live
stoc
k (K
enya
) Ltd
. -
-
-
-
Cry
oviv
a Th
aila
nd P
vt L
td 1
.76
11.
69
0.6
0 1
1.69
indi
an
-
Lin
eage
Hea
lthc
are
Lim
ited
-
-
-
-
Par
kvie
w C
ity L
imite
d -
-
-
-
C
apita
l Inf
raco
n P
riva
te
Lim
ited
(0.1
0) (0
.68)
(0.0
3) (0
.68)
Rat
naka
r Fo
ods
&
Bev
erag
es P
vt. L
td.
-
-
-
-
Raj
asth
an B
ever
ages
Pvt
.Lt
d. -
-
-
-
The
Min
or F
ood
Gro
up
(Indi
a) P
riva
te L
imite
d -
-
-
-
Ang
elic
a Te
chno
logi
es
Pri
vate
Lim
ited
4.0
9 2
7.17
1
.39
27.
17
Aga
rwal
Col
d D
rink
s P
vt.
Ltd.
0.0
0 0
.03
0.0
0 0
.03
tot
al
100
.00
21,
224.
66
100
.00
663
.66
100
.00
1,2
97.3
9 1
00.0
0 1
,961
.05
Nam
e of
the
enti
ties
in
clud
ed in
con
solid
ated
fi
nanc
ial s
tate
men
ts
Net
ass
ets
( tot
al a
sset
s m
inus
tota
l lia
bilit
ies)
s
hare
in p
rofi
t or
(los
s)
sha
re in
oth
er c
ompr
ehen
sive
in
com
e
sha
re in
tot
al o
ther
co
mpr
ehen
sive
inco
me
as
% o
f co
nsol
idat
ed
net a
sset
s
am
ount
in
mill
ion
as
% o
f co
nsol
idat
ed
profi
t or
loss
am
ount
in
mill
ion
as
% o
f co
nsol
idat
ed
net a
sset
s
am
ount
in
mill
ion
as
% o
f co
nsol
idat
ed
profi
t or
loss
am
ount
in
mill
ion
su
MM
ar
Y o
f s
igN
ific
aN
t a
cc
ou
Nti
Ng
Po
Lic
ies
aN
d o
tHe
r e
XP
LaN
ato
rY
iNfo
rM
ati
oN
oN
tH
e c
oN
so
Lid
ate
d f
iNa
Nc
iaL
sta
teM
eN
ts f
or
tH
e
Ye
ar
eN
de
d 3
1 M
ar
cH
202
0(`
in m
illio
ns, e
xcep
t for
sha
re d
ata
and
if o
ther
wis
e st
ated
)
Annual Report 2019-20 | RJ Corp Limited 239
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
(` in millions, except for share data and if otherwise stated)
59 other disclosures in regard to investment properties:
i. information regarding income and expenditure of investment properties:
for the year ended 31 March 2020
rental income derived from investment properties 210.65 Direct operating expenses (including repairs and maintenance) generating rental income
70.22
Direct operating expenses (including repairs and maintenance) that did not generate rental income
11.86
Profit arising from investment properties before interest, depreciation and indirect expenses
128.57
Less: finance costs (50.35)Less: depreciation (52.73)Less: impairment (0.77)Profit arising from investment properties before indirect expenses 24.72
ii. Minimum lease payments receivable under operating leases of investment properties are as follows:
for the year ended 31 March 2020
Less than one year 73.03 One to five years 335.08 More than five years 344.00
iii. fair value
as at 31 March 2020
Investment properties 654.64
estimation of fair value
The Group’s investment properties consist of right-of-use assets in leased food courts, which has been determined based on the nature, characteristics of leases of each property.
The fair value of investment property has been determined by external, independent property valuer, having appropriate recognised professional qualification and recent experience in the location and category of the property being valued. The Company obtained independent valuation for its investment properties and fair value measurement has been categorized as level 3 inputs. The fair value has been arrived using discounted cash flow projections based on reliable estimates of future cash flows considering growth in rental of 5% p.a. and discount rate of 14.97%.
60 assets pledged as security
The carrying amount of assets pledged as security are:
Particularsas at
31 March 2020as at
31 March 2019Inventories and trade receivable 16,458.91 11,458.49 Other bank deposits 1,064.01 932.09 Current loans 2,211.05 3,527.70 Other current financial assets 1,820.38 2,137.35 Other current assets 3,168.06 2,979.21 Intangible assets under development 1.85 1.94 Other intangible assets 8,473.98 8,199.68 Property, plant and equipment (including capital work-in-progress) 70,165.66 53,190.25
financial statem
ents
Annual Report 2019-20 | RJ Corp Limited 240
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
(` in millions, except for share data and if otherwise stated)61 impact of coVid-19 on the company
The COVID-19 virus continues to spread globally including India, which has resulted in significant decline and volatility and disruption in economic/financial activities in global markets. On 11 March 2020, COVID -19 was declared as global pandemic by World Health Organisation.
Amidst the tumult of this unprecedented age of virus, the Group has allowed its employees to “Work from Home” after declaration of national lockdown for prevention and safeguard of the employees of the Group. Nevertheless, business activities from the date of lockdown were suspended. In the meanwhile, government of India and other regulators e.g. Reserve Bank of India, Income tax authorities came up with variety of measures to mitigate the impact of economic and financial disruptions. Inventory as at end of the year has been taken on the basis of physical verification after lifting the lockdown and impact has been affected in valuation considered in the financial statement, if any, due to change in quantity/quality of the inventories.
Though the pandemic is still evolving and impact on working of the Group is uncertain, the management of the Group has considered all internal and external sources of information, including economic forecasts and estimates from market sources as at the date of the approval of these standalone financial statements in determining carrying value of assets comprising property, plant and equipment, right of use assets, inventories, receivables and other current assets as at the balance sheet date. On the basis of evaluation and current indicators of future economic conditions, the Group has concluded that no material adjustments are required in the standalone financial statements other than those already recognised in form of impairment of non financial assets and assets and writing of inventories for perishable goods as of the reporting date. Given the uncertainties associated with nature, condition and duration of Covid 19, the impact assessment on the Group’s consolidated financial statements will be continuously made and provided for as required.
The accompanying notes are an integral part of the financial statements.
As per our report of even date attached.
sumit kathuria
Partner
Membership No.: 520078
raj Pal gandhi
Director
DIN: 00003649
Lalit kumar singh
Chief Financial Officer
Varun Jaipuria
Director
DIN: 02465412
Mahavir Prasad garg
Company Secretary
For aPas & co.
Chartered Accountants
Firm Registration No.: 000340C
For and on behalf of the Board of directors of
rJ corp Limited
Place: New delhidate: 30 september 2020