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* 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.
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
-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
sta
teM
eN
t o
f c
Ha
Ng
es
iN e
qu
itY
A
equi
ty s
hare
cap
ital
Eq
uity
sha
res
of IN
R 1
0 ea
ch is
sued
, sub
scri
bed
and
fully
pai
d up
Part
icul
ars
Num
ber
of s
hare
sa
mou
nt
Bal
ance
as
at 3
1 M
arch
201
8 1
87,8
20
1.8
8
Cha
nges
in e
quity
sha
re c
apita
l dur
ing
the
year
201
8-19
24,
165
0.2
4
Bal
ance
as
at 3
1 M
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
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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.
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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.
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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.
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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,
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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.
Annual Report 2019-20 | RJ Corp Limited 50
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe staNdaLoNe
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
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’.
Annual Report 2019-20 | RJ Corp Limited 51
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe staNdaLoNe
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
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
Annual Report 2019-20 | RJ Corp Limited 52
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe staNdaLoNe
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
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.
Annual Report 2019-20 | RJ Corp Limited 53
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe staNdaLoNe
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
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
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe staNdaLoNe
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
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
ents
4a.
Pro
pert
y, p
lant
and
equ
ipm
ent
Land
Bui
ldin
g^Le
aseh
old
build
ing
spa
ce in
co
mm
erci
al
com
plex
*
Mot
or
car
tube
wel
l P
lant
&
mac
hine
ryLe
aseh
old
furn
itur
e &
fi
xtur
es
elec
tric
fi
ttin
g &
ap
plia
nces
com
pute
rso
ffice
eq
uipm
ent
tota
l
gro
ss c
arry
ing
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01
Apr
il 20
19 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
Acq
uire
d on
bus
ines
s ac
quis
ition
th
roug
h m
erge
r du
ring
th
e ye
ar*
-
850
.49
-
60.
00
4.3
1 -
-
-
-
-
-
9
14.8
0
Add
ition
s fo
r th
e ye
ar -
-
5
.61
-
-
-
1.2
0 6
.34
-
0.7
5 0
.92
14.
82
Dis
posa
ls fo
r th
e ye
ar -
-
(1
1.74
) -
(4
.31)
(0.2
6) (0
.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
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n an
d im
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
uire
d on
bus
ines
s ac
quis
ition
th
roug
h m
erge
r du
ring
th
e ye
ar
-
-
-
1.9
0 3
.51
-
-
-
-
-
-
5.4
1
Dep
reci
atio
n ch
arge
for
the
year
-
7.4
1 8
.04
1.9
0 -
0
.03
1.3
2 6
.30
0.6
2 1
.18
1.4
0 2
8.20
Rev
ersa
l on
disp
osal
of
asse
ts fo
r th
e ye
ar
-
-
(6.7
5) -
(3
.51)
(0.2
5) (0
.13)
(8.3
8) 0
.00
(0.1
3) (0
.27)
(19.
42)
(` in
mill
ions
)
No
tes
fo
rM
iNg
Pa
rt
of
tHe
sta
Nd
aLo
Ne
fiN
aN
cia
L s
tate
Me
Nts
fo
r t
He
Ye
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
Me
Nts
fo
r t
He
Ye
ar
eN
de
d 3
1 M
ar
cH
202
0
Bal
ance
as
at
31 M
arch
202
0 -
6
9.70
2
5.42
3
.80
-
0.2
7 5
.52
19.
96
6.4
4 6
.72
10.
64
148
.47
carr
ying
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
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
.
^ 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
fi
ttin
g &
ap
plia
nces
com
pute
rso
ffice
eq
uipm
ent
tota
l
(` in
mill
ions
)
(` in
mill
ions
)
Land
Bui
ldin
g^Le
aseh
old
build
ing
spa
ce in
co
mm
erci
al
com
plex
*
Mot
or
car
tube
wel
l P
lant
&
mac
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aseh
old
furn
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xtur
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fi
ttin
g &
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plia
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com
pute
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ffice
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l
gro
ss c
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ntB
alan
ce a
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
2
Add
ition
s fo
r th
e ye
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
atio
n an
d im
pair
men
tB
alan
ce a
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
l on
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
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)"
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)
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
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
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
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
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
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
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:
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
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
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
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
included in the measurement of the lease liability are
made up of fixed payments (including in substance fixed
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 132
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;
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• 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
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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
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
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
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
financial statem
ents
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
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
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
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
financial statem
ents
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
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
Annual Report 2019-20 | RJ Corp Limited 145
(` in
mill
ions
, exc
ept f
or s
hare
dat
a an
d if
oth
erw
ise
stat
ed)
gro
ss b
lock
fre
ehol
d La
nd
Lea
seho
ld
Land
# B
uild
ings
^ s
pace
in
com
mer
cial
co
mpl
ex*
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
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
uire
d on
bus
ines
s ac
quis
ition
/su
bsid
iari
es
acqu
isiti
on
duri
ng th
e ye
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
ents
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
clas
sifi
ed a
s he
ld fo
r S
ale
345
.41
0.0
2 2
5.46
-
(0
.49)
-
-
(12.
20)
-
(23.
77)
-
-
(11.
27)
-
-
-
323
.16
Tran
sfer
/ ad
just
men
t du
ring
the
year
-
-
163
.32
-
(163
.32)
-
-
-
(0.4
8) -
-
-
-
-
-
-
(0
.48)
Fore
ign
exch
ange
fl
uctu
atio
n fo
r th
e ye
ar
(87.
11)
(0.0
2) (1
86.9
9) -
(4
55.0
2) 2
1.24
0
.02
(10.
29)
-
5.4
6 (3
3.40
) -
(0
.01)
(87.
76)
31.
48
(80.
28)
(882
.68)
Bal
ance
as
at 3
1 M
arch
20
19 4
,814
.23
4,5
93.9
3 1
2,51
7.16
-
3
3,95
2.84
2
,326
.67
426
.25
883
.51
1,4
56.1
0 6
79.0
6 2
,063
.34
0.1
5 5
67.7
7 5
,077
.60
486
.40
10,
676.
06
80,
521.
07
Acq
uire
d on
bus
ines
s ac
quis
ition
/su
bsid
iari
es
acqu
isiti
on
duri
ng th
e ye
ar
1,8
47.7
3 1
,965
.04
4,1
54.4
9 6
0.00
8
,255
.88
44.
67
-
18.
22
-
9.0
5 2
0.25
-
9
.21
312
.53
-
721
.66
17,
418.
73
Add
ition
s fo
r th
e ye
ar 6
36.1
1 1
12.0
1 6
56.4
9 -
4
,082
.54
268
.81
9.1
8 8
9.50
2
76.3
6 8
0.09
2
61.9
4 -
1
97.4
2 9
60.8
8 -
4
45.8
4 8
,077
.17
Gov
ernm
ent
gran
t re
leat
ed
to a
sset
re
ceiv
ed
-
-
-
-
(251
.05)
-
-
-
-
-
-
-
-
-
-
-
(251
.05)
Dis
posa
ls/
Adj
ustm
ents
fo
r th
e ye
ar -
(3
5.24
) (1
4.06
) -
(4
27.0
2) (1
99.2
6) 4
0.29
(1
08.1
5) (1
09.1
2) (1
5.99
) (6
2.56
) -
(2
5.70
) (3
84.2
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
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su
MM
ar
Y o
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igN
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Po
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ies
aN
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LaN
ato
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ati
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so
Lid
ate
d f
iNa
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iaL
sta
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eN
ts f
or
tH
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31 M
ar
cH
202
0g
ross
blo
ck f
reeh
old
Land
L
ease
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La
nd#
Bui
ldin
gs^
spa
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co
mm
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al
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plex
*
Pla
nt &
eq
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ent
Lea
seho
ld
impr
ovem
ents
e
lect
rica
l in
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pmen
t
fur
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re
and
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Mar
keti
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ass
ets
offi
ce
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pmen
ts
Veh
icle
s B
ooks
c
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t P
ost-
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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
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or s
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dat
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oth
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Land
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* Th
e H
oldi
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ompa
ny h
ad a
cqui
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com
mer
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com
plex
at m
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i mal
l, w
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is y
et to
be
regi
ster
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the
nam
e of
the
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pany
.
^Bui
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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
Annual Report 2019-20 | RJ Corp Limited 152
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
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
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)
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
Annual Report 2019-20 | RJ Corp Limited 154
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 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.
For details towards pledge of some of above shares refer note no. 22 E
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 (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)
Annual Report 2019-20 | RJ Corp Limited 155
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
^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”.
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
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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
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
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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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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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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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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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)
Annual Report 2019-20 | RJ Corp Limited 169
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
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
Annual Report 2019-20 | RJ Corp Limited 170
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
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.
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)
Annual Report 2019-20 | RJ Corp Limited 171
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
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
Annual Report 2019-20 | RJ Corp Limited 172
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
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)
Annual Report 2019-20 | RJ Corp Limited 173
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
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
Annual Report 2019-20 | RJ Corp Limited 174
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
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
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
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
Annual Report 2019-20 | RJ Corp Limited 176
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
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)
Annual Report 2019-20 | RJ Corp Limited 177
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
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
Annual Report 2019-20 | RJ Corp Limited 178
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
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)
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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
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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)
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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
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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)
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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
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
Annual Report 2019-20 | RJ Corp Limited 190
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
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
(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
.)
(` 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
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*
- 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
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Annual Report 2019-20 | RJ Corp Limited 203
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giv
en
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kvie
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-
-
-
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-
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3
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-
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0
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fric
are
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ber
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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.
2019
31. 0
3.
2020
31. 0
3.
2019
Loan
take
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run
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5
95.0
0 -
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Em
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imite
d -
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3
18.1
2 7
8.83
-
-
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C
ryov
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(Tha
iland
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-
-
-
-
-
-
-
-
2
95.4
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21.
32
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rep
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n Ja
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Par
kvie
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3
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9 C
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2
49.3
4 -
Em
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imite
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74.4
7 -
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com
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UF
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Bev
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S
MV
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Li
neag
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Annual Report 2019-20 | RJ Corp Limited 205
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men
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r an
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soci
ate
of a
ny
mem
ber
of a
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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
Loan
take
n Va
run
Jaip
uria
-
-
-
5
95.0
0 -
-
-
-
-
-
Em
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Sto
ck P
riva
te L
imite
d -
-
-
-
3
18.1
2 7
8.83
-
-
-
-
C
ryov
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(Tha
iland
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. -
-
-
-
-
-
-
-
-
2
95.4
6 P
arkv
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City
Ltd
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-
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3,5
38.6
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,199
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unp
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rest
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21.
32
-
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Loan
rep
aid
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n Ja
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278
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-
-
-
-
-
-
Par
kvie
w C
ity L
td -
-
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3
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35.8
9 C
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2
49.3
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Em
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conv
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pula
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7 -
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-
Va
run
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1
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aid
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tor
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S
MV
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2
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Li
neag
e H
ealt
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mite
d -
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5
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-
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50.
00
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des
crip
tion
tota
l
ult
imat
e co
ntro
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rty
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nd th
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rela
tive
s
enti
ties
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irec
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ties
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re
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em
ploy
men
t be
nefi
ts p
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r an
as
soci
ate
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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
ust
VBL
Empl
oyee
s G
ratu
ity T
rust
-
-
-
-
-
-
52.
06
1.8
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-
D
IL E
mpl
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Gra
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st -
-
-
-
-
-
5
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10.
00
-
-
(exp
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s in
curr
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y th
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mpa
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s)/e
xpen
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by
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n be
half
of t
he c
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nyLu
narm
ech
Tech
nolo
gies
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vate
Li
mite
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-
-
-
-
-
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(0
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(0.0
1)
Nec
tor
Bev
erag
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imite
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-
-
-
(1
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(0.0
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-
-
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A
ccor
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stri
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0
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9 -
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0.6
1 iC
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vate
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am
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(am
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f of t
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Nec
tar
Bev
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te L
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-
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-
1
1.10
-
-
-
-
-
S
MV
Bev
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riva
te L
imite
d -
-
-
-
(1
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) -
-
-
-
-
adv
ance
pai
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r ac
quis
itio
n of
new
terr
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ies
SM
V B
ever
ages
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vate
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-
-
-
-
3.0
0 -
-
-
-
-
capi
tal c
omm
itm
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SM
V B
ever
ages
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vate
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282
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Mar
keti
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rt f
eeS
MV
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erag
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4
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4
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0
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9
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-
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test
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char
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rece
ived
Line
age
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2.4
2 iC
linic
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-
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1.1
1
(` in
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ther
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financial statem
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Annual Report 2019-20 | RJ Corp Limited 206
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ties
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31. 0
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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
rem
uner
atio
n Pa
idLa
lit S
ingh
-
-
3.8
3 3
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-
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-
-
-
-
Mr.
Varu
n Ja
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-
3
5.32
3
1.22
-
-
-
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M
r. R
aj P
al G
andh
i -
-
4
9.48
3
5.59
-
-
-
-
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-
M
r. M
ahav
ir P
rasa
d -
-
3
.69
3.3
9 -
-
-
-
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-
M
rs. D
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ni J
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-
-
6.0
0 6
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-
-
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-
-
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Mrs
. Dha
ra J
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12.
02
12.
02
-
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-
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ren
t/ le
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char
ges
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9 6
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-
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-
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Mrs
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2.6
4 2
.40
-
-
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-
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-
Nec
tar
Bev
erag
es P
riva
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imite
d -
-
-
-
3
3.69
-
-
-
-
-
S
MV
Bev
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imite
d -
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-
1
7.10
-
-
-
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M
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-
0
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0.3
8 -
-
-
-
-
-
dir
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r s
itti
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Gir
ish
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0
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0.4
0 -
-
-
-
-
-
M
s. R
ashm
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3.3
0 3
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-
-
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-
-
-
com
mis
sion
rec
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dP
arkv
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-
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-
-
-
0.2
2
rei
mbu
rsem
ent o
f exp
ense
s M
rs. D
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7 3
.17
-
-
-
-
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-
(` in
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ess
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ed o
ther
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Annual Report 2019-20 | RJ Corp Limited 207
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0
des
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l
ult
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e co
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llin
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rty
kM
P a
nd th
eir
rela
tive
s
enti
ties
in w
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ativ
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irec
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ties
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post
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ts p
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te (o
r an
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ate
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ny
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ber
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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
31. 0
3.
2019
31. 0
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Annual Report 2019-20 | RJ Corp Limited 208
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Luna
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Annual Report 2019-20 | RJ Corp Limited 209
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31. 0
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5
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Mr.
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31. 0
3.
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31. 0
3.
2019
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3.
2020
31. 0
3.
2019
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3.
2020
31. 0
3.
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3.
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3.
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Bal
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iClin
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4
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8
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8
1.96
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land
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(2
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9)M
rs. D
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Line
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5
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Mr.
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9
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Bal
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3
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0.5
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iven
Afr
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9
89.7
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(` in
mill
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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
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
785
.59
191
.80
1,3
56.7
7 1
1.91
9
,660
.73
56.
06
15,
429.
57
75,
670.
99
181
.81
103
,345
.23
Inte
r se
gmen
t rev
enue
-
(188
.06)
(4.8
2) -
(2
39.8
7) -
(5
9.35
) (1
34.5
2) (1
07.0
5) (7
33.6
6)to
tal r
even
ue 7
85.5
9 3
.74
1,3
51.9
5 1
1.91
9
,420
.86
56.
06
15,
370.
22
75,
536.
47
74.
76
102
,611
.56
res
ult
Seg
men
t Res
ult
(12.
48)
(17.
15)
(445
.47)
11.
91
(714
.21)
10.
27
(264
.59)
9,7
37.2
2 (5
71.7
1) 7
,733
.80
Fina
nce
cost
7,6
76.9
2 Fi
nanc
e in
com
e 4
64.6
1 N
on o
pera
ting
inco
me
4,2
51.8
8 Ex
cept
iona
l ite
ms
(324
.40)
Pro
fit B
efor
e ta
x 4
,448
.96
oth
er s
egm
ent i
tem
sD
epre
ciat
ion
and
amor
tizat
ion
expe
nse
19.
75
24.
83
68.
35
0.5
7 8
38.1
3 5
.68
2,4
67.0
4 5
,247
.23
120
.07
8,7
91.6
5
Impa
irm
ent o
f non
-fi
nanc
ial a
sset
s 3
8.78
3
8.78
oth
er in
form
atio
nS
egm
ent A
sset
s 4
40.4
1 4
99.7
3 1
,315
.90
1,0
18.3
3 1
6,48
0.51
3
2.85
1
8,83
5.78
8
7,58
9.49
1
7,36
3.24
1
43,5
76.2
3 El
imin
atio
n (7
.35)
(0.6
0) (0
.27)
(0.8
9) (4
73.3
9) (1
0,32
1.44
) (1
0,80
3.94
)s
egm
ent a
sset
s 4
40.4
1 4
92.3
8 1
,315
.30
1,0
18.3
3 1
6,48
0.24
3
2.85
1
8,83
4.89
8
7,11
6.10
7
,041
.80
132
,772
.29
Seg
men
t Lia
bilit
ies
99.
60
283
.88
4,9
84.7
2 1
,056
.19
13,
813.
97
20.
80
21,
117.
89
53,
606.
99
10,
286.
46
105
,270
.49
Elim
inat
ion
-
(221
.71)
(0.2
7) (1
,832
.77)
(0.3
4) (8
.61)
(7.3
5) (1
,352
.73)
(3,4
23.7
7)s
egm
ent L
iabi
litie
s 9
9.60
6
2.16
4
,984
.45
1,0
56.1
9 1
1,98
1.21
2
0.46
2
1,10
9.28
5
3,59
9.64
8
,933
.73
101
,846
.72
su
MM
ar
Y o
f s
igN
ific
aN
t a
cc
ou
Nti
Ng
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Lic
ies
aN
d o
tHe
r e
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LaN
ato
rY
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ati
oN
oN
tH
e c
oN
so
Lid
ate
d f
iNa
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iaL
sta
teM
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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)
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
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
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)
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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
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gd
ZML
31 M
arch
202
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sset
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-
-
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175
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1.8
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-
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(b) R
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su
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(` in
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ed)
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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
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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')
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
(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
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)
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.)
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
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),
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)
Annual Report 2019-20 | RJ Corp Limited 228
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
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)
Annual Report 2019-20 | RJ Corp Limited 229
suMMarY of sigNificaNt accouNtiNg PoLicies aNd otHer eXPLaNatorY iNforMatioN oN tHe coNsoLidated
fiNaNciaL stateMeNts for tHe Year eNded 31 MarcH 2020
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
su
MM
ar
Y o
f s
igN
ific
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t a
cc
ou
Nti
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ies
aN
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r e
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ato
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Lid
ate
d f
iNa
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teM
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ts f
or
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e
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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
Bal
ance
she
et
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
as
of
31 M
arch
20
20
as
of
31 M
arch
20
19
as
of
31 M
arch
20
20
as
of
31 M
arch
20
19
as
of
31 M
arch
20
20
as
of
31 M
arch
20
19
as
of
31 M
arch
20
20
as
of
31 M
arch
20
19
as
of
31 M
arch
20
20
as
of
31 M
arch
20
19a
sset
sN
on-c
urre
nt a
sset
s 1
8.52
2
9.15
5
6.25
1
42.9
2 -
0
.11
397
.89
332
.39
curr
ent a
sset
sC
urre
nt a
sset
s ex
clud
ing
cash
and
cas
h eq
uiva
lent
1,6
31.6
5 1
,290
.54
9.9
5 3
13.7
0 0
.27
1.1
5 2
06.5
8 1
47.9
6
Cas
h an
d C
ash
Equi
vale
nt 7
.52
5.3
4 1
.11
3.7
1 0
.11
5.6
5 1
8.13
2
3.84
Li
abili
ties
Non
-cur
rent
liab
iliti
es 4
93.5
5 6
26.4
0 3
22.7
0 2
0.42
1
0.00
-
5
7.75
4
7.36
cu
rren
t lia
bilit
ies
2,3
17.9
9 1
,494
.24
325
.25
185
.49
0.5
2 1
4.92
4
70.5
1 3
75.7
7 eq
uity
(1,1
53.8
5) (7
95.6
2) (5
80.6
3) 2
54.4
3 (1
0.14
) (8
.01)
94.
34
81.
05
Per
cent
age
of g
roup
's
ow
ners
hip
inte
rest
38.0
0%38
.00%
49.8
0%47
.30%
30.0
0%30
.00%
50.0
0%50
.00%
Inte
rest
in J
oint
Ven
ture
/ A
ssoc
iate
(438
.46)
(302
.33)
(289
.15)
-
120
.34
(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
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so
Lid
ate
d f
iNa
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iaL
sta
teM
eN
ts f
or
tH
e
Ye
ar
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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
su
MM
ar
Y o
f s
igN
ific
aN
t a
cc
ou
Nti
Ng
Po
Lic
ies
aN
d o
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ati
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Lid
ate
d f
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teM
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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
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
)
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.