RJ CORP LIMITEDAnnuAL REPORT FOR ThE yEAR EnDED 31sT MARCh, 2019
BOARD OF DIRECTORs
Mr. Ravi Kant JaipuriaMr. Varun JaipuriaMr. Raj GandhiMr. Sanjoy MukerjiDr. Girish Ahuja*Ms. Rashmi Dhariwal*Mr. Rajesh Chopra**Mr. Satya Vir Singh*** Appointed w.e.f. April 1, 2018
** Resigned w.e.f. April 30, 2018
COMPAny sECRETARyMr. Mahavir Prasad Garg
REgIsTERED OFFICEF-2/7, Okhla Industrial Area, Phase-I,New Delhi - 110 020.
hEAD OFFICERJ Corp HousePlot No. 31, Institutional AreaSector - 44, Gurugram -122 002 Haryana
BAnkERsYes Bank LimitedIndusInd Bank LimitedKotak Mahindra Prime LimitedAxis Finance LimitedClix Capital Services Private Limited
COnTEnTs: PAgE nO.
Board’s Report 3
Consolidated Financial statements
Auditors’ Report 32
Balance Sheet 38
Statement of Profit & Loss 40 Cash Flow Statement 42 Notes on Accounts 45
standalone Financial statements Auditors’ Report 189 Balance Sheet 196 Statement of Profit & Loss 198 Cash Flow Statement 201 Notes on Accounts 203
AuDITORsM/s. APAS & Co.,Chartered Accountants, New Delhi
RJ CORP LIMITED
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BOARD’s REPORT
The Members,
RJ Corp Limited
Your Directors have pleasure in presenting the 39th (Thirty Ninth) Annual Report on the business and operations of your
Company along with the Audited Financial Statements, for the Financial Year ended March 31, 2019.
FInAnCIAL REsuLTs
The Company’s financial performance for the year ended March 31, 2019 is summarized below:
Particularsstandalone Consolidated
year EndedMarch 31, 2019
year EndedMarch 31, 2018
year EndedMarch 31, 2019
year EndedMarch 31, 2018
Total Revenue 1,446.36 1,203.92 80,731.62 67,494.14Total Expenses 2,278.86 1,960.38 78,801.80 65,660.12Profit/ (Loss) before tax (832.50) (756.46) 1,948.89 1,769.50Less - Tax expenses - - 1,285.24 783.94Profit/(Loss) after tax (832.50) (756.46) 663.65 985.56Balance brought forward from last year 789.70 (899.08) (3,327.70) (5,402.59)General Reserve 41.78 41.78 201.65 96.62 Other Reserves 9,074.26 5,261.82 8,794.74 5,436.17Reserve & Surplus carried to Balance Sheet 9,073.24 3,648.06 6,332.34 1,115.76
COnsOLIDATED FInAnCIAL sTATEMEnT
The Consolidated Financial Statements of your Company for the Financial Year 2018-19, are prepared in compliance with the
applicable provisions of the Companies Act, 2013 (“the Act”), Indian Accounting Standards (“Ind AS”) which shall be placed
before the members in their forthcoming Annual General Meeting (AGM).
In accordance with Section 129 (3) of the Companies Act, 2013, a statement containing the salient features of the financial
statement of subsidiary/ associate companies is provided as Annexure in Form AOC – 1 to the consolidated financial statement
and therefore not repeated to avoid duplication.
sTATE OF COMPAny’s AFFAIRs (sTAnDALOnE)
During the period under review, the Company earned a total revenue of Rs. 1,446.36 Million as compared to a total revenue of
Rs. 1,203.92 Million during the previous year. The Net Loss after tax was Rs. 832.50 Million as compared to a Net Loss after
Tax of Rs. 756.46 Million during the previous year.
DEPOsITs
Your Company has not accepted any deposits during the year under review, falling within the ambit of Section 73 of the Act
and the Companies (Acceptance of Deposits) Rules, 2014.
TRAnsFER TO gEnERAL REsERVEs
The Board of Directors do not propose to transfer any amount to reserves during the year under review.
ChAngE In ThE nATuRE OF BusInEss, IF Any
During the year under review, there was no change in the nature of the business of the Company.
(` in millions, except as stated otherwise)
RJ CORP LIMITED
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DIVIDEnD
Your Directors do not recommend any dividend for the year ended March 31, 2019 due to losses incurred during the year
under review.
shARE CAPITAL
During the period under review paid up equity share capital of the Company was changed from Rs. 18,78,200/- divided into
187820 (One Lakh Eighty Seven Thousand Eight Hundred Twenty) Equity Shares of Rs. 10/- (Rupees Ten only) each to Rs.
21,19,850/- divided into 211985 (Two Lakhs Eleven Thousand Nine Hundred Eighty Five) Equity Shares of Rs. 10/- (Rupees
Ten only) each consequent upon conversion of 2100000 Compulsorily Convertible Debentures of Rs. 1000/- each and 8999950
Compulsorily Convertible Preference Shares of Rs. 10/- each into equity shares on January 1, 2019.
RELATED PARTy TRAnsACTIOns
Your Directors draw attention of the members to Note No. 40 to the standalone financial statements which sets out related
party disclosures which are in the ordinary course of business of the Company and are also transacted at arms’ length basis.
The particulars of contracts or arrangements with related parties referred to in Section 188 (1) of the Companies Act, 2013,
as prescribed in Form AOC-2 of the rules is appended as Annexure - I.
PARTICuLARs OF LOAns, InVEsTMEnTs AnD guARAnTEEs
Particulars of investments made, loans given, guarantees given and securities provided are detailed in the financial statement
(Please refer note no. 6, 7 and 8 to the standalone financial statements).
hOLDIng, suBsIDIARy AnD AssOCIATEs COMPAnIEs
During the year under review, the Company does not have any holding company. The Company had following subsidiaries as
on March 31, 2019:
Direct subsidiaries
1. AccorBev (Telangana) Private Limited;
2. Anuj Traders Private Limited;
3. Alisha Retail Private Limited;
4. Cryoviva Biotech Private Limited;
5. Devyani Food Industries Limited;
6. Devyani International Limited;
7. Diagno Labs Private Limited;
8. Modern Montessori International (India) Private Limited;
9. Snowpeak Enterprises Private Limited;
10. S V S India Private Limited;
11. Arctic International Private Limited*;
12. Cryoviva International Pte. Limited*.
13. Wellness Holdings Limited*;
RJ CORP LIMITED
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step-down subsidiaries
1. Devyani Airport Services (Mumbai) P. Ltd.
2. Devyani Food Street Pvt. Ltd.
3. Accor Developers Pvt. Ltd.*
@ Ole Marketing Pvt. Ltd.*
4. Cryoviva Bangladesh Pvt. Ltd.*
5. Cryoviva Singapore Pte. Limited*
@Reviva Cell Technologies Pte. Ltd.
6. Devyani International (Nepal) Pvt. Ltd.*
7. RV Enterprises Pte. Ltd.*
@ Devyani International (Nigeria) Ltd.*
8. Devyani International (UK) P. Ltd.*
9. Varun Developers P. Ltd.*
10. Varun Food & Beverages (Zambia) Ltd.*
@ Varun Beverages (Africa) Ltd.*
@ Varun Food & Beverages (Africa) Ltd.*
@ Varun Infrastructure (Zambia) Ltd.*
* Foreign company
@ further step-down subsidiary.
AssOCIATE COMPAnIEs
As on March 31, 2019, the Company had following Associate Companies:
1. Capital Infracon Private Limited;
2. Lineage Healthcare Limited;
3. Varun Beverages Limited;
4. Agarwal Cold Drinks Private Limited;
5. Ratnaker Foods and Beverages Private Limited;
6. Africare Limited*.
* Foreign company
DIRECTORs
During the period under review, Mr. Rajesh Chopra and Mr. Satya Vir Singh have resigned from the Board w.e.f April 30, 2018.
Mr. Sanjoy Mukerji also resigned from the Board w.e.f. September 30, 2018.
Mr. Raj Pal Gandhi (DIN: 00003649), Director of the Company is liable to retire by rotation at the ensuing Annual General
Meeting and being eligible, offers himself for re-appointment. Your Directors recommend his re-appointment.
During the year under review, Ms. Rashmi Dhariwal (DIN: 00337814) and Dr. Girish Kumar Ahuja (DIN: 00446339) were
appointed as an Independent Directors on the Board of the Company for a period of upto five years with effect from April 1,
2018. Their appointment was regularized by the shareholders of the Company in the Annual General Meeting of the Company
held on September 30, 2018.
None of the Directors of your Company are disqualified as per provision of Section 164 (2) of the Companies Act, 2013. The
Directors of the Company have made necessary disclosures, as required under various provisions of the Companies Act,
2013.
RJ CORP LIMITED
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kEy MAnAgERIAL PERsOnnEL
During the year under review, Mr. Satya Vir Singh (DIN 06608396) resigned from the position of Whole-time Director of the
Company w.e.f April 30, 2018 and the Company has appointed Mr. Vikas Kumar Keshri as Manager of the Company w.e.f.
March 27, 2019 and also designated him as one of the Key Managerial Personal of the Company.
As on date Mr. Vikas Kumar Keshri, Manager, Mr. Mahavir Prasad Garg, Company Secretary and Mr. Lalit Kumar Singh, Chief
Financial Officer of the Company are the Key Managerial Personnel of the Company.
BOARD EVALuATIOn
To comply with the provisions of Section 134(3)(p) of the Act and the rules made thereunder, the Board has carried out the
annual performance evaluation of the Directors individually including the Independent Directors (wherein the concerned
director being evaluated did not participate), Board as a whole, and following Committees of the Board of Directors:
(i) Audit Committee;
(ii) Nomination and Remuneration Committee; and
(iii) Corporate Social Responsibility Committee.
The Board of Directors of the Company ensures formation and monitoring of robust Evaluation framework of the Individual
Directors including Chairman of the Board, Board as whole and various Committee thereof and carries out the evaluation of
the Board, the Committee of the Board and Individual Directors, including the Chairman of the Board on annual basis.
Board Evaluation for the Financial Year ended March 31, 2019 has been completed by the Company internally which included
the Evaluation of the Board as a whole, Board Committees and Directors. Further, results of the Evaluation were shared with
the Board.
MEETIngs OF ThE BOARD OR Any COMMITTEE ThEREOF
During the year under review, Eleven meetings of the Board of Directors were held on April 30, 2018, June 11, 2018, September
4, 2018, September 21, 2018, October 23, 2018, October 25, 2018, November 26, 2018, January 1, 2019, January 11, 2019,
February 18, 2019 and March 27, 2019. The gap between two meetings was within the limit prescribed under Section 173(1)
of the Act. Details of the attendance of the Directors are as under:
s. no. name of the Director number of meetings attended
1. Mr. Ravi Kant Jaipuria 9
2. Mr. Varun Jaipuria 7
3. Mr. Raj Pal Gandhi 11
4. Mr. Rajesh Chopra (Resigned w.e.f. April 30, 2018) 1
5. Mr. Satya Vir Singh (Resigned w.e.f. April 30, 2018) 1
6. Mr. Sanjoy Mukerji (Resigned w.e.f. September. 30, 2018) 3
7. Ms. Rashmi Dhariwal (Appointed w.e.f. April 30, 2018) 6
8. Dr. Girish Kumar Ahuja (Appointed w.e.f. April 30, 2018) 4
During the year under review, one meeting of the Audit Committee of the Board of Directors was held on September 21, 2018
which was attended by Mr. Raj Pal Gandhi and Ms. Rashmi Dhariwal.
During the year under review, no meeting was held for the Corporate Social Responsibility Committee.
During the year under review, Two meetings of the Nomination and Remuneration Committee of the Board of Directors were
held on September 21, 2018 and March 27, 2019. Details of the attendance of the Committee members are as under:
RJ CORP LIMITED
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s. no. name of the Director number of meetings attended
1. Mr. Raj Pal Gandhi 2
2. Ms. Rashmi Dhariwal (Appointed as member w.e.f. April 30, 2018) 1
3. Mr. Sanjoy Mukerji (Ceased to be member w.e.f. September. 30, 2018) 0
4. Dr. Girish Kumar Ahuja (Appointed as member w.e.f. October 25, 2018) 1
AuDIT COMMITTEE
The Composition and terms of reference of the Audit Committee satisfy the requirement of Section 177 of the Act read with
Companies (Meetings of Board and its Powers) Rules, 2014. Composition of the Committee as on March 31, 2019 is as follows:
s. no. name Category Designation
1 Ms. Rashmi Dhariwal Independent Director Chairperson
2 Dr. Girish Kumar Ahuja Independent Director Member
3 Mr. Raj Pal Gandhi Non-executive Director Member
The Audit Committee invites such executives, as it considers appropriate, representatives of Statutory Auditors and
representatives of Internal Auditors to attend the meetings.
The Company Secretary acts as Secretary of the Audit Committee.
nOMInATIOn AnD REMunERATIOn COMMITTEE
The Composition and terms of reference of the Nomination and Remuneration Committee satisfy the requirements of Sections
178 of the Act as amended from time to time. Composition of the Committee as on March 31, 2019 was as follows:
s. no. name Category Designation
1 Ms. Rashmi Dhariwal Independent Director Chairperson
2 Dr. Girish Kumar Ahuja Independent Director Member
3 Mr. Raj Pal Gandhi Non-executive Director Member
The Company Secretary acts as Secretary of the Nomination and Remuneration Committee.
To comply with the provisions of Section 178 of the Act read with Rules made thereunder, the Company’s Remuneration Policy
for Directors, Key Managerial Personnel and Senior Management is uploaded on the website of the Company at www.rjcorp.in
REMunERATIOn OF DIRECTORs, kEy MAnAgERIAL PERsOnnEL AnD PARTICuLARs OF EMPLOyEEs
The information required pursuant to Section 197 read with Rule, 5 of The Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 in respect of employees of the Company will be provided upon request. If any Member
is interested in obtaining such information, such Member may send a request to the Company at its Registered Office in this
connection.
sTATuTORy AuDITORs
In terms of Section 139 of the Companies Act, 2013 and the rules made thereunder, M/s. APAS & Co., Chartered Accountants
were appointed as the Statutory Auditors of the Company to hold office for a period of five years from the conclusion of last
Annual General Meeting until the conclusion of the 42nd Annual General Meeting to be held for the financial year ended March
31, 2022. As per amended provisions of the Companies Act, 2013, the ratification of appointment of Statutory Auditors is not
required.
The Statutory Auditors’ Report for the Financial Year 2018-19 does not contain any qualification, reservation or adverse
remarks and therefore do not require any further clarification/ explanation from the Directors. No Frauds have been reported
by the auditors under Section 143 (12) of the Act.
RJ CORP LIMITED
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COsT AuDIT
In terms of Section 148 of the Act and the Companies (Cost Records and Audit) Rules, 2014 and any amendment thereto, Cost
Audit is not applicable to the Company.
sECRETARIAL AuDITORs
Your Board, on the recommendation of the Audit Committee, has appointed M/s. Sanjay Grover & Associates, Company
Secretaries to conduct the Secretarial Audit of your Company. The Secretarial Audit Report for the Financial Year 2018-19
is attached to this report as Annexure – II. The audit report is self-explanatory and does not call for any further comments.
InTERnAL AuDIT
As recommended by the Audit Committee, the Board of Directors in their meeting held on September 21, 2018 appointed
M/s. O.P. Bagla & Co., Chartered Accountants as an Internal Auditor of the Company for the Financial Year 2018-19 to conduct
Internal Audit of the Company.
RIsk MAnAgEMEnT
Your Company has a robust Risk Management Policy which identifies and evaluates business risks and opportunities. The
Company recognize that these risks need to be managed and mitigated to protect the interest of the stakeholders and to
achieve business objectives. The risk management framework is aimed at effectively mitigating the Company’s various
business and operational risks, through strategic actions.
InTERnAL FInAnCIAL COnTROL
Your Company has in place adequate Internal Financial Controls. The report on the Internal Financial Controls issued by M/s.
APAS & Co., Chartered Accountants, the Statutory Auditors of the Company is attached to the Audit Report on the Financial
Statements of the Company and does not contain any reportable weakness of the Company.
REsEARCh AnD DEVELOPMEnT (R&D)
During the year under review, the Company did not carry out any Research & Development.
CORPORATE sOCIAL REsPOnsIBILITy
The composition, role, functions and powers of the Corporate Social Responsibility (CSR) Committee of the Company are in
accordance with the requirements of the Companies Act, 2013. As on March 31, 2019 the CSR Committee comprises of Mrs.
Rashmi Dhariwal (DIN: 00337814) Independent Director and Mr. Varun Jaipuria (DIN: 02465412) and Mr. Raj P. Gandhi (DIN:
00003649), Non-executive Directors.
Your Company has a Corporate Social Responsibility Policy which is uploaded on the website of the Company at www.rjcorp.in
Annual Report on CSR activities for the Financial Year 2018-19 as required under Section 134 and 135 of the Act read with
Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 and Rule 9 of the Companies (Accounts) Rules,
2014 is attached to this Report as Annexure - III.
DIRECTORs’ REsPOnsIBILITy sTATEMEnT
Pursuant to Section 134 (3) (c) and (5) of the Companies Act, 2013, the Directors hereby confirm that:
(i) in the preparation of the annual accounts, the applicable accounting standards have been followed and there is no
material departure from the same;
(ii) the directors have selected such accounting policies and applied them consistently and made judgments and estimates
that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the
financial year and of the loss of the company for that period;
RJ CORP LIMITED
9
(iii) the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance
with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
(iv) the directors have prepared the annual accounts of the Company on a ‘going concern’ basis; and
(v) the directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such
systems are adequate and operating effectively.
VIgIL MEChAnIsM / WhIsTLE BLOWER POLICy
To comply with the provisions of Section 177 of the Act, the Company has adopted a Vigil Mechanism / Whistle Blower Policy
for employees of the Company. Under the Vigil Mechanism Policy, the protected disclosures can be made by a victim through
an e-mail or a letter to the Company Secretary (Vigilance Officer) or to the Chairperson of the Audit Committee.
The Policy provides for adequate safeguards against victimization of employees and Directors and also provides for direct
access to the Vigilance Officer or the Chairperson of the Audit Committee, in exceptional cases. No personnel of the Company
has been denied access to the Audit Committee.
The main objective of this policy is to provide a platform to Directors and employees to raise concerns regarding any
irregularity, misconduct or unethical matters / dealings within the Company which have a negative bearing on the organization
either financially or otherwise. During the year under review, no complaint under the Whistle Blower Policy was received.
DIsCLOsuRE unDER ThE sEXuAL hARAssMEnT OF WOMEn AT WORkPLACE (PREVEnTIOn, PROhIBITIOn AnD REDREssAL)
ACT, 2013
To comply with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013 has been notified on 9th December, 2013, your Company has adopted a policy for prevention of Sexual Harassment
of Women at workplace and has set up Committee for implementation of said policy. During the year, the Company has not
received any complaint of sexual harassment.
COnsERVATIOn OF EnERgy, TEChnOLOgy ABsORPTIOn AnD FOREIgn EXChAngE EARnIngs AnD OuTgO
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo as stipulated
under Section 134(3)(m) read with Rule 8 of the Companies (Accounts) Rules, 2014 is attached to this report as Annexure – IV.
EXTRACTs OF AnnuAL RETuRn
Extract of Annual Return of the Company is annexed herewith as Annexure - V to this report.
huMAn REsOuRCEs
Human Resource department in your Company act as a Strategic partner in building Company’s businesses by maximizing
the value of human capital and aligning it with company’s initiatives, values, strategies and needs of all stakeholders.
Your Company has created a favorable work environment that encourages innovation and meritocracy. Your Company has
also set up a scalable recruitment and human resources management process which enables us to attract and retain high
caliber employees. Our employee partnership ethos reflects your Company’s longstanding business principles and drives
your Company’s overall performance with the prime focus to identify, assess, groom and build leadership potential for future.
gEnERAL
Your Directors confirm that no disclosure or reporting is required in respect of the following items as there were no transaction
on these items during the year under review:-
RJ CORP LIMITED
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1. Issue of equity shares with differential voting rights as to dividend, voting or otherwise.
2. The Whole-time Director of the Company does not receive any remuneration or commission from any of its subsidiaries.
3. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern
status and Company’s operations in future.
4. Issue of Sweat Equity Shares.
5. There are no material changes and commitments, affecting the financial position of the Company which have occurred
between the end of the financial year of the Company to which the financial statements relate and the date of the report.
6. The Company is compliant of the applicable provisions of Secretarial Standards issued by the Institute of Company
Secretaries of India.
ACknOWLEDgEMEnT
Your Company’s organizational culture upholds professionalism, integrity and continuous improvement across all functions,
as well as efficient utilization of the Company’s resources for sustainable and profitable growth.
Your Directors wish to place on record their appreciation for the sincere services rendered by employees of the Company at all
levels. Your Directors also wish to place on record their appreciation for the valuable co-operation and support received from
the various Government Authorities, the Banks / Financial Institutions and other stakeholders such as, members, customers
and suppliers, among others. Your Directors also commend the continuing commitment and dedication of the employees at
all levels, which has been critical for the Company’s success. Your Directors look forward to their continued support in future.
For and on behalf of the Board of Directors For RJ CORP LIMITED
Varun Jaipuria Director
DIN: 02465412
Raj P. gandhiDirector
DIN: 00003649Place : New DelhiDate : September 23, 2019
RJ CORP LIMITED
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AnnEXuRE –I
Form no. AOC-2
(Pursuant to clause (h) of sub-section (3)of section 134 of the Act and Rule 8(2) of the Companies(Accounts) Rules, 2014)
Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred
to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third
proviso thereto.
1. Details of contracts or arrangements or transactions not at arm’s length basis:
sl. no.
name of the related party and nature of relationship
nature of contracts / arrangements / transactions
Duration of the contracts / arrangements /transactions
salient terms of the contracts or arrangements or transactions including the value, if any
Justification for entering into such contracts or arrangements or transactions
date(s) of approval by the Board
Amount paid as advances, if any:
Date on which the special resolution was passed in general meeting as required under first proviso tosection 188
1 NIL NIL NIL NIL NIL NIL NIL NIL
2. Details of material contracts or arrangement or transactions at arm’s length basis:
sl. no.
name of the related party and nature of relationship
nature of contracts/ arrangements/ transaction
Duration of the contracts/ arrangements/transactions
salient terms of the contracts or arrangements or transactions including the value, if any
date(s) of approval by the Board/ Audit Committee
Amount paid as advance,if any:
1 NIL NIL NIL NIL NIL NIL
For and on behalf of the Board of Directors For RJ CORP LIMITED
Varun Jaipuria Director
DIN: 02465412
Raj P. gandhiDirector
DIN: 00003649Place : New DelhiDate : September 23, 2019
RJ CORP LIMITED
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AnnEXuRE – II
sECRETARIAL AuDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31st MARCH, 2019
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014]
To,
The Members,
RJ Corp Limited
(CIN: U62200DL1980PLC010262)
F-2/7, Okhla Industrial Area, Phase-1
New Delhi - 110020
We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good
corporate practices by RJ Corp Limited (hereinafter called the Company) which is an unlisted company. Secretarial Audit
was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances
and expressing our opinion thereon.
We report that-
a) Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to
express an opinion on these secretarial records based on our audit.
b) We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the secretarial records. The verification was done on test basis to ensure that correct facts
are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis
for our opinion.
c) We have not verified the correctness and appropriateness of the financial statements of the Company.
d) Wherever required, we have obtained the Management representation about the compliances of laws, rules and
regulations and happening of events etc.
e) The compliance of the provisions of the Corporate and other applicable laws, rules, regulation, standards is the
responsibility of the management. Our examination was limited to the verification of procedures on test basis.
f) The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Company.
Based on our verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained
by the Company and also the information provided by the Company, its officers, agents and authorized representatives during
the conduct of Secretarial Audit, we hereby report that in our opinion, the company has, during the audit period covering the
financial year ended on 31st March, 2019 (“Audit Period”) complied with the statutory provisions listed hereunder and also
that the Company has proper Board processes and compliance mechanism in place to the extent, in the manner and subject
to the reporting made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records maintained by the company
for the financial year ended on 31st March, 2019 according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made thereunder;
(ii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder: and
RJ CORP LIMITED
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(iii) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct
Investment, Overseas Direct Investment and External Commercial Borrowings, wherever applicable;
We have also examined compliance with the applicable clauses of Secretarial Standards on Meetings of the Board of Directors
(SS-1) and General Meetings (SS-2) issued by the Institute of Company Secretaries of India, which the Company has generally
complied with.
During the period under review, the Company has generally complied with the provisions of the Act, Rules, Regulations and
Guidelines, to the extent applicable, as mentioned above.
(iv) The Company is engaged in the business of Trading in Shares, Securities, Debentures, Ice Cream, Shoes & Apparels
of ‘Nike’ brand, Apple Products and in investment activities. As informed by the Management, there is no specific law
applicable to the Company.
We further report that the Board of Directors of the Company is duly constituted with proper balance of Executive Directors,
Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place
during the period under review were carried out in compliance with the provisions of the Act.
As per Management representation, notices were given to all the Directors to schedule the Board Meetings. Further, as
per the Management Representation, agendas and detailed notes on agendas were provided to the Directors in advance of
the Meetings. We understand and as confirmed by the management that a system exists for seeking and obtaining further
information and clarifications on the agenda items before the meeting for meaningful participation at the meeting.
Board decisions are carried out with unanimous consent and therefore, no dissenting views were required to be captured
and recorded as part of the minutes.
We further report that there are adequate systems and processes in the company commensurate with the size and operations
of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
We further report that during the Audit period:
• pursuant to the provisions of Section 4, 13 and other applicable provisions of the Companies Act, 2013, the shareholders
in their Extraordinary General Meeting held on April 27, 2018 have given their approval to alter the existing Clause III(A)
of Memorandum of Association (“MOA”) of the Company by insertion of following new sub-clause III(A)(8), after the sub-
clause III(A)(7):
“8. To acquire by purchase, lease, exchange, hire or otherwise hold, manage and to carry on the business of development
of residential houses, flats, townships, affordable housing, industrial parks, commercial complexes and development
of other infrastructural facilities and to act as contractors, consultants and advisors in all matters relating to rural and
urban infrastructural developments/ real estate projects”.
• pursuant to the provisions of Sections 42, 62 and 71 and other applicable provisions of the Companies Act, 2013, the
shareholders in their Extraordinary General Meeting held on October 15, 2018 have given their approval to issue and
make offer of 6,50,000 (Six Lakh Fifty Thousand) Compulsorily Convertible Debentures (CCDs) of Rs. 1000/- (Rupees
Thousand Only) each of the Company aggregating to Rs. 65,00,00,000/- (Rupees Sixty Five Crores only) on private
placement basis to Ravi Kant Jaipuria & Sons (HUF).
• pursuant to the provisions of Sections 42, 62 and other applicable provisions of the Companies Act, 2013, the shareholders
in their Extraordinary General Meeting held on December 24, 2018 have given their approval to the Board for conversion
of 10,50,000 (Ten Lakh Fifty Thousand) Compulsorily Convertible Debentures of Rs. 1000/- (Rupees One Thousand) each
RJ CORP LIMITED
14
For sanjay grover & Associates Company secretaries
Firm Registration No.: P2001DE052900
Vijay k. singhalPartner
CP No.: 10385
Place : New DelhiDate : September 23, 2019
(CCDs) as held by Ravi Kant Jaipuria and Sons (HUF), into equity shares of the Company on preferential basis and to issue
and allot in one or more tranches such number of Equity Shares of face value of Rs 10/- (Rupees Ten) each fully paid up.
RJ CORP LIMITED
15
AnnEXuRE – III
ThE AnnuAL REPORT On CsR ACTIVITIEs
(1) A brief outline of the Company’s CSR policy, including overview of projects or programs proposed to be undertaken and a reference to the web-link to the CSR policy and projects or Programs and Composition of the CSR Committee
Refer Section on Corporate Social Responsibility
(2) Average net Profit of the company for last three financial years Rs. (605.06) Million
(3) Prescribed CSR Expenditure (two percent of the amount as in item 2 above) Nil
(4) Details of CSR spent during the financial year. Nil
Total amount to be spent for the financial year; Nil
Amount unspent, if any; Not Applicable
Manner in which the amount spent during the financial year Details given below
s. no. Particulars TOTAL
(1) CSR project or activity identified Not Applicable
(2) Sector in which the project is covered Not Applicable
(3) Projects or Programs(1) Local area or other(2) Specify the state and district where projects or programs was undertaken
Not Applicable
(4) Amount outlay (budget) project or Program wise Not Applicable
(5) Amount spent on the projects or ProgramsSub Heads;(1) Direct expenditure on projects or programs(2) Overheads
Nil
(6) Cumulative expenditure up to the reporting period Nil
(7) Amount spent direct or through implementing agency Not Applicable
REsPOnsIBILITy sTATEMEnT
A responsibility statement of the CSR Committee is reproduced below:
The implementation and monitoring of Corporate Social Responsibility (CSR) Policy, is in compliance with CSR Objectives and
Policy of the Company.
For and on behalf of the Board of Directors For RJ CORP LIMITED
Varun Jaipuria Director
DIN: 02465412
Raj P. gandhiDirector
DIN: 00003649Place : New DelhiDate : September 23, 2019
RJ CORP LIMITED
16
AnnEXuRE – IV
1. Conservation of energy, technology absorption and foreign exchange earnings and outgo
The details of conservation of energy, technology absorption, foreign exchange earnings and outgo are as follows:
a) Conservation of energy
(i) the steps taken or impact on conservation of energy -
(ii) the steps taken by the company for utilizing alternate sources of energy -
(iii) the capital investment on energy conservation equipment’s -
b) Technology absorption
(i) the efforts made towards technology absorption -
(ii) the benefits derived like product improvement, cost reduction, product development or import substitution
-
(iii) in case of imported technology (imported during the last three years reckoned from the beginning of the financial year)-
-
(a) the details of technology imported -
(b) the year of import; -
(c) whether the technology been fully absorbed -
(d) if not fully absorbed, areas where absorption has not taken place, and the reasons thereof
-
(iv) the expenditure incurred on Research and Development -
c) Foreign exchange earnings and Outgo
The Foreign Exchange earned in terms of actual inflows during the year and the Foreign Exchange outgo during the
year in terms of actual outflows.
Particulars 2018-19 2017-18
Foreign Exchange Earned (Inflow) 127.47 79.41
Foreign Exchange Paid (Outflow) Nil Nil
For and on behalf of the Board of Directors For RJ CORP LIMITED
Varun Jaipuria Director
DIN: 02465412
Raj P. gandhiDirector
DIN: 00003649Place : New DelhiDate : September 23, 2019
(` in million)
RJ CORP LIMITED
17
AnnEXuRE – V
FORM nO. MgT 9
EXTRACT OF AnnuAL RETuRn
as on financial year ended on March 31, 2019
Pursuant to section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management & Administration)
Rules, 2014
I. REgIsTRATIOn & OThER DETAILs:
1. CIN U62200DL1980PLC010262
2. Registration Date 01/03/1980
3. Name of the Company RJ Corp Limited
4. Category/Sub-category of the Company Public Company
5. Address of the Registered Office & contact details
F-2/7, Okhla Industrial Area, Phase – I, New Delhi – 110020; Tel. 0124 – 4643100 – 500
6. Whether listed company No
7. Name, Address & contact details of the Registrar & Transfer Agent, if any.
Skyline Financial Services Private Limited,D-153A, First Floor, Okhla Industrial Area, Phase-INew Delhi – 110 020. Tel. 011-26812682-83
II. PRInCIPAL BusInEss ACTIVITIEs OF ThE COMPAny (All the business activities contributing 10% or more of the total
turnover of the company shall be stated)
s. no. name and Description of main products / services
nIC Code of the Product/service
% to total turnover of the company
1 Retail sale in specialized stores 5239 87.87%
2 Lease Rental 6810 12.13%
III. PARTICuLARs OF hOLDIng, suBsIDIARy AnD AssOCIATE COMPAnIEs
s. no.
name and address of the Company CIn/gLn holding / subsidiary/ Associate
% of shares held
Applicable section
1 Wellness Holdings Limited,1003, Khalid Al Attar Tower, Sheikh Zayed Road, PO Box 71241, Dubai, UAE
Not Applicable Subsidiary 100.00% 2(87) (ii)
2 Devyani Food Industries Ltd.F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U74899DL1991PLC046403 Subsidiary 99.92% 2(87) (ii)
3 Devyani International Ltd.F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U15135DL1991PLC046758 Subsidiary 76.40% 2(87) (ii)
4 AccorBev (Telangana) Private Limited F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U15500DL2008PTC183357 Subsidiary 100.00% 2(87) (ii)
5 Anuj Traders Private Limited F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U74899DL1991PTC046376 Subsidiary 99.90% 2(87) (ii)
RJ CORP LIMITED
18
6 Cryoviva Biotech Private LimitedF-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U85195DL2005PTC137768 Subsidiary 87.46% 2(87) (ii)
7 Diagno Labs Private LimitedF-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U74900DL2013PTC256548 Subsidiary 99.97% 2(87) (ii)
8 Modern Montessori International (I) Private Ltd.F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U80301DL2003PTC118290 Subsidiary 50.20% 2(87) (ii)
9 Snowpeak Enterprises Private Limited (formerly Mumbai Rockets Sports Private Limited)F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U74899DL1975PTC007694 Subsidiary 99.95% 2(87) (ii)
10 S V S India Private Ltd.F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U74899DL1985PTC022537 Subsidiary 72.00% 2(87) (ii)
11 Arctic International Private Ltd.St. Louis Business Centre, Cnr Desroches & St. Louis Streets, Port Louis, Mauritius
Not Applicable Subsidiary 100.00% 2(87) (ii)
12 Alisha Retail Private Ltd.F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U52100DL2013PTC259476 Subsidiary 99.99% 2(87)(ii)
13 Cryoviva International Pte. Limited72, South Bridge Road, #01-00, MMI Building, Singapore
Not Applicable Subsidiary 56.00% 2(87)(ii)
14 Accor Developers (Private) Limited 93/1, Industrial Road, Kerawelapitiya, Wattala, Sri Lanka
Not Applicable Subsidiary 73.68% 2(87) (ii)
15 Ole Marketing Private LimitedNo. 140, Low Level Road, Embulgana, Ranala, Sri Lanka
Not Applicable Subsidiary 66.67% 2(87) (ii)
16 Cryoviva Singapore Pte. Limited350 Orchard Road, #08-00, Shaw House, Singapore (238868)
Not Applicable Subsidiary 85.09% 2(87) (ii)
17 Reviva Cell Technologies Pte. Ltd.13A Mackenzie Road Singapore (228676)
Not Applicable Subsidiary 100.00% 2(87) (ii)
18 Devyani Airport Services (Mumbai) P. Ltd. F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U55101DL2013PTC250959 Subsidiary 51.00% 2(87) (ii)
19 Devyani Food Street Pvt. Ltd. F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U55101DL2009PTC193995 Subsidiary 100.00% 2(87) (ii)
20 Devyani International (Nepal) Pvt. Ltd. Sinamangal, Koteshwar, W.No.35, Kathmandu, Nepal
Not Applicable Subsidiary 100.00% 2(87) (ii)
RJ CORP LIMITED
19
21 RV Enterprises Pte. Ltd. 60 Robinson Road # 11-1, Bank of East Asia Building, Singapore 068892
Not Applicable Subsidiary 87.00% 2(87) (ii)
22 Devyani International (Nigeria) Ltd. 110/114 Oshodi Apapa Expressway, Isolo, Lagos, Nigeria
Not Applicable Subsidiary 57.50% 2(87) (ii)
23 Devyani International (UK) P. Ltd. 65 Delamere Road, Hayes, UB4 0NN, United Kingdom
Not Applicable Subsidiary 100.00% 2(87) (ii)
24 Cryoviva Bangladesh Pvt. Ltd. (formerly Cryobanks Bangladesh Pvt. Ltd.)Dr. Lal Pathlabs Bangladesh, 152/2-F, Green Road Panthapath, Dhaka
Not Applicable Subsidiary 77.00% 2(87) (ii)
25 Varun Developers P. Ltd. Ward No.35, Sinamangal Koteshwar, Kathmandu, Nepal
Not Applicable Subsidiary 100.00% 2(87) (ii)
26 Varun Food & Beverages (Zambia) Ltd. Plot no. 37426, Mungwi Road, Heavy Industrial Area, Lusaka, P.O.Box 30007, Zambia
Not Applicable Subsidiary 99.90% 2(87) (ii)
27 Varun Beverages (Africa) Ltd.1st Floor Aquarius House, City Centre, Lilongwe 3, BOX : 30636, Malawi, Africa
Not Applicable Subsidiary 100.00% 2(87) (ii)
28 Varun Food & Beverages (Africa) Ltd. 1st Floor Aquarius House, City Centre, Lilongwe 3, BOX : 30636, Malawi, Africa
Not Applicable Subsidiary 100.00% 2(87) (ii)
29 Varun Infrastructure (Zambia) Ltd. Plot no. 37426, Mungwi Road, Heavy Industrial Area, Lusaka, P.O.Box 30007, Zambia
Not Applicable Subsidiary 99.90% 2(87) (ii)
30 Varun Beverages Ltd. F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
L74899DL1995PLC069839 Associate 30.57% 2(6)
31 Agarwal Cold Drinks Private Ltd.F-2/7, Okhla Industrial Area,Phase I, New Delhi – 110020
U74899DL1993PTC055459 Associate 25.00% 2(6)
32 Capital Infracon Private Ltd.F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020
U70109DL2006PTC149697 Associate 49.50% 2(6)
33 Ratnaker Foods and Beverages Private Ltd.F-2/7, Okhla Industrial Area,Phase-1, New Delhi – 110 020
U74899DL1991PTC046381 Associate 50.00% 2(6)
34 Lineage Healthcare Ltd.F-2/7, Okhla Industrial Area,Phase-1, New Delhi – 110 020
U85100DL2011PLC217993 Associate 49.60% 2(6)
35 Africare Ltd.L.R. No. 209/12961, Mombasa Road, P.O. Box 60293, 00200, Nairobi, Kenya
Not Applicable Associate 27.50% 2(6)
RJ CORP LIMITED
20
IV. shARE hOLDIng PATTERn (Equity share Capital Breakup as percentage of Total Equity)
i) Category-wise Share Holding
Category of shareholders
no. of shares held at the beginning of the year
no. of shares held at the end of the year % change during
the year
Demat Physical Total % of Total
shares
Demat Physical Total % of Total
shares
A. Promoters
(1) Indian - - - - - - - - -
a) Individual/HUF 1,87,795 - 1,87,795 99.98% 211,960 - 211,960 99.99% .01%
b) Central Govt/ State Govt.
- - - - - - - - -
c) Bodies Corporates
- 25 25 0.02% - 25 25 0.01% -0.01
d) Bank/FI - - - - - - - - -
e) Any other - - - - - - - - -
suB TOTAL:(A) (1) 1,87,795 25 1,87,820 100% 211,960 25 211,985 100% -
(2) Foreign
a) NRI- Individuals - - - - - - - - -
b) Other Individuals - - - - - - - - -
c) Bodies Corp. - - - - - - - - -
d) Banks/FI - - - - - - - - -
e) Any other - - - - - - - - -
suB TOTAL (A) (2) 0 0 0 0 0 0 0 0 -
Total shareholding of Promoter (A)= (A)(1)+(A)(2)
1,87,795 25 1,87,820 100% 211,960 25 211,985 100% -
B. Public shareholding
(1) Institutions
a) Mutual Funds - - - - - - - - -
b) Banks/FI - - - - - - - - -
C) Central Govt - - - - - - - - -
d) State Govt. - - - - - - - - -
e) Venture Capital Fund
- - - - - - - - -
f) Insurance Companies
- - - - - - - - -
g) FIIs - - - - - - - - -
h) Foreign Venture - - - - - - - - -
Capital Funds - - - - - - - - -
i) Others (specify) - - - - - - - - -
RJ CORP LIMITED
21
SUB TOTAL (B)(1): - - - - - - - - -
(2) Non Institutions
a) Bodies corporates
- - - - - - - - -
i) Indian - - - - - - - - -
ii) Overseas - - - - - - - - -
b) Individuals - - - - - - - - -
i) Individual shareholders holding nominal share capital uptoINR1 lakhs
- - - - - - - - -
ii) Individuals shareholders holding nominal share capital in excess of INR 1 lakhs
- - - - - - - - -
c) Others (specify) - - - - - - - - -
suB TOTAL (B)(2): - - - - - - - - -
Total Public shareholding (B)= (B)(1)+(B)(2)
- - - - - - - - -
C. shares held by Custodian for gDRs & ADRs
- - - - - - - - -
grand Total (A+B+C)
1,87,795 25 1,87,820 100% 211,960 25 211,985 100% -
RJ CORP LIMITED
22
(ii) shareholding of Promoters
sl no.
shareholder’s name
shareholding at the beginning of the year
shareholding at the end of the year % change in share holding
during the year
no. of shares
%of total shares of the
company
%of shares Pledged /
encumbered to total shares
no. of shares
% of total shares of the
company
% of shares Pledged /
encumbered to total shares
1 Varun Jaipuria 10,396 5.54% 2,690 19,751 9.31% 2,690 +3.77%
2 Dhara Jaipuria 2,243 1.19% - 2,243 1.06% - -0.13%
3 Devyani Jaipuria 5,511 2.93% - 5,511 2.60% - -0.33%
4 Ravi Kant Jaipuria & Sons (HUF)
1,69,645 90.32% 31,194 1,84,455 87.01% 45,095 -3.31%
5 Devyani Overseas Private Ltd.
Nil Nil - Nil Nil - -
6 Devyani Enterprises Private Ltd.
Nil Nil - Nil Nil - -
7 Anuj Traders Private Limited
Nil Nil - Nil Nil - -
8 S V S India Private Limited
Nil Nil - Nil Nil - -
9 Sellwell Foods & Beverages Pvt. Ltd.
5 0.00% - 5 0.00% - -
10 Shabnam Properties Pvt. Ltd.
10 0.01% - 10 0.00% - -0.01%
11 Empire Stocks Pvt. Ltd.
10 0.01% - 10 0.00% - -0.01%
Total 1,87,820 100% 33,884 211,985 100% 47,785
(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 Jaipuria
At the beginning of the year 10,396 5.54% - -
01.01.2019 – Shares allotted consequent to conversion of Compulsorily Convertible Debentures and Compulsorily Convertible Preference Shares
9,355 4.41% 19,751 9.31%
At the end of the year 19,751 9.31% 19,751 9.31%
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
2. Dhara Jaipuria
At the beginning of the year 2243 1.19% - -
Change in percentage due to allotment of shares consequent to conversion of Compulsorily Convertible Debentures and Compulsorily Convertible Preference Shares on preferential basis on 01.01.2019
- 1.06% 2243 1.06%
At the end of the year 2243 1.06% 2243 1.06%
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 Jaipuria
At the beginning of the year 5511 2.93% - -
Change in percentage due to allotment of shares consequent to conversion of Compulsorily Convertible Debentures and Compulsorily Convertible Preference Shares on preferential basis on 01.01.2019
- 2.60% 5511 2.60%
At the end of the year 5511 2.60% 5511 2.60%
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 1,69,645 90.30% - -
01.01.2019 – Shares allotted consequent to conversion of Compulsorily Convertible Debentures and Compulsorily Convertible Preference Shares
14,810 6.99% 184,455 87.01%
At the end of the year 184,455 87.01% 184,455 87.01%
RJ CORP LIMITED
24
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
5. sellwell Foods & Beverages Private Limited
At the beginning of the year 5 0.0% - -
No Change - - - -
At the end of the year 5 0.0% 5 0.0%
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
6. shabnam Properties Private Limited
At the beginning of the year 10 0.01% - -
Change in percentage due to allotment of shares consequent to conversion of Compulsorily Convertible Debentures and Compulsorily Convertible Preference Shares on preferential basis on 01.01.2019
- 0.00% 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
7. Empire stocks Private Limited
At the beginning of the year 10 0.01% - -
Change in percentage due to allotment of shares consequent to conversion of Compulsorily Convertible Debentures and Compulsorily Convertible Preference Shares on preferential basis on 01.01.2019
- 0.00% 10 0.00%
At the end of the year 10 0.00% 10 0.00%
(iv) shareholding Pattern of top ten shareholders (other than Directors, Promoters and holders of gDRs and ADRs): nIL
RJ CORP LIMITED
25
(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 Jaipuria
At the beginning of the year 10,396 5.54% - -
01.01.2019 – Shares allotted consequent to conversion of Compulsorily Convertible Debentures and Compulsorily Convertible Preference Shares
9,355 4.41% 19,751 9.31%
At the end of the year 19,751 9.31% 19,751 9.31%
V. InDEBTEDnEss
Indebtedness of the Company including interest outstanding/accrued but not due for payment
secured Loans
excluding deposits
unsecured Loans
Deposits Total Indebtedness
Indebtedness at the beginning of the financial year
i) 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 year
i) 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
VI. REMunERATIOn OF DIRECTORs AnD kEy MAnAgERIAL PERsOnnEL
[Please insert the bifurcation of the remuneration paid to following directors of the company.]
(` in million)
RJ CORP LIMITED
26
A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
Sl. no. Particulars of Remuneration Vikas Keshri, Manager*
Total 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
0.01 0.01
2. Stock Option - -
3. Sweat Equity - -
4. Commission- as % of profit- others, please specify
- -
5. Others, please specify - -
Total (A) 0.01 0.01
Ceiling as per the Act N/A N/A
*Appointed w.e.f. March 27, 2019
B. Remuneration to other directors:
sl. no
Particulars of Remuneration
name of Directors Total Amount
1. Independent Directors
Rashmi Dhariwal Girish Ahuja
Fee for attending board / committee meetings
1.20 0.40 1.60
Commission - - -
Others, please specify
- - -
Total (1) 1.20 0.40 1.60
2. Other Non-Executive Directors
Ravi Kant Jaipuria Varun Jaipuria Raj P. Gandhi Total Amount
Fee for attending board / committee meetings
- - - -
Commission - - - -
Others, please specify
- - - -
Total (2) - - - -
Total (B)=( 1 +2) 1.60
Total Managerial Remuneration
1.61
Overall Ceiling as per the Act
Not Applicable
(` in million)
(` in million)
(` in million)(` in million)
RJ CORP LIMITED
27
C. REMunERATIOn TO kEy MAnAgERIAL PERsOnnEL OThER ThAn MD/MAnAgER/WTD
Key Managerial Personnel
1. Gross salary CS CFOLalit Kumar
Singh
Total
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961
- 2.91 2.91
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 - 0.23 0.23
(c) Profits in lieu of salary under section 17(3) Income- tax Act, 1961 - - -
2. Stock Option - - -
3. Sweat Equity - - -
4. Commission - - -
- as % of profit - - -
- others, please specify - - -
5. Others, please specify - - -
Total - 3.14 3.14
VII. PEnALTIEs / PunIshMEnT/ COMPOunDIng OF OFFEnCEs:
Type Section of the Companies
Brief Description Details of Penalty/ Punishment/ Compounding fees imposed
Authority [RD/ NCLT/ COURT]
Appeal made, if any (give details)
Penalty Nil Nil Nil Nil Nil
Punishment Nil Nil Nil Nil Nil
Compounding Nil Nil Nil Nil Nil
OThER OFFICERs In DEFAuLT
Penalty Nil Nil Nil Nil Nil
Punishment Nil Nil Nil Nil Nil
Compounding Nil Nil Nil Nil Nil
For and on behalf of the Board of Directors For RJ CORP LIMITED
Varun Jaipuria Director
DIN: 02465412
Raj P. gandhiDirector
DIN: 00003649Place : New DelhiDate : September 23, 2019
(` in million)(` in million)(` in million)
RJ CORP LIMITED
28
Independent Auditor’s Report
To the Members of RJ Corp Limited
Report on the standalone Financial statements
Opinion
We have audited the accompanying standalone financial statements of RJ Corp Limited (“the Company”), which comprise the
Balance Sheet as at March 31, 2019, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement
of Changes in Equity, the statement of Cash Flows for the year ended 31 March, 2019 and a summary of the significant
accounting policies and other explanatory information (here after referred to as “Standalone Financial Statement”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone
financial statements give the information required by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India including Ind AS specified under Section 133 of the Act
read with the Companies (Indian Accounting Standard) Rules, 2015, as amended, and other accounting principles generally
accepted in India, of the state of affairs (financial position) of the Company as at 31st March 2019, and statement of its profit
and loss (financial performance including other comprehensive income), its cash flows and the changes in equity for the year
ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies
Act, 2013. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of
the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics
issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit
of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Information Other than the standalone Financial statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the preparation of other information. The other information comprises
the Director’s report and Management Discussion and Analysis of Annual report, but does not include the Standalone
Financial Statements and our report thereon. The Directors report and Management Discussion and Analysis of Annual report
is expected to be made available to us after the date of this auditor’s report.
Our opinion on the Standalone Financial Statements does not cover the other information and we will not express any form
of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information
identified above when it becomes available to us and, in doing so, consider whether the other information is materially
inconsistent with the Standalone Financial Statements or our knowledge obtained during the course of our audit, or otherwise
appears to be materially misstated.
When we read such other information as and when made available to us and if we conclude that there is a material
misstatement therein, we are required to communicate the matter to those charged with governance.
Management’s Responsibility for the standalone Ind As Financial statements
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the
Act”) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial
position, financial performance, total comprehensive income, changes in equity and cash flows of the company in accordance
with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance
RJ CORP LIMITED
29
of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company
and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company’s ability to continue
as a Going Concern, disclosing as applicable, matters related to Going Concern and using the going concern basis of accounting
unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do
so.
The Board of Directors are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the standalone Financial statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
1. Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud
or error audit procedures, design and perform responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
2. Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(I) of the Act, we are also responsible for expressing our opinion
on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such
controls.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the standalone financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going
concern.
5. Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures,
and whether the standalone financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
RJ CORP LIMITED
30
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes
it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced.
We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the
results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
1. As required by the ‘Companies (Auditor’s Report) Order, 2016’, issued by the Central Government of India in terms of sub-
section (11) of section 143 of the Act (hereinafter referred to as the “Order”), we give in the Annexure ‘1’ a statement on
the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purpose of our audit;
(b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from
our examination of those books;
(c) the standalone financial statements dealt with by this report are in agreement with the books of account;
(d) in our opinion, the aforesaid standalone financial statements comply with Ind AS specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the directors and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2019 from being appointed as a director in terms of Section
164(2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the
operating effectiveness of such controls, refer to our separate report in “Annexure-2”. Our report expresses as
unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls over
financial reporting.
(g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of
section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid
by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
RJ CORP LIMITED
31
(h) with respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the
explanations given to us:
i. The company has disclosed in notes no 37, the impact of pending litigations on its financial position it its
standalone financial statements;
ii. according to the information and explanations provided to us, the Company did not have any long-term contracts
including derivative contracts for which there were any material foreseeable losses;
iii. there were no amounts which were required to be transferred to the Investor Education and Protection Fund by
the Company.
For APAs & Co. Chartered Accountants
Firm Regn No. 000340C
sumit kathuria Partner
M No. 520078UDIN: 19520078AAAAFE2882
Place : New DelhiDate : September 23, 2019
RJ CORP LIMITED
32
Annexure- 1 to the Independent Auditor’s Report
(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the
members of RJ Corp Limited of even date)
Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of
the company and taking into consideration the information and explanations given to us and the books of account and other
records examined by us in the normal course of audit, and to the best of our knowledge and belief, we report that:
i) In respect of its fixed assets:
a) The company has maintained proper records showing full particulars, including quantitative details and situation of
fixed assets.
b) As explained to us, fixed assets have been physically verified by the management in a phased periodical manner,
which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. As informed to
us no material discrepancies were noticed on such physical verification.
c) title deeds in respect of all immovable properties are held in the name of the company.
ii) As explained to us physical verification has been conducted by the management at reasonable intervals in respect
of inventories of trading goods. We were explained that no material discrepancies have been noticed on physical
verification.
iii) As informed to us the company has granted unsecured loans to certain companies covered in the register maintained
under section 189 of the Companies Act 2013. In our opinion and according to information and explanation given to us:
a) the terms and conditions of the grant of such loans are not prejudicial to the Company’s interest;
b) the schedule of repayment of principal and payment of interest has not been stipulated. The borrowers are regular
in repayment of principal and payment of interest on demand.
c) there is no amount overdue for more than 90 days in respect of abovementioned loans.
iv) According to the information and explanations given to us, the company has complied with the provisions of Section 185
and 186, wherever applicable for loans, investments and guarantees.
v) According to the information and explanations given to us the company has not accepted any deposits, in terms of the
directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions
of the Companies Act 2013 and the rules framed there under.
vi) In respect of business activities of the company, maintenance of cost records has not been specified by the Central
Government under sub-section (1) of section 148 read with rules framed thereunder of the Companies Act 2013.
vii) a) As per information and explanations given to us, the company is regular in depositing undisputed statutory dues
including provident fund, employees’ state insurance, income-tax, sales-tax, GST, service tax, duty of customs, duty
of excise, value added tax, cess and any other statutory dues with the appropriate authorities except for delay in
some cases. As informed to us there are no outstanding statutory dues in arrears as at the last day of the financial
year concerned for a period of more than six months from the date they became payable.
RJ CORP LIMITED
33
b) According to the information and explanations given to us, following are the details of disputed dues:
name of the statute nature of the dues
Amount (Rs. in million) (net of deposited under dispute)
Period to which the amount relates
Forum where dispute is pending
Rajasthan Value Added Tax
Value added tax 0.61 A.Y. 2006-07 Rajasthan Tax Board
Maharashtra Value Added Tax
Value added tax 10.17 A.Y. 2013-14 to A.Y. 2015-16
Maharashtra Tax Board
Service tax Act Service Tax 132.94 April 2009 to March 2011
Custom, Central Excise and Service tax Appellate Tribunal
Other than the details mentioned above and according to the information and explanations given to us, there are no dues
of Income tax, Sales tax, GST, Wealth tax, Service tax, Customs duty, Excise duty, Value added tax or Cess which have not
been deposited with the appropriate authorities on account of any dispute.
viii) The company has not defaulted in repayments of dues payable to a financial institution or a bank or debenture holders
during the year.
ix) As explained to us term loans obtained during the year were applied for the purpose for which the loans were obtained
by the company. The company has not raised any money during the year by way initial or further public offer.
x) Based upon the audit procedures performed and information and explanations given by the management, we report
that, no fraud by the Company or on the company by its officers or employees has been noticed or reported during the
course of our audit for the year ended 31.03.2019.
xi) Managerial remuneration has been paid and provided by the company in accordance with the requisite approvals
mandated by the provisions of section 197 of the Act read with Schedule V of the Companies Act 2013.
xii) The provisions of clause 3(xii) of the Order are not applicable as the company is not a Nidhi Company as specified in the
clause.
xiii) According to information and explanations given to us we are of the opinion that all related party transactions are
in compliance with the Section 177 and 188 of Companies Act 2013. Necessary disclosures have been made in the
financial statements as required by the applicable indian accounting Standards.
xiv) During the year, the company has not made any preferential allotment or private placement of shares or debentures
and hence reporting under clause 3(xiv) of the order is not applicable to the company.
xv) According to information and explanations given to us the Company has not entered into any non-cash transaction with
the director or any person connected with him during the year.
xvi) In our opinion, in view of its business activities, the company is not required to be registered under section 45IA of
Reserve Bank of India Act 1934.
For APAs & Co. Chartered Accountants
Firm Regn No. 000340CUDIN: 19520078AAAAFE2882
sumit kathuria Partner
M No. 520078 Place : New DelhiDate : September 23, 2019
RJ CORP LIMITED
34
Annexure 2 to the Independent Auditor’s Report
(Referred to in paragraph 2 (f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the
Members of RJ Corp Limited of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of sub-section 3 of section 143 of the
Companies Act, 2013 (“the Act”)
In conjunction with our audit of the standalone financial statements of RJ Corp Limited (hereinafter referred to as “Company”)
as at and for the year ended March 31, 2019, we have audited the internal financial controls over financial reporting (‘IFCoFR’)
of the Company as at that date.
Management’s Responsibility for Internal Financial Controls
The Board of Directors of the Company are responsible for establishing and maintaining internal financial controls based
on the internal control over financial reporting criteria established by the respective Companies considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India (“the ICAI”). These responsibilities include the design, implementation
and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to the respective company’s policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Act.
Auditor’s Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting based on our audit. We
conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the
“Guidance Note”) issued by the Institute of Chartered Accountants of India and the Standards on Auditing, prescribed under
Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards
and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether adequate internal financial controls over financial reporting was established and maintained and if
such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence
about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial
controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud
or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on
the internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those
policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company;
RJ CORP LIMITED
35
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements
in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of
the company’s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion
or improper management override of controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to
the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the company has, in all material respects, an adequate internal financial controls system over financial
reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2019, based
on the internal control over financial reporting criteria established by the company considering the essential components of
internal control stated in the Guidance Note on “Audit of Internal Financial Controls Over Financial Reporting” issued by the
Institute of Chartered Accountants of India.
For APAs & Co. Chartered Accountants
Firm Regn No. 000340C
sumit kathuria Partner
M No. 520078 UDIN: 19520078AAAAFE2882
Place : New DelhiDate : September 23, 2019
RJ CORP LIMITED
36
Balance sheet as at 31st March 2019 (` in millions, except as stated otherwise)
As at 31.03.2019
note As at 31.03.2018
Assets
non-current assets
(a) Property, plant and equipment 4 1,550.53 1,547.97
(b) Capital work in progress 4 0.63 0.21
(c) Other intangible assets 5 3.46 2.75
(d) Investment in subsidiaries and associates 6 7,948.13 7,748.33
(e) Financial assets
(i) Investments 7 6,463.19 6,310.09
(ii) Loans 8 67.19 49.91
(iii) Others 9 3.32 3.27
(f) Current tax assets 10 167.85 201.24
(g) Other non-current assets 11 43.87 43.38
Total non-current assets 16,248.16 15,907.14
Current assets
(a) Inventories 12 175.23 163.25
(b) Financial assets
(i) Trade receivables 13 0.45 16.42
(ii) Cash and cash equivalents 14 79.20 23.89
(iii) Loan 15 3,203.33 1,968.47
(iv) Others 16 141.53 159.57
(c) Other current assets 17 80.80 37.39
Total current assets 3,680.55 2,368.99
Total assets 19,928.71 18,276.13
Equity and liabilities
Equity
(a) Equity share capital 18 2.12 1.88
(b) Other equity 19
Equity contribution in compounded financial instruments 535.57 535.57
Reserve & surplus 9,073.24 3,648.06
Total equity 9,610.93 4,185.51
Liabilities
non-current liabilities
(a) Financial liabilities
(i) Borrowings 20A 7,128.59 10,356.17
(ii) Other financial liabilities 21 32.89 35.49
(b) Provisions 22 7.59 4.08
(c) Deferred tax liabilities (Net) 34 410.35 348.41
Total non- current liabilties 7,579.42 10,744.15
RJ CORP LIMITED
37
Balance sheet as at 31st March 2019 (` in millions, except as stated otherwise)
As at 31.03.2019
note As at 31.03.2018
Current liabilities
(a) Financial liabilities
(i) Borrowings 20B 88.50 338.86
(ii) Trade payables 23 69.16 63.11
(iii) Other financial liabilities 24 2,466.96 2,792.61
(b) Other current liabilities 25 113.59 147.96
(c) Provisions 22 0.14 3.93
Total current liabilties 2,738.35 3,346.47
Total liabilities 10,317.77 14,090.62
Total equity and liabilities 19,928.71 18,276.13
Significant accounting policies 3
The accompanying notes are an integral part of the financial statements.
As per our report of even date attached.
For and on behalf of the Board of Directors of RJ CORP LIMITED
Raj P. gandhiDirectorDIN: 00003649
Place : New DelhiDated : September 23, 2019
(sumit kathuria)PartnerM. No. 520078
For APAs & Co.Chartered AccountantsFirm Regn. No. 000340C
Mahavir Prasad garg Company secretary
Ravi kant JaipuriaDirectorDIN: 00003668
Lalit kumar singhChief Financial Officer
RJ CORP LIMITED
38
statement of Profit and Loss for the year ended 31st March 2019 (` in millions, except as stated otherwise)
For the year ended 31.03.2019
notes For the year ended 31.03.2018
Income
Revenue from operations 26 886.95 777.16
Other income 27 559.41 426.76
Total income 1,446.36 1,203.92
Expenses
Purchases of traded goods 28 404.09 358.00
Changes in inventories of traded goods 29 (11.98) (39.96)
Employee benefits expense 30 102.79 94.05
Finance costs 31 1,488.32 1,319.20
Depreciation and amortization expense 32 26.84 24.65
Other expenses 33 268.81 204.44
Total expenses 2,278.86 1,960.38
Profit/(loss) before tax (832.50) (756.46)
Tax expense
(a) Current tax 34 - -
(b) Adjustment of tax relating to earlier periods - -
(c) Deferred tax - -
Total tax expense - -
net profit/(loss) for the reporting year (832.50) (756.46)
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 1.08 0.49
(ii) Re-measurement of equity instrument at fair value/gain on
sale of such instruments. 1,259.71 2,716.38
(iii) Income tax relating to items that will not be reclassified to
Statement of Profit and Loss 34 (61.93) (271.63)
Total other comprehensive income 1,198.86 2,445.24
Total comprehensive income for the year 366.36 1,688.78
Earnings per equity share of face value of ` 10 each 36
Basic (`) (4,296.14) (4,027.60)
Diluted (`) (4,296.14) (4,027.60)
The accompanying notes are an integral part of the financial statements.
As per our report of even date attached.
For and on behalf of the Board of Directors of RJ CORP LIMITED
Raj P. gandhiDirectorDIN: 00003649
Place : New DelhiDated : September 23, 2019
(sumit kathuria)PartnerM. No. 520078
For APAs & Co.Chartered AccountantsFirm Regn. No. 000340C
Mahavir Prasad garg Company secretary
Ravi kant JaipuriaDirectorDIN: 00003668
Lalit kumar singhChief Financial Officer
RJ CORP LIMITED
39
(` in millions, except as stated otherwise)standalone Cash Flow statement for the year ended 31 March 2019(Indirect method)
year ended 31.03.2019
year ended 31.03.2018
A. Operating activities
Profit/ (Loss) before tax (832.50) (756.46)
Adjustments to reconcile profit before tax to net cash flows:
Depreciation on property, plant and equipment 25.69 23.08
Amortisation of intangible assets 1.15 1.57
Interest income on items at amortised cost (306.64) (254.01)
Excess provisions written back (3.69) (9.87)
Dividend income from non-current investment (139.72) (139.57)
Loss / (Gain) on remeasurment of equity instruments at FVTPL 1.67 0.06
Loss on sale of invesments/financial assets (net) - 2.80
Guarantee Commission income from subsidiary and associates (15.92) (10.27)
Interest on items at amortised cost 1,488.32 1,319.20
Loss on disposal of property, plant and equipment (net) 3.18 4.04
Unrealised foreign exchange fluctuation (93.21) -
Operating profit before working capital changes 128.33 180.57
Increase/(decrease) in inventories (11.98) (39.96)
Increase/(decrease) in trade receivables 19.66 (2.29)
Increase/(decrease) in current and non-current financial assets and
other current and non-current assets (55.40) 1,776.19
(Increase)/decrease in current financial liabilities and other
current and non-current liabilities and provisions (16.52) 2.33
Total cash from operations 64.09 1,916.83
Taxes (paid)/received (net of tax deducted at source) 33.39 (26.56)
net cash used in operating activities (A) 97.48 1,890.27
B. 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) (34.18) (24.07)
Purchase of investment (444.61) (2,728.10)
Proceeds from sale of investment (net of expenses) 1,349.76 2.39
Proceeds from disposal of property, plant and equipment and intangible assets 0.03 0.13
Loans given (1,039.31) (1,378.44)
Repayments of loan given 25.13 -
Change in other bank balances having maturity more than 12 months (0.05) (0.08)
Interest received 192.17 148.63
Dividend received 139.72 139.57
Investing activities 188.66 (3,839.96)
C. Financing activities
Proceeds from non-current borrowings 2,850.00 4,308.07
Repayment of non-current borrowings (2,340.01) (1,476.67)
Proceeds from issue of compulsorily convertible debentures 650.00 -
RJ CORP LIMITED
40
Change in short-term borrowings (250.36) -
Proceeds from equity share capital 0.26 -
Interest paid (1,140.72) (925.12)
Financing activities (230.82) 1,906.28
Cash flows 55.31 (43.41)
Add: Opening cash and cash equivalents 23.89 67.30
Closing cash and cash equivalents (Refer note-14) 79.20 23.89
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 01 April 2018 12,946.17 338.86
Cash Flows (Net) 1,159.99 (250.36)
non Cash Changes
Conversion of CCPS and CCDS into Equity (5,058.80) -
Impact of fair value changes 419.29 -
Balance as at 31 March 2019 9,466.64 88.50
Figures in brackets indicate cash outflow.
The accompanying notes are an integral part of the financial statements.
As per our report of even date attached.
standalone Cash Flow statement for the year ended 31 March 2019(Indirect method) (` in millions, except as stated otherwise)
year ended 31.03.2019
year ended 31.03.2018
Particulars non-Current Borrowings Current Borrowings
For and on behalf of the Board of Directors of RJ CORP LIMITED
Raj P. gandhiDirectorDIN: 00003649
Place : New DelhiDated : September 23, 2019
(sumit kathuria)PartnerM. No. 520078
For APAs & Co.Chartered AccountantsFirm Regn. No. 000340C
Mahavir Prasad garg Company secretary
Ravi kant JaipuriaDirectorDIN: 00003668
Lalit kumar singhChief Financial Officer
RJ CORP LIMITED
41
(` in millions, except as stated otherwise)
(in Rs. million)
statement of changes in equity
A Equity share Capital
Equity shares of INR 10 each issued, subscribed and fully paid up
Particulars notes number of shares
Amount
Balance as at 31 March 2017 187,820 1.88
Changes in equity share capital during the year 2018 - -
Balance as at 31 March 2018 187,820 1.88
Changes in equity share capital during the year 2019 24,165 0.24
Balance as at 31 March 2019 211,985 2.12
B Other Equity
Particulars
notes
Promotor contribution
in equity
Reserve and surplus Other comprehensive
income (OCI)
Total
Capital reserve
security premium reserve
general reserve
Retained earnings
Balance as at 31 March 2017
- 2,216.45 600.13 41.78 (899.08) - 1,959.28
Profit for the year ended
(756.46) (756.46)
Other comprehensive income for the year ended:Re-measurement gains/(losses) on defined benefit plans (Net of deferred taxes)
0.49
0.49
Re-measurement of equity instruments on fair value/gain on sale of such instruments. (Net of deferred taxes)
2,444.75 2,444.75
Total comprehensive income for the year ended
- - - (756.46) 2,445.24 1,688.78
Transferred to retained earnings
2,445.24 (2,445.24) -
Equity contribution in compounded financial instruments
535.57 535.57
RJ CORP LIMITED
42
Balance as at 31 March 2018
535.57 2,216.45 600.13 41.78 789.70 - 4,183.63
Profit for the year ended
(832.50) - (832.50)
On Conversion of Compulsorily Convertible Prefrence Shares & Compulsorily Convertible Debenture
5,058.82 5,058.82
Other comprehensive income for the year ended:Re-measurement gains/(losses) on defined benefit plans (Net of deferred taxes)
1.08
1.08
Re-measurement of equity instruments on fair value/gain on sale of such instruments. (Net of deferred taxes)
1,197.78 1,197.78
Total comprehensive income for the year ended
- - 5,058.82 - (832.50) 1,198.86 5,425.18
Transferred to retained earnings
1,198.86 (1,198.86) -
Balance as at 31 March 2019
535.57 2,216.45 5,658.95 41.78 1,156.05 - 9,608.81
Particulars
notes
Promotor contribution
in equity
Reserve and surplus Other comprehensive
income (OCI)
Total
Capital reserve
security premium reserve
general reserve
Retained earnings
For and on behalf of the Board of Directors of RJ CORP LIMITED
Raj P. gandhiDirectorDIN: 00003649
Place : New DelhiDated : September 23, 2019
(sumit kathuria)PartnerM. No. 520078
For APAs & Co.Chartered AccountantsFirm Regn. No. 000340C
Mahavir Prasad garg Company secretary
Ravi kant JaipuriaDirectorDIN: 00003668
Lalit kumar singhChief Financial Officer
RJ CORP LIMITED
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Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
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 23 September
2019 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.
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Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
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 the asset or transfer the liability takes place either:
• Intheprincipalmarketfortheassetorliability,or
• Intheabsenceofaprincipalmarket,inthemostadvantageousmarketfortheassetorliability.
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
With effect from 01 April 2018, the Company has adopted Ind AS 115, ‘Revenue from Contracts with Customers’ using
cumulative effect method which does not require comparative information to be restated in the financial statements. The
standard is applied retrospectively only to contracts that were not completed as at the date of initial application (i.e. 01 April
2018). There is no impact on retained earnings as at 01 April 2018. Moreover, the application of Ind AS 115 did not have any
impact on recognition and measurement of revenue from operations and other related items in the financial statements of
the Company.
Under Ind AS 115, revenue is recognised upon transfer of control of promised goods or services to customers. Revenue is
measured at the fair value of the consideration received or receivable, excluding discounts, incentives, performance bonuses,
price concessions, amounts collected on behalf of third parties, or other similar items, if any, as specified in the contract with
the customer. Revenue is recorded provided the recovery of consideration is probable and determinable.
a) sale of goods:
Revenue from the sale of products is recognised upon transfer of control of products to the customers which coincides
with their delivery and is measured at fair value of consideration received/receivable, net of discounts, amount collected
on behalf of third parties and applicable taxes.
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”).
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Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
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.
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
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Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
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.
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.
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
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the
inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of
a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly
specified in an arrangement.
Company as a lessee
A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the
risks and rewards incidental to ownership to the Company is classified as a finance lease.
Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased property or, if
lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and
reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance
charges are recognised in finance costs in the Statement of Profit and Loss, unless they are directly attributable to qualifying
assets, in which case they are capitalized in accordance with the Company’s general policy on the borrowing costs. Contingent
rentals are recognised as expenses in the periods in which they are incurred.
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company
will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the
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Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
asset and the lease term.
Operating lease payments are recognised as an expense in the Statement of Profit and Loss on a straight-line basis over the
lease term.
Company as a lessor
Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the
Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Company’s net
investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of
return on the net investment outstanding in respect of the lease.
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified
as operating leases. Rental income from operating lease is recognised on straight line basis over the term of the relevant
lease.
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, 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
•ThedatethattheCompanyrecognisesrelatedrestructuringcost
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:
• Servicecostscomprisingcurrentservicecosts,past-servicecosts,gainsandlossesoncurtailmentsandnon-routine
settlements; and
• Netinterestexpenseorincome
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Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
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 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 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.
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Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
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.
3.11 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.
3.12 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
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Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
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.
3.13 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.
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.
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Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
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’.
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.
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Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
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.
3.14 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
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.
3.15 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
3.16 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.
3.17 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
RJ CORP LIMITED
53
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
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.
3.18 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.
3.19 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.
3.20 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.
RJ CORP LIMITED
54
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
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 the deductible temporary differences, and the carry forward of unused tax credits and
unused tax losses can be utilised
ii) Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the
next financial year, are described below. The Company based its assumptions and estimates on parameters available
when the financial statements were prepared. Existing circumstances and assumptions about future developments,
however, may change due to market change or circumstances arising beyond the control of the Company. Such changes
are reflected in the assumptions when they occur.
a) useful lives of depreciable assets
The Company reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the
expected utility of the assets.
b) Defined benefit obligation
The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation
are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may
differ from actual developments in the future. These include the determination of the discount rate, future salary
increases, mortality rates 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.
3.21 Recent accounting pronouncements
standards issued but not yet effective
RJ CORP LIMITED
55
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
Ind As 116, Leases
Ind AS 116 Leases will replace the existing leases standard, Ind AS 17 Leases (Refer accounting policy 2.2 (d)). It introduces
a single, on-balance sheet lessee accounting model for lessees. A lessee recognises right-of-use (ROU) asset representing
its right to use the underlying asset on lease and a lease liability representing its obligation to make lease payments. The
standard is applicable from 1 April 2019.
The Company plans to apply Ind AS 116 initially on 1 April 2019, using the modified retrospective approach. On that date, the
Company will recognise a lease liability measured at the present value of the remaining lease payments using the lessee’s
incremental borrowing rate as at 1 April 2019 and corresponding ROU asset is measured at an amount equivalent to lease
liability. Therefore, there will be no effect of adopting Ind AS 116 on retained earnings as at 1 April 2019 and no restatement
of comparative information. In accordance with the standard, the Company will elect not to apply the requirements of Ind AS
116 to short-term leases and leases for which the underlying asset is of low value.
The Company has elected certain available practical expedients on transition to Ind AS 116.
The nature of expenses presently presented under “Rent” under the head “Other expenses” as per Ind AS 17, will now be
presented as per Ind AS 116 in the form of:
•AmortizationchargefortheROUasset.Further,ROUmaybesubjecttoimpairment,whereverindicatorsexist.
•Financecostfrominterestaccruedonleaseliability.
There will be consequent reclassifications in the cash flow categories in the Cash Flow Statement.
Certain stores and office premises, which are taken on operating lease will now be capitalised under Ind AS 116.
The Company has completed an initial assessment of the potential impact on its standalone financial statements but has
not yet completed its detailed assessment. The quantitative impact of adoption of Ind AS 116 on the standalone financial
statements in the period of initial application cannot be estimated reasonably as at present. However, the impact on transition
will be significant.
The following amended standards and interpretations are not expected to have a significant impact on the Company’s
financial statements:
- Appendix C to Ind AS 12, Income taxes
- Amendments to Ind AS 12, Income taxes
- Amendments to Ind AS 19, Employee Benefits
- Amendments to Ind AS 23, Borrowing Costs
- Amendments to Ind AS 28, Investments to Associates and Joint Ventures
- Amendments to Ind AS 103, Business Combinations
- Amendments to Ind AS 109, Financial Instruments
- Amendments to Ind AS 111, Joint Arrangements
RJ CORP LIMITED
56
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
Sta
ndal
one
Fina
ncia
l Sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
4. P
rope
rty,
pla
nt a
nd e
quip
men
t
Land
Bui
ldin
gLe
aseh
old
build
ing
Tube
wel
l P
lant
&
mac
hine
ryLe
aseh
old
Furn
itur
e &
Fi
xtur
es
Elec
tric
Fi
ttin
g &
A
pplia
nces
Com
pute
rsO
ffice
Eq
uipm
ent
Tota
l
gro
ss c
arry
ing
amou
ntB
alan
ce a
s at
01
Apr
il 20
18 1
,074
.00
436
.56
53.
92
2.0
8 9
.68
54.
68
8.5
2 6
.45
12.
02
1,6
57.9
2 A
dditi
ons
for
the
year
-
-
13.
75
-
1.3
5 1
2.53
-
1
.57
2.2
6 3
1.46
D
ispo
sals
for
the
year
-
-
(4.5
7) -
-
-
-
-
-
(4
.57)
Bal
ance
as
at 3
1 M
arch
201
9 1
,074
.00
436
.56
63.
11
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 a
sset
s fo
r th
e ye
ar -
-
(1
.36)
-
-
-
-
-
-
(1.3
6)
Bal
ance
as
at 3
1 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
.28
Carr
ying
am
ount
as
at 3
1 M
arch
20
19 1
,074
.00
374
.28
38.
97
1.5
9 6
.70
45.
16
2.6
9 2
.34
4.7
5 1
,550
.53
gro
ss c
arry
ing
amou
ntB
alan
ce a
s at
01
Apr
il 20
17 1
,074
.00
436
.56
47.
18
2.0
8 8
.32
50.
81
8.5
2 5
.59
10.
73
1,6
43.8
1 A
dditi
ons
for
the
year
-
-
11.
98
-
1.3
6 6
.56
-
0.8
7 1
.58
22.
34
Dis
posa
ls fo
r th
e ye
ar -
-
(5
.24)
-
-
(2.6
9) -
-
(0
.29)
(8.2
2)B
alan
ce a
s at
31
Mar
ch 2
018
1,0
74.0
0 4
36.5
6 5
3.92
2
.08
9.6
8 5
4.68
8
.52
6.4
5 1
2.02
1
,657
.92
Dep
reci
atio
n an
d im
pair
men
tB
alan
ce a
s at
01
Apr
il 20
17 -
4
7.63
1
3.85
0
.43
2.9
4 1
2.03
4
.57
3.6
6 5
.81
90.
92
Dep
reci
atio
n ch
arge
for
the
year
-
7.3
3 6
.49
0.0
3 0
.53
5.1
3 0
.62
0.9
7 1
.98
23.
08
Rev
ersa
l on
disp
osal
of a
sset
s fo
r th
e ye
ar -
-
(2
.98)
-
-
(0.9
1) -
-
(0
.16)
(4.0
5)
Bal
ance
as
at 3
1 M
arch
201
8 -
5
4.96
1
7.35
0
.46
3.4
7 1
6.25
5
.20
4.6
2 7
.63
109
.95
Carr
ying
am
ount
as
at 3
1 M
arch
20
18 1
,074
.00
381
.61
36.
56
1.6
2 6
.20
38.
43
3.3
1 1
.82
4.3
7 1
,547
.97
i. A
sset
und
er c
onst
ruct
ion/
Cap
ital
wor
k in
pro
gres
s C
apita
l wor
k in
pro
gres
s as
at 3
1 M
arch
201
9 co
mpr
ised
cap
ital e
xpen
ditu
re m
ainl
y fo
r th
e se
t up
of n
ew s
tore
of N
ike
and
Roo
kies
.
net
Boo
k Va
lue
31 M
arch
201
931
Mar
ch 2
018
Cap
ital w
ork-
in-p
rogr
ess
0.6
3 0
.21
Tota
l 0
.63
0.2
1
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
(in R
s. m
illio
n)
RJ CORP LIMITED
57
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
5 Intangible assets
gross carrying amount
Balance as at 01 April 2018 10.50 10.50
Additions for the year ended 1.86 1.86
Disposals for the year - -
Balance as at 31 March 2019 12.36 12.36
Amortisation and impairment
Balance 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
gross carrying amount
Balance as at 01 April 2017 9.66 9.66
Additions for the year 0.84 0.84
Disposals for the year - -
Balance as at 31 March 2018 10.50 10.50
Amortisation and impairment
Balance as at 01 April 2017 6.19 6.19
Amortisation charge for the year 1.57 1.57
Reversal on disposal of assets for the year - -
Balance as at 31 March 2018 7.75 7.76
Carrying amount as at 31 March 2018 2.75 2.74
6. Investments in subsidiary and Associates
Particulars Face value pershares/
Debenturein Rs.
As AT 31.03.2019 As AT 31.03.2018
number of shares/
Debentures
Value number of shares/
Debentures
Value
Investment in subsidiaries (unquoted)
In equity shares (at cost)
Wellness Holdings Limited 100 AED 250,000 451.58 250,000 451.58
Cryoviva Biotech Private Ltd. 10 17,492,540 131.90 17,492,540 131.90
Cryoviva International PTE Ltd-Singapore
1 SGD 280 0.01 280 0.01
Computer software
Computer software
Total
Total
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED
58
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
Arctic International (Mauritius) Pvt. Limited.
1 USD 500,002 19.78 500,002 19.78
Devyani Food Industries Limited
10 12,490,080 436.15 12,490,080 436.15
Devyani International Limited 10 81,108,607 1,721.70 81,108,607 1,721.70
Diagno Labs India Private Limited
10 19,993,800 199.96 13,800 0.16
Modern Montessorie ( India) International (P) Limited
10 627,500 3.01 627,500 3.01
Snowpeak Enterprises Pvt. Ltd. (Formerly Mumbai Rockets Sports Pvt. Ltd.)
100 20,790 3.41 20,790 3.41
Anuj Traders (P) Ltd. 10 9,990 0.10 9,990 0.10
AccorBev (Telangana) Private Limited (net of Provision for diminution in value of investment)
10 10,000 - 10,000 -
SVS ( India ) Private Limited 100 36,000 5.01 36,000 5.01
Accor Developers Pvt. Limited 100 SLR 535,725 23.44 535,725 23.44
Alisha Retail Private Lmited 10 19,990,400 199.90 19,990,200 199.90
Investment in Associates (unquoted)
In equity shares (at cost)
Lineage Healthcare Limited 10 24,800 0.25 24,800 0.25
Parkview City Limited 10 114,000 1.14 114,000 1.14
Capital Infracon Private Limited 10 990,000 6.91 990,000 6.91
Ratnakar Foods & Beverages Pvt. Ltd.
10 5,000 0.05 5,000 0.05
Africare Limited 100 KSHS 550 0.03 550 0.03
Agarwal Cold Drinks Pvt.Ltd. 10 2,500 0.03 2,500 0.03
Investment in equity shares in subsidiaries (at cost ) (quoted)
Varun Beverages Limited 10 55,822,345 4,663.10 55,822,345 4,663.10
Other Investment in subsidairy
-Guarantee given on behalf of :
Alisha Retail Private Lmited 26.65 26.65
Diagno Labs India Private Limited
22.19 22.19
Other Investment in Associates
-Guarantee given on behalf of :
Particulars Face value pershares/
Debenturein Rs.
As AT 31.03.2019 As AT 31.03.2018
number of shares/
Debentures
Value number of shares/
Debentures
Value
(` in millions, except as stated otherwise)
RJ CORP LIMITED
59
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
Africare Limited 9.80 9.80
Lineage Healthcare Limited 22.04 22.04
Total 7,948.13 7,748.33
Aggregate book value of quoted investments
4,663.10 4,663.10
Aggregate market value of quoted investments
48,378.44 35,134.58
Aggregate value of unquoted investments
3,285.02 3,085.22
* Ownership stakes in Diagno Labs India Private Limited increased from 69% to 99.97% with effect from 15 October 2018.
The Company has given financial guarantee to various banks on behalf of Alisha Retail Private Limited and Diagno Labs India
Private Limited, subsidiaries of the Company and on behalf of Africare Limited and Lineage Healthcare Limited, associates
of the Company for the purpose of servicing of loan taken by these subsidiaries and associates. Such financial guarantee has
been fair valued and recorded as an additional investment in subsidiary and associates, as the case may be.
For details towards pledge of some of above shares refer note no. 20 C
7. Investments
Particulars Face value pershares/
Debenturein Rs.
As AT 31.03.2019 As AT 31.03.2018
number 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 Pvt. Ltd.)
10 2,000,000 1,029.06 2,020,000 1,279.55
Shabnam Properties Private Limited
10 15,680 3.44 15,680 3.44
Empire Stocks Pvt Limited 10 1,900 0.01 1,900 0.01
Lemon Tree Hotels Limited 10 - - 78,748,368 4,409.91
Sellwell Foods & Beverages Pvt.Ltd.
10 2,000 0.02 2,000 0.02
Pinnacle Infracon Ltd. 10 100 0.00 100 0.00
Investment in equity shares (quoted) (at fair value through OCI)
Lemon Tree Hotels Limited 10 53,427,784 4,308.95 - -
Caiptal India Finance Limited 10 3,811,320 514.53 167,400 8.31
Particulars Face value pershares/
Debenturein Rs.
As AT 31.03.2019 As AT 31.03.2018
number of shares/
Debentures
Value number of shares/
Debentures
Value
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED
60
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
Investment in equity shares (quoted) (at fair value through profit & loss )
Cosmo Films Ltd 10 110 0.02 110 0.03
Cosmo Ferrites Ltd. 10 200,000 2.96 200,000 4.40
JAYKAY ENTERPRISES LIMITED 1 9,877 0.06 9,877 0.06
J.K.Cement Ltd. 10 2,233 1.94 2,233 2.27
Jamna Auto Industries Ltd 5 1,380 0.09 1,380 0.11
Pasupati Acrylon Limited 10 45 0.00 45 0.00
Rama Vision Ltd. 10 33,100 0.19 33,100 0.63
Welcure Drugs Ltd. 10 28,900 0.02 28,900 0.02
ICICI Bank Ltd. 2 4,500 1.80 4,500 1.25
Aravali Securities and Finance Ltd.
10 25,000 0.10 25,000 0.09
Reliance Industries Limited 10 2 0.00 2 0.00
In compulsorily convertible debentures(at amortised cost) in associates
6 year Compulsorily Convertible Debentures (Fully Paid up)
Parkview City Ltd.* 1,000 600,000 600.00 600,000 600.00
Total 6,463.19 6,310.09
Aggregate book value of quoted investments
4,830.65 8.84
Aggregate market value of quoted investments
4,830.65 8.84
Aggregate value of unquoted investments
1,632.53 6,292.93
For details towards pledge of some of above shares refer note no. 20C
8.Loans
As at 31.03.2019
As at 31.03.2018
Loans carried at amortised cost(Unsecured, considered good)
Security Deposit 67.19 49.91
67.19 49.91
Particulars Face value pershares/
Debenturein Rs.
As AT 31.03.2019 As AT 31.03.2018
number of shares/
Debentures
Value number of shares/
Debentures
Value
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED
61
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
9.Others
As at 31.03.2019 As at 31.03.2018
Financial assets at amortised cost
Bank deposit accounts with more than 12 months maturity 3.32 3.27
3.32 3.27
* Include receipts with lien marked with banks against guarantees issued in favour of various government departments Rs.
3.32 million (31 March 2018: Rs. 2.23 million)
10. Current tax assets
As at 31.03.2019 As at 31.03.2018
Income tax assets 167.85 201.24
167.85 201.24
11. Other non-current assets
As at 31.03.2019 As at 31.03.2018
(Unsecured, considered good)
Capital advances 1.17 0.44
Advances other than capital advances
- Security deposits 3.07 1.85
- Balance with statutory authorities (includes amount paid under protest) 7.95 7.95
- Prepaid expenses 31.68 33.14
43.87 43.38
12. Inventories
As at 31.03.2019 As at 31.03.2018
(valued at lower of cost or net realisable value)
Traded goods 175.23 163.25
175.23 163.25
13. Trade receivables
As at 31.03.2019 As at 31.03.2018
Unsecured, considered good 0.45 16.42
Unsecured, considered doubtful - 3.69
0.45 20.11
Less : Allowance for doubtful debts - 3.69
0.45 16.42
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED
62
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
14. Cash and cash equivalents
As at 31.03.2019 As at 31.03.2018
Balance with banks in current accounts 78.48 23.26
Cash on hand 0.73 0.63
79.20 23.89
15. Loans
As at 31.03.2019 As at 31.03.2018
Loans carried at amortised cost
Loan to related parties 2,110.42 1,503.55
Loan to others 1,092.91 464.91
3,203.33 1,968.47
Loans to related parties pertain to amounts due from subsidiary in which director of the Company is a director.
Africare limited 497.86 395.24
Cryoviva International Pte 245.68 252.83
Wellness Holdings Limited 168.28 126.37
Loan to other subsidiaries :
Arctic International Pvt Ltd 1,198.59 729.11
16. Other financial assets
As at 31.03.2019 As at 31.03.2018
(Unsecured, considered good)
Interest accrued on:
-Loan given 130.69 152.43
-Term deposits 0.21 0.18
Other receivables 10.62 6.96
141.53 159.57
Interest accured include amount due by subsidiary/associates company
i)Parkview City Limited 64.80 37.64
17. Other current assets
As at 31.03.2019 As at 31.03.2018
(Unsecured, considered good)
Other advances :
-Employees 0.43 1.35
-Contractors and suppliers 20.22 19.40
-Prepaid expenses 2.63 0.93
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED
63
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
-Balance with statutory/government authorities 7.32 15.62
- Security deposits 50.00 -
-Advances to subsidiaries 0.20 0.10
80.80 37.39
Advance to subsidiary include amount due by following subsidiary companies:
i) AccorBev Telangana Pvt Ltd. 0.20 0.10
Security deposits include amount due by following subsidiary companies:
i) Lineage Healthcare Limited 50.00 -
18. Equity share capital
As at 31.03.2019 As at 31.03.2018
Authorised share capital
1,281,850,000 (March 31, 2018: 1,281,850,000) equity shares of Rs. 10 each 12,818.50 12,818.50
12,818.50 12,818.50
Issued, subscribed and fully paid-up
211,985 (March 31, 2018: 187,820) equity shares of Rs. 10 each 2.12 1.88
2.12 1.88
a) Reconciliation of share capital
Particulars no. of shares Amount
Balance as at 01 April 2018 187,820 1,878,200
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 211,985 2,119,850
Particulars
Balance as at 01 April 2017 187,820 1,878,200
Changes in equity share capital during the year - -
Balance as at 31 March 2018 187,820 1,878,200
*During the 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 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.
As at 31.03.2019 As at 31.03.2018
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED
64
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
b) Terms/rights attached to shares
The holders of the equity shares are entitled to receive dividends as declared from time to time, and are entitled to voting
rights proportionate to their share holding at the meetings of shareholders.
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 2019 no. of shares %
Ravi Kant Jaipuria & Sons (HUF) 184,455 87.01%
Mr. Varun Jaipuria 19,751 9.32%
shareholders as at 31 March 2018 no. of shares %
Ravi Kant Jaipuria & Sons (HUF) 169,645 90.32%
Mr. Varun Jaipuria 10,396 5.54%
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) Preference share capital
The Company also has authorised preference share capital of 18,000,000 (31 March 2018: 18,000,000) preference shares of
`100 each. During the 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
As at 31.03.2019 As at 31.03.2018
Capital reserve
Balance at the beginning of the reporting year 2,216.45 2,216.45
Balance at the end of the reporting year 2,216.45 2,216.45
general reserve
Balance at the beginning of the reporting year 41.78 41.78
Balance at the end of the reporting year 41.78 41.78
securities premium reserve
Balance at the beginning of the reporting year 600.13 600.13
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 -
Balance at the end of the reporting year 5,658.95 600.13
surplus in the statement of profit and loss
Balance at the beginning of the reporting year 789.70 (899.08)
Add: Profit for the reporting year (832.50) (756.46)
(42.80) (1,655.55)
Add: Items of other comprehensive income (‘’OCI’’) recognised directly in retained earnings
(` in millions, except as stated otherwise)
RJ CORP LIMITED
65
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
Re-measurement of equity instrument at fair value, net of tax 1,197.78 2,444.75
Remeasurement of post-employment benefit obligation, net of tax 1.08 0.49
Balance at the end of the year 1,156.05 789.70
Reserve & surplus 9,073.24 3,648.06
Equity contribution in compounded financial instruments 535.57 535.57
9,608.81 4,183.63
Description of nature and purpose of each reserve:
Capital reserve - Created on merger of Devyani Enterprises Pvt ltd, Devyani Oversease Pvt Ltd, Farm2Plate Dairy Produce
Pvt Ltd, Devyani Hotels Pvt Ltd, Universal Dairy Product Private Ltd with the Company pursuant to and in accordance with the
Court approved scheme of amalgamation, prior to the transition date.
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.
20. Borrowings
A. non-current borrowings:
As at 31.03.2019 As at 31.03.2018
Debentures
-Compulsorily convertible debentures (unsecured) 592.70 1,709.45
Term loans (secured)
'-Indian rupee loans from banks 2,164.31 1,858.47
'-Indian rupee loan from a financial institutions/others 4,371.58 4,208.90
Compulsorily convertible preference shares (unsecured) - 2,579.34
7,128.59 10,356.17
a) Terms and conditions of issue and conversion of Compulsorily convertible preference shares (CCPs) are as under:
CCPS shall be compulsorily and mandatorily convertible into equity shares upon expiry of fifteen years from the allotment
date at a price which shall be calculated at the valuation of the Company computed by an independent valuer. The said CCPS
may also be compulsorily and mandatorily convertible into equity shares earlier on the occurance of certain events at the
option of the investor into such number of equity shares so as to enable Investor having such shareholding percentage in the
company equal to Investor Exit Consideration in terms of Investment and Shareholders’ Agreement dated 15th September,
2014 and supplementary agreement dated 28 August 2017.
The holders of compulsorily convertible preference shares have no rights to receive notices of, attend or vote at general
meetings except in certain limited circumstances. During the year, the said CCPS has been converted into equity shares. 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.
As at 31.03.2019 As at 31.03.2018 (` in millions, except as stated otherwise)
RJ CORP LIMITED
66
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
b) The Company has complied with all the loan covenants.
B. Current borrowings:
As at 31.03.2019 As at 31.03.2018
Loans repayable on demand
Loan from related party (unsecured) carrying rate of interest @12% 87.70 338.06
Others loan carrying rate of interest @12% 0.80 0.80
88.50 338.86
C. Terms and conditions/details of securities for loans are as under:
name of the bank/instrument As at 31.03.2019 As at 31.03.2018
non-current Current non-current Current
Term Loans
Indian rupee loan from banks (secured)
Loans taken from Yes bank carrying rate of interest of 9%
(10.25% upto September 30, 2017). 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.
339.56 100.00 434.47 50.00
Loans taken from Yes bank carrying rate of interest of 8.9%
. 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
c) Personal guarantee of one of the director of the company.
340.07 125.00 463.29 31.25
` in million, except as stated otherwise
RJ CORP LIMITED
67
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
Loans taken from Indusind bank carrying rate of interest of
9.1%. 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.
766.89 200.00 960.71 -
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.
717.79 15.00 - -
Indian rupee loan from others (secured)
Loan 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 September 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.
- 139.90 187.64 600.00
Loan taken from Kotak Mahindra Prime Limited carrying rate
of interest rate of 11.25% for first month, 15.35% for next
three months and 9.9% thereafter. This loan is repayable in 48
monthly installments of Rs. 20.83 starting from January 2018
to Decemeber 2021.
432.82 250.00 679.18 250.00
name of the bank/instrument As at 31.03.2019 As at 31.03.2018
non-current Current non-current Current
(` in millions, except as stated otherwise)
RJ CORP LIMITED
68
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
Loan taken from Kotak Mahindra Prime Limited carrying rate
of interest of 9.90%. This loan is repayable in 42 monthly
installments of Rs. 23.81 starting from May 2019 to October
2022.
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.
d) Personal guarantee of RK Jaipuria & Sons (HUF).
738.10 261.90 1,000.00 -
Loan taken from Kotak Mahindra Prime Limited carrying rate
of interest of 9.25% till April 2018 and 9.75% thereafter. This
loan is repayable in bullet at the end of one year.
This Term Loan from Kotak Mahindra Prime Ltd. is secured
by :
a) Pledge of some of the Quoted/Unquoted Equity Shares held
by the company.
b) Extension of charge over pledge of 6% equity shares of the
Company and pledge of additional 1.5% equity shares of the
Company as held by promoters.
c) Hypothecation over one of the current account of the
Company.
d) Personal guarantee of RK Jaipuria & Sons (HUF).
- - - 500.00
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 10.50%. This loan is repayable in 48 monthly
installments of Rs. 29.16 starting from June 2019 to May
2023.
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.
587.50 12.50 - -
name of the bank/instrument As at 31.03.2019 As at 31.03.2018
non-current Current non-current Current
(` in millions, except as stated otherwise)
RJ CORP LIMITED
69
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
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).
d) Corporate guarantee of RK Jaipuria & Sons (HUF).
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.
297.50 255.00 552.50 212.50
Loan from Clix Capital Services Private Limited carrying rate
of interest 10.75%.This loan is repayable in bullet at the end of
four months from drawdown..
- - - 500.00
Loan from Clix Capital Services Private Limited carrying
rate of interest 10%. 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.
Above 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 .
d) Personal guarantee of one of the Directors of the company
and its concern.
325.00 178.75 503.75 146.25
name of the bank/instrument As at 31.03.2019 As at 31.03.2018
non-current Current non-current Current
(` in millions, except as stated otherwise)
RJ CORP LIMITED
70
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
Loan from Axis Finance Limited carrying rate of interest 9.5%.
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
662.05 333.33 992.80 -
Loan from Axis Finance Limited carrying rate of interest 9.3%.
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
220.29 75.00 293.05 -
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
750000 29-03-2012 1000
400000 26-03-2015 1000
600000 26-03-2015 1000
b) The CCD's carry a rate of Interest of 4% for the 1st year, 6%
for the 2nd year, 8% for the 3rd year, 10% for the 4th year and
12% for the last 5th & 6th year from the date of allotment.
c) The CCD's shall have a tenure of 6 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.
d) Term of Conversion of 750000 debentures of face value of
1000 which was originally issued on 29-03-2012 has been
extended for a period of two years i.e upto March 26, 2020 at a
coupan rate of 12%.
e) 750000 debentures and 400000 debentures of face value of
1000 which was originally issued on 29-03-2012 and 26-03-
2015 respectively, were converted into equity shares during
the year.
592.70 - 1,709.45 -
name of the bank/instrument As at 31.03.2019 As at 31.03.2018
non-current Current non-current Current
(` in millions, except as stated otherwise)
RJ CORP LIMITED
71
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
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
300000 12-06-2012 1000
b) The CCD's carry a rate of Interest of 8% for the 1st & 2nd
year, 10% for 3rd & 4th year, 12% for 5th & 6th year from the
date of their allotment.
c) The CCD's shall have a tenure of 6 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.
d) The CCD's were converted into equity shares during the
year.
- - - 300.00
Total 7,128.59 2,338.05 7,776.83 2,590.00
There has been no defaults in repayment of any of the loans or interest thereon as at the end of the year.
21. Other non-current financial liabilities
As at 31.03.2019 As at 31.03.2018
Security deposit 32.89 35.49
32.89 35.49
22. Provisions
As at 31.03.2019 As at 31.03.2018
non-current
Defined benefit liability (net) (refer note 35) 4.17 2.05
Other long term employee obligations 3.42 2.03
7.59 4.08
Current
Defined benefit liability (net) 0.06 2.59
Other short term employee obligations 0.08 1.34
0.14 3.93
name of the bank/instrument As at 31.03.2019 As at 31.03.2018
non-current Current non-current Current
(` in millions, except as stated otherwise)
RJ CORP LIMITED
72
23. Trade payables
As at 31.03.2019 As at 31.03.2018
Total outstanding dues of-
Micro and small enterprises (refer note 42) - -
Others 69.16 63.11
69.16 63.11
24. Other current financial liabilities
As at 31.03.2019 As at 31.03.2018
Current maturities of long-term debts 2,338.05 2,590.00
Interest accrued but not due on borrowings 121.05 195.14
Employee related payables 3.85 4.21
Retention money payable 0.90 0.38
Other payable 0.00 0.08
Capital Creditor (refer note 42) 3.10 2.80
2,466.96 2,792.61
25. Other current liabilities
As at 31.03.2019 As at 31.03.2018
Advances from customers 38.08 38.13
Statutory dues payable 20.59 41.49
Deferred income 54.92 68.33
113.59 147.96
26. Revenue from operations
For the year ended 31.03.2019
For the year ended 31.03.2018
Revenue from operations (gross)
sale of products
Traded goods 767.86 644.23
sale of services
Commission income 11.48 34.45
Other operating revenue
Lease rental income 107.61 98.48
886.95 777.16
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
RJ CORP LIMITED
73
27. Other income
For the year ended 31.03.2019
For the year ended 31.03.2018
Interest income on items at amortised cost:
-bank deposits 0.22 0.11
-loan to subsidiaries 127.47 78.84
-loan to others 73.22 127.55
-Compulsary convertible debentures 72.00 41.82
-other financial instruments 8.70 5.68
-others 25.03 0.01
Net gain on foreign currency transactions and translations 93.21 12.98
Excess provisions written back 3.69 9.87
Dividend income from non-current investment 139.72 139.57
Guarantee Commission income from subsidiary and associates 15.92 10.27
Miscellaneous Income 0.22 0.06
559.41 426.76
28. Purchases of traded goods
For the year ended 31.03.2019
For the year ended 31.03.2018
Traded Goods 404.09 358.00
404.09 358.00
29. Changes in inventories of traded goods
For the year ended 31.03.2019
For the year ended 31.03.2018
As at the beginning of the reporting period/year
Traded goods 163.25 123.29
163.25 123.29
As at the closing of the reporting period/year
Traded goods 175.23 163.25
175.23 163.25
(11.98) (39.96)
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
RJ CORP LIMITED
74
30. Employee benefits expense
For the year ended 31.03.2019
For the year ended 31.03.2018
Salaries and wages 91.53 84.53
Contribution to provident and other funds 5.72 5.55
Staff welfare expenses 5.54 3.98
102.79 94.05
31. Finance costs
For the year ended 31.03.2019
For the year ended 31.03.2018
Interest on items at amortised cost:
-Term loans 841.64 572.07
-Compulasary convertible debentures 251.30 248.94
-Compulasary convertible preference shares 379.46 156.21
-Others 15.93 122.57
Interest on item at FVTPL:
-Compulasary convertible preference shares - 208.42
Other ancillary borrowing costs:
- Processing fees - 10.99
1,488.32 1,319.20
32. Depreciation and amortisation expense
For the year ended 31.03.2019
For the year ended 31.03.2018
Depreciation on property, plant and equipment 25.69 23.08
Amortisation of intangible assets 1.15 1.57
26.84 24.65
33. Other expenses
For the year ended 31.03.2019
For the year ended 31.03.2018
Power and fuel 13.88 11.15
Repairs to buildings 2.35 2.27
Other repairs 25.82 19.87
Consumption of stores and spares 1.25 1.13
Rent (refer note 41) 168.39 130.83
Rates and taxes 3.61 2.90
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
RJ CORP LIMITED
75
Insurance 0.47 0.74
Printing and stationery 0.78 0.73
Communication 5.17 3.65
Travelling and conveyance 5.14 4.94
Directors' sitting fee 1.60 0.20
Payment to the auditors as
Audit and reviews 0.95 0.60
Other matters 0.38 0.02
Vehicle running and maintenance 1.25 1.12
Lease and hire 0.60 -
Security and service charges 0.94 0.95
Professional and consultancy 13.98 5.06
Bank charges 8.95 10.00
Advertisement and sales promotion 1.39 1.02
Distribution expenses - 0.02
Bad debts written off 3.65 -
Donations 0.01 0.02
Loss on disposal of property, plant and equipment (net) 3.18 4.04
Loss on remeasurment of equity instruments at FVTPL 1.67 0.06
Loss on sale of invesments/financial assets (net) - 2.80
General office and other miscellaneous 3.39 0.33
268.81 204.44
34. Income Tax
(a) Amounts recognised in the statement of Profit and Loss comprises:
For the year ended 31 March 2019
For the year ended 31 March 2018
Current tax: - -
Current tax - -
Deferred tax expense: - -
Attributable to Origination and reversal of temporary differences - -
(b) Income tax recognised in other comprehensive income
For the year ended 31 March 2019
For the year ended 31 March 2018
Income tax relating to other comprehencive income 61.93 271.63
61.93 271.63
For the year ended 31.03.2019
For the year ended 31.03.2018
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
RJ CORP LIMITED
76
(c) Reconciliation of tax expense between accounting profit at applicable tax rate and effective tax rate:
For the year ended 31 March 2019
For the year ended 31 March 2018
Profit/(Loss) before tax (832.50) (756.46)
Tax using the Company's domestic tax rate (22.88% (31 March 2018: 26%) (190.48) (196.68)
Effect of :
Change in unrecognised temporary differences 9.18 11.20
Unrecognised tax losses 142.92 64.02
Rate change impact on deferred tax * (34.64) 33.85
Permanent differences 83.18 92.13
Others (10.17) (4.52)
Income tax expense at effective tax rate reported in the statement of Profit and Loss
- -
* Represents the change in enacted tax rate as on the reporting date.
(d) Deferred tax assets/liabilities
Deferred tax assets (Deferred tax liabilities) net deferred tax assets / (liabilities)
As at31 March
2019
As at31 March
2018
As at31 March
2019
As at31 March
2018
As at31 March
2019
As at31 March
2018
Property, plant and equipment and intangible assets (net)
6.10 5.97 6.10 5.97
Employee related provisions and liabilities
1.77 2.08 1.77 2.08
Allowances for Doubtful Debts - 0.96 - 0.96
Financial instruments at amortised cost/FVTPL
(14.20) (26.64) (14.20) (26.64)
MAT Credit 27.10 27.10 27.10 27.10
Equity instruments as Fair Value (410.35) (348.41) (410.35) (348.41)
Tax losses 412.46 306.29 412.46 306.29
Capital losses 48.78 37.46 48.78 37.46
482.01 353.22 (410.35) (348.41) 71.66 4.81
Deferred tax liabilities (410.35) (348.41)
Deferred tax assets 482.01 353.22
Deferred tax assets (not recognised) 482.01 353.22
* As at 31 March 2019 and As at 31 March 2018, the Group has significant unabsorbed depreciation and carry forward losses.
The Group has not recognised deferred tax assets in respect of deductible temporary difference, unused tax losses and
unabsorbed depreciation as of March 31, 2019 and March 31, 2018 respectivley it is not probable that taxable profit would
be available.
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
RJ CORP LIMITED
77
(e) Movement of temporary differences (Recognised)
As at31 March
2017
Recognised in Profit or Loss during
2017-18
Recognised in OCI during
2017-18
As at31 March
2018
Recognised in Profit or Loss during
2018-19
Recognised in OCI during
2018-19
As at31 March
2019
Equity instruments as Fair Value
(76.78) - (271.63) (348.41) - (61.93) (410.35)
(76.78) - (271.63) (348.41) - (61.93) (410.35)
(f). Tax losses and tax credits for which no deferred tax asset was recognised expire as follows:
As at 31 March 2019 As at 31 March 2018
gross Amount unrecognised Tax Effect
gross Amount unrecognised Tax Effect
unabsorbed depreciation never expire
76.38 19.86 60.36 15.69
Losses
FY 2012-13 upto FY 2020-21 29.86 7.76 29.86 7.76
FY 2014-15 upto FY 2022-23 50.50 13.13 50.50 13.13
FY 2015-16 upto FY 2023-24 153.93 40.02 153.93 40.02
FY 2016-17 upto FY 2024-25 504.23 131.10 504.23 131.10
FY 2017-18 upto FY 2025-26 472.17 122.76 379.14 98.58
FY 2018-19 upto FY 2026-27 515.59 134.05 NA NA
1,726.28 448.82 1,117.66 290.59
1,802.66 468.69 1,178.02 306.28
35 gratuity and other post-employment benefit plans
gratuity:
The Company has a defined benefit gratuity plan governed by the Payments of Gratuity Act, 1972. Every employee who has
completed five years or more of services is eligible for gratuity on separation at 15 days salary (last drawn salary) for each
completed year of service. The Company makes a provision of unfunded liability based on actuarial valuation in the Balance
Sheet as part of employee cost.
Compensated absences:
The Company recognises the compensated absences expenses in the Statement of Profit and Loss based on actuarial
valuation.
The following tables summaries the components of net benefit expense recognized in the Statement of Profit and Loss and
the funded status and amounts recognized in the balance sheet:
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
(` in millions, except as stated otherwise)
RJ CORP LIMITED
78
gratuity Compensated Absences
31 March 2019 31 March 2018 31 March 2019 31 March 2018
Changes in present value are as follows:
Balance at the beginning of the year 4.63 3.27 3.38 2.50
Past service cost - 0.50 - -
Current service cost 1.11 1.15 1.13 1.11
Interest cost 0.36 0.24 0.26 0.18
Benefits settled (0.80) (0.03) (1.24) (0.66)
Actuarial loss/(gain) (1.08) (0.49) (0.03) 0.24
Balance at the end of the year 4.23 4.63 3.51 3.38
gratuity Compensated Absences
31 March 2019 31 March 2018 31 March 2019 31 March 2018
Change in fair value of plan assets are as follows:
Plan assets at the beginning of the year, at fair value
- - - -
Expected income on plan assets - - - -
Actuarial gain/(loss) - - - -
Contributions by employer - - - -
Benefits settled - - - -
Plan assets at the end of the year, at fair value - - - -
gratuity Compensated Absences
31 March 2019 31 March 2018 31 March 2019 31 March 2018
Reconciliation of present value of the obligation and the fair value of the plan assets:
Present value of obligation 4.23 4.63 3.51 3.38
Fair value of plan assets - - - -
net liability recognised in the Balance sheet 4.23 4.63 3.51 3.38
gratuity Compensated Absences
31 March 2019 31 March 2018 31 March 2019 31 March 2018
Amount recognised in statement of Profit and Loss:
Current/past service cost 1.11 1.65 1.13 1.11
Interest expense 0.36 0.24 0.26 0.18
Expected return on plan assets - - - -
Actuarial loss/(gain) - - (0.03) 0.24
net cost recognised 1.47 1.89 1.37 1.54
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
RJ CORP LIMITED
79
gratuity Compensated Absences
31 March 2019 31 March 2018 31 March 2019 31 March 2018
Amount recognised in Other Comprehensive Income:
Actuarial changes arising from changes in financial assumptions
0.07 (0.15) - -
Actuarial changes arising from Experience Adjustment
(1.15) (0.34) - -
Amount recognised (1.08) (0.49) - -
gratuity Compensated Absences
31 March 2019 31 March 2018 31 March 2019 31 March 2018
Assumptions used:
Mortality IALM (2006-08) ultimate
IALM (2006-08) ultimate
IALM (2006-08) ultimate
IALM (2006-08) ultimate
Discount rate 7.65% 7.80% 7.65% 7.80%
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 2019 and 31 March 2018 is as shown below:
sensitivity level gratuity Compensated Absences
31 March 2019 31 March 2018 31 March 2019 31 March 2018 31 March 2019 31 March 2018
Discount rate+1% +1% (0.48) (0.33) (0.45) (0.32)
-1% -1% 0.53 0.37 0.49 0.35
Salary increase+1% +1% 0.54 0.38 0.50 0.36
-1% -1% (0.49) (0.34) (0.45) (0.32)
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.
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.
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
RJ CORP LIMITED
80
Salary risk The present value of the defined benefit plan liability is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan's liability.
The following payments are maturity profile of Defined Benefit Obligations in future years:
gratuity Compensated Absences
31 March 2019
31 March 2018
31 March 2019
31 March 2018
i) Weighted average duration of the defined benefit obligation 20.98 years 20.98 years 20.98 years 20.98 years
ii) Duration of defined benefit obligation
Duration (years)
1 0.06 2.59 0.08 1.34
2 0.06 0.02 0.07 0.05
3 1.28 0.03 0.07 0.04
4 0.05 0.04 0.54 0.04
5 0.06 0.04 0.05 0.04
6 0.05 0.04 0.05 0.04
Above 6 2.66 1.88 2.63 1.83
4.23 4.63 3.51 3.38
Defined contribution plan:
Contribution to defined contribution plans, recognised as expense for the year is as under:
Employer’s contribution to provident and other funds ` 5.72 (31 March 2018 ` 5.55)
36 Earnings per share (EPs)
As at 31 March 2019
As at 31 March 2018
Profit attributable to the equity shareholders (832.50) (756.46)
Weighted average number of equity shares outstanding during the year for calculating basic earning per share (nos.)
193,778 187,820
Weighted average number of equity shares for calculation of diluted earnings per share (nos.)
193,778 187,820
Nominal value per equity shares (`) 10.00 10.00
Basic earnings per share (`) (4,296.14) (4,027.60)
Diluted earnings per share (`) (4,296.14) (4,027.60)
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 cannot be estimated reliably at this stage.
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
(` in millions, except as stated otherwise)
RJ CORP LIMITED
81
37 Contingent liabilities and commitments
As at 31 March 2019
As at 31 March 2018
a. Guarantees issued on behalf of subsidiary and other companies# 3,116.14 2,223.71 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 13.66 12.02 iii For income tax 69.22 69.22
38 Capital commitments
As at 31 March 2019
As at 31 March 2018
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances).
1.35 1.76
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
Mr. Rajesh Chopra Director (upto 30/04/2018)
Mr. Prashant Purkar Director (upto 19/12/2017)
Mr. Sanjoy Mukarjee Director (upto 30/09/2018)
Mr. Ravindra Dhariwal Director (upto 30/03/2018)
Ms. Rashmi Dhariwal Director (wef 01/04/2018)
Mr. Girish Ahuja Director (wef 01/04/2018)
Mr. S.V. Singh Whole time Director (upto 30/04/2018)
Mr. Ravi Kant Jaipuria Director
Mr. Parth Dasharathlal Gandhi Director (upto 31/10/2017)
Mr. Lalit Singh CFO
Mrs. Monika Bhardwaj CS (upto 15/03/2018)
Mr. Mahavir Prasad Garg CS (W.e.f 16/03/2018)
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED
82
III Wholly owned subsidiary:
- Wellness Holdings Limited
- Arctic International (Mauritius) Pvt. Limited
- Anuj Traders (P) Ltd. (upto 08/09/2017)
- AccorBev (Telangana) Private Limited
IV subsidiaries:
- Africare Limited (upto 04/12/2017)
- Anuj Traders Private Ltd. (wef 08/09/2017)
- Cryoviva Biotech Private Limited
- Devyani Food Industries Limited
- Devyani International Limited
- Diagno Labs Private Limited
- Lineage Healthcare Limited (upto 31/08/2017)
- Modern Montessorie ( India) International Private Limited
- Empire Stocks Private Limited (upto 31/08/2017)
- Parkview City Limited (upto 31/08/2017)
- Snowpeak Enterprises Private Limited
- SVS ( India ) Private Limited
- Cryoviva International PTE Ltd-Singapore
- Alisha Retail Private Limited (wef 28/07/2017)
- Varun Beverages Limited
- Varun Beverages Lanka Private Limited
V Associates**:
- Lineage Healthcare Limited (wef 31/08/2017)
- Alisha Retail Private Limited (upto 28/07/2017)
- Africare Limited (wef 04/12/2017)
- ParkView City Limited (wef 31/08/2017)
VI Entities where kMPs or relatives of kMPs exercise significant influence**:
- Empire Stocks Private Limited (wef 31/08/2017)
- Shabnam Properties Private Limited
- Champa Devi Jaipuria Charitable Trust
- Accor Solar Energy Private Limited
VII Relatives of kMPs**
- Meenu Singh
- Devyani Jaipuria
*The status above is given based on merged holding of the transferee company including holding of transferor companies.
However the actual transfer is effected wef 07/09/2017 i.e. the date of filing of the order of Hon’ble National Company Law
Tribunal, Special Bench, New Delhi with Registrar of Companies.
**With whom the Company had transactions during the current year and previous year.
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
RJ CORP LIMITED
83
Sum
mar
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sig
nifi
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acc
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polic
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and
othe
r ex
plan
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form
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the
Sta
ndal
one
Fina
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for
the
year
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1 M
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201
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RJ C
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-
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Conv
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RJ CORP LIMITED
84
Sum
mar
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sig
nifi
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acc
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polic
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and
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plan
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form
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Sta
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for
the
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1 M
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201
9
RJ C
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LIM
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HU
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1
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-
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138
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278
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31.0
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2018
(` in
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RJ CORP LIMITED
85
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
Sta
ndal
one
Fina
ncia
l Sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
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Des
crip
tion
ulti
mat
e co
ntro
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P a
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rise
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31.0
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2018
31.0
3.20
1931
.03.
2018
31.0
3.20
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2018
31.0
3.20
1931
.03.
2018
31.0
3.20
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Ren
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R
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-
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-
-
-
-
102
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85
-
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-
-
0.4
5 0
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-
-
- A
lisha
Ret
ail P
riva
te
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ited
-
-
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Inte
rest
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ity L
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-
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72.
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fric
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42.
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Fina
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lthc
are
Lim
ited
-
-
-
-
-
-
-
-
-
500
.00
- D
evya
ni F
ood
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stri
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ited
-
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970
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-
-
-
- D
iagn
o La
bs P
vt L
td -
-
-
-
-
-
-
7
00.0
0 -
-
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED
86
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
Sta
ndal
one
Fina
ncia
l Sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
Des
crip
tion
ulti
mat
e co
ntro
llin
g pa
rty
kM
P a
nd th
eir
rela
tive
sEn
terp
rise
s ha
ving
si
gnifi
cant
infl
uenc
eW
holl
y ow
ned
sub
sidi
arie
s/s
ubsi
diar
ies
Ass
ocia
tes/
Join
t V
entu
res
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
- A
lisha
Ret
ail P
riva
te
Lim
ited
-
-
-
-
-
-
400
.00
700
.00
-
-
Fina
ncia
l gau
rant
ees
clos
ed-
Dev
yani
Foo
d In
dust
ries
Li
mite
d -
-
-
-
-
-
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4
75.0
0 -
-
Inte
rest
pai
d -
Varu
n Ja
ipur
ia -
-
0
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107
.58
-
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aipu
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& S
ons
HU
F 1
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96
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arkV
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Ltd
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-
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Bal
ance
Out
stan
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at t
he e
nd o
f the
yea
r R
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vabl
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(Pay
able
s)-
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(2
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-
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Afr
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-
-
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4
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Cry
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- A
rctic
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l Pvt
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auri
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-
-
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1,1
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9 7
29.1
1 -
-
- Li
neag
e H
ealt
hcar
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-
-
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-
5
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habn
am P
rope
rtie
s P
vt.
Ltd.
-
-
-
-
(38.
07)
(38.
07)
-
-
-
-
- D
evya
ni F
ood
Indu
stri
es
Ltd.
-
-
-
-
-
-
-
(0.0
2) -
-
- D
evya
ni In
tern
atio
nal
Ltd.
-
-
-
-
-
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-
- W
elln
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Hol
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-
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26.3
7 -
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arkv
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vate
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-
-
-
-
-
-
0.2
0 0
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-
-
- Em
pire
Sto
ck P
vt L
td -
-
-
-
(6
4.80
) -
-
-
-
-
(` in
mill
ions
, exc
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s st
ated
oth
erw
ise)
RJ CORP LIMITED
87
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
Sta
ndal
one
Fina
ncia
l Sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
Des
crip
tion
ulti
mat
e co
ntro
llin
g pa
rty
kM
P a
nd th
eir
rela
tive
sEn
terp
rise
s ha
ving
si
gnifi
cant
infl
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eW
holl
y ow
ned
sub
sidi
arie
s/s
ubsi
diar
ies
Ass
ocia
tes/
Join
t V
entu
res
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
Bal
ance
of C
ompu
lsar
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nver
tibl
e de
bent
ures
issu
ed-
R.K
. Jai
puri
a &
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s H
UF
-
1,4
50.0
0 -
-
-
-
-
-
-
-
-
Empi
re S
tock
Pvt
Ltd
. -
-
-
-
6
00.0
0 6
00.0
0 -
-
-
-
Fi
nanc
ial g
aura
ntee
s-
Line
age
Hea
lthc
are
Lim
ited
-
-
-
-
-
-
425
.00
500
.00
-
-
- D
iagn
o La
bs In
dia
Pvt
Lt
d -
-
-
-
-
-
5
95.8
0 7
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-
- A
fric
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Lim
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-
-
-
-
-
-
-
-
111
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200
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- D
evya
ni F
ood
Indu
stri
es
Ltd.
-
-
-
-
-
-
970
.00
-
-
-
- A
lisha
Ret
ail P
riva
te
Lim
ited
-
-
-
-
-
-
958
.34
700
.00
-
-
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED
88
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
41 The Company has taken various premises and other fixed assets on operating leases. The lease agreements generally
have a lock-in-period of 3 months to 5 years and are cancellable at the option of the lessee thereafter. Majority of the leases
have escalation terms after certain years and are extendable by mutual consent on expiry of the lease. During the year, lease
payments under operating leases amounting to ` 168.39 (31 March 2018 ` 130.83) have been recognised as an expense in
the Statement of Profit and Loss.
Non-cancellable operating lease rentals payable (minimum lease payments) for these leases are as follows:
As at 31 March 2019
As at 31 March 2018
Payable within one year 55.36 19.98
Payable between one and five years 14.67 21.64
Payable after five years - -
Total 70.04 41.62
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 March 2019
As at 31 March 2018
The principal amount and the interest due thereon remaining unpaid to any supplier as at the end of each accounting year
- principal amount 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.
- -
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; and
- -
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.
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED
89
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
Particulars For the year ended 31 March 2019
For the year ended 31 March 2018
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 March 2019
As at 31 March 2018
Non-current borrowings other than compulsorily convertible preference shares and compulsorily convertible debentures (Refer note 20A)
6,535.89 6,067.38
Current borrowings (Refer note 20B) 88.50 338.86
Current maturities of long-term debts (Refer note 20C) 2,338.05 2,590.00
8,962.44 8,996.23
Less: Cash and cash equivalents (Refer note 14) 79.20 23.89
net debt 8,883.24 8,972.34
Equity share capital (Refer note 18) 2.12 1.88
Other equity (Refer note 19) 9,073.24 3,648.06
Compulsorily convertible preference shares (Refer note 20A) - 2,579.34
Compulsorily convertible debentures (Refer note 20A) 592.70 1,709.45
Total capital 9,668.06 7,938.73
Capital and net debt 18,551.30 16,911.07
gearing ratio 47.88% 53.06%
45 Financial instruments risk
Financials risk management objectives and policies
The Company is exposed to various risks in relation to financial instruments. The main types of financial risks are market risk,
credit risk and liquidity risk.
The management of the Company monitors and manages the financial risks relating to the operations of the Company on a
continuous basis. The Company’s risk management is coordinated at its head office, in close cooperation with the management,
and focuses on actively securing the Company’s short to medium-term cash flows and simultaneously minimising the
exposure to volatile financial markets. Long-term financial investments are managed to generate lasting returns.
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED
90
The Company does not engage in the trading of financial assets for speculative purposes. The most significant financial risks
to which the Company is exposed are described below.
45.1 Market risk analysis
Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises two types of risk namely: currency risk and interest rate risk. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters, while optimising the return.
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The functional currency of the Company is Indian Rupees (‘INR’ or ‘`’). Most of the Company’s
transactions are carried out in Indian Rupees. Exposures to currency exchange rates mainly arise from the lending to
overseas subsidiary companies which are primarily denominated in US Dollars (‘USD’) and Singapaur Dollars .
The Company has limited exposure to foreign currency risk and thereby it mainly relies on natural hedge. To further mitigate
the Company’s exposure to foreign currency risk, non-INR cash flows are continuously monitored.
The carrying amounts of the Company’s foreign currency denominated monetary items are restated at the end of each
reporting period. Foreign currency denominated financial assets and liabilities which expose the Company to currency risk
are as follows:
usD sgD
31 March 2019
Financial assets
(a) Loans to related parties 26.96 4.81
Total financial assets 26.96 4.81
31 March 2018
Financial assets
(a) Loans to related parties 19.23 5.09
Total financial assets 19.23 5.09
The following table illustrates the foreign currency sensitivity of profit and equity in regards to the Company’s financial assets
and financial liabilities considering ‘all other things being equal’ and ignoring the impact of taxation. It assumes a +/- 1%
change of the INR/USD exchange rate (31 March 2018: 1%) and a +/- 1% change is considered for the INR/SGD exchange
rate (31 March 2018: 1%). These are the sensitivity rates used when reporting foreign currency exposures internally to the
key management personnel and represents management’s assessment of the reasonably possible changes in the foreign
exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items at end of
each period reported upon. A positive number indicates an increase in profit or equity and vice-versa.
If the INR had strengthened against the USD by 1% (31 March 2018: 1%) and SGD by 1% (31 March 2018: 1%), the following
would have been the impact:
Profit for the year Equity
usD sgD usD sgD
31 March 2019 (18.65) (2.46) (18.65) (2.46)
31 March 2018 (12.51) (2.53) (12.51) (2.53)
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED
91
If the INR had weakened against the USD by 1% (31 March 2018: 1%) and SGD by 1% (31 March 2018: 1%), the following would
have been the impact:
Profit for the year Equity
usD sgD usD sgD
31 March 2019 18.65 2.46 18.65 2.46
31 March 2018 12.51 2.53 12.51 2.53
Exposures to foreign exchange rates vary during the year depending on the volume of the overseas transactions. Nonetheless,
the analysis above is considered to be representative of the Company’s exposure to currency risk.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Company’s policy is to minimise interest rate cash flow risk exposures on long-term financing.
The Company is exposed to changes in market interest rates as some of the bank and other borrowings are at variable
interest rates and also loans have been advanced to subsidiary companies at variable interest rates. All the Company’s term
deposits are at fixed interest rates.
The following table illustrates the sensitivity of profit and equity to a reasonably possible change in interest rates of +/- 1%
(31 March 2018: +/- 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 2019 (88.74) 88.74 (88.74) 88.74
31 March 2018 (83.57) 83.57 (83.57) 83.57
45.2 Credit risk analysis
Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this
risk for various financial instruments, for example loans granted, receivables from customers, deposits placed etc. The
Company’s maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at end of each
reporting period, as summarised below:
Particulars As at 31 March 2019
As at 31 March 2018
Classes of financial assets-carrying amounts:
Investments (non-current) 6,463.19 6,310.09
Loans to related parties 3,203.33 1,968.47
Trade receivables 0.45 16.42
Loans 67.19 49.91
Cash and cash equivalents 79.20 23.89
Other financial assets (current and non-current) 144.85 162.84
9,958.21 8,531.61
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED
92
The maximum exposure to the credit risk at the reporting date is primarily from loan to subsidiaries and security deposit
receivables . Trade receivables are typically unsecured and are derived from revenue earned from customers located in India.
In respect of trade and other receivables, the Company is not exposed to any significant credit risk exposure to any single
counterparty. Most of the Company sale is to retail customer and on cash basis .The Company does monitor the economic
enviorment in which it operates.
The credit risk for cash and cash equivalents and bank deposits including interest accrued thereon is considered negligible,
since the counterparties are reputable banks with high quality external credit ratings. The credit risk for loans advanced to
subsidiary companies including interest accrued thereon is also considered negligible since operations of these entities are
regularly monitored by the Company.. The loans primarily represents security deposits given to lessors for property taken on
rent.Such deposits will be returned to the Company on vacation of the property or termination of the agreement whichever is
earlier.Investments primarly include investement in quoted and unquoted equity shares of various companies, most of these
investments are for startegic purpose with the intension to hold for long term.
In respect of financial guarantees provided by the Company, the maximum exposure which the Company is exposed to is the
maximum amount which the Company would have to pay if the guarantee is called upon. Based on the expectation at the end
of each reporting period, the Company considers that it is more likely than not that such an amount will not be payable under
the guarantees provided.
45.3 Liquidity risk analysis
Liquidity risk is that the Company might be unable to meet its obligations. The Company manages its liquidity needs by
monitoring scheduled debt servicing payments for long-term financial liabilities and considering the maturity profiles of
financial assets and other financial liabilities as well as forecast of operational cash inflows and outflows. Liquidity needs
are monitored in various time bands, on a day-to-day basis, a week-to-week basis and a month-to-month basis. Long-term
liquidity needs for a 180-day and a 360-day lookout period are identified monthly. Net cash requirements are compared to
available borrowing facilities in order to determine headroom or any shortfalls.
Funding for long-term liquidity needs is additionally secured by an adequate amount of committed credit facilities and the
Company’s ability to avail further credit facilities subject to creation of requisite charge on its assets. The Company assessed
the concentration of risk with respect to refinancing its debt and concluded it to be low.
As at 31 March 2019, the Company’s non-derivative financial liabilities have contractual maturities (excluding interest
payments thereon) as summarised below:
31 March 2019 0 to 1 year 1 to 5 years Later than 5 yearsBorrowings (current and non-current) 2,426.55 7,128.59 - Trade payables 69.16 - - Other financial liabilities (current and non-current) 161.80 - - Total 2,657.51 7,128.59 -
This compares to the maturity of the Company’s non-derivative financial liabilities in the previous reporting periods as
follows:
31 March 2018 0 to 1 year 1 to 5 years Later than 5 yearsBorrowings (current and non-current) 2,928.86 10,356.17 - Trade payables 63.11 - - Other financial liabilities (current and non-current) 202.61 35.49 - Total 3,194.58 10,391.66 -
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED
93
46 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 cost
31 March 2019 31 March 2018 31 March 2019 31 March 2018
Financial assets
Fair value through profit and loss ('FVTPL')
(i) Non-current financial assets
(a) Investment (non-current) Level 1 7.17 8.84 7.17 8.84
Fair value through other comprehencive income ('FVTOCI')
(i) Non-current financial assets
(a) Investment (non-current) Level 2 4,823.48 4,418.22 4,823.48 4,418.22
Level 3 1,032.53 1,283.02 1,032.53 1,283.02
Amortised cost
(i) non-current financial assets
(a) Investment in Compulsorily convertible debenture in Subsidiary/Associates
600.00 600.00 600.00 600.00
(b) Loans 67.19 49.91 67.19 49.91
(c) Other 3.32 3.27 3.32 3.27
(ii) Current financial assets
(a) Trade receivables 0.45 16.42 0.45 16.42
(b) Cash and cash equivalents 79.20 23.89 79.20 23.89
(c ) Loan 3,203.33 1,968.47 3,203.33 1,968.47
(d) Other 141.53 159.57 141.53 159.57
Total 9,958.21 8,531.61 9,958.21 8,531.61
Financial liabilities
Amortised cost
(i) Non-current borrowings (excluding those disclosed under FVTPL category above)
7,128.59 10,356.17 7,128.59 10,356.17
(ii) Others Non Current financial liabilities
32.89 35.49 32.89 35.49
(iii) Current financial liabilities
(a) Borrowings 88.50 338.86 88.50 338.86
(b) Trade payables 69.16 63.11 69.16 63.11
(c) Other 2,466.96 2,792.61 2,466.96 2,792.61
Total 9,786.10 13,586.24 9,786.10 13,586.24
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
(` in millions, except as stated otherwise)
RJ CORP LIMITED
94
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 :
Equity share of Lemon Tree Hotels Limited - March 31 2018 - Price at which the shares were issued in Inital Public offer, issue
was open during March 26,2018 to March 28, 2018.
Equity share of Global Health Private Limited (Formerly Dr.Naresh Trehan and Associates Health Services Pvt. Ltd.) - Price
estimated by using discounted cash flow method by discounting forcasted cash flow to their present value at a rate of return
that incorporates the risk free rate for the use of fund plus the expected rate of inflation and the risk associated with the
particular investment Cost of other unquoted equity instruments has been considered as an appropriate estimate of fair value
because of a wide range of possible fair value measurements and cost represents the best estimate of fair value within that
range.
- The fair values of Investment in Compulsorily convertible debentures have been estimated by using discounted cash flow
method by discounting the expected cash flows using the appropriate discount rate. The discount rate is determined using
other similar instruments incorporating the risk associated and probabilities are based on management’s expectations.
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy
together with a quantitative sensitivity analysis are as shown below.
Type Valuation Technique significant observable input
Inter-relationship between significant observable input and
fair value measurement
Investment in unquoted Equity Shares
Discounted cash flow method by discounting forcasted cash flow to their present value at a rate of return that incorporates the risk free rate for the use of fund plus the expected rate of inflation and the risk associated with the particular investment
Forecast Profitability, Risk Adjusted Discount rate.
Estimated fair value would increase (Decrease) - if forcased profitability was higher (lower) - risk adjusted discount rate were lower (higher)
Investment in Compulsorily convertible preference shares (‘CCPS’)
Discounted cash flow method by discounting the expected cash flow using approriate rate under different conversion event, probability is then attached to each conversion event to drive final valuation
Discount rate and Probability of occurrence of conversion event.
Estimated fair value would increase (Decrease) - if discount rate was higher (lower) - probability of occurence were lower (higher)
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
RJ CORP LIMITED
95
Compulsorily convertible preference shares (‘CCPS’) - Borrowings
Discounted cash flow method by discounting the expected cash flow using approriate rate.
Discount rate. Estimated fair value would increase (Decrease) - if discount rate was higher (lower)
During the year ended March 31, 2018, Unquoted equity shares of ` 4409.91 million were transferred from Level 3 to Level 2
of fair value hierarchy, since these were valued based on Initial Public offer price
The following table presents the changes in level 3 items (Measured at fair value) for the periods ended 31 March 2019 and
31 March 2018:
Particulars Investment in unquoted equity
shares
Borrowings CCPs
As at 31 March 2017 2,976.54 2,750.28
Purchased during the year 0.01 -
Impact of fair value movement (0.44) 208.42
Moved out from Level 3 to Level 2 (1,693.09) -
Moved from FVTPL to Amortised cost - (2,958.70)
As at 31 March 2018 1,283.02 -
Purchased during the year - -
Impact of fair value movement (250.49) -
Moved out from Level 3 to Level 2 - -
Moved from FVTPL to Amortised cost - -
As at 31 March 2019 1,032.53 -
47 Equity share designated at fair value through other comprehensive income
The company designated the investment shown below as equity shares at FVOCI because these equity share represent
investments that the company intends to hold for long term for stratgic purposes
Fair value at Dividend income recognised during
Fair value at
31 March 2019 2018-19 31 March 2018
Global Health Private Limited (Formerly Dr.Naresh Trehan and Associates Health Services Pvt. Ltd.)
1,029.06 - 1,279.55
Shabnam Properties Private Limited 3.44 - 3.44
Empire Stocks Pvt Limited 0.01 - 0.01
Lemon Tree Hotels Limited 4,308.95 - 4,409.91
Caiptal India Finance Limited 514.53 - 8.31
Sellwell Foods & Beverages Pvt.Ltd. 0.02 - 0.02
Pinnacle Infracon Ltd. 0.00 - 0.00
5,856.01 - 5,701.24
Type Valuation Technique significant observable input
Inter-relationship between significant observable input and
fair value measurement
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED
96
48 In the opinion of management current assets, loan and advances have a value on realisation in the ordinary course of
business at least cost equal to the amount at which they are stated except where indicated otherwise.
49 Balance of certain debtors, creditors, loans and advances are subject to confirmation.
50 segment reporting: Ind AS 108 on ‘Segment Reporting’ requires the Company to disclose certain information about
operating segments. Trading business is the company’s only business segment and domestic operations is the only
geographical segment, which represent the primary segment of the Company. There are no separately reportable business
or geographical segments that meet the criteria prescribed in Ind AS 108 on Operating Segments.
Summary of significant accounting policies and other explanatory information on the Standalone Financial Statements for the year ended 31 March 2019
Raj P. gandhiDirectorDIN: 00003649
For and on behalf of the Board of Directors of RJ CORP LIMITED
Place : New DelhiDated : September 23, 2019
(sumit kathuria)PartnerM. No. 520078
For APAs & Co.Chartered AccountantsFirm Regn. No. 000340C
Mahavir Prasad garg Company secretary
Ravi kant JaipuriaDirectorDIN: 00003668
Lalit kumar singhChief Financial Officer
RJ CORP LIMITED (CONSOLIDATED)
97
InDEPEnDEnT AuDITORs’ REPORT
To the Members of
RJ Corp Limited
Report on the Audit of Consolidated Financial statements
Opinion
We have audited the consolidated financial statements of RJ Corp Limited (hereinafter referred to as the “Holding Company”)
and its subsidiaries (Holding Company and its subsidiaries together referred to as “the Group”), its joint venture and its
associates, which comprise the Consolidated Balance Sheet as at 31 March 2019, and the Consolidated Statement of Profit
and Loss (including Other Comprehensive Income), the Consolidated Statement of Changes in Equity and the Consolidated
Cash Flow Statement for the year then ended, and notes to the consolidated financial statements, including a summary
of significant accounting policies and other explanatory information (hereinafter referred to as “the consolidated financial
statements”).
In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration
of reports of other auditors and management accounts on separate financial statements of such subsidiaries, associates
and joint venture as were audited by the other auditors and provided by the management and the aforesaid consolidated
financial statements give the information required by the Companies Act, 2013 (“Act”) in the manner so required and give a
true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs
of the Group, its associates and its joint venture as at 31 March 2019, of its consolidated profit/loss and other comprehensive
income, consolidated changes in equity and consolidated cash flows for the year then ended.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act.
Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements section of our report. We are independent of the Group in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India, and we have fulfilled our other ethical responsibilities in accordance with the
provisions of the Act. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Material uncertainty Related to going Concern
In case of one of the subsidiary of the company Devyani International Limited (“DIL”) the Group has incurred losses in current
year and has accumulated losses as at 31 March 2019, which has resulted in erosion of the net worth of the “DIL Group” and
its joint venture as at 31 March 2019. Further, the “DIL Group” and its joint venture’s current liabilities exceed its current
assets as at 31 March 2019. These conditions indicate the existence of material uncertainty that may cast significant doubt
about the “DIL Group” and its joint venture’s ability to continue as a going concern. However, as a result of the mitigating
factors elaborated in note i.e. projected cash flows of the “DIL Group” and its joint venture, available revolving undrawn
credit facility, current liquidity position and continued financial and operational support from ultimate holding company, the
management is confident of its ability to continue as a going concern and have accordingly, prepared the financial statements
of the DIL Group on going concern basis. Consequently, no adjustments have been made to the carrying values of the assets
and liabilities in the consolidated financial statements.
In the case of subsidiary “Alisha Retail Pvt Ltd”, the company has closed its operation and sold/in the process of selling its
entire fixed assets, the accounts of the company are not drawn on the going concern assumption. Consequently, all assets
are stated at their net realizable value or book value, whichever is lower and all liabilities are reflected at the values in which
they are expected to be discharged/settled.
RJ CORP LIMITED (CONSOLIDATED)
98
Also in case of some of the subsidiaries and associate companies accumulated losses has resulted in erosion of net worth
and have incurred net cash losses in the current and immediately preceding financial year. The current liabilities of the
respective companies exceeded its current assets as at the balance sheet date. These conditions may cast significant doubt
about the respective companies’ ability to continue as a going concern. However, the financials statements of the respective
companies have been prepared on a going concern basis considering the cash flow from operating activities and the future
outlook of the respective companies’ and the holding company’s ability to continue to fund the operations of those companies,
wherever required.
Our opinion is not modified in respect of this matter.
Information Other than the Consolidated Financial statements and Auditors’ Report Thereon
The Holding Company’s management and Board of Directors are responsible for the other information. The other information
comprises the information included in the Holding Company’s annual report, but does not include the consolidated financial
statements and our auditors’ report thereon. The Holding Company’s annual report is expected to be made available to us
after the date of this auditors’ report.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
identified above as it becomes available and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
When we read the Holding Company’s annual report, if we conclude that there is a material misstatement of this other
information, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with governance for the Consolidated Financial statements
The Holding Company’s management and Board of Directors are responsible for the preparation and presentation of these
consolidated financial statements in term of the requirements of the Act that give a true and fair view of the consolidated
state of affairs, consolidated profit/ loss and other comprehensive income, consolidated statement of changes in equity
and consolidated cash flows of the Group including its joint venture in accordance with the accounting principles generally
accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. The respective
Board of Directors of the companies included in the Group, its associates and of its joint venture are responsible for
maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of
each company, and for preventing and detecting frauds and other irregularities; the selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness
of the accounting records, relevant to the preparation and presentation of the consolidated financial statements that give a
true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the
purpose of preparation of the consolidated financial statements by the Directors of the Holding Company, as aforesaid.
In preparing the consolidated financial statements, the respective management and Board of Directors of the companies
included in the Group, its associates and of its joint venture are responsible for assessing the ability of each company to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative
but to do so.
RJ CORP LIMITED (CONSOLIDATED)
99
The respective Board of Directors of the companies included in the Group, its associates and of its joint venture are responsible
for overseeing the financial reporting process of each company.
Auditor’s Responsibilities for the Audit of the Consolidated Financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identifyandassesstherisksofmaterialmisstatementoftheconsolidatedfinancialstatements,whetherduetofraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriate
in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether
the Company has adequate internal financial controls with reference to financial statements in place and the operating
effectiveness of such controls.
• Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelated
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting in preparation of
consolidated financial statements and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the appropriateness of this assumption. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in
the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may
cause the Group as well as joint venture to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
• Obtainsufficientappropriateauditevidenceregardingthefinancial informationofsuchentitiesorbusinessactivities
within the Group to express an opinion on the consolidated financial statements, of which we are the independent
auditors. We are responsible for the direction, supervision and performance of the audit of financial information of
such entities. For the other entities included in the consolidated financial statements, which have been audited by other
auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain
solely responsible for our opinion. Our responsibilities in this regard are further described in paragraph (1 to 4) of the
Other Matters section in this audit report.
We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their
reports referred to in sub-paragraph of the Other Matters paragraph below, is sufficient and appropriate to provide a basis
RJ CORP LIMITED (CONSOLIDATED)
100
for our audit opinion on the consolidated Ind AS financial statements.
We communicate with those charged with governance of the Holding Company and such other entities included in the
consolidated financial statements of which we are the independent auditors regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
Other Matters
1. The consolidated Ind AS financial statements, include the Group share of net profit (including other comprehensive
income) of ` 11.69 million for the year ended 31 March 2019, as considered in the consolidated financial statements, in
respect of four overseas associates, whose financial statements have not been audited by us. These financial statements
are unaudited and have been furnished to us by the management and our opinion on the consolidated financial statements,
in so far as it relates to the amounts and disclosures included in respect of this associates, and our report in terms of sub
section (3) and (11) of section 143 of the Act, in so far as it relates to the aforesaid overseas associates is based solely on
such unaudited financial statements.
2. The consolidated Ind AS financial statements also include the Group share of net profit (including other comprehensive
income) of ` 26.49 million for the year ended 31 March 2019, as considered in the consolidated financial statements, in
respect of five associates and one joint venture, whose financial statements have not been audited by us. These financial
statements have been audited by other auditors whose report have been furnished to us by the managements and our
opinion on the consolidated Ind AS financial statements, in so far as it relates to the amounts and disclosures included
in respect of these associates, and our report in terms of sub section (3) and (11) of section 143 of the Act, in so far as it
relates to the aforesaid associates is based solely on the reports of the other auditors.
3. In case of sixteen overseas subsidiaries (including thirteen step subsidiaries), included in the consolidated Ind AS financial
statements, whose financial statements reflect total assets of ` 19237.84 million as at 31 March 2019, total revenue of
` 18930.72 million and net cash flows amounting to ` (22.38) million for the year ended on that date. These financial
statements are unaudited since they follow different accounting year based on requirement of the respective jurisdiction
in which they operate. The audited accounts alongwith management accounts for the balance period upto March 2019
have been furnished to us by the management and our opinion on the consolidated Ind AS financial statements, in so far
as it relates to the amounts and disclosures included in respect of these subsidiaries (including step subsidiaries), and
our report in terms of sub section (3) and (11) of section 143 of the Act, in so far as it relates to the aforesaid overseas
subsidiaries (including step subsidiaries) is based solely on such financial statements.
4. The financial statements and other financial information of five step subsidiaries, which are located outside India, as
drawn up in accordance with the generally accepted accounting principles of the respective countries (‘the local GAAP’),
and which have been audited by other auditors duly qualified to act as auditors in those countries. The financial statement
of these step subsidiaries reflect total assets of `10354.02 million as at 31 March 2019, total revenue of `4435.56 million
and net cash inflows amounting to `139.03 million for the year ended on that date, as considered in the consolidated
Ind AS financial statements. The Company’s management has converted the financial statements of such subsidiaries
located outside India from accounting principles generally accepted in their respective countries to accounting principles
generally accepted in India. These conversion adjustments made by the Company’s management, have been audited
by other auditor. Our opinion in so far as it relates to the balances and affairs of such step subsidiaries located outside
India is based on the audit report of other auditors and the conversion adjustments prepared by the management of the
Company and audit report issued thereon by the other auditor.
RJ CORP LIMITED (CONSOLIDATED)
101
Our opinion above on the consolidated Ind AS financial statements, and our report on Other Legal and Regulatory Requirements
below, is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the
other auditors and the Ind AS financial statements/ financial information certified and furnished to us by the managements.
Report on Other Legal and Regulatory Requirements
A. As required by Section 143(3) of the Act, based on our audit and on the consideration of reports of the other auditors on
separate financial statements and the other financial information of its subsidiaries, joint venture and its associates, as
noted in the Other Matters paragraph above, we report, to the extent applicable, that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit of the aforesaid consolidated financial statements.
b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated Ind
AS financial statements have been kept so far as it appears from our examination of those books and the reports of
the other auditors.
c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss (including Other Comprehensive
Income), the Consolidated Statement of Changes in Equity and the Consolidated Cash Flow Statement dealt with by
this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the
consolidated financial statements.
d) In our opinion, the aforesaid consolidated financial statements comply with the Ind AS specified under Section 133 of
the Act.
e) On the basis of the written representations received from the directors of the Holding Company as on 31 March
2019 taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors of
its subsidiary companies and joint venture incorporated in India, none of the directors of the Group companies, its
associates and its joint venture incorporated in India, is disqualified as on 31 March 2019 from being appointed as a
director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Holding
Company, its subsidiary companies, joint venture and its associates incorporated in India and the operating
effectiveness of such controls, refer to our separate Report in “Annexure A”.
B. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the
explanations given to us:
i. The consolidated financial statements disclose the impact of pending litigations as at 31 March 2019 on the
consolidated financial position of the Group and its joint venture - Refer Note 43 to the consolidated financial
statements.
ii. Provision has been made in the consolidated financial statements, as required under the applicable law or Ind AS, for
material foreseeable losses, on long-term contracts including derivative contracts - Refer Note 23 to the consolidated
financial statements in respect of such items as it relates to the Group and its joint venture;
iii. there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the
Group; and
C. With respect to the matter to be included in the Auditors’ Report under Section 197(16) of the Act:
In our opinion and according to the information and explanations given to us and based on the reports of the statutory auditors
of other subsidiaries companies incorporated in India which were audited by other auditors, the remuneration paid during
RJ CORP LIMITED (CONSOLIDATED)
102
the current year by the Holding Company and its subsidiary companies incorporated in India to its directors is in accordance
with the provisions of Section 197 of the Act. The remuneration paid to any director by the Holding Company and its subsidiary
companies incorporated in India is not in excess of the limit laid down under Section 197 read with Schedule V to the Act.
Further, based on the report of the statutory auditor of joint venture incorporated in India which was audited by the other
auditor, joint venture has not paid / provided for any remuneration to its directors during the current year in accordance with
the provisions of Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section
197(16) of the Act which are required to be commented upon by us.
For APAs & Co. Chartered Accountants
Firm Regn No. 000340CUDIN: 19520078AAAAFE2882
sumit kathuria Partner
M No. 520078 Place : New DelhiDate : September 23, 2019
RJ CORP LIMITED (CONSOLIDATED)
103
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”)
Opinion
In conjunction with our audit of the consolidated financial statements of RJ Corp Limited (hereinafter referred to as “Company”)
as at and for the year ended March 31, 2019, we have audited the internal financial controls over financial reporting (‘IFCoFR’)
with reference to consolidated financial statements of RJ Corp Limited (hereinafter referred to as “the Holding Company”)
and such companies incorporated in India under the Companies Act, 2013 which are its subsidiary companies, associates and
its joint venture company, as of that date.
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 2019, 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”).
Management’s Responsibility 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.
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on
the internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those
policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company;
(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.
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 five 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.
For APAs & Co. Chartered Accountants
Firm Regn No. 000340CUDIN: 19520078AAAAFE2882
sumit kathuria Partner
M No. 520078 Place : New DelhiDate : September 23, 2019
RJ CORP LIMITED (CONSOLIDATED)
105
Consolidated Balance sheet as at 31 March 2019 (` in millions, except as stated otherwise)
Particulars As at31 March 2019
note As at31 March 2018
Assets
non-current assets
(a) Property, plant and equipment 4 57,066.16 48,526.23
(b) Capital work in progress 4 2,287.50 2,022.99
(c) Goodwill 5B 180.73 236.77
(d) Other intangible assets 5 8,247.48 5,269.76
(e) Intangible assets under development 5A 2.33 0.70
(f) Investment in associates 6 187.48 571.02
(g) Financial assets
(i) Investments 7 6,463.38 6,310.31
(ii) Loans 8 1,205.66 1,335.02
(iii) Others 9 51.73 56.11
(h) Deferred tax assets (Net) 39 666.49 157.66
(i) Income tax assets (Net) 10A 380.90 396.78
(j) Other non-current assets 11 958.70 1,613.23
Total non-current assets 77,698.54 66,496.59
Current assets
(a) Inventories 12 10,646.05 9,715.87
(b) Financial assets
(i) Trade receivables 13 3,367.82 3,292.29
(ii) Cash and cash equivalents 14 1,950.05 1,916.08
(iii) Bank balances other than (ii) above 15 556.69 301.83
(iv) Loan 16 3,764.98 3,079.87
(v) Others 17 1,835.60 1,470.70
(c) Current tax assets (Net) 10 35.43 41.37
(d) Other current assets 18 3,570.88 2,443.01
Total current assets 25,727.50 22,261.02
Assets classified as held for sale 19 4.02 359.32
Total assets 103,430.06 89,116.92
Equity and liabilities
(i) Equity
(a) Equity share capital 20 2.12 1.88
(b) Other equity
Reserve and Surplus 21 6,332.34 1,115.76
Equity contribution in compounded financial instruments 535.57 535.57
Equity attributable to owners of the Company 6,870.03 1,653.21
(ii) Non-controlling interests 14,354.65 11,435.27
Total equity 21,224.68 13,088.48
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Consolidated Balance sheet as at 31 March 2019 (` in millions, except as stated otherwise)
Particulars As at31 March 2019
note As at31 March 2018
Liabilities
non-current liabilities
(a) Financial liabilities
(i) Borrowings 22A 37,879.54 40,780.21
(ii) Other financial liabilities 23 1,071.02 1,008.50
(b) Other Non-current liabilities 24 525.38 494.00
(c) Provisions 25 1,447.48 1,114.40
(d) Deferred tax liabilities (Net) 39 2,568.20 2,035.23
Total non- current liabilties 43,491.62 45,432.34
Current liabilities
(a) Financial liabilities
(i) Borrowings 22B 10,152.73 6,622.41
(ii) Trade payables 26 7,830.08 6,040.95
(iii) Other financial liabilities 27 15,650.33 12,881.59
(b) Other current liabilities 28 4,675.18 4,788.13
(c) Provisions 25 261.14 248.92
(d) Current tax liabilities (Net) 29 144.30 14.10
Total current liabilties 38,713.76 30,596.10
Total liabilities 82,205.38 76,028.44
Total equity and liabilities 103,430.06 89,116.92
Significant accounting policies 3
The accompanying notes are an integral part of the financial statements.
As per our report of even date attached.
For and on behalf of the Board of Directors
of RJ CORP LIMITED
Place : New DelhiDated : September 23, 2019
(sumit kathuria)PartnerM. No. 520078
For APAs & Co.Chartered AccountantsFirm Regn. No. 000340C
Mahavir Prasad garg Company Secretary
Ravi kant JaipuriaDirectorDIN: 00003668
Raj P. gandhiDirectorDIN: 00003649
Lalit kumar singhChief Financial Officer
UDIN-19520078AAAAGM8815
RJ CORP LIMITED (CONSOLIDATED)
107
Consolidated statement of Profit and Loss for the year ended 31 March 2019 (` in millions, except as stated otherwise)
Particulars For the year ended 31.03.2019
note For the year ended 31.03.2018
Income
Revenue from operations 30 78,711.96 65,775.81
Other income 31 2,019.66 1,718.33
Total income 80,731.62 67,494.14
Expenses
Cost of materials consumed 32 29,185.00 25,845.74
Cost of land,plots, constructed properties and development right - 72.71
Excise duty 1,190.76 3,734.07
Purchases of traded goods 33 3,379.27 1,342.24
Changes in inventories of traded goods 34 (229.78) (1,342.84)
Employee benefits expense 35 10,396.13 8,674.29
Finance costs 36 5,063.34 4,567.77
Depreciation and amortization expense 37 5,508.21 4,826.91
Impairment loss/ (reversal) 4, 5 & 5B 265.87 (98.83)
Other expenses 38 24,043.00 18,038.06
Total expenses 78,801.80 65,660.12
Profit/(loss) before exceptional items and tax 1,929.82 1,834.02
Exceptional items
Loss on disposal of Property, plant and equipment/Capital Advance 19.13 -
Profit/(loss) before share of profit of equity accounted investees 1,910.69 1,834.02
share of Profit /(loss) of equity accounted investees (net of income tax) 38.20 (64.52)
Profit/(loss) before tax 1,948.89 1,769.50
Tax expense
(a) Current tax 39 1,196.59 540.51
(b) Adjustment of tax relating to earlier periods 39 16.22 1.87
(c) Deferred tax 39 72.43 241.56
Total tax expense 1,285.24 783.94
net profit/loss for the reporting period/year 663.65 985.56
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 (44.79) (13.41)
(ii) Re-measurement of equity instrument at fair value 1,259.71 2,716.38
(iii) Income tax relating to items that will not be
reclassified to Statement of Profit and Loss (45.52) (270.59)
Items that will be reclassified to profit or loss:
(i) Net Losses due to foreign currency translation differences 117.38 114.10
(ii) Income tax relating to items that will be
reclassified to Statement of Profit and Loss 10.61 (29.93)
RJ CORP LIMITED (CONSOLIDATED)
108
Consolidated statement of Profit and Loss for the year ended 31 March 2019 (` in millions, except as stated otherwise)
Particulars For the year ended 31.03.2019
note For the year ended 31.03.2018
Total other comprehensive income 1,297.39 2,516.55
Total comprehensive income/(loss) for the year including
non-controlling interests (net of taxes) 1,961.04 3,502.11
Profit attributable to:
(i) Owners of the Company (939.12) (137.62)
(ii) Non-controlling interests 1,602.77 1,123.19
Profit/(loss) for the year 663.65 985.57
Other comprehensive income attributable to:
(i) Owners of the Company 1,390.07 2,432.05
(ii) Non-controlling interests (92.68) 84.49
Other comprehensive income for the year 1,297.39 2,516.54
Total comprehensive income for the year attributable to:
(i) Owners of the Company 450.95 2,294.43
(ii) Non-controlling interests 1,510.09 1,207.68
Other comprehensive income/(loss) for the year 1,961.04 3,502.11
Earnings per equity share of face value of ` 10 each
Basic (`) 42 (4,846.36) (732.77)
Diluted (`) 42 (4,846.36) (732.77)
Significant accounting policies 3
The accompanying notes are an integral part of the financial statements.
As per our report of even date attached.
For and on behalf of the Board of Directors of RJ CORP LIMITED
Place : New DelhiDated : September 23, 2019
(sumit kathuria)PartnerM. No. 520078
For APAs & Co.Chartered AccountantsFirm Regn. No. 000340C
Mahavir Prasad garg Company Secretary
Ravi kant JaipuriaDirectorDIN: 00003668
Raj P. gandhiDirectorDIN: 00003649
Lalit kumar singhChief Financial Officer
UDIN-19520078AAAAGM8815
RJ CORP LIMITED (CONSOLIDATED)
109
Consolidated Cash Flow statement for the year ended 31 March 2019 (` in millions, except as stated otherwise)
Particulars year ended 31.03.2019
year ended 31.03.2018
Cash Flow from Operating Activities:
Profit/(loss) before tax 1,910.69 1,834.02
Adjustments for:
Depreciation and Amortisation Expense 5,508.21 4,826.91
Impairment loss 265.87 (98.83)
Finance Cost 5,063.34 4,567.77
Interest Income (605.36) (464.75)
Employee stock option scheme expenses 2.10 2.73
Allowance for doubtful debts 100.14 112.49
Dividend Income (0.35) (0.01)
Net Profit on Sale of Property, Plant & Equipment (0.25) (5.93)
Property, Plant & Equipment Written-Off 166.51 88.53
Loss on disposal of property, plant and equipment (net) 92.35 85.96
Profit on Disposal of Unquoted (Others)
Current Investments & financial assets (0.48) (0.57)
Loss on sale of invesments/financial assets - 2.80
Provision for impairment in valuation of investment - 25.00
Debts / Advances Written off 110.29 193.22
Provision for Doubtful Loans and Advances and Other Current Assets 56.07 1.15
Net gain/(loss) on foreign currency transactions and translations 771.07 47.19
Profit on dilution of control in subsidiary - (873.52)
Profit on disposal of Investment in JV company (976.50)
Excess provisions written back (108.24) (122.15)
10,444.77 8,387.99
Operating Profit before changes in operating assets and liabilities 12,355.46 10,222.01
Changes in Operating assets and liabilities:
- Decrease/(Increase) in Trade Receivables 319.84 (561.74)
- Decrease/(Increase) in Non Current Assets 182.99 (1,291.08)
- Decrease/(Increase) in Current Assets (1,821.98) (6.14)
- Decrease/(Increase) in Inventories (502.71) (890.45)
- Increase in Non Current Liabilities 426.97 1,215.81
- Increase/(Decrease) in Current Liabilities 1,406.38 11.48 2,249.85 716.25
Cash from operations 12,366.94 10,938.26
- Taxes (Paid)/Received (Net of Tax Deducted at Source) (1,061.98) (644.08)
net cash flow from operating activities (A) 11,304.96 10,294.18
Cash flow from Investing Activities:
Adjustments for changes in:
Payment for Property, Plant and Equipment
(including Intangible Assets) (11,532.03) (11,170.08)
Proceeds from Sale of Property, Plant and Equipment 485.66 338.69
Proceeds from Sale of Current Investments 1,107.07 2.39
Purchase of Non Current Investments (26.00) (1,175.48)
RJ CORP LIMITED (CONSOLIDATED)
110
Purchase of controlling/further stake in
subsidiaries (net of cash acquired) - (1,522.26)
Redemption from/(Investment in) Bank Deposits
(with more than 12 months maturity) 2.33 (23.98)
Proceed from/(Investment in) Deposits with original
maturity more than 3 months but less than 12 months (254.27) 33.50
Loan Given (508.52) (2,455.54)
Dividend Received on Current Investments 0.35 0.01
Interest Received 591.62 322.84
(10,133.78) (15,649.91)
net cash used in investing activities (B) (10,133.78) (15,649.91)
Cash Flow from Financing Activities:
Proceeds from issue of share capital in a Subsidiary
(including share premium thereon) to Non Controlling Interest 0.26 30.31
Proceeds from long term borrowings (Net) 701.22 11,080.09
Proceeds from Short term borrowings (Net) 3,530.32 -
Interest Paid (5,102.92) (4,544.46)
Dividend Paid/Amount Transferred to Investor
Education & Protection Fund (321.68) (316.79)
Corporate Dividend Distribution Tax Paid (55.73) (92.92)
(1,248.54) 6,156.23
Net cash outflow flow financing activities (C) (C) (1,248.54) 6,156.23
Net Increase/(Decrease) in Cash and Cash Equivalents D=(A+B+C) (77.36) 800.50
Opening Balance of Cash and Cash Equivalents (E) 1,916.08 1,103.73
Cash and cash equivalents acquired on
consolidation of new subsidiaries (F) 111.32 42.79
Cash and cash equivalents due to dilution of
control in subsidiaries (g) - (30.94)
Closing Balance of Cash and Cash Equivalents (D+E+F+g) 1,950.05 1,916.08
Cash and cash equivalents comprise of
Balance with banks in current accounts 1,843.70 1,793.17
Cheques/drafts on hand 4.91 8.03
Cash in transit 12.92 22.19
Cash on hand 88.52 92.69
Cash and cash equivalents as per Cash Flow Statements 1,950.05 1,916.08
Consolidated Cash Flow statement for the year ended 31 March 2019 (` in millions, except as stated otherwise)
Particulars year ended 31.03.2019
year ended 31.03.2018
RJ CORP LIMITED (CONSOLIDATED)
111
Consolidated Cash Flow statement for the year ended 31 March 2019 (` in millions, except as stated otherwise)
notes :-
a) Amendment to InD As 7
The amendments to IND AS 7 “ Statement of Cash Flows” requires the entities to provide disclosures that enable users of
Financial Statements to evaluate changes in liabilities arising from financing activities, including both changes arising from
cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the
balance sheet for liabilities arising from financing activities, to meet the disclosure requirement.
Particulars non-Current Borrowings
Current Borrowings
Balance as at 01 April 2018 48,276.87 6,622.41
Cash Flows (Net) 701.22 3,530.32
non Cash Changes
Conversion of CCPS and CCDS into Equity (5,058.82)
Acquired on acquisition of Subsidiaries 3,193.30
Balance as at 31 March 2019 47,112.57 10,152.73
Figures in brackets indicate cash outflow.
The accompanying notes are an integral part of the financial statements.
As per our report of even date attached.
For and on behalf of the Board of Directors of RJ CORP LIMITED
Place : New DelhiDated : September 23, 2019
(sumit kathuria)PartnerM. No. 520078
For APAs & Co.Chartered AccountantsFirm Regn. No. 000340C
Mahavir Prasad garg Company Secretary
Ravi kant JaipuriaDirectorDIN: 00003668
Raj Pal gandhiDirectorDIN: 00003649
Lalit kumar singhChief Financial Officer
RJ CORP LIMITED (CONSOLIDATED)
112
sta
tem
ent o
f cha
nges
in e
quit
y
A E
quit
y s
hare
Cap
ital
E
quity
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
shar
esA
mou
nt
Bal
ance
as
at 0
1 A
pril
2017
187
,800
1
.88
Adj
ustm
ent d
urin
g th
e ye
ar 1
0 0
.00
Bal
ance
as
at 3
1 M
arch
201
8 1
87,8
10
1.8
8
Adj
ustm
ent d
urin
g th
e ye
ar 2
4,17
5 0
.24
Bal
ance
as
at 3
1 M
arch
201
9 2
11,9
85
2.1
2
B O
ther
Equ
ity
Part
icul
ars
Att
ribu
tabl
e to
the
Ow
ners
of t
he C
ompa
nyA
ttri
buta
ble
to n
CITo
tal
Res
erve
and
sur
plus
Exch
ange
di
ffer
ence
s on
tr
ansl
atin
g th
e fi
nanc
ial
stat
emen
ts
of fo
reig
n op
erat
ions
Tota
l A
ttri
buta
ble
to O
wne
rsCa
pita
l re
serv
e Ca
pita
l re
serv
e on
Co
nsol
idat
ion
Deb
entu
re
rede
mpt
ion
rese
rve
sec
urit
y pr
emiu
m
rese
rve
sha
re
base
d pa
ymen
t re
serv
e
gen
eral
re
serv
e R
etai
ned
earn
ings
Tran
sact
ion
wit
h n
CI
Res
erve
Fore
ign
curr
ency
m
onet
ary
item
tr
ansl
atio
n di
ffer
ence
ac
coun
t
Bal
ance
as
at 1
Apr
il 20
172,
227.
86
1,4
34.5
8 0
.00
600
.13
73.
15
96.
62
(5,4
02.5
9) 1
,086
.90
1.5
9 1
32.2
2 2
50.4
6 1
0,22
0.71
1
0,47
1.17
Pro
fit f
or th
e ye
ar e
nded
-
-
-
-
-
-
(137
.62)
-
-
-
(137
.62)
1,1
23.1
9 9
85.5
7
Oth
er c
ompr
ehen
sive
in
com
e fo
r th
e ye
ar
ende
d
Re-
mea
sure
men
t gai
ns/
(loss
es) o
n de
fine
d be
nefi
t pla
ns (N
et o
f de
ferr
ed ta
xes)
-
-
-
-
-
-
(41.
25)
-
-
-
(41.
25)
28.
88
(12.
37)
Re-
mea
sure
men
t of
equi
ty in
stru
men
t at f
air
valu
e, n
et o
f tax
-
-
-
-
-
-
2,4
44.7
5 -
-
-
2
,444
.75
-
2,4
44.7
5
Exch
ange
diff
eren
ces
aris
ing
on tr
ansl
atio
n of
fo
reig
n op
erat
ions
(Net
of
tax
)
-
-
-
-
-
-
-
-
-
28.
55
28.
55
55.
62
84.
17
Div
iden
d pa
id -
-
-
-
-
-
(9
6.83
) -
-
-
(9
6.83
) (2
19.9
0) (3
16.7
3)
Div
iden
d di
stri
butio
n ta
x -
-
-
-
-
-
(2
8.43
) -
-
-
(2
8.43
) (6
4.49
) (9
2.92
)
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
113
sta
tem
ent o
f cha
nges
in e
quit
y
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
Tran
sfer
to d
eben
ture
re
dem
ptio
n re
serv
e -
-
5
7.85
-
-
-
(5
7.85
) -
-
-
-
-
-
Tran
sfer
from
Exc
hang
e di
ffer
ence
s on
tr
ansl
atin
g th
e fi
nanc
ial
stat
emen
ts o
f for
eign
op
erat
ions
on
dilu
tion
of c
ontr
ollin
g st
ake
in
subs
idia
ry
-
-
-
-
-
-
(7.8
8) -
-
7
.88
-
-
-
Add
ition
mad
e in
FC
MIT
DA
for
the
year
en
ded
-
-
-
-
-
-
-
-
53.
90
-
53.
90
122
.41
176
.31
FCM
ITD
A c
harg
ed to
S
tate
men
t of P
rofi
t and
Lo
ss
-
-
-
-
-
-
-
-
(14.
39)
-
(14.
39)
(45.
24)
(59.
63)
Equi
ty p
ortio
n of
co
mpo
und
fina
ncia
l in
stru
men
t
-
-
-
-
-
-
-
-
-
-
-
4.0
3 4
.03
Adj
ustm
ent o
n ac
coun
t of
dilu
tion
of c
ontr
ollin
g in
tere
st in
a s
ubsi
diar
y
-
729
.96
-
-
-
-
-
-
-
-
729
.96
399
.67
1,1
29.6
3
Cre
ated
on
acqu
isiti
on
of c
ontr
ollin
g st
ake
in
subs
idia
ry
-
(403
.48)
-
-
-
-
-
-
-
-
(403
.48)
(371
.32)
(774
.80)
Add
ition
s m
ade
pers
uant
to e
xerc
ise
of
empl
oyee
sto
ck o
ptio
ns
-
-
-
-
1.9
2 -
-
-
-
-
1
.92
0.8
1 2
.73
Tran
sfer
to S
ecur
ity
prem
ium
res
erve
on
exer
cise
of e
mpl
oyee
st
ock
optio
ns
-
-
-
-
(1.0
3) -
-
-
-
-
(1
.03)
(2.3
4) (3
.37)
Tran
sact
ion
with
NC
I/C
hang
e in
con
trol
ling
stak
e
-
-
-
-
-
-
-
(1,6
70.7
5) -
-
(1
,670
.75)
183
.24
(1,4
87.5
1)
Bal
ance
as
at 3
1 M
arch
20
182,
227.
86
1,7
61.0
6 5
7.85
6
00.1
3 7
4.04
9
6.62
(3
,327
.70)
(583
.85)
41.
10
168
.65
1,1
15.7
6 1
1,43
5.27
1
2,55
1.03
Part
icul
ars
Att
ribu
tabl
e to
the
Ow
ners
of t
he C
ompa
nyA
ttri
buta
ble
to n
CITo
tal
Res
erve
and
sur
plus
Exch
ange
di
ffer
ence
s on
tr
ansl
atin
g th
e fi
nanc
ial
stat
emen
ts
of fo
reig
n op
erat
ions
Tota
l A
ttri
buta
ble
to O
wne
rsCa
pita
l re
serv
e Ca
pita
l re
serv
e on
Co
nsol
idat
ion
Deb
entu
re
rede
mpt
ion
rese
rve
sec
urit
y pr
emiu
m
rese
rve
sha
re
base
d pa
ymen
t re
serv
e
gen
eral
re
serv
e R
etai
ned
earn
ings
Tran
sact
ion
wit
h n
CI
Res
erve
Fore
ign
curr
ency
m
onet
ary
item
tr
ansl
atio
n di
ffer
ence
ac
coun
t
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
114
B O
ther
Equ
ity
[Con
t`d]
Part
icul
ars
Att
ribu
tabl
e to
the
Ow
ners
of t
he C
ompa
nyA
ttri
buta
ble
to n
CITo
tal
Res
erve
and
sur
plus
Exch
ange
di
ffer
ence
s on
tr
ansl
atin
g th
e fi
nanc
ial
stat
emen
ts
of fo
reig
n op
erat
ions
Tota
l A
ttri
buta
ble
to O
wne
rsCa
pita
l re
serv
e Ca
pita
l re
serv
e on
Co
nsol
idat
ion
Deb
entu
re
rede
mpt
ion
rese
rve
sec
urit
y pr
emiu
m
rese
rve
sha
re
base
d pa
ymen
t re
serv
e
gen
eral
re
serv
e R
etai
ned
earn
ings
Tran
sact
ion
wit
h n
CI
Res
erve
Fore
ign
curr
ency
m
onet
ary
item
tr
ansl
atio
n di
ffer
ence
ac
coun
t
Bal
ance
as
at
31 M
arch
201
8 2
,227
.86
1,7
61.0
6 5
7.85
6
00.1
3 7
4.04
9
6.62
(3
,327
.70)
(583
.85)
41.
10
168
.65
1,1
15.7
6 1
1,43
5.27
1
2,55
1.03
Pro
fit f
or th
e ye
ar e
nded
-
-
-
-
-
-
(939
.12)
-
-
-
(939
.12)
1,6
02.7
7 6
63.6
5
Oth
er
com
preh
ensi
ve
inco
me
for
the
year
end
edR
e-m
easu
rem
ent
gain
s/(lo
sses
) on
defi
ned
bene
fit p
lans
(N
et o
f def
erre
d ta
xes)
-
-
-
-
-
-
33.
70
-
-
-
33.
70
(62.
07)
(28.
37)
Re-
mea
sure
men
t of
equ
ity
inst
rum
ent a
t fa
ir v
alue
, net
of
tax
-
-
-
-
-
-
1,1
97.7
8 -
-
-
1
,197
.78
-
1,1
97.7
8
Exch
ange
di
ffer
ence
s ar
isin
g on
tr
ansl
atio
n of
fore
ign
oper
atio
ns (N
et
of ta
x )
-
-
-
-
-
-
-
-
-
158
.23
158
.23
(30.
24)
127
.99
Div
iden
d pa
id -
-
-
-
-
-
-
-
-
-
-
(3
21.1
0) (3
21.1
0)D
ivid
end
dist
ribu
tion
tax
-
-
-
-
-
-
(17.
03)
-
-
-
(17.
03)
(38.
70)
(55.
73)
sta
tem
ent o
f cha
nges
in e
quit
y
RJ C
ORP
LIM
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(CO
NSO
LID
ATED
)
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
115
sta
tem
ent o
f cha
nges
in e
quit
y
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
Tran
sfer
to
debe
ntur
e re
dem
ptio
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serv
e
-
-
47.
18
-
-
(47.
18)
-
-
-
-
-
-
Tran
sfer
to
gene
ral r
eser
ve -
-
(1
05.0
3) -
-
1
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3 -
-
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-
-
-
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Add
ition
to
Cap
ital R
eser
ve
on a
cqui
sitio
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con
trol
ling
stak
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one
of
the
subs
idia
ry
304
.74
-
-
-
-
-
-
-
-
-
304
.74
304
.74
Add
ition
mad
e in
FC
MIT
DA
for
the
year
end
ed
-
-
-
-
-
-
-
-
(9.1
3) -
(9
.13)
(20.
74)
(29.
87)
FCM
ITD
A
char
ged
to
Sta
tem
ent o
f P
rofi
t and
Los
s
-
-
-
-
-
-
-
-
(5.7
6) -
(5
.76)
(13.
08)
(18.
84)
Add
ition
s m
ade
on c
onve
rsio
n of
com
puls
orily
co
nver
tible
de
bent
ures
into
eq
uity
sha
res
-
-
-
2,0
99.9
4 -
-
-
-
-
-
2
,099
.94
-
2,0
99.9
4
Add
ition
s m
ade
on c
onve
rsio
n of
com
puls
orily
co
nver
tible
pr
efer
ence
sh
ares
into
eq
uity
sha
res
-
-
-
2,9
58.8
8 -
-
-
-
-
-
2
,958
.88
-
2,9
58.8
8
(` in
mill
ions
, exc
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s st
ated
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erw
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Part
icul
ars
Att
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the
Ow
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he C
ompa
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buta
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Res
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and
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s on
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Tota
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serv
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nsol
idat
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Deb
entu
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rede
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rese
rve
sec
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emiu
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rese
rve
sha
re
base
d pa
ymen
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serv
e
gen
eral
re
serv
e R
etai
ned
earn
ings
Tran
sact
ion
wit
h n
CI
Res
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Fore
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curr
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m
onet
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item
tr
ansl
atio
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ffer
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ac
coun
t
RJ CORP LIMITED (CONSOLIDATED)
116
sta
tem
ent o
f cha
nges
in e
quit
y
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
Add
ition
s m
ade
pers
uant
to
exer
cise
of
empl
oyee
sto
ck
optio
ns
-
-
-
-
1.9
3 -
-
-
-
-
1
.93
0.1
7 2
.10
Tran
sfer
to
Sec
urity
pr
emiu
m
rese
rve
on
exer
cise
of
empl
oyee
sto
ck
optio
ns
-
-
-
-
(0.1
9) -
-
-
-
-
(0
.19)
-
(0.1
9)
Cre
ated
on
acqu
isiti
on
of c
ontr
ollin
g st
ake
in
subs
idia
ry
1,2
05.2
3 1
,205
.23
Tran
sact
ion
with
NC
I/C
hang
e in
co
ntro
lling
st
ake
-
-
-
-
-
-
-
(567
.39)
-
-
(567
.39)
597
.13
29.
74
Bal
ance
as
at
31 M
arch
201
9 2
,532
.60
1,7
61.0
6 0
.00
5,6
58.9
5 7
5.78
2
01.6
5 (3
,099
.55)
(1,1
51.2
4) 2
6.21
3
26.8
8 6
,332
.34
14,
354.
65
20,
686.
99
(` in
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Att
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ompa
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s on
tr
ansl
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erat
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nsol
idat
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re
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rese
rve
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rve
sha
re
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d pa
ymen
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serv
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gen
eral
re
serv
e R
etai
ned
earn
ings
Tran
sact
ion
wit
h n
CI
Res
erve
Fore
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curr
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m
onet
ary
item
tr
ansl
atio
n di
ffer
ence
ac
coun
t
For
and
on b
ehal
f of t
he B
oard
of D
irec
tors
of R
J CO
RP
LIM
ITED
Pla
ce :
New
Del
hiD
ated
: S
epte
mbe
r 23
, 201
9
(sum
it k
athu
ria)
Par
tner
M. N
o. 5
2007
8
For
APA
s &
Co.
Cha
rter
ed A
ccou
ntan
tsFi
rm R
egn.
No.
000
340C
Mah
avir
Pra
sad
gar
g C
ompa
ny S
ecre
tary
Rav
i kan
t Jai
puri
aD
irec
tor
DIN
: 000
0366
8
Raj
P. g
andh
iD
irec
tor
DIN
: 000
0364
9
Lalit
kum
ar s
ingh
Chi
ef F
inan
cial
Offi
cer
RJ CORP LIMITED (CONSOLIDATED)
117
1. Corporate information
RJ Corp Limited (‘the Holding Company’) was incorporated on 01st March 1980. The Holding Company is primarily engaged in
the business of trading in Shoes & Apparels of ‘Nike’ brand, Apple Products and in investment activities.
The Company together with its subsidiaries (hereinafter referred to as ‘the Group’) has presence majorly in India, Africa, and
Asia. The principal activities of the Group, its joint ventures and associates consist of manufacturing, selling, bottling and
distribution of beverages, developing, and managing and operating quick services restaurants, providing healthcare services,
education services, manufacturing and selling of dairy products & ice cream, retail, trading and real estate businesses.
2. Basis of preparation
These Consolidated Financial Statements (“the CFS”) of the Group have been prepared in accordance with the Indian
Accounting Standards (‘‘Ind AS’’) notified under the Companies (Indian Accounting Standard) Rules, 2015 and stipulations
contained in Schedule III (revised) as applicable under Section 133 of the Companies Act, 2013 (“the Act”) as amended from
time to time and other pronouncements/ provisions of applicable laws.
These consolidated financial statements of the Group are authorised for issue on 23/09/2019 in accordance with a resolution
of the Board of Directors. The revision to financial statements are permitted by Board of Directors after obtaining necessary
approvals or at the instance of regulatory authorities as per provisions of Companies Act, 2013.
The CFS have been prepared on a historical cost basis, except for the following assets and liabilities which have been
measured at fair value:
i. Derivative financial instruments;
ii. Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments);
iii. Defined benefit plans- plan assets measured at fair value; and
iv. Share based payments;
The Group presents assets and liabilities in the balance sheet based on current/non-current classification.
An asset is treated as current if it satisfies any of the following conditions:
i. Expected to be realised or intended to sold or consumed in normal operating cycle
ii. Held primarily for the purpose of trading
iii. Expected to be realised within twelve months after the reporting period,
iv. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months
after the reporting period.
All other assets are classified as non-current.
A liability is current if it satisfies any of the following conditions:
i. It is expected to be settled in normal operating cycle;
ii. It is held primarily for the purpose of trading;
iii. It is due to be settled within twelve months after the reporting period, or
iv. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
The Group classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and its realisation in cash and cash equivalents.
The Group has identified twelve months as its operating cycle.
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
RJ CORP LIMITED (CONSOLIDATED)
118
All amounts disclosed in the CFS and notes have been rounded off to the nearest million as per the requirement of Schedule
III to the Act, unless otherwise stated.
2.1. Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company, its subsidiaries, associate and
joint ventures. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the
investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an
investee if and only if the Group has:
• Powerovertheinvestee(i.e.,existingrightsthatgiveitthecurrentabilitytodirecttherelevantactivitiesoftheinvestee);
• Exposure,orrights,tovariablereturnsfromitsinvolvementwiththeinvestee,and
• Theabilitytouseitspowerovertheinvesteetoaffectitsreturns.
Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when
the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and
circumstances in assessing whether it has power over an investee, including:
a) The contractual arrangement with the other vote holders of the investee;
b) The rights arising from other contractual arrangements;
c) The Group’s voting rights and potential voting rights; and
d) The size of the Group’s holding of voting rights relative to the size and dispersion of the holdings of the other voting rights
holders.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to
one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the
subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary
acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains
control until the date the Group ceases to control the subsidiary.
Consolidated financial statements are prepared using uniform accounting policies for like transactions and other events
in similar circumstances. If a member of the Group uses accounting policies other than those adopted in the consolidated
financial statements for like transactions and events in similar circumstances, appropriate adjustments are made to that
member’s financial statements in preparing the consolidated financial statements to ensure conformity with the Group’s
accounting policies.
An associate is an entity over which the Group has significant influence, i.e., the power to participate in the financial and
operating policy decisions of the investee but not control or joint control over those policies.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net
assets of the joint arrangement.
The financial statements of all entities used for the purpose of consolidation are drawn up to same reporting date as that of
the parent company, i.e., year ended 31 March. When the end of the reporting period of the parent is different from that of a
subsidiary/ associate/joint ventures, the subsidiary/ associate/joint ventures prepares, for consolidation purposes, additional
financial information as of the same date as the financial statements of the parent to enable the parent to consolidate the
financial information of the subsidiary, unless it is impracticable to do so.
The following consolidation procedures are adopted:
Subsidiary:
a) Combine like items of assets, liabilities, equity, income, expenses and cash flows of the parent with those of its
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
RJ CORP LIMITED (CONSOLIDATED)
119
subsidiaries. For this purpose, income and expenses of the subsidiary are based on the amounts of the assets and
liabilities recognised in the consolidated financial statements at the acquisition date;
b) Offset (eliminate) the carrying amount of the parent’s investment in each subsidiary and the parent’s portion of equity of
each subsidiary. Business combinations policy explains how to account for any related goodwill; and
c) Eliminate in full intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions
between entities of the group (profits or losses resulting from intragroup transactions that are recognised in assets,
such as inventory and fixed assets, are eliminated in full). Ind AS 12 ‘Income Taxes’ applies to temporary differences that
arise from the elimination of profits and losses resulting from intragroup transactions.
Profit or loss and each component of Other Comprehensive Income (“OCI”) are attributed to the equity holders of the parent
of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the
Group loses control over a subsidiary, it:
• Derecognisestheassets(includinggoodwill)andliabilitiesofthesubsidiary;
• Derecognisesthecarryingamountofanynon-controllinginterests;
• Derecognisesthecumulativetranslationdifferencesrecordedinequity;
• Recognisesthefairvalueoftheconsiderationreceived;
• Recognisesthefairvalueofanyinvestmentretained;
• RecognisesanysurplusordeficitinConsolidatedStatementofProfitandLoss;
• Reclassifies theparent’sshareofcomponentspreviouslyrecognised inOCI toprofitor lossorretainedearnings,as
appropriate, as would be required if the Group had directly disposed of the related assets or liabilities
When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related
NCI and other components of equity. Any interest retained in the former subsidiary is measured at fair value at the date the
control is lost. Any resulting gain or loss is recognised in consolidated profit or loss.
Associates and Joint ventures:
Interests in associates and joint ventures are accounted for using the equity method, after initially being recognised at
cost in the consolidated balance sheet. When a member of the Group transacts with an associate or joint ventures of the
Group, profits and losses from transactions with the associate are recognised in the CFS only to the extent of interests in the
associate that are not related to the Group.
The carrying amount of the investment is adjusted to recognise changes in the Group’s share of net assets of the associate
since the acquisition date. Goodwill relating to the associate is included in the carrying amount of the investment.
The Consolidated Statement of Profit and Loss reflects the Group’s share of the results of operations of the associate. Any
change in OCI of those investees is presented as part of the Group’s OCI. In addition, when there has been a change recognised
directly in the equity of the associate/joint ventures, the Group recognises its share of any changes, when applicable, in
the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and the
associate/joint ventures are eliminated to the extent of the interest in the associate. The aggregate of the Group’s share of
profit or loss of an associate is shown on the face of the Consolidated Statement of Profit and Loss.
After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its
investment in its associate/joint ventures. At each reporting date, the Group determines whether there is objective evidence
that the investment in the associate/joint ventures is impaired. If there is such evidence, the Group calculates the amount of
impairment as the difference between the recoverable amount of the associate/joint ventures and its carrying value, and then
recognises the loss as ‘Share of profit of an associate’ in the Consolidated Statement of Profit and Loss.
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
RJ CORP LIMITED (CONSOLIDATED)
120
If an entity’s share of losses of an associate or a joint venture equals or exceeds its interest in the associate or joint venture,
the entity discontinues recognising its share of further losses. After the entity’s interest is reduced to zero, additional losses
are provided for, and a liability is recognised, only to the extent that the entity has incurred legal or constructive obligations
or made payments on behalf of the associate or joint venture. If the associate or joint venture subsequently reports profits,
the entity resumes recognising its share of those profits only after its share of the profits equals the share of losses not
recognised
Upon loss of significant influence over the associate, the Group measures and recognises any retained investment at its fair
value. Any difference between the carrying amount of the associate upon loss of significant and the fair value of the retained
investment and proceeds from disposal is recognised in the Consolidated Statement of Profit and Loss.
3. summary of significant accounting policies
a) Fair value measurements
The Group measures financial instruments at fair value which is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement
is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
• Intheprincipalmarketfortheassetorliability,or
• Intheabsenceofaprincipalmarket,inthemostadvantageousmarketfortheassetorliability.
All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value
measurement as a whole:
• Level1-Quoted(unadjusted)marketpricesinactivemarketsforidenticalassetsorliabilities;
• Level2-Valuationtechniquesforwhichthelowestlevelinputthatissignificanttothefairvaluemeasurementisdirectly
or indirectly observable; and
• Level 3 - Valuation techniques forwhich the lowest level input that is significant to the fair valuemeasurement is
unobservable.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
For assets and liabilities that are recognised in the consolidated financial statements on a recurring basis, the Group
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the
lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature,
characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
b) Revenue recognition
With effect from 01 April 2018, the Group has adopted Ind AS 115, ‘Revenue from Contracts with Customers’ using cumulative
effect method which does not require comparative information to be restated in the consolidated financial statements. The
standard is applied retrospectively only to contracts that were not completed as at the date of initial application (i.e. 01 April
2018). There is no impact on retained earnings as at 01 April 2018. Moreover, the application of Ind AS 115 did not have any
impact on recognition and measurement of revenue from operations and other related items in the consolidated financial
statements of the Group.
Under Ind AS 115, revenue is recognised upon transfer of control of promised goods or services to customers. Revenue is
measured at the fair value of the consideration received or receivable, excluding discounts, incentives, performance bonuses,
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
RJ CORP LIMITED (CONSOLIDATED)
121
price concessions, amounts collected on behalf of third parties, or other similar items, if any, as specified in the contract with
the customer. Revenue is recorded provided the recovery of consideration is probable and determinable.
Sale of goods
Revenue from the sale of manufactured and traded goods products is recognised upon transfer of control of products to
the customers which coincides with their delivery to customer and is measured at fair value of consideration received/
receivable, net of discounts, amount collected on behalf of third parties and applicable taxes.
In case of real estate business the Company follows the percentage of completion method of accounting to the eligible projects.
As per this method the revenue in the Profit & Loss Account at the end of the accounting year is recognized in proportion to
the actual cost incurred as against the total estimated cost of project under execution with the Company subject to actual cost
being 25% / 30% or more of the total estimated cost. The estimates relating to salable area, sales value, estimated cost etc.
are updated periodically by the management and necessary adjustments are made in respective year(s). As regards projects
where land is to be sold as plots, the sale is recognized on execution of sale deed/handing over of possession of land.
Sale of services
Revenue from outdoor catering services is recognised on completion of the respective services agreed to be provided, the
consideration is reliably determinable and no significant uncertainty exists regarding the collection. The amount recognised
as revenue is net of applicable taxes.
Service income and management fee
Revenue from marketing support services and business support services are in terms of agreements with the customers
and are recognised are recognised on the basis of satisfaction of performance obligation over the duration of the contract
from the date the contracts are effective or signed provided the consideration is reliably determinable and no significant
uncertainty exists regarding the collection. The amount recognised as revenue is net of applicable taxes.
Treatment , Consultancy & Room Charges
Revenue from Treatment and consultancy is recognized at the time services are rendered, revenue from Room charges is
recognized on a day to day basis after the patient checks into the Centre as IPD patient. Revenue is recognized to the extent
that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
Tuition Fee
Revenue from tuition fee is recognized monthly on accrual basis.
Revenue from royalty is recognised over the period of the contract provided the consideration is reliably determinable and no
significant uncertainty exists regarding the collection. The amount recognised as revenue is net of applicable taxes.
Other Income
Interest income
Interest income is recognised on time proportion basis taking into account the amount outstanding and rate applicable. For all
debt instruments measured at amortised cost, interest income is recorded using the effective interest rate (“EIR”). EIR is the
rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument
or a shorter period, where appropriate, to the gross carrying amount of the financial assets. When calculating the effective
interest rate, the Group estimates the expected cash flows by considering all the contractual terms of the financial instrument
(for example, prepayment, extension, call and similar options) but does not consider the expected credit losses. Interest
income is included in finance income in the Consolidated Statement of Profit and Loss.
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
RJ CORP LIMITED (CONSOLIDATED)
122
Dividends
Dividend is recognised when the Group’s right to receive the payment is established, which is generally when shareholders
approve the dividend.
Services rendered
Revenue from service related activities is recognised as and when services are rendered and on the basis of contractual
terms with the parties.
c) Inventories
Inventories are valued as follows:
i. Raw materials, components and stores and spares: At lower of cost and net realisable value. Cost represents purchase
price and other direct costs and is determined on a moving weighted average cost basis. However, materials and other
items held for use in the production of inventories are not written down below cost if the finished products in which they
will be incorporated are expected to be sold at or above cost.
ii. Work-in-progress: At lower of cost and net realisable value. Cost for this purpose includes material, labour and
appropriate allocation of overheads including depreciation. Cost is determined on a weighted average basis.
iii. Intermediate goods/ Finished goods:
a) self manufactured - At lower of cost and net realisable value. Cost for this purpose includes material, labour and
appropriate allocation of overheads. Cost is determined on a weighted average basis.
b) Traded - At lower of cost and net realisable value. Cost represents purchase price and other direct costs and is
determined on a weighted average cost basis.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of
completion and estimated costs necessary to make the sale. Provision for obsolescence is determined based on
management’s assessment and is charged to the Consolidated Statement of Profit and Loss.
d) Property, plant and equipment
Property, plant and equipment and capital work in progress is stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. Such cost includes the cost of replacing part of the plant and equipment and
borrowing costs for long-term construction projects if the recognition criteria are met.
Cost comprises the purchase price, borrowing costs if capitalization criteria are met and any directly attributable cost of
bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving
at the purchase price. The cost of an item of property, plant and equipment is recognised as an asset if, and only if:
a. it is probable that future economic benefits associated with the item will flow to the entity; and
b. the cost of the item can be measured reliably.
Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increased
the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on
existing assets, including day- to- day repair and maintenance expenditure and cost of replacing parts, are charged to the
Consolidated Statement of Profit and Loss for the period during which such expenses are incurred. Expenditure directly
relating to construction activity is capitalized. Indirect expenditure incurred during construction period is capitalized as
a part of indirect construction cost to the extent the expenditure is related to construction or is incidental thereto. Other
indirect costs incurred during-the construction periods which are not related to construction activity nor are incidental
thereto are charged to the Consolidated Statement of Profit and Loss.
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
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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:
Description useful Life
Leasehold land Period of lease
Leasehold improvements* Period of lease/ 10 years
Building – Factory and others 20-60 years
Plant and equipment 4-20 years
Furniture & fixtures 5-11 years
Electrical fittings 9-10 years
Office equipment’s 4-11 years
Computers 3-7 years
Utensil and Kitchen equipment 10 years
Vehicles including delivery vehicles 4-11 years
Post-mix vending machines and refrigerators(Visi-Coolers)
7-10 years
Container 4-10 years
Crates 6 years
Marketing assets 5-8 years
Aircraft 20 years
Construction equipment 12 years
*In case of Devyani International Limited-Leasehold improvements are depreciated on a straight line basis over the period of
the initial lease term or 10 years, whichever is lower
Depreciation on property, plant and equipment is provided over the useful life of assets as specified in Schedule II to the Act,
except where the management, based on independent technical assessment, depreciates certain assets
Overestimated useful lives which are different from the useful life prescribed in the Schedule II to the Act. The Group has
used the remaining useful lives to compute depreciation on its property, plant and equipment, acquired under the business
transfer agreement based on external technical evaluation.
Depreciation on property, plant and equipment which are added/disposed off during the year is provided on a pro-rata basis
with reference to the month of addition/deletion. An item of property, plant and equipment and any significant part initially
recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal.
Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and
the carrying amount of the asset) is included in the income statement when the asset is derecognised.
The Company has technically evaluated all the property, plant and equipment for determining the separate identifiable assets
having different useful lives under the component approach. On technical evaluation of all separate identifiable components,
the management is of the opinion that they do not have any different useful life from that of the principal asset.
In case of revaluation of leasehold land, the resulting amortisation of the total revalued amount is expensed off to the
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Consolidated Statement of Profit and Loss. Breakages of containers are adjusted on ‘first bought first broken’ basis, since it
is not feasible to specifically identify the broken containers in the fixed assets records.
e) Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a
business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried
at cost less any accumulated amortisation and accumulated impairment losses. Internally generated intangibles, excluding
capitalised development costs, are not capitalised and the related expenditure is reflected in Consolidated Statement of Profit
and Loss in the period in which the expenditure is incurred.
The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortised
over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be
impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at
least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future
economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and
are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised
in the Consolidated Statement of Profit and Loss.
Intangible assets are amortized on straight line basis using the estimated useful life as follows:
Description useful life
Software 2-7 years
Business Marketing Rights 3-5 years
License fees Period of license
The franchise rights and trademarks acquired as part of business combinations normally have a remaining legal life of not
exceeding ten years but is renewable every ten years at little cost and is well established. The Group intends to renew these
rights continuously and evidence supports its ability to do so. An analysis of product life cycle studies, market and competitive
trends provides evidence that the product will generate net cash inflows for the Group for an indefinite period. Therefore,
these rights have been carried at cost without amortization, but is tested for impairment annually, at the cash-generating
unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be
supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.
Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognised in the Consolidated Statement of Profit and Loss when the
asset is derecognised.
f) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset.
All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs
that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the
extent regarded as an adjustment to the borrowing costs.
g) Leases
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the
inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of
a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly
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specified in an arrangement. For arrangements entered into prior to 1 January 2016, the Group has determined whether the
arrangement contain lease on the basis of facts and circumstances existing on the date of transition.
Group as a lessee
A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the
risks and rewards incidental to ownership to the Group is classified as a finance lease.
Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased property or, if
lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and
reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance
charges are recognised in finance costs in the Consolidated Statement of Profit and Loss, unless they are directly attributable
to qualifying assets, in which case they are capitalized in accordance with the Group’s general policy on the borrowing costs.
Contingent rentals are recognised as expenses in the periods in which they are incurred.
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Group will
obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the
asset and the lease term.
Operating lease payments are recognised as an expense in the Consolidated Statement of Profit and Loss on a straight-line
basis over the lease term.
Group as a lessor
Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Group
to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Group’s net investment in
the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the
net investment outstanding in respect of the lease.
Leases in which the Group does not transfer substantially all the risks and rewards of ownership of an asset are classified as
operating leases. Rental income from operating lease is recognised on straight line basis over the term of the relevant lease.
h) 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.
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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
• ThedatethattheGrouprecognisesrelatedrestructuringcost
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:
• Servicecostscomprisingcurrentservicecosts,past-servicecosts,gainsandlossesoncurtailmentsandnon-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
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.
i) 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
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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.
j) 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 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
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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.
k) 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 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
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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:
• Theassetsandliabilitiesofthecombiningentitiesarereflectedattheircarryingamounts;
• Except for adjustmentsmade to harmonise accounting policies, no adjustments aremade to reflect fair values, or
recognise any new assets or liabilities;
• Thebalanceof the retainedearningsappearing in thefinancial statements of the transferor is aggregatedwith the
corresponding balance appearing in the financial statements of the transferee or is adjusted against general reserve;
• Theidentityofthereservesispreservedandthereservesofthetransferorbecomethereservesofthetransferee;and
• Thedifference,ifany,betweentheamountsrecordedassharecapitalissuedplusanyadditionalconsiderationinthe
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.
l) 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’.
m) Taxes
Tax expense is the aggregate amount included in the determination of profit or loss for the period and comprises current and
deferred tax.
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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:
• Whenthedeferredtaxliabilityarisesfromtheinitialrecognitionofgoodwilloranassetorliabilityinatransactionthatis
not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or
loss;
• Inrespectoftaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiariesandassociate,whenthetiming
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 thedeferred taxasset relating to thedeductible temporarydifferencearises from the initial recognitionofan
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;
• Inrespectofdeductibletemporarydifferencesassociatedwithinvestmentsinsubsidiariesandassociate,deferredtax
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
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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.
n) 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.
o) 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:
• Representsaseparatemajorlineofbusinessorgeographicalareaofoperations;
• Ispartofasingleco-ordinatedplantodisposeofaseparatemajorlineofbusinessorgeographicalareaofoperations;or
• Isasubsidiaryacquiredexclusivelywithaviewtoresale.
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
p) 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 company’s 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
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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.
q) 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.
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.
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
RJ CORP LIMITED (CONSOLIDATED)
133
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 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
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
RJ CORP LIMITED (CONSOLIDATED)
134
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.
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.
r) 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
s) 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
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
RJ CORP LIMITED (CONSOLIDATED)
135
deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Group’s cash
management.
t) 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.
u) 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.
v) 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 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.
w) 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
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
RJ CORP LIMITED (CONSOLIDATED)
136
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 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.
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
RJ CORP LIMITED (CONSOLIDATED)
137
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 2019
RJ CORP LIMITED (CONSOLIDATED)
1384 Ta
ngib
le a
sset
s
gro
ss b
lock
Fre
ehol
d La
nd
Lea
seho
ld
Land
B
uild
ings
P
lant
&
Equi
pmen
t L
ease
hold
Im
prov
emen
ts
Ele
ctri
cal
inst
alla
tion
s an
d eq
uipm
ent
Fur
nitu
re
and
Fixt
ures
Mar
keti
ng
Ass
ets
Offi
ce
equi
pmen
ts
Veh
icle
s B
ooks
Co
mpu
ter
equi
pmen
ts
Con
tain
ers
Air
craf
t C
onst
ruct
ion
Equi
pmen
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
2017
4,9
41.0
7 3
,757
.05
7,1
88.3
0 2
5,05
7.13
2
,854
.78
337
.06
868
.29
1,4
55.1
6 3
43.5
9 1
,939
.94
0.1
3 6
19.4
0 5
,056
.67
454
.76
5.6
1 9
,104
.68
63,
983.
63
Acq
uire
d on
bus
ines
s ac
quis
ition
/su
bsid
iari
es
acqu
isiti
on
duri
ng th
e ye
ar
17.
54
245
.69
306
.19
298
.77
84.
83
2.9
0 3
5.65
0
.45
38.
11
29.
99
-
22.
23
166
.91
-
-
247
.20
1,4
96.4
8
Add
ition
s fo
r th
e ye
ar (1
1.78
) 5
59.4
7 1
,785
.65
4,3
89.4
3 3
43.6
6 7
9.45
9
8.25
2
83.3
3 8
8.01
1
01.7
6 0
.02
110
.03
937
.39
0.1
6 -
5
96.9
2 9
,361
.76
Dis
posa
ls fo
r th
e ye
ar -
0
.00
(29.
32)
(462
.21)
(71.
10)
(5.4
9) (1
1.98
) (1
23.8
3) (5
.87)
(60.
86)
-
(17.
37)
(517
.81)
-
-
(433
.40)
(1,7
39.2
4)
Ass
ets
clas
sifi
ed a
s he
ld fo
r S
ale
(345
.41)
(0.0
2) (2
5.46
) -
-
-
-
-
-
-
-
-
-
-
-
-
(3
70.9
0)
Tran
sfer
/ ad
just
men
t (4
2.94
) -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(4
2.94
)
Fore
ign
exch
ange
fl
uctu
atio
n fo
r th
e ye
ar
(146
.63)
0.0
0 3
0.69
3
61.0
1 (7
1.63
) 0
.15
(26.
28)
0.0
3 (2
.82)
28.
93
-
2.7
8 4
6.84
-
(0
.02)
63.
72
286
.76
Adj
ustm
ent
on a
ccou
nt o
f ce
ssat
ion
of
subs
idia
ry
-
-
(168
.08)
(310
.52)
(144
.50)
(3.6
1) (5
2.82
) (1
.28)
(3.7
7) (1
3.07
) -
(2
3.95
) -
-
-
-
(7
21.6
1)
Bal
ance
as
at 3
1 M
arch
20
18
4,4
11.8
5 4
,562
.18
9,0
87.9
7 2
9,33
3.61
2
,996
.03
410
.47
911
.11
1,6
13.8
7 4
57.2
6 2
,026
.69
0.1
5 7
13.1
2 5
,690
.00
454
.92
5.5
8 9
,579
.13
72,
253.
94
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
86.8
7 1
77.9
0 2
3.52
2
5.10
-
1
75.8
8 5
1.72
-
1
8.04
-
-
-
-
3
,242
.71
Add
ition
s fo
r th
e ye
ar 9
0.76
3
1.75
2
,904
.33
5,4
57.3
3 4
64.7
9 1
23.1
1 2
79.9
3 1
44.0
7 1
69.1
5 2
48.7
0 -
1
31.1
3 8
84.0
1 -
-
1
,546
.60
12,
475.
65
Dis
posa
ls 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
2)
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 -
-
1
63.3
2 (1
63.3
2) -
-
-
(0
.48)
-
-
-
-
-
-
-
-
(0.4
8)
RJ C
ORP
LIM
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(CO
NSO
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)S
umm
ary
of s
igni
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ccou
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d ot
her
expl
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info
rmat
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on th
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idat
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tate
men
ts fo
r th
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ar e
nded
31
Mar
ch 2
019
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
139Fore
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.
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-
5.4
6 (3
3.40
) -
(0
.01)
(87.
76)
31.
48
-
(80.
28)
(882
.69)
Adj
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ent
on a
ccou
nt o
f ce
ssat
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of
subs
idia
ries
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bal
ance
as
at 3
1 M
arch
20
19
4,8
14.2
3 4
,593
.93
12,5
17.1
6 3
5,46
9.29
3
,546
.32
555
.33
1,1
64.3
1 1
,456
.09
735
.13
2,1
66.8
5 0
.15
762
.03
5,0
77.6
0 4
86.3
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.58
10,
676.
06
84,
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47
Acc
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atio
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1
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17 1
2.87
1
04.4
7 1
,509
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8,0
51.8
2 1
,704
.90
199
.43
497
.07
617
.28
204
.42
1,2
31.0
5 0
.13
434
.94
2,0
02.7
0 2
6.53
2
.65
4,1
00.3
2 2
0,69
9.73
Acq
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bus
ines
s ac
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/su
bsid
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es
acqu
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on
duri
ng th
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ar
-
-
-
3.4
3 6
.51
-
3.6
0 -
7
.92
-
-
7.4
7 -
-
-
-
2
8.93
Dep
reci
atio
n ch
arge
for
the
year
-
37.
78
277
.70
1,7
28.8
4 2
09.4
8 2
4.90
7
6.24
1
73.4
0 4
7.07
1
90.4
7 0
.02
83.
97
775
.57
22.
59
0.4
2 1
,040
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4,6
89.1
6
Impa
irem
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char
ge fo
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ar 2
017-
18
-
-
(26.
08)
(84.
43)
18.
91
(1.2
8) 4
.43
-
2.4
7 (4
.79)
-
(5.2
9) -
-
-
-
(9
6.07
)
Tran
sfer
/ ad
just
men
t fo
r th
e ye
ar
-
-
-
7.6
8 5
.48
-
1.0
3 -
-
0
.36
-
1.5
6 -
-
-
-
1
6.11
Rev
ersa
l on
disp
osal
of
asse
ts fo
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ar
-
0.0
0 (3
.97)
(164
.44)
(51.
51)
(4.6
7) (7
.30)
(113
.21)
(3.6
6) (4
6.27
) -
(1
2.98
) (4
21.5
1) -
-
(4
06.8
7) (1
,236
.38)
Ass
ets
clas
sifi
ed a
s he
ld fo
r S
ale
-
(0.0
2) (1
1.55
) -
-
-
-
-
-
-
-
-
-
-
-
-
(1
1.57
)
Adj
ustm
ent
on a
ccou
nt o
f ce
ssat
ion
of
subs
idia
ry
-
-
(131
.03)
(153
.63)
(71.
69)
(2.4
8) (1
8.75
) (1
.24)
(3.3
4) (8
.90)
-
(19.
60)
-
-
-
-
(410
.66)
gro
ss b
lock
Fre
ehol
d La
nd
Lea
seho
ld
Land
B
uild
ings
P
lant
&
Equi
pmen
t L
ease
hold
Im
prov
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ts
Ele
ctri
cal
inst
alla
tion
s an
d eq
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Fur
nitu
re
and
Fixt
ures
Mar
keti
ng
Ass
ets
Offi
ce
equi
pmen
ts
Veh
icle
s B
ooks
Co
mpu
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equi
pmen
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Con
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Air
craf
t C
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Equi
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t P
ost-
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ve
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and
refr
iger
ator
s (v
isi c
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Tot
al
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)S
umm
ary
of s
igni
fica
nt a
ccou
ntin
g po
licie
s an
d ot
her
expl
anat
ory
info
rmat
ion
on th
e co
nsol
idat
ed fi
nanc
ial s
tate
men
ts fo
r th
e ye
ar e
nded
31
Mar
ch 2
019
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
140Fore
ign
exch
ange
fl
uctu
atio
n fo
r th
e ye
ar
(12.
87)
0.0
0 8
.62
40.
81
(43.
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0.1
0 (1
3.78
) -
(2
.66)
18.
42
-
2.0
3 2
3.17
0
.16
0.0
0 2
7.47
4
8.46
Bal
ance
as
at 3
1 M
arch
20
18
-
142
.23
1,6
22.8
6 9
,430
.09
1,7
79.0
3 2
15.9
9 5
42.5
4 6
76.2
3 2
52.2
2 1
,380
.35
0.1
5 4
92.1
0 2
,379
.94
49.
28
3.0
7 4
,761
.64
23,
727.
71
Acq
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ines
s ac
quis
ition
/su
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acqu
isiti
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ng th
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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
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8
Impa
irem
ent
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ge fo
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018-
19
-
-
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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
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t fo
r th
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ar
-
-
13.
42
(13.
42)
-
-
-
-
-
-
-
-
-
-
-
-
-
Rev
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l on
disp
osal
of
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ts fo
r th
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(10.
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(277
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(35.
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(107
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-
(82.
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(1,1
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-
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9) (2
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Ass
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ld fo
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-
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-
-
(10.
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-
(21.
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-
-
(10.
59)
-
-
-
-
(32.
13)
Adj
ustm
ent
on a
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nt o
f ce
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of
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idia
ry
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Fore
ign
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fl
uctu
atio
n fo
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(15.
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-
(0.6
7) (4
6.92
) 3
.26
-
(39.
75)
(178
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Bal
ance
as
at 3
1 M
arch
20
19
-
183
.38
2,0
10.3
8 1
1,19
2.85
2
,101
.66
245
.23
664
.26
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.69
349
.45
1,5
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5 0
.15
512
.01
2,0
01.7
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7.01
3
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5,5
25.6
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6,96
0.31
net
blo
ckB
alan
ce a
s at
31
Mar
ch
2018
4,4
11.8
5 4
,419
.96
7,4
65.1
2 1
9,90
3.53
1
,216
.99
194
.47
368
.57
937
.64
205
.04
646
.35
0.0
0 2
21.0
1 3
,310
.06
405
.63
2.5
2 4
,817
.49
48,
526.
23
Bal
ance
as
at 3
1 M
arch
20
19
4,8
14.2
3 4
,410
.55
10,5
06.7
8 2
4,27
6.44
1
,444
.66
310
.10
500
.05
863
.40
385
.68
666
.10
0.0
0 2
50.0
2 3
,075
.87
409
.38
2.5
2 5
,150
.39
57,
066.
16
gro
ss b
lock
Fre
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d La
nd
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seho
ld
Land
B
uild
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P
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&
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Ass
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pmen
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ost-
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iger
ator
s (v
isi c
oole
r)
Tot
al
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)S
umm
ary
of s
igni
fica
nt a
ccou
ntin
g po
licie
s an
d ot
her
expl
anat
ory
info
rmat
ion
on th
e co
nsol
idat
ed fi
nanc
ial s
tate
men
ts fo
r th
e ye
ar e
nded
31
Mar
ch 2
019
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
141
i. Asset under construction/ Capital work in progress
Capital work in progress as at 31 March 2019 comprised capital expenditure mainly for the set-up of new plant, construction
of building & set up of new restaurents.
Particulars 3/31/2019 3/31/2018
Capital work-in-progress 2,287.50 2,022.99
Total 2,287.50 2,022.99
ii. Pre-operative expenses incurred and capitalised during the year are as under:
Particulars 3/31/2019 3/31/2018
Balance at the beginning of the year 13.65 157.71
Add: Incurred during the year
Net gain on foreign currency transactions
(0.90) (0.89)
Finance costs 200.93 49.55
Other expenses 319.72 175.70
Less: Capitalised during the year 359.14 368.42
Amount carried over 174.26 13.65
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 amount
Balance 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 impairment
Balance 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
gross carrying amount
Balance as at 01 April 2017 12.16 209.76 51.76 273.68
Addition for the year - - - -
Foreign exchange fluctuation for the year 1.25 21.58 5.33 28.16
Balance as at 31 March 2018 13.41 231.34 57.09 301.84
Depreciation and impairment
Balance as at 01 April 2017 3.57 143.83 20.82 168.22
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
142
Depreciation for the year 0.64 24.26 5.44 30.34
Foreign exchange fluctuation for the year 0.40 15.99 2.41 18.80
Balance as at 31 March 2018 4.61 184.08 28.67 217.36
Carrying amount as at 31 March 2018 8.80 47.26 28.42 84.48
iv. For details towards pledge of above assets refer note no. 22 C
v. Ind AS 101 Exemption: The Group has availed the exemption available under Ind AS 101, where the carrying value of
property, plant and equipment as at 01 April 2016 has been carry forward at the amount as determined under the Indian GAAP.
The deemed cost as at 01 April 2016 is the gross carrying amount less accumulated amortisation as on that date.
vi. Refer Note 58 for Impairment.
5 Intangible assets
gross block Business Marketing
Rights
Distribution network
Franchise rights/
trademarks
Computer software
Brand License fees
Total
Balance as at 1 April 2017 386.08 - 4,142.23 397.63 - 503.96 5,429.91
Additions for the year 5.64 - - 57.13 - 78.39 141.16
Disposals for the year - - - (31.97) - (13.44) (45.41)
Acquired on business acquisition during the year
- - 1,348.99 4.98 - 25.35 1,379.32
Adjustment on account of cessation of subsidiary
- - - (15.32) - (0.51) (15.83)
Foreign exchange fluctuation for the year
33.15 - 0.01 0.96 - (4.61) 29.52
Balance as at 31 March 2018
424.87 - 5,491.24 413.41 - 589.15 6,918.67
Additions for the year 23.74 157.64 306.64 48.37 - 130.78 667.18
Disposals for the year (317.90) - - (40.93) - (12.06) (370.90)
Acquired on business acquisition during the year
- - - 48.48 2,443.63 20.60 2,512.71
Adjustment on account of cessation of subsidiary
- - - - - - -
Foreign exchange fluctuation for the year
9.52 - (0.15) 0.15 - 2.31 11.84
Balance as at 31 March 2019
140.24 157.64 5,797.74 469.47 2,443.63 730.78 9,739.50
Plant & equipment
Vehicles Post-mix vending
machines and refrigerators (Visi Cooler)
Total
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019 (` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
143
Accumulated amortisation
Balance as at 1 April 2017 361.44 - 657.20 250.05 - 269.05 1,537.73
Acquired on acquisition of subsidiaries during the year
- - - 1.62 - 2.14 3.76
Amortisation charge for the year
16.76 - 0.05 68.85 - 49.45 135.11
Impairement charge for the year 2017-18*
- - - (2.79) - 0.03 (2.76)
Reversal on disposal of assets for the year
- - - (30.58) - (13.44) (44.02)
Adjustment on account of cessation of subsidiary
- - - (9.42) - (0.51) (9.93)
Foreign exchange fluctuation for the year
30.98 - 0.01 0.95 - (2.93) 29.02
Balance as at 31 March 2018
409.17 - 657.26 278.68 - 303.79 1,648.91
Acquired on acquisition of subsidiaries during the year
- - - 48.41 - - 48.41
Amortisation charge for the year
9.73 5.94 0.04 66.16 - 43.73 125.60
Impairement charge for the year 2018-19*
- - - 0.55 - 10.53 11.08
Reversal on disposal of assets for the year
(321.23) - - (28.69) - (2.21) (352.13)
Adjustment on account of cessation of subsidiary
- - - - - - -
Foreign exchange fluctuation for the year
9.23 - (0.04) 0.33 - 0.63 10.15
Balance as at 31 March 2019
106.90 5.94 657.26 365.44 - 356.46 1,492.02
net block
Balance as at 31 March 2018
15.70 - 4,833.97 134.73 - 285.36 5,269.76
Balance as at 31 March 2019
33.33 151.70 5,140.47 104.03 2,443.63 374.32 8,247.48
*Refer Note 58 for detail of Impairment
Ind AS 101 Exemption: The Group has availed the exemption available under Ind AS 101, where the carrying value of property,
plant and equipment as at 01 April 2016 has been carry forward at the amount as determined under the Indian GAAP.The
deemed cost as at 01 April 2016 is the gross carrying amount less accumulated amortisation as on that date.
gross block Business Marketing
Rights
Distribution network
Franchise rights/
trademarks
Computer software
Brand License fees
Total
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019 (` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
144
5A Intangible assets under development:
Particulars Computer software
Balance as at 1 April 2017 5.82
Additions for the year 3.03
Asset capitalised during the year 8.15
Balance as at 31 March 2018 0.70
Additions for the year 3.44
Asset capitalised during the year 1.82
Balance as at 31 March 2019 2.33
5B Goodwill amounting to ` 180.73 is net of impairment loss of Rs. ` 54.33 which is charged to Consoliadted Statement of
Profit and Loss under the head Impairment loss.
6. Investments in associates
Particulars Face value per
shares/ Debenture
in Rs.
As AT 31.03.2019 As AT 31.03.2018
number of shares/
Debentures
Value number of shares/
Debentures
Value
Investment in Associates (unquoted)
In equity shares
Lineage Healthcare Limited*** 10 24,900 0.25 24,900 0.25
Add: Share in Profit/(loss) (0.25) (0.25)
Parkview City Limited**** 10 228,000 2.28 228,000 2.28
Add: Share in Profit/(loss) (2.28) (2.28)
Capital Infracon Private Limited 10 990,000 6.91 990,000 6.91
Add: Share in Profit/(loss) (4.04) (3.36)
Ratnakar Foods & Beverages Pvt. Ltd. 10 5,000 0.05 5,000 0.05
Add: Share in Profit/(loss) (0.05) (0.05)
Africare Limited* 100 KSHS 550 0.03 550 0.03
Add: Share in Profit/(loss) (0.03) (0.03)
Agarwal Cold Drinks Pvt.Ltd. 10 2,500 0.03 2,500 0.03
Add: Share in Profit/(loss) 0.08 0.05
Angelica Technologies Private Limited 10 35,474 12.56 35,474 12.56
Add: Share in Profit/(loss) 107.78 80.61
Devyani Food Industries (Kenya) Ltd. (Earlier known as Sameer Agriculture & Livestock (Kenya) Ltd.)*****
1000 KSHS - - 884,999 618.64
Add: Share in Profit/(loss) - (170.85)
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) (47.23)
Less: Provision for imparement loss (25.00) (25.00)
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
145
Iclinic Healthcare Private Limited** 10 2,600,000 26.00 - -
Add: Share in Profit/(loss) 0.00
Cryoviva Thailand Ltd. 10 BAHT 1,050,000 20.26 1,050,000 20.26
Add: Share in Profit/(loss) 17.90 6.21
Total 12,159,568 187.48 10,444,567 571.02
Aggregate book value of quoted investments - -
Aggregate market value of quoted investments - -
Aggregate value of unquoted investments 187.48 571.02
* Africare Limited became associates from subsidiary with effect from 04 December 2017 because of decrease of ownership
stakes from 55% to 27.5%
** Iclinic Healthcare Private Limited become associates with effect from 26 March 2019.
***Lingeage Healthcare Limited became associates from subsidiary with effect from 31 August 2017 because of decrease of
ownership stakes from 50.40% to 49.60%
****Parkview City Limited became associates from subsidiary with effect from 31 August 2017.
*****Devyani Food Industries (Kenya) Ltd. (Earlier known as Sameer Agriculture & Livestock (Kenya) Ltd.) became subsidiary
from associates on account of increase in stake from 49.96% to 62.50% with effect from 28 September 2018.
For details towards pledge of some of above shares refer note no. 22 C
7. Investments
Particulars Face value per
shares/ Debenture
in Rs.
As AT 31.03.2019 As AT 31.03.2018
number 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 Pvt. Ltd.)
10 2,000,000 1,029.06 2,020,000 1,279.55
Shabnam Properties Private Limited 10 15,680 3.44 15,680 3.44
Empire Stocks Pvt Limited 10 1,900 0.01 1,900 0.01
Lemon Tree Hotels Limited 10 - - 78,748,368 4,409.91
Sellwell Foods & Beverages Pvt.Ltd. 10 2,000 0.02 2,000 0.02
Shivalik Solid Waste Management Ltd. 10 18,000 0.18 18,000 0.18
Pinnacle Infracon Ltd. 10 200 0.00 200 0.00
Investment in equity shares (quoted) (at fair value through OCI)
Lemon Tree Hotels Limited 10 53,427,784 4,308.95 - -
Particulars Face value per
shares/ Debenture
in Rs.
As AT 31.03.2019 As AT 31.03.2018
number of shares/
Debentures
Value number of shares/
Debentures
Value
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
RJ CORP LIMITED (CONSOLIDATED)
146
Capital India Finance Limited 10 3,811,320 514.53 3,811,320 8.30
Investment in equity shares (quoted) (at fair value through profit & loss )
Cosmo Films Ltd 10 110 0.02 110 0.03
Cosmo Ferrites Ltd. 10 4,400,000 2.96 200,000 4.40
Jaykay Enterprises Limited 1 9,877 0.06 9,877 0.06
J.K.Cement Ltd. 10 2,233 1.94 2,233 2.27
Jamna Auto Industries Ltd 5 1,380 0.09 1,380 0.11
Pasupati Acrylon Limited 10 45 0.00 45 0.00
Rama Vision Ltd. 10 33,100 0.19 33,100 0.63
Welcure Drugs Ltd. 10 28,900 0.02 28,900 0.02
ICICI Bank Ltd. 2 4,500 1.80 4,500 1.25
Aravali Securities and Finance Ltd. 10 25,000 0.10 25,000 0.09
Reliance Industries Limited 10 2 0.00 2 0.00
Investment in equity shares (unquoted) (at fair value through profit & loss )
Varun Beverages Mozambique Limitada* 10 MZM - - 0.03
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
Investment in mutual fund (quoted) (at fair value through profit & loss )
Birla sunlife Cash plus - Growth regular plan 10 - -
In compulsorily convertible debentures(at amortised cost) in associates
6 year Compulsorily Convertible Debentures (Fully Paid up)
Parkview City Ltd. * 1,000 600,000 600.00 600,000 600.00
Total 64,382,481 6,463.38 85,523,065 6,310.31
Aggregate book value of quoted investments 4,830.65 17.14
Aggregate market value of quoted investments 4,830.65 17.14
Aggregate value of unquoted investments 1,632.73 6,293.16
*Parkview City Limited became associates from subsidiary with effect from 31 August 2017.
For details towards pledge of some of above shares refer note no. 22C
Particulars Face value per
shares/ Debenture
in Rs.
As AT 31.03.2019 As AT 31.03.2018
number of shares/
Debentures
Value number of shares/
Debentures
Value
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
RJ CORP LIMITED (CONSOLIDATED)
147
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
8.Loans
As at 31.03.2019
As at 31.03.2018
Loans carried at amortised cost
Unsecured, considered good
Security Deposit 920.01 697.33
Loan to others 170.00 4.05
Loan to related parties 115.65 633.64
1,205.66 1,335.02
Loan to related parties includes amounts due by companies in which directors of the Company are also director:
Sameer Agriculture & Livestock (Kenya) Ltd - 281.18
Parkview City Ltd 76.20
Empire Stock Private Limited 39.45 352.47
9. Others
As at 31.03.2019
As at 31.03.2018
Financial assets at amortised cost
Balance in deposit accounts with more than 12 months maturity* 51.73 54.06
Interest accrued on fixed deposits - 2.05
51.73 56.11
* Include receipts with lien marked with banks against guarantees issued in favour of various government
departments.
10. Current tax assets (net) (Current)
As at 31.03.2019
As at 31.03.2018
Income tax assets 35.43 41.37
35.43 41.37
10A. Current tax assets (net) (non Current)
As at 31.03.2019
As at 31.03.2018
Income tax assets 380.90 396.78
380.90 396.78
(` in million)
RJ CORP LIMITED (CONSOLIDATED)
148
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
11. Other non-current assets
As at 31.03.2019
As at 31.03.2018
(unsecured, considered good)
Capital advances 296.07 899.02
Security deposits 8.90 23.49
Income tax paid (includes amount paid under protest) 40.24 40.24
Balance with statutory authorities (includes amount paid under protest) 235.22 296.62
Prepaid expenses 378.13 353.80
Advances to Contractors and suppliers 0.14 0.06
958.70 1,613.23
12. Inventories
As at 31.03.2019
As at 31.03.2018
(valued at lower of cost or net realisable value)
Raw materials 4,748.69 4,131.98
Raw material in transit - 4.75
Work-in-progress 1,119.01 1,063.13
Finished goods 2,211.39 2,394.69
Intermediate goods 1,227.86 1,043.49
Stores and spares 1,339.10 1,077.83
10,646.05 9,715.87
13. Trade receivables
As at 31.03.2019
As at 31.03.2018
Unsecured, considered good 3,083.84 3,115.56
Secured, considered good 152.54 189.24
Unsecured, considered doubtful 901.06 467.85
4,137.44 3,772.65
Less : Allowance for doubtful debts 769.62 480.36
3,367.82 3,292.29
14. Cash and cash equivalents
(also for the purpose of Cash Flow Statement)
As at 31.03.2019
As at 31.03.2018
Balance with banks in current accounts 1,843.70 1,793.17
Cheques/drafts on hand 4.91 8.03
Cash in transit 12.92 22.19
Cash on hand 88.52 92.69
1,950.05 1,916.08
RJ CORP LIMITED (CONSOLIDATED)
149
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
15. Bank balances other than cash and cash equivalents
As at 31.03.2019
As at 31.03.2018
Deposits with original maturity more than 3 months but less than 12 months * 556.04 301.77
Unpaid dividend account 0.65 0.06
556.69 301.83
*represent deposit held as margin money, fixed deposit with bank for issuing bank guarantee and fixed deposit under lien.
16. Loans
As at 31.03.2019
As at 31.03.2018
Loans carried at amortised cost
Security Deposit 248.39 71.80
Loan to related parties 1,628.76 1,246.27
Loan to others 1,887.83 1,761.80
3,764.98 3,079.87
Loan to related parties includes amounts due by companies in which directors of the Company are also director:
As at 31.03.2019
As at 31.03.2018
Arctic Overseas Pte. Ltd. 69.67 65.37
Africare Limited 870.89 779.00
Parkview City Limited 688.20 366.70
Accor Industries (Pvt) Ltd - 35.20
17. Other financial assets
(Unsecured, considered good)
As at 31.03.2019
As at 31.03.2018
Interest accrued on:
-Loan given 355.98 337.34
-Term deposits 2.64 7.54
-Others 14.34 7.45
Security deposits 0.21 0.95
Government grant receivable 1,356.63 955.94
Claim receivables 44.91 148.12
Other receivables 60.89 13.36
1,835.60 1,470.70
RJ CORP LIMITED (CONSOLIDATED)
150
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
Interest accured on loan includes amounts due by companies in which directors of the Company are also director:
As at 31.03.2019
As at 31.03.2018
Parkview City Limited 100.22 37.64
Arctic Overseas Pte Ltd 6.11 -
Afrricare Limited 41.61 27.44
18. Other current assets
(Unsecured, considered good)
As at 31.03.2019
As at 31.03.2018
Security deposits 58.91 8.64
Other advances :
-Employees 105.93 105.56
-Contractors and suppliers 1,329.80 1,327.11
Prepaid expenses 310.64 205.20
Balance with statutory/government authorities 1,546.19 587.02
Other advances 219.41 209.48
3,570.88 2,443.01
19. Assets classified as held for sale
As at 31.03.2019
As at 31.03.2018
Property, plant and equipment
Furniture and fixtures 1.35 -
Office equipment 1.85 -
Plant and equipment 0.14 -
Computers 0.68 -
Land and Building# - 359.32
4.02 359.32
# In June 2017, in view of set-up of new production unit at Goa, the Holding Company decided to sell certain land and building
situated at Goa which was originally acquired with acquisition of Goa territory and land situated at Gonda (Uttar Pradesh).
During the year ended on 31 March 2019, these assets have been re-classified back to Property, Plant and Equipment on
account of conditions mentioned in Ind AS 105. Given the nature of assets, such reclassification or change in plan has no
effect on result of operations for this year or prior period.
RJ CORP LIMITED (CONSOLIDATED)
151
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
20. Equity share capital
As at 31.03.2019
As at 31.03.2018
Authorised share capital
1,281,850,000 (March 31, 2018: 1,281,850,000) equity shares of ` 10 each 12,818.50 12,818.50
12,818.50 12,818.50
Issued, subscribed and fully paid-up
211,985 (March 31, 2018: 187,810) equity shares of ` 10 each 2.12 1.88
2.12 1.88
a) Reconciliation of share capital
Particulars no. of shares Amount
Balance as at 01 April 2018 187,810 1,878,100
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
Add: Adjustment of Share held by subsidiaries companies 10 100
Balance as at 31 March 2019 211,985 2,119,850
Balance as at 01 April 2017 187,800 1,878,000
Less: Adjustment of Share held by subsidiaries companies 10 100
Balance as at 31 March 2018 187,810 1,878,100
*During the 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 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 holders of the equity shares are entitled to receive dividends as declared from time to time, and are entitled to voting
rights proportionate to their share holding at the meetings of shareholders.
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:
no. of shares %
shareholders as at 31 March 2019
Ravi Kant Jaipuria & Sons (HUF) 184,455.00 87.01%
Mr. Varun Jaipuria 19,751.00 9.32%
shareholders as at 31 March 2018
Ravi Kant Jaipuria & Sons (HUF) 169,645.00 90.32%
Mr. Varun Jaipuria 10,396.00 5.54%
RJ CORP LIMITED (CONSOLIDATED)
152
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
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) Preference share capital
The Company also has authorised preference share capital of 18,000,000 (31 March 2018: 18,000,000) preference shares of
` 100 each. During the 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 31.03.2019
As at 31.03.2018
Capital reserve
Balance at the beginning of the reporting period/year 2,227.86 2,227.86
For the year 304.74 -
Balance at the end of the reporting period/year 2,532.60 2,227.86
Capital reserve on consolidation
Balance at the beginning of the reporting period/year 1,761.06 1,434.58
Add: Movement - 326.48
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 96.62 96.62
Add: Transfer from debenture redemption reserve 105.03 -
Balance at the end of the reporting period/year 201.65 96.62
Debenture redemption reserve
Balance at the beginning of the reporting period/year 57.85 -
Add: Additions made during the reporting period/year 47.18 57.85
Less: Transfer to general reserve 105.03 -
Balance at the end of the reporting period/year - 57.85
securities premium reserve
Balance at the beginning of the reporting period/year 600.13 600.13
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 employee stock options - (0.00)
Balance at the end of the reporting period/year 5,658.95 600.13
surplus in the statement of profit and loss
Balance at the beginning of the reporting period/year (3,327.70) (5,402.59)
Less: Dividend paid - 96.83
Less: Dividend distribution tax 17.03 28.42
Less: Transfer to debenture redemption reserve 47.18 57.85
Add: Profit for the reporting period/year (939.12) (137.62)
RJ CORP LIMITED (CONSOLIDATED)
153
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
(4,331.03) (5,723.32)
Add : FCTR transferred to Retained Earning - (7.88)
Re-measurement of equity instrument at fair value, net of tax 1,197.78 2,444.75
Remeasurement of post-employment benefit obligation, net of tax 33.70 (41.25)
Balance at the end of the year (3,099.55) (3,327.70)
share based payment reserve
Balance at the beginning of the reporting period/year 74.04 73.15
Add: Employee stock option scheme expense 1.93 1.92
Add: Movement during the reporting period/year (0.19) (1.03)
Balance at the end of the reporting period/year 75.78 74.04
Foreign currency monetary item translation difference account
Balance at the beginning of the year 41.10 1.59
Add: Additions made during the reproting period/year (9.13) 53.90
Less Amortised During the year 5.76 14.39
Balance at the end of the year 26.21 41.10
Transaction with nCI Reserve
Balance at the beginning of the reporting period/year (583.85) 1,086.90
Add: Movement during the reporting period/year (567.39) (1,670.75)
Balance at the end of the reporting period/year (1,151.24) (583.85)
Exchange differences on translating the financial statements of foreign operations
Balance at the beginning of the reporting period/year 168.65 132.22
Add: Exchange differences arising on translation of foreign operations 158.23 28.55
Add: transfer to retained earnings - 7.88
Balance at the end of the reporting period/year 326.88 168.65
6,332.34 1,115.76
Promoter Contribution In Equity
Balance at the beginning of the reporting period/year 535.57 -
Add: Movement during the reporting period/year - 535.57
Balance at the end of the reporting period/year 535.57 535.57
Description of nature and purpose of each reserve:
Capital reserve - Created on merger of Devyani Enterprises Pvt ltd, Devyani Oversease Pvt Ltd, Farm2Plate Dairy Produce
Pvt Ltd, Devyani Hotels Pvt Ltd, Universal Dairy Product Private Ltd with the Company pursuant to and in accordance with the
Court approved scheme of amalgamation and on acquisition of Devyani Food Industries (Kenya) Ltd. during the year in one of
the subsidiary, namely, Devyani Foods Industries 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.
As at 31.03.2019
As at 31.03.2018
RJ CORP LIMITED (CONSOLIDATED)
154
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
Retained earnings - Created from the profit / loss of the Company, as adjusted for distributions to owners, transfers to other
reserves, etc.
Debenture redemption reserve - Created as per provisions of the Companies Act, 2013 (as applicable to Holding Company)
out of the distributable profits and can only be utilised for redemption of debentures.
Exchange differences on translating the financial statements of foreign operations - Exchange differences arising on
translation of the foreign operations of the Group, recognised in other comprehensive income as described in accounting
policy and accumulated in a separate reserve within equity. The cumulative amount is reclassified to profit or loss when the
net investment is disposed.
share based payment reserve - Created for recording the grant date fair value of options issued to employees under
employee stock option schemes and is adjusted on exercise/ forfeiture of options.
Foreign currency monetary item translation difference account - Created for recording exchange differences arising on
restatement of long term foreign currency monetary items, other than for acquisition of fixed assets, and is being amortised
over the maturity period of such monetary items.
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:
Particulars As at 31.03.2019
As at 31.03.2018
Debentures
'-Compulsorily convertible debentures (unsecured) 592.70 1,750.00
'-Non-convertible debentures (secured) (Refer Foot Note (a)) - 2,991.12
Term loans (secured)
'-Foreign currency loans from banks 2,767.29 400.38
'-Indian rupee loans from banks 28,378.69 27,669.67
'-Indian rupee loan from a financial institutions/others 5,209.03 4,639.01
Compulsorily convertible preference shares (unsecured) - 2,579.34
Redeemable, non-cumulative, non-convertible preference shares (unsecured)* 104.30 100.29
Deferred value added tax (unsecured) 55.97 121.04
Deferred payment liabilities (secured) (refer note 22E) - 20.29
loan from body corporate/others carrying interest rate ranging from 5-29 % 771.56 509.07
37,879.54 40,780.21
Refer note 22 C for terms & condition of term loans ,issue and redemption of Compulsorily convertible debentures,
Compulsorily convertible preference share & deffered value tax and loan from body corporate/others
* 2.25 millions redeemable preference shares were issued during the year 2017-2018 by DIL as fully paid with a par
value of Rs 10 . The redeemable preference shares are mandatorily redeemable at par in the year 2022-2023 and the DIL
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 group has complied with all the loan covenants.
RJ CORP LIMITED (CONSOLIDATED)
155
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
a) Terms and conditions of issue and redemption of non-convertible debentures (nCDs) to kotak Mahindra Bank
Limited and RBL Bank Limited are as under:
During the year ended 31 March 2017, the Holding Company had issued 1,500 NCDs each to Kotak Mahindra Bank Limited
and RBL Bank Limited. The NCDs were repaid during the year. There were no NCDs outstanding as at 31 March 2019 and
details of NCDs as at 31 March 2018 are as under:
no. of debentures Date of issue Face value (`)
3,000 23 March 2017 1,000,000
B. Current borrowings:
Particulars As at31.03.2019
As at 31.03.2018
Loans repayable on demand
Banks-working capital, cash credit and overdraft facilities (secured) 6,188.56 4,164.74
Banks-working capital, cash credit and overdraft facilities (unsecured) 1,900.00 -
Corporate loan taken from bank (Secured) (refer note 22F ) - 1,388.00
Loan from director (unsecured) carrying interest rate @ 11.50% to 12%/(2%+ 1 year LIBOR)
1,180.01 722.15
From body corporate (unsecured) carrying interest rate ranging from 0-12% 137.68 246.33
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)
244.40 101.19
10,152.73 6,622.41
i) The working capital facilities from banks and financial institution are secured against current assets of respective
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.
RJ CORP LIMITED (CONSOLIDATED)
156
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
C. Terms and conditions/details of securities for loans are as under:
name of the bank/instrument 31 March 2019 31 March 2018
non-current
Current non-current
Current
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 750000 29-03-2012 1000 400000 26-03-2015 1000 600000 26-03-2015 1000
b) The CCD’s carry a rate of Interest of 4% for the 1st year, 6% for the 2nd year, 8% for the 3rd year, 10% for the 4th year and 12% for the last 5th & 6th year from the date of allotment.
c) The CCD’s shall have a tenure of 6 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.
d) Term of Conversion of 750000 debentures of face value of 1000 which was originally issued on 29-03-2012 has been extended for a period of two years i.e upto March 26, 2020 at a coupan rate of 12%.
592.70 - 1,750.00 -
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 300000 1 2-06-2012 1000
b) The CCD’s carry a rate of Interest of 8% for the 1st & 2nd year, 10% for 3rd & 4th year, 12% for 5th & 6th year from the date of their allotment.
c) The CCD’s shall have a tenure of 6 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.
- - - 300.00
Total (A) 592.70 - 1,750 300
Term Loans
loan 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.
2.52 1.38 4.11 1.07
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
157
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
The term loan amounting to Rs. 600 million was taken from IndusInd Bank Limited by DIL during the year ended 31 March 2013. The interest rate applicable is 9.9% payable monthly. Prior to 9 March 2017, the interest rate applicable was 11.20% up to 8 March 2017 and 11.25% up to 16 Janurary 2017. The tenure of the loan is 6 years with moratorium of one year.
The term loan is secured by :
Primary Security: First pari passu charge by way of hypothecation of the Company's entire moveable fixed assets both present and future.
Collateral Security: Pari passu first equitable mortgage by way of charge on the Company's unit being setup at Plot No. 18, Sector-35, Industrial estate, Gurgaon.
Second pari passu charge by way of hypothecation on the entire current assets of the Company.
- - (0.00) 14.06
The term loan amounting to Rs. 300 was taken from Yes Bank Limited by DIL during the year ended 31 March 2016. The tenure of the loan is 73 months.
The interest rate applicable is 9.60% p.a payable monthly (previous year: 9.25% p.a payable monthly).
The term loan was secured by :
First pari passu charge on all movable property, plant and equipment of the Company both present and future.
Second pari passu charge over all current assets of the Company both present and future.
First pari passu charge on immovable property situated at Plot No. 18, Sector-35, Industrial estate, Gurugram-122004.
179.99 62.04 240.00 60.00
The term loan amounting to Rs. 1,000 was taken from Axis Bank Limited by DIL. Loan amounting to Rs. 500 was drawn down during the year ended 31 March 2017 and Rs 500 during the year ended 31 March 2016. The tenure of the loan is 48 months.
The interest rate applicable is Axis Bank base rate +1.30 % presently 9.85% p.a. payable monthly (previous year: 9.50% 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 Company's entire moveable property, plant and equipment both present and future.
Pari passu first charge by way of equitable mortgage on the 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 Company.
Note : The outstanding balance of borrowings is net of unamortised transaction cost of Rs. 2.06 (previous year : Rs.3.56).
419.09 244.76 656.44 200.00
name of the bank/instrument 31 March 2019 31 March 2018
non-current
Current non-current
Current
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
158
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
name of the bank/instrument 31 March 2019 31 March 2018
non-current
Current non-current
Current
The term loan amounting to Rs. 400 was taken from IDBI Bank by DIL during the year ended 31 March 2014. The tenure of the loan is 69 months including moratorium period of 10 months.
The interest rate applicable is Nil( previous year: 10 % p.a)
The term loan was 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 equitable mortgage by way of charge on the Company's unit setup at Plot No. 18, Sector-35, Industrial estate, Gurugram-122004, along with other lenders.
Note: The outstanding balance of borrowings is net of unamortised transaction cost of Rs. Nil (previous year : Rs. 0.02).
- - (0.02) 60.00
The term loan amounting to Rs. 800 was taken from Ratnakar Bank Limited by DIL 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 0.60% above RBL base rate presently 10.25 % p.a . (previous year: 9.85 % p.a ).
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 equitable mortgage by way of charge on the 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 Rs. 0.01 (previous year : Rs. 0.11 ).
- 19.68 19.57 72.21
The term loan amounting to Rs. 150 was taken from Yes Bank Limited by DIL 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 is 9.60% p.a payable monthly (previous year: 9.25% p.a., payable monthly ).
The term loan was secured by :
First Pari passu charge on all property, plant and equipment of the Company (both present and future) with minimum 1.0x cover
Unconditional and irrevocable personnel 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 Rs. 0.03 (previous year : Rs. 0.49 ).
- 9.35 8.91 37.50
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
159
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
The term loan amounting to Rs. 750 was taken from Ratnakar Bank Limited by DIL during the year ended 31 March 2018. The tenure of the loan is 72 months.
The interest rate applicable is 9.70% p.a payable monthly.( previous year: 8.5% p.a.).
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 Rs. 2.97 (previous year : Rs. 4.22).
509.47 135.29 643.49 102.27
The term loan amounting to USD 3.09 million was taken from Yes Bank Limited by DIL 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: LIBOR + 2.5% 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 Rs. 1.50 (previous year : Rs. 2.18 ).
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 5.25% p.a.
159.37 52.93 198.18 -
The term loan amounting to Rs. 3.08 was taken from Yes Bank Limited by DIL during the year ended 31 March 2018. The tenure of the loan is 60 months from the date of first disbursement including the 15 month moratorium period. The interest rate applicable is LIBOR +2.5% p.a payable monthly.
The term loan is secured by :
Primary Security: First pari passu charge by way of hypothecation of the Company's entire moveable property, plant and equipments, both present and future.
Collateral Security: Pari passu first charge by way of equitable mortgage on the immovable fixed assets of the Company's industrial land situated at Sector 35 Gurugram.
Note: The outstanding balance of borrowings is net of unamortised transaction cost of Rs. 2.18
137.10 45.24 198.18 -
name of the bank/instrument 31 March 2019 31 March 2018
non-current
Current non-current
Current
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
160
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
name of the bank/instrument 31 March 2019 31 March 2018
non-current
Current non-current
Current
The term loan amounting to Rs. 1,000 was taken from IndusInd Bank Limited by DIL 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. payable monthly linked to MIBOR, for first drawdown of Rs. 250 (previous year: Nil)
- 9.10% p.a. payable monthly linked to MIBOR, for second drawdown of Rs. 500 (previous year: Nil)
- 9.93% p.a. payable monthly linked to MIBOR, for third drawdown of Rs. 250 (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.
Second Pari passu first charge by way of extension of mortgage on the immovable property, plant and equipment of the Company's industrial land at Plot No. 18, Sector-35, Industrial estate, Gurugram-122004.
925.00 75.00 - -
The term loan amounting to Rs. 130 was taken by Devyani Food Street Private Limited ('DFSPL') from Yes Bank Limited during the year ended 31 March 2012. The interest rate applicable is Yes bank Base rate + 1.75% (presently 9.50% p.a.) payable monthly. The tenure of the loan is 7 years.
The term loan is secured by :
(i) Rs. 90 taken in first tranche
- Exclusive charge on receivables of the company through an escrow account maintained with the bank.
- The Company has to maintain Debt Service Reserve Account (DSRA) for one quarter interest and principal repayment amount.
(ii) Rs. 40 taken in second tranche
- Exclusive charge on receivables of the company through an escrow account maintained with the bank.
- Non disposable undertaking from Devyani International Limited for 60% shareholding in the company.
- Corporate guarantee of Devyani International Limited amounting to Rs.140.
- The Company has to maintain Debt Service Reserve Account (DSRA) for one quarter interest and principal repayment amount.
- - - 4.88
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
161
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
The term loan amounting to Rs. 150 was taken by Devyani Food Street Private Limited ('DFSPL') from Yes Bank Limited during the year ended 31 March 2018.
The interest rate applicable is 9.50% p.a. payable monthly. The tenure of the loan is 84 months.
The term loan is secured by :
First pari passu charge over entire movable fixed assets and current assets of the company.
Unconditional and irrevocable corporate gaurantee of Devyani International Limited.
Non Disposable Undertaking (NDU) from Devyani International Limited for its shareholding in the Company.
100.00 26.11 128.34 21.65
The term loan was taken by DINL from ECO Bank during the year ended 31 March 2011. The interest rate applicable ranged between 18% to 19% p.a. payable monthly. The tenure of the loan is 90 months including moratorium period of 6 months.
The term loan is secured by :
- All assets debenture on the assets of DINL
- - - 0.79
The term loan was taken by Devyani International Nepal Private Limited ('DINPL') from NMB Bank during the year ended 31 March 2011. The interest rate applicable is 9%. The tenure of the loan is 10 years including moratorium period of 12 months.
The term loan is secured by :
- Hypothecation of all fixed assets of DINPL.
- Hypothecation over entire current assets of DINPL.
- Personal guarantee of Mr. Ravi Kant Jaipuria.
- Corporate guarantee of M/s Varun Beverages (Nepal) Private Limited.
- - 4.02 6.54
The term loan amounting to NPR 100,00,000 was taken from Everest Bank Limited by DIL during the year ended 31 March 2019. The tenure of the loan is 18 months .
The rate of Interest is 11.7 % (previous year: Nil) 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 - -
name of the bank/instrument 31 March 2019 31 March 2018
non-current
Current non-current
Current
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
162
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
name of the bank/instrument 31 March 2019 31 March 2018
non-current
Current non-current
Current
The term loan amounting to NPR 30,493,505 was taken from Everest Bank Limited by DIL during the year ended 31 March 2019. The tenure of the loan is 60 months .
The rate of Interest is 11.7 % (previous year: Nil) 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.
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 11.7 % (previous year : Nil) 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.
10.71 2.68 - -
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 Period to maturity from the balance sheet date is 8 months (previous year : 20 months )
- 1.17 1.17 1.63
The term loan amounting to Rs. 400 was taken from IDFC Bank Limited by DIL 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 9.90 % p.a., payable monthly (previous year: Nil)
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.
400.01 0.11 - -
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
163
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
The term loan amounting to Rs. 57.63 was taken by Devyani Airport Services (Mumbai) Private Limited ('DASMPL') from High Street Food Services Private Limited during the year ended 31 March 2014.
The interest rate applicable is 12% p.a. payable quarterly.
The tenure of the loan is 60 months including moratorium period of 24 months.
- 0.39 - 0.39
Term loan taken by Alisha Retail Pvt Ltd from Yes Bank with outstanding ` 625,000,000 (Previous year ` 700,000,000) 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.
341.67 211.45 553.12 137.50
Term loan taken by Alisha Retail Pvt Ltd from Yes Bank with outstanding ` 333,333,334 (Previous year ` Nil) 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.
333.33 71.88 - -
The term loan from Yes Bank taken by Diagno Labs India Pvt. Ltd. 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)
170.04 262.50 254.44 225.00
name of the bank/instrument 31 March 2019 31 March 2018
non-current
Current non-current
Current
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
164
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
name of the bank/instrument 31 March 2019 31 March 2018
non-current
Current non-current
Current
Term loan from IDFC Bank by Diagno Labs India Pvt. Ltd. is secured by second pari passu charge on current and moveable fixed assets of the company. 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
329.19 183.33 396.11 212.33
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).
- 74.73 74.27 74.81
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%.
3.78 0.88 - -
Term Loan taken from Axis Bank by DFIL. The Rate of interest charged is 9.35% currently having tenure of 5 years 5 months.
Loan is secured by -
(i) Prime: First Pari-passu charge over entire movable and immovable fixed assets of the company excluding assets charged on an exclusive basis with other lenders (both present and future). Pari-passu first charge on assets of Asansol unit to be created post commissioning but not later than 30th september.
(ii) Collateral: Pari-passu first charge by way of hypothecation of brand ""Creambell"" owned by the company.
(iii) Guarantee: Personal Guarantee of Mr.R.K.Jaipuria.
420.00 140.00 560.00 140.00
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)
99.00 - 197.59 100.00
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
165
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
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)
550.00 - 546.05 -
Term Loan taken from IDFC Bank by DFIL. The Rate of interest charged is 9.25% currently. Principal amount to be repaid in 8 equal installments of Rs 93.75 after a moratorium of 2 years.
(i) First Pari-passu charge on movable fixed assets and immovable fixed assets of the company located at Goa, Baddi and Kosi ( except assets charge specifically to other lenders)
(ii) First pari-passu charge over ""Creambell"" brand of the company.
(iii) second Pari Passu charge over entire current assets of the borrwer.
(iv) Personal Guarantee of Mr. R. K. Jaipuria and M/s Ravi Kant Jaipuria & Sons (HUF)
374.71 - 561.98 187.50
Term Loan taken from HDFC bank by DFIL, The rate of interest is 9.15% currently. Repayment are made in month of june, july & August.The 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.
626.90 117.55 744.45 117.55
Term Loan taken from HDFC bank by DFIL, The rate of interest is 9.10% currently. Repayment are made in month of May and July .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.
280.00 70.00 - -
name of the bank/instrument 31 March 2019 31 March 2018
non-current
Current non-current
Current
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
166
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
name of the bank/instrument 31 March 2019 31 March 2018
non-current
Current non-current
Current
Term Loan taken from RBL bank by DFIL, The rate of interest is 9.025% currently. Repayment in two bullet installments of Rs. 150 mn each to be paid on 1st July and Rs120 mn in August 2019
(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) .
- - 270.00 -
Term Loan taken from RBL bank by DFIL, The rate of interest is 10.25% currently. principal amount is repaid in 18 equal quarterly installments.of Rs 41.67 mio starting from August 2018 to November 2022.
(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) .
455.75 125.00 625.00 125.00
Term Loan taken from RBL bank by DFIL, The rate of interest is 8.50% currently. principal amount is repaid in 18 equal quarterly installments.of Rs 38.89 mio starting from November 2019 to February 2014.
(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
616.40 77.78 - -
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
167
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
Term Loan taken from Induslnd Bank by DFIL. Principal amount to be repaid in 88 equal installments.
(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.
975.00 25.00 - -
Vehicle loan from HDFC bank by DFIL. Repayment is made in 47 equal installments (EMI) of Rs. 1.49 mn including interest. Secured against hypothecation of respective vechicle.
32.21 16.80 43.95 13.71
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
In FY 2018-19-Rs 399.21mn In FY 2019-20- Rs. 415.26mn In FY 2020-21- Rs. 310.55mn
In FY 2021-22- Rs. 26.63mn. The loan is secured by
(i)First Pari Passu all assets debenture over Devyani Food Industries (Kenya) Limited for Rs 2.32bn & Rs 62.08mn.
(ii) Hire purchase agreement between NICB & Devyani Food Industries (Kenya) Limited.
(iii) All assets insurance cover with NIC Bank interest noted.
(iv) Legal charge of Rs 1.81bn supplemental to the debenture over LR Nos 8906/10 in the name of Devyani Food Industries (Kenya) Limited
752.43 399.21 - -
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.
717.79 15.00 - -
name of the bank/instrument 31 March 2019 31 March 2018
non-current
Current non-current
Current
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
168
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
name of the bank/instrument 31 March 2019 31 March 2018
non-current
Current non-current
Current
Loans taken by Holding Company from Yes bank carrying rate of interest of 9% (10.25% upto September 30, 2017). 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.
339.56 100.00 434.47 50.00
Loans taken by Holding Company from Yes bank carrying rate of interest of 8.9% . 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
c) Personal guarantee of one of the director of the company.
340.07 125.00 463.29 31.25
Loans taken by Holding Company from Indusind bank carrying rate of interest of 9.1%. 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 to 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.
766.89 200.00 960.71 -
Loan taken by VBL carrying rate of interest of LIBOR+1.40% (31 March 2018 LIBOR +1.40%) and is repayable in two equal instalments of USD 2.5 million each in May 2018 and August 2018. The Company has separately executed contracts for cross currency interest plus rate swap on aforesaid loan and interest there on.
This loan is secured on first pari passu charge on the entire movable and immovable property, plant and equipment of the Holding Company including the territory /franchise rights acquired under the acquisition under slump sale basis.
1,693.64 - 1,635.69 325.22
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
169
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
name of the bank/instrument 31 March 2019 31 March 2018
non-current
Current non-current
Current
Loans taken by VBL carrying weighted average rate of interest 8.50% (31 March 2018: 8.32%) depending upon tenure of the loans. These loans are secured on first pari passu charge on the entire movable and immovable property, plant and equipment of the Holding Company including the territory /franchise rights acquired under the acquisition under slump sale basis.
For repayment terms refer note 22D(a).
16,837.47 3,375.23 16,683.55 1,937.81
Loans taken by VBL carrying rate of interest in range of 7.90-10.33% (31 March 2018: 7.90-10.33%). 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.
17.00 41.21 48.07 56.55
Loans of Varun Beverages (Zimbabwe) (Private) Limited, carry rate of interest of 5.26% to 6.76% (31 March 2018: 4% to 7%).
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.
For repayment terms refer note 22D (e).
1,082.59 571.27 912.18 199.58
Loans from banks at Varun Beverages Lanka (Private) Limited carry rate of interest of 13% (31 March 2018 13%). 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 22D.
0.88 0.64 2.74 -
Loans from banks at Varun Beverages (Nepal) Private Limited carry rate of interest of 8.80 % (31 March 2018 -Nil). For repayment terms refer note 22D.
132.36 117.08
Total (B) 31,145.98 7,005.62 28,070.05 4,516.79
Loan from financial institution/others
Loan from Industries and Commerce Department, 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., 9.72%. Loan is secured against bank guarantee equivalent to 100% of loan amount valid upto the repayment date of loan plus six months grace period.
367.13 - 122.85 -
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%.
334.39 - 191.71 -
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
170
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
name of the bank/instrument 31 March 2019 31 March 2018
non-current
Current non-current
Current
Loans of Varun Beverages Lanka (Private) Limited carry rate of interest of (31 March 2018 14% to 14.50%). These loans are repayable in 7-12 remaining monthly instalments of LKR 0.09 million to 1.24 million each.
These term loans are secured by mortgage over respective vehicles financed and machinery spares.
- - 4.69 1.42
Loan taken by VBL from others are repayable generally over a period of three to five years in instalments as per the terms of the respective agreements. These loans are secured against respective asset financed
2.52 10.66 12.94 22.54
Interest Free Loan taken from PICUP by DFIL The Loan is repayable in one installment after 7 years from the date of disbursement.
133.41 - 97.92 -
Loan from financial institutions taken by Holding Company
Loan 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 september 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.
- 139.90 187.64 600.00
Loan taken from Kotak Mahindra Prime Limited carrying rate of interest rate of 11.25% for first month, 15.35% for next three months and 9.9% thereafter. This loan is repayable in 48 monthly installments of Rs. 20.83 starting from January 2018 to December 2021.
432.82 250.00 679.18 250.00
Loan taken from Kotak Mahindra Prime Limited carrying rate of interest of 9.90%. 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.
d) Personal guarantee of RK Jaipuria & Sons (HUF).
738.10 261.90 1,000.00 -
Loan taken from Kotak Mahindra Prime Limited carrying rate of interest of 9.25% till April 2018 and 9.75% thereafter. This loan is repayable in bullet at the end of one year. This Term Loans from Kotak Mahindra Prime Ltd. is secured by :
a) Pledge of some of the Quoted/Unquoted Equity Shares held by the company.
b) Extension of charge over pledge of 6% equity shares of the Company and pledge of additional 1.5% equity shares of the Company as held by promoters.
c) Hypothecation over one of the current account of the Company.
d) Personal guarantee of RK Jaipuria & Sons (HUF).
- - - 500.00
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
171
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
name of the bank/instrument 31 March 2019 31 March 2018
non-current
Current non-current
Current
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 10.50%. This loan is repayable in 48 monthly installments of Rs. 29.16 starting from June 2019 to May 2023.
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.
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.
297.50 255.00 552.50 212.50
Loan from Clix Capital Services Private Limited carrying rate of interest 10.75%.This loan is repayable in bullet at the end of four months from drawdown.
- - - 500.00
Loan from Clix Capital Services Private Limited carrying rate of interest 10%. 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.
325.00 178.75 503.75 146.25
Loan from Axis Finance Limited carrying rate of interest 9.5%. 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
662.05 333.33 992.80 -
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
172
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
name of the bank/instrument 31 March 2019 31 March 2018
non-current
Current non-current
Current
Loan from Axis Finance Limited carrying rate of interest 9.3%. 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
220.29 75.00 293.05 -
Total (C) 5,209.03 1,908.71 4,639.01 2,232.70
Compulsorily convertible preference shares (unsecured)
CCPS shall be compulsorily and mandatorily convertible into equity shares upon expiry of fifteen years from the allotment date at a price which shall be calculated at the valuation of the Company computed by an independent valuer. The said CCPS may also be compulsorily and mandatorily convertible into equity shares earlier on the occurance of certain events at the option of the investor into such number of equity shares so as to enable Investor having such shareholding percentage in the company equal to Investor Exit Consideration in terms of Investment and Shareholders’ Agreement dated 15th September, 2014 and supplementary agreement dated 28 August 2017. The holders of compulsorily convertible preference shares have no rights to receive notices of, attend or vote at general meetings except in certain limited circumstances.
- - 2,579.34 -
Total (D) - - 2,579.34 -
Deferred value added tax (unsecured)
Deferred value added tax related to the VBL is repayable in 34 quarterly instalments starting from July 2013 to October 2021, first 33 quarterly instalments of ` 52.50 and last quarterly instalment of ` 51.59. The loan is discounted at the weighted average rate of borrowings, i.e.,11.51%.
- - - 3.72
Deferred value added tax and deferred excise relating to Varun Beverages (Zambia) Limited is repayable in instalments from October 2015 and will be spread over five years. Both of these are interest free.
55.97 50.07 121.04 60.07
Total (E) 55.97 50.07 121.04 63.79
Loan from body corporate/others (unsecured)
Loans taken by DIL from Chellarams Plc carries rate of interest 5%. These Loans are repayable within 3 to 5 years.
365.75 197.69 502.10 -
Loans taken by Devyani Food Industries (Kenya) Ltd. from Sameer ICT Limited carrying rate of interest 5%. These Loans are repayable within 3 to 5 years.
401.47 - - -
Loan taken by SVS India (P) Limited From Akshay Jindal carrying rate of interest 12%
0.80 - 0.80 -
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
173
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
Loan taken by Diagno from Sky Drive Consultants Pvt. Ltd. Carrying rate of interest 29.15% repayble 62 monthly installments as per the terms of the agreemnt
1.36 - 4.00 -
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
2.17 - 2.17 -
Total (F) 771.56 197.69 509.07 -
Total (A+B+C+D+E+F) 37,775.24 9,162.09 37,668.51 7,113.28
22D Repayment terms:
a) Loans carrying weighted average rate of 8.52% (31st March 2018:- 8.32%) depending upon tenure of loans
s. no.
Description 31 March 2019 31 March 2018 Repayment terms
non-current
Current non-current
Current
1 Term loan - 1 372.05 85.95 457.81 57.30 Two instalments of ` 42.98 millions each due in May 2019 and June 2019, two instalments of ` 57.30 millions each due in May 2020 and June 2020 , two instalments of ` 57.30 millions each due in May 2021 and June 2021 and two instalments of ` 71.63 millions each due in May 2022 and June 2022
2 Term loan - 2 1050.00 350.00 1,400.00 100.00 Two instalments of ` 175 millions each due in May 2019 and June 2019, two instalments of `175 millions each due in May 2020 and June 2020, two instalments of ` 175 millions each due in May 2021 and June 2021 , two instalments of ` 175 millions each due in May 2022 and June 2022.
3 Term loan - 3 990.00 210.00 1,200.00 - Three instalments of ` 70.00 each due in May 2019, June 2019 and July 2019, three instalments of ` 80.00 each due in May 2020,June 2020 and July 2020, two instalments of ` 80.00 each due in May 2021 and June 2021, one instalments of ` 80.00 due in July 2022 and three instalments of ` 90.00 each due in May 2023, June 2023 and July 2023 and two instalments of ` 90.00 due in May 2024 and of ` 150.00 due in June 2024.
4 Term loan - 4 995.46 - 1,792.89 200.00 Instalment 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.
name of the bank/instrument 31 March 2019 31 March 2018
non-current
Current non-current
Current
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
174
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
5 Term loan - 5 548.95 - 898.33 150.00 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 - 6 600.00 260.00 860.00 260.00 Two instalments of ` 130 each due in May 2019 and June 2019, 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 1,567.75 200.00 1,374.28 200.00 Two instalments of ` 98.21 each due in May 2019 and June 2019, two instalments of ` 196.42 each due in May 2020 and June 2020, two instalments of ` 294.62 each due in May 2021 and June 2021 and two instalments of ` 294.62 each due in May 2022 and June 2022.
8 Term loan - 8 545.00 140.00 750.00 - Two instalments of ` 70.00 each due in June 2019 and July 2019, 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 instalments of ` 85.00 due in May 2023.
9 Term loan - 9 581.36 - 1,375.11 206.25 Instalment of ` 76.96 million due in May 2021, ` 183.31 million due in June 2021, ` 183.31 due in May 2022 and ` 137.78 due in June 2022.
10 Term loan - 10 333.40 101.40 434.80 65.20 Instalment of ` 43.45 due in May 2019 and ` 57.95 due in June 2019, 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.
11 Term loan - 11 833.40 125.00 958.40 41.60 Two instalments of ` 62.50 each due in May 2019 and June 2019, 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 and ` 111.30 in June 2023.
12 Term loan - 12 300.00 100.00 400.00 100.00 Two instalments of ` 50 each due in May 2019 and June 2019, two instalments of ` 75 each due in May 2020 and June 2020 and two instalments of ` 75 each due in May 2021 and June 2021.
s. no.
Description 31 March 2019 31 March 2018 Repayment terms
non-current
Current non-current
Current
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
175
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
13 Term loan - 13 834.06 297.88 1,131.94 357.46 Two instalments of ` 148.94 each due in May 2019 and June 2019, 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 - 14 300.00 100.00 400.00 100.00 Two instalments of ` 50 each due in May 2019 and June 2019, 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 two instalments of ` 50 each due in May 2022 and June 2022.
15 Term loan - 15 320.00 80.00 400.00 - Two instalments of ` 40 each due in May 2019 and June 2019, 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.
16 Term loan - 16 800.00 100.00 900.00 100.00 Two instalments of ` 50 each due in May 2019 and June 2019, 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 1,950.00 - 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.
18 Term loan - 18 450.00 50.00 - - Two instalments of ` 25 each due in May 2019 and June 2019, 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.
s. no.
Description 31 March 2019 31 March 2018 Repayment terms
non-current
Current non-current
Current
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
176
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
s. no.
Description 31 March 2019 31 March 2018 Repayment terms
non-current
Current non-current
Current
19 Term loan - 19 1,999.56 500.00 - - Two instalments of ` 250.00 each due in May 2019 and June 2019, 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 - 20 816.48 150.00 - - One instalments of ` 150.00 due in May 2019, one instalments of `200.00 due in May 2020,one instalments of ` 200.00 due in May 2021,one instalments of ` 200.00 due in May 2022 and one instalments of ` 250.00 due in May 2023.
21 Term loan - 21 800.00 200.00 - - 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.
22 Term loan - 22 500.00 - - - 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.
Total (22D (a)) 16,837.47 3,375.23 16,683.55 1,937.81
b) Loans of Varun Beverages (Zimbabwe) (Private) Limited, carry rate of interest of 5.26% to 6.76% (31 March 2018:
4% to 7%):
1 Term loan - 1 553.26 268.97 221.78 4.45 Balance amount as at 31 March 2019 is repayable in 12 quarterly instalments of USD 1 million each.
2 Term loan - 2 529.33 302.30 690.40 195.13 Balance amount as at 31 March 2019 is repayable in 4 quarterly instalments of USD 0.8 Million & 7 quarterly instalments of USD 1.3 Million.
Total (22D (b)) 1,082.59 571.27 912.18 199.58
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
177
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
c) Loans from banks at Varun Beverages Lanka (Private) Limited carry rate of interest of 13 % (31 March 2018 13%)
1 Term Loan - 1 0.88 0.64 2.72 - Balance amount as at 31 March 2019 is repayable in 26 monthy instalments of LKR 0.15 million.
Total (22D (c)) 0.88 0.64 2.72 -
d) Loans from banks at Varun Beverages (nepal) Private Limited carry rate of interest of 8.80 % (31 March 2018: nil)
1 Term Loan - 1 132.36 117.08 - - 3 installments of NPR 62.50 million each payable in April, May and June 2019, 3 installments of NPR 62.50 each payable in April, May and June 2020 and 1 installment of NPR 25 million payable in April 2021.
Total (22D (d)) 132.36 117.08 - -
grand total 22D (a+b+c+d)
18,053.30 4,064.22 17,598.46 2,137.39
22E. Deferred payment liabilities (secured)
Description Loan outstanding Loan outstanding
31 March 2019 31 March 2018
non-current Current non-current Current
(i) Plant and equipment acquired under deferred payment terms
The payments are secured against a letter of credit issued by the Varun Beverages Ltd's banker. The amount is repayable in various tranches from January 2019 to April 2019.
- 70.94 20.29 362.67
(ii) Land purchased under deferred payment terms
a) The Varun Beverages Ltd had purchased leasehold land from Punjab Small Industries & Export Corporation Limited for a total consideration of ` 197.10
- - - 20.71
This balance carries rate of interest of 11 percent.
Total - 70.94 20.29 383.38
s. no.
Description 31 March 2019 31 March 2018 Repayment terms
non-current
Current non-current
Current
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
178
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
22F.Term & condition for short term loans
Particular & Term of repayment
security & guarantee As at 31 March
2019
As at 31 March
2018
Yes Bank Present Rate :- 8.80%
(i) Subservient Charges over entire movable fixed assets and current assets(including security deposits and loans and advances provided during the normal course of the business) of the borrower (both present and future).
(ii) Pledge over 18,75,000 equity shares of Devyani Food Industries Ltd. held by RJ Corp Ltd., providing minimum security coverage of 1.5x of the facility amount at all times (shares to be held in YBL DP).
(iii) Unconditional and irrevocable Personal Guarantee of Mr. Ravi Kant Jaipuria to remain valid during the entire tenor of credit facilities.
- 750.00
IDFC Bank Present Rate :- 8.50%
Personal Guarantee of Mr. Ravi Kant Jaipuria - 350.00
IDFC Bank Present Rate :- 8.50%
(i)First Pari Passu charge on current and subservient charge on movable fixed assets with 1x cover of the company located at Goa, Baddi and Kosi (except assets charge specifically to other lenders).
(ii) Hypothecation of brand “”Creambell”” on subservient basis.
(iii) Personal guarantee of Mr. Ravikant Jaipuria & M/s. Ravikant Jaipuria & Sons (HUF).
- 250.00
RBL Bank Repayable from June-2018 to August-2018 June-2018- Rs. 12 mn. June-2018- Rs. 13 mn. August-2018- Rs. 13 mn. Present Rate :- 9.35%
(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 upcoming units at asansol.
(iv)Unconditional and irrecoverable personal guarantee of Mr. Ravikant Jaipuria & M/s. Ravikant Jaipuria & Sons (HUF) to remain valid during the tenure of credit facility with us.
- 38.00
Total - 1,388.00
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
179
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
23. Other non-current financial liabilities
As at 31.03.2019
As at 31.03.2018
Deferred revenue on government grant 45.40 45.63
Security deposit 1,015.85 947.66
Derivatives (interest rate swap) 5.36 -
Other deposit 4.41 15.21
1,071.02 1,008.50
24. Other non-current liabilities
As at 31.03.2019
As at 31.03.2018
non-current
Deferred income 6.90 3.20
Provision for contingent liability (Net of tax paid under protest) 23.42 73.83
Other Payable 6.88 -
Lease equalisation reserve 488.18 416.97
525.38 494.00
25. Provisions
(Refer note 41)
As at 31.03.2019
As at 31.03.2018
non-current
Defined benefit liability (net) 1,004.71 766.58
Other long term employee obligations 442.77 347.82
1,447.48 1,114.40
Current
Defined benefit liability (net) 70.98 99.06
Other short term employee obligations 190.16 149.86
261.14 248.92
26. Trade payables
As at 31.03.2019
As at 31.03.2018
Total outstanding dues of-
Micro and small enterprises (refer note 48) 27.65 42.67
Others 7,802.43 5,998.28
7,830.08 6,040.95
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
180
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
27. Other current financial liabilities
As at 31.03.2019
As at 31.03.2018
Current maturities of long-term debts (Refer note 22 C) 9,162.09 7,113.28
Interest accrued but not due on borrowings 379.16 396.89
Interest accrued and due on borrowings 28.57 50.42
Current portion of deferred payment liabilities (Refer note 22 E) 70.94 383.38
Employee related payables 436.73 556.81
Unpaid dividends 4.61 0.06
Security deposits 3,394.58 2,796.03
Liability for foreign currency derivative contract 88.08 33.53
Deferred revenue on government grant 173.81 135.68
Retention money payable 5.38 5.01
other payable 168.70 245.90
Amount due to related party - 4.27
Capital creditors 1,592.64 996.51
Book overdraft - 17.40
Insurance claim receivable(advance against restoration expenses) 145.04 146.42
15,650.33 12,881.59
28. Other current liabilities
As at 31.03.2019
As at 31.03.2018
Advances from customers 852.87 925.52
Statutory dues payable 2,180.89 2,347.85
Advance discount received 3.81 0.00
Deferred income 1,630.64 1,514.76
Other payable 6.97 -
4,675.18 4,788.13
29 Current tax liabilities (net)
As at 31.03.2019
As at 31.03.2018
Provision for tax, net of prepaid taxes 144.30 14.10
144.30 14.10
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
181
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
30. Revenue from operations
For the year ended
31.03.2019
For the year ended
31.03.2018
Revenue from operations (gross)
Sale of products (inclusive of excise duty) 76,011.57 62,388.66
Sale of services 1,296.48 1,867.65
Other operating revenue 1,403.91 1,519.50
78,711.96 65,775.81
31. Other income
For the year ended
31.03.2019
For the year ended
31.03.2018
Interest income on items at amortised cost:
-bank deposits 23.36 44.02
-Compulsary convertible debentures 72.00 41.82
-others 510.00 378.91
Net gain on foreign currency transactions and translations 46.52 80.28
Profit on sale of current investments and financial assets 0.48 0.57
Excess provisions written back 108.24 122.15
Guarantee commission/commission income from:
- others 0.88 2.56
Dividend income from non-current investment 0.35 0.01
Profit on sale of property, plant & equipment (net) 0.25 5.93
Government grant income - 1.75
Rental income 138.85 101.16
Profit on dilution of control in subsidiary (refer note 57A) - 873.52
Profit on disposal of Investment in JV Company 976.50 -
Miscellaneous 142.23 65.66
2,019.66 1,718.33
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
182
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
32. Cost of materials consumed
For the year ended
31.03.2019
For the year ended
31.03.2018
Raw material and packing material consumed
Inventories at beginning of the reporting period/year 4,131.46 4,059.94
Purchases during the reporting period/year (net) 30,804.64 26,685.30
34,936.10 30,745.24
Sold during the reporting period/year 1,002.41 768.04
Inventories at end of the reporting period/year 4,748.69 4,131.46
29,185.00 25,845.74
33. Purchases of traded goods
For the year ended
31.03.2019
For the year ended
31.03.2018
Traded Goods 3,247.62 1,197.81
Others 131.65 144.43
3,379.27 1,342.24
34. Changes in inventories of traded goods
For the year ended
31.03.2019
For the year ended
31.03.2018
As at the beginning of the reporting period/year
Finished/Traded goods 2,394.69 1,832.22
Intermediate goods 1,043.49 930.09
Work in progress 1,063.13 2,094.02
4,501.31 4,856.33
Adjustment of dilution / acquistion
Finished/Traded goods (70.70) 109.78
Work in progress - 1,026.82
(70.70) 1,136.60
As at the closing of the reporting period/year
Finished/Traded goods 2,211.41 2,394.69
Intermediate goods 1,227.86 1,043.49
Work in progress 1,119.01 1,063.13
4,558.28 4,501.31
Excise duty adjustment on inventories - 228.19
Finished goods used as fixed assets (243.51) (333.07)
(229.78) (1,342.84)
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
183
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
35. Employee benefits expense
For the year ended
31.03.2019
For the year ended
31.03.2018
Salaries and wages 9,498.27 7,845.48
Contribution to provident and other funds 571.43 500.35
Employee stock option scheme expenses 2.52 2.73
Staff welfare expenses 323.91 325.73
10,396.13 8,674.29
36. Finance costs
For the year ended
31.03.2019
For the year ended
31.03.2018
Interest on items at amortised cost:
-Term loans 3,416.31 2,671.27
-Working capital facilities 402.87 281.10
-Compulasary convertible debentures 210.75 199.35
-Non-convertible debentures 56.96 231.00
-Compulasary convertible preference shares 379.46 156.21
- Others 458.07 723.52
Exchange difference regarded as an adjustment to borrowing cost 73.78 (13.78)
-Compulasary convertible preference shares - 208.42
Other ancillary borrowing costs:
- Processing fees 65.14 105.43
- Upfront fees - 5.25
5,063.34 4,567.77
37. Depreciation and amortisation expense
For the year ended
31.03.2019
For the year ended
31.03.2018
Depreciation on property, plant and equipment 5,382.61 4,691.72
Amortisation of intangible assets 125.60 135.19
5,508.21 4,826.91
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
184
38. Other expenses
For the year ended
31.03.2019
For the year ended
31.03.2018
Power and fuel 3,243.54 2,740.15
Repairs to plant and equipment 1,265.03 936.20
Repairs to buildings 399.67 337.98
Other repairs 514.95 467.90
Consumption of stores and spares 937.53 1,002.38
Rent (Refer note 47) 3,330.65 2,501.03
Rates and taxes 160.78 133.58
Insurance 82.04 68.64
Printing and stationery 81.77 74.97
Communication 218.59 218.82
Travelling and conveyance 828.48 662.63
Directors' sitting fee 9.93 8.37
Payment to the auditors as
Audit and reviews 35.59 32.27
Taxation matters 1.46 0.27
Other matters 3.60 1.73
Reimbursement of expenses 2.62 0.55
Vehicle running and maintenance 258.34 247.97
Lease and hire 127.43 110.43
Security and service charges 393.33 310.30
Professional and consultancy 390.56 356.95
Bank charges 174.74 78.14
Advertisement and sales promotion 2,390.87 1,658.25
Meeting and conference 26.02 14.60
Franchisee Collection Fees 53.72 12.68
Commission Expense 13.60 25.04
Credit card commission and cash pickup charges 115.60 87.01
Royalty paid 1,010.99 848.43
Freight, octroi and insurance paid (net) 3,945.83 2,800.70
Delivery vehicle running and maintenance 607.42 511.57
Distribution expenses 340.03 357.32
Loading and unloading charges 292.65 249.26
Property, plant and equipment written off 166.51 88.53
Intangible assets written off 11.86 -
Loss on disposal of property, plant and equipment (net) 92.35 85.96
Loss on remeasurment of equity/derivative instruments at FVTPL 7.03 0.06
Loss on sale of invesments/financial assets - 2.80
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
185
Bad debts and advances written off 110.29 193.22
Allowance for doubtful debts 100.14 112.49
Corporate Social Responsibility expenditure 48.23 29.21
Net loss on foreign currency transactions and translations 1,661.39 47.24
Provision for doubtful advances 56.07 1.15
Transplant Expenses Paid 0.85 2.95
Medical & chemical expenses 1.20 5.40
Testing expenses - 9.35
Other operating expenses 263.46 262.92
Provision for impairment in valuation of investment - 25.00
General office and other miscellaneous 266.26 315.66
24,043.00 18,038.06
39. Income Tax
(a) Amounts recognised in the statement of Profit and Loss comprises:
For the year ended
31.03.2019
For the year ended
31.03.2018
Current tax:
Current tax 1,212.81 542.38
1,212.81 542.38
Deferred tax expense:
Attributable to Origination and reversal of temporary differences 72.43 241.56
1,285.24 783.94
(b) Income tax recognised in other comprehensive income
For the year ended
31.03.2019
For the year ended
31.03.2018
Income tax relating to remeasurement of equity instrument at fair value 30.58 271.63
Income tax relating to remeasurement of defined benefit plans 14.94 (1.04)
Income tax relating to exchange difference in translating financial statements of foreign operations
(10.61) 29.93
34.91 300.52
For the year ended
31.03.2019
For the year ended
31.03.2018
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
186
(c) Reconciliation of tax expense between accounting profit at applicable tax rate and effective tax rate:
For the year ended
31.03.2019
For the year ended
31.03.2018
Profit/(Loss) before tax 1,948.89 1,769.50
Tax using the Company's domestic tax rate (22.88% (31 March 2018: 26%) 445.91 460.07
Effect of :
Change in unrecognised temporary differences 45.87 2.24
Unrecognised tax losses 418.10 658.46
Rate change impact on deferred tax * 78.09 (109.27)
Tax rate differential for taxes provided in subsidiaries 635.82 134.46
Share of Profit/Loss of equity accounted investees - 32.20
Recognition of previously unrecognised tax losses - (42.09)
Income tax pertaining to previous years 20.58 5.46
Non deductible expenses/Non Taxable Income (net) 1.96 (62.76)
Deduction claimed u/s 80 IE of Income-tax Act, 1961 at Holding Company (275.24) (219.02)
Effect of deferred tax on liabilities under business combinations 7.67 (22.57)
Effect of deferred tax on capital gain on assets classified as assets held for sale in Parent Company
(59.14) 59.14
Tax impact of dividend distributed by a subsidiary taxable in hands of Holding Company
25.43 32.96
Deduction claimed u/s 32 AC of Income tax Act, 1961 - (179.90)
Others (59.82) 34.55
Income tax expense at effective tax rate reported in the statement of Profit and Loss
1,285.24 783.94
* Represents the change in enacted tax rate as on the reporting date.
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
187
(d)
Def
erre
d ta
x lia
bilit
ies/
(ass
ets)
rec
ogni
sed
As
at
01 A
pril,
20
17
Rec
ogni
sed
in O
ther
Eq
uity
Rec
ogni
sed
in O
CIR
ecog
nise
d in
s
tate
men
t of
Pro
fit a
nd
loss
#
As
at
Mar
ch 3
1,
2018
on
Acq
usit
ion
of
sub
sidi
ary*
*
Rec
ogni
sed
in O
ther
Eq
uity
Rec
ogni
sed
in O
CIR
ecog
nise
d in
s
tate
men
t of
Pro
fit a
nd
loss
#
As
at
Mar
ch 3
1,
2019
Pro
pert
y, p
lant
and
eq
uipm
ent a
nd in
tang
ible
as
sets
(net
)
3,2
99.9
9 -
-
4
24.9
8 3
,724
.97
17.
65
-
-
190
.35
3,9
32.9
7
Empl
oyee
rel
ated
pr
ovis
ions
and
liab
ilitie
s (2
89.9
8) -
(1
.04)
(67.
41)
(358
.43)
-
-
14.
94
(134
.17)
(477
.66)
Allo
wan
ces
for
Dou
btfu
l D
ebts
(49.
52)
-
-
(52.
84)
(102
.36)
-
-
-
(54.
71)
(157
.07)
Fina
ncia
l ins
trum
ents
at
amor
tised
cos
t/FV
TPL
129
.97
-
-
(348
.06)
(218
.09)
-
-
-
31.
56
(186
.53)
MAT
Cre
dit
(1,3
39.2
7) -
-
(1
33.0
3) (1
,472
.30)
-
-
-
329
.82
(1
,142
.48)
Equi
ty in
stru
men
ts a
s Fa
ir
Valu
e 7
6.78
-
2
71.6
3 -
3
48.4
1 -
-
3
0.58
3
1.36
4
10.3
5
Tax
loss
es (2
28.1
3) -
-
5
3.92
(1
74.2
1) (4
1.91
) -
-
2
4.49
(1
91.6
3)
Pro
visi
on fo
r Im
pair
men
t -
-
-
-
-
(4
1.06
) -
-
4
1.06
-
Unr
ealis
ed F
orei
gn
Exch
ange
(gai
n)/l
oss
-
-
-
-
-
(2.5
1) -
-
2
.51
-
Una
bsor
bed
depr
ecia
tion
and
carr
y fo
rwar
d lo
sses
(22.
07)
-
-
(45.
25)
(67.
32)
-
-
-
(167
.05)
(234
.37)
Oth
ers
(115
.65)
-
29.
93
12.
02
(73.
70)
-
-
(10.
61)
(59.
71)
(144
.02)
Fore
ign
curr
ency
mon
etar
y ite
m tr
ansl
atio
n di
ffer
ence
ac
coun
t
(62.
87)
-
-
82.
45
19.
58
-
-
-
(38.
23)
(18.
65)
Gov
ernm
ent g
rant
(118
.96)
-
-
369
.98
251
.02
-
-
-
28.
24
279
.26
Fore
ign
curr
ency
loss
on
rest
atem
ent o
f bal
ance
s in
su
bsid
iary
-
-
-
-
-
-
-
-
(168
.46)
(168
.46)
Tota
l 1
,280
.29
-
300
.52
296
.76
1,8
77.5
7 (6
7.82
) -
3
4.91
5
7.05
1
,901
.71
* As
at 3
1 M
arch
201
9 an
d as
at 3
1 M
arch
201
8 , t
he G
roup
has
sig
nifi
cant
una
bsor
bed
depr
ecia
tion
and
carr
y fo
rwar
d lo
sses
. The
Gro
up h
as n
ot r
ecog
nise
d de
ferr
ed ta
x as
sets
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 n
ot p
roba
ble
that
taxa
ble
profi
t wou
ld b
e av
aila
ble.
# In
clud
es fo
reig
n ex
chan
ge fl
uctu
atio
n am
ount
ing
to R
s. (1
5.83
) mill
ion
(Mar
ch 3
1, 2
018
Rs.
55.
21 m
illio
n)
**
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
.)
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
188
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 subsidiary Country of incorporation and principal
place of business
Proportion of ownership interests held by the group
at year end
As at 31 March
2019
As at 31 March
2018
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. #(Earlier known as Sameer Agriculture & Livestock (Kenya) Ltd.)~
Kenya 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% 56.53%
Devyani International (Nigeria) Limited (Subsidiary of "RVEPL") Nigeria 52.34% 32.51%
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 Bangladesh Private Ltd. (Subsidiary of "CBPL") Bangladesh 67.34% 67.34%
Varun Beverages Limited ("VBL") India 30.56% 30.57%
Varun Beverages (Nepal) Private Limited (Subsidiary of "VBL") Nepal 30.56% 30.57%
Varun Beverages Lanka (Private) Limited ("VB Lanka")(Subsidiary of "VBL") Sri Lanka 30.56% 30.57%
Varun Beverages Morroco SA (Subsidiary of "VBL") Morocco 30.56% 30.57%
Ole Spring Bottlers (Private) Limited (Subsidiary of "VB Lanka") Sri Lanka 30.56% 30.57%
Varun Beverages (Botswana) (Prorietary) Limited (Subsidiary of "VBL") Zambia 30.56% -
Varun Beverages (Zambia) Limited (Subsidiary of "VBL") Zambia 27.50% 27.51%
Varun Beverages (Zimbabwe) Private Limited (Subsidiary of "VBL") Zimbabwe 25.98% 25.98%
Accorbev (Telangana) Private Limited India 100.00% 100.00%
Anuj Traders Private Limited India 99.90% 99.90%
snowpeak Enterprises Private Limited India 99.95% 99.95%
sVs India Private Limited India 72.00% 72.00%
Diagno Labs Private Limited India 99.97% 69.00%
Modern Montessori International (India) Pvt Ltd India 50.20% 50.20%
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
189
name of subsidiary/ step subsidiary Country of incorporation and principal
place of business
Proportion of ownership interests held by the group
at year end
As at 31 March
2019
As at 31 March
2018
Alisha Retail Private Limited** India 99.95% 99.95%
Cryoviva International Pte Ltd ("CIPL")^ Singapore 56.00% 56.00%
Cryoviva Singapore Pte Ltd (Subsidiary of "CIPL") Singapore 47.65% 47.65%
Africare Limited*(AL) Kenya 27.50% 27.50%
Medanta Africare (Tanzania) Limited (Subsidiary of "AL") Tanzania 27.50% 27.50%
Medanta Africare (Uganda) Limited (Subsidiary of "AL") Uganda 27.50% 27.50%
Lineage Healthcare Limited*** India 49.80% 49.80%
Parkview City Limited**** India 38.00% 38.00%
Agarwal Cold Drinks Pvt.Ltd. India 25.00% 25.00%
Capital Infracon Private Limited India 49.50% 49.50%
Ratnakar Foods & Beverages Pvt. Ltd. India 50.00% 50.00%
Angelica Technologies Private Limited ("ATPL")(Associate of "VBL") India 14.45% 14.46%
Lunarmech Technologies Private Limited (Subsidiary of "ATPL") India 10.70% 10.70%
Cryoviva Thailand Pvt Ltd(Associate of "AIPL") Thailand 50.00% 50.00%
Devyani Food Industries (Kenya) Ltd. #(Earlier known as Sameer Agriculture & Livestock (Kenya) Ltd.) (JV of "DFIL")~
Kenya - 49.96%
Iclinic Healthcare Private Limited(Associate of Diagno Labs Pvt. Ltd.) # India 37.13% 0.00%
The Minor Food Group (India) Private Limited (JV of "DIL") India 22.92% 22.92%
* Africare Limited became associates from subsidiary with effect from 04 December 2017 because of decrease of ownership stakes from 55% to 27.5%
# Iclinic Healthcare Private Limited become associates with effect from 26 March 2019.
~ Devyani Food Industries (Kenya) Ltd. #(Earlier known as Sameer Agriculture & Livestock (Kenya) Ltd.) became subsidiary from associates on account of increase in stake from 49.96% to 62.50% with effect from 28 September 2018. ^Cryoviva International PTE Ltd-Singapore became subsidiary with effect from 31 August 2017 on account of acquiring of ownership stake of 56%
**Alisha Retail Private Limited became subsidiary from associates on account of increase in stake from 50 % to 51% with effect from 28 July 2017.
***Lingeage Healthcare Limited became associates from subsidiary with effect from 31 August 2017 because of decrease of ownership stakes from 50.40% to 49.60%
****Parkview City Limited became associates from subsidiary with effect from 31 August 2017. 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:
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019 (` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
190
gratuity
31 March 2019 31 March 2018
Changes in present value are as follows:
Balance at the beginning of the year 955.05 748.53
Acquired on business combination 9.90 67.69
Past service cost - 2.95
Current service cost 138.13 132.81
Adjustment on account of acquisition - (0.18)
Interest cost 71.82 52.20
Benefits settled (71.02) (62.69)
Exchange differences on transition (2.39) (0.40)
Actuarial loss/(gain) 44.49 14.14
Balance at the end of the year 1,145.98 955.05
gratuity
31 March 2019 31 March 2018
Change in fair value of plan assets are as follows:
Plan assets at the beginning of the year, at fair value 91.27 48.05
Expected income on plan assets 6.31 4.07
Fund Charges (0.12) (0.08)
Actuarial gain/(loss) (0.53) 0.73
Contributions by employer 11.84 76.63
Benefits settled (35.80) (38.13)
Plan assets at the end of the year, at fair value 72.97 91.27
gratuity
31 March 2019 31 March 2018
Reconciliation of present value of the obligation and the fair value of the plan assets:
Present value of obligation 1,145.98 955.05
Fair value of plan assets (72.95) (91.25)
net liability recognised in the Balance sheet 1,073.03 863.80
gratuity
31 March 2019 31 March 2018
Amount recognised in statement of Profit and Loss:
Current/Past service cost 138.13 132.81
Interest expense 71.82 52.20
Expected return on plan assets 6.31 4.07
net cost recognised 216.26 189.08
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019 (` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
191
gratuity
31 March 2019 31 March 2018
Amount recognised in Other Comprehensive Income:
Actuarial changes arising from changes in financial assumptions (1.02) 4.67
Actuarial changes arising from changes in demographic assumptions - 4.23
Experience adjustments 45.28 5.24
Return on plan assets 0.53 (0.73)
Amount recognised 44.79 13.41
gratuity
31 March 2019 31 March 2018
Assumptions used:
Mortality IALM (2006-08) ultimate
IALM (2006-08) ultimate
Discount rate 6.52-14.00% 6.84-13.00%
Withdrawal rate 3-11% 3-11%
Salary increase 6-12% 5-13%
Rate of return on plan assets 7.84% 7.84%
Retirement age (Years) 55-65 years 55-65 years
A quantitative sensitivity analysis for significant assumption as at 31 March 2019 is as shown below:
sensitivity level gratuity
31 March 2019 31 March 2018 31 March 2019 31 March 2018
Discount rate+1% +1% (40.41) (60.18)
-1% -1% 87.78 68.24
Salary increase+1% +1% 67.10 65.46
-1% -1% (57.68) (59.06)
Withdrawal rate+1% +1% (59.98) (57.51)
-1% -1% 107.65 97.75
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.
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019 (` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
192
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:
31 March 2019 31 March 2018
Contribution to defined contribution plans, recognised as expense for the year is as under:
Employer’s contribution to provident and other funds 571.43 500.35
31 March 2019 31 March 2018
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:
2.66 1.85
42 Earnings per share (EPs)
As at 31 March 2019
As at 31 March 2018
Profit/(Loss) attributable to the equity shareholders (939.12) (137.62)
Weighted average number of equity shares outstanding during the year for calculating basic earning per share (nos.)
193,778 187,810
Weighted average number of equity shares for calculation of diluted earnings per share (nos.)
193,778 187,810
Nominal value per equity shares (`) 10.00 10.00
Basic earnings per share (`) (4,846.36) (732.77)
Diluted earnings per share (`) (4,846.36) (732.77)
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 cannot be estimated reliably at this stage.
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
(` in million)
RJ CORP LIMITED (CONSOLIDATED)
193
43 Contingent liabilities and commitments
As at 31 March 2019
As at 31 March 2018
a. Guarantees issued on behalf of companies 438.20 1,162.61
b. Claims against the Company not acknowledged as debts (being contested):-
i For excise and service tax 713.80 610.16
ii For sales tax / entry tax 551.68 305.79
iii For income tax 561.05 373.44
iv Others* 348.12 273.25
c. Contingent liabilities relating to interest in joint venture - 0.87
d. Others for which the Group is contingently liable # 7.45 7.45
- Liability in respect of statutory bonus for the year ended 31 March 2015
*excludes pending matters where amount of liability is not ascertainable.
44 Capital commitments
As at 31 March 2019
As at 31 March 2018
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances).
999.59 2,290.25
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.
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
Mr. Rajesh Chopra Director (upto 30/04/2018)
Mr. Prashant Purkar Director (upto 19/12/2017)
Mr. Sanjoy Mukarjee Director (upto 30/09/2018)
Mr. Ravindra Dhariwal Director (upto 30/03/2018)
Ms. Rashmi Dhariwal Director (wef 01/04/2018)
Mr. Girish Ahuja Director (wef 01/04/2018)
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
194
Mr. S.V. Singh Whole time Director (upto 30/04/2018)
Mr. Ravi Kant Jaipuria Director
Mr. Parth Dasharathlal Gandhi Director (upto 31/10/2017)
Mr. Lalit Singh CFO
Mrs. Monika Bhardwaj CS (upto 15/03/2018)
Mr. Mahavir Prasad Garg CS (W.e.f 16/03/2018)
III. Associate (or an associate of any member of a group)
- Lineage Healthcare Ltd. (wef 31/08/2017)
- Africare Limited (wef 04/12/2017)
- ParkView City Ltd. (wef 31/08/2017)
- Capital Infracon Private Limited
- Angelica Technology Private Ltd.
- Cryoviva (Thailand) Ltd.
- Sameer Agricluture & Livestock (Kenya) limited (upto 28/09/2018)
- Lunarmech Technologies Private Limited
- The Minor Food Group (India) Private Limited
- iClinic Healthcare Private Limited
- Alisha Retail Pvt Ltd. (upto 28/07/2017)
IV. Entities in which a director or his/her relative is a member or director
- Empire Stocks Pvt Limited (wef 31/08/2017)
- Shabnam Properties Pvt. Ltd.
- Champa Devi Jaipuria Charitable Trust
- Accor Solar Energy Private Limited (formerly Devyani Agri Business Pvt. Ltd)
- Arctic Overseas Pte. Ltd.
- Mala Jaipuria Foundation
- High Street Food Services Private Limited
- Pinnacle Town Planners Pvt Ltd.
- Pinnacle Township Pvt Ltd
- Capital Tower Pvt Ltd.
- Pinnacle Constructions Pvt Ltd
- Alisha Torrent Closure Private Limited
- Nector Beverages Private Limited
- Steel City Beverages Private Limited
- Jai Beverages Private Limited
- 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
*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 2019
RJ CORP LIMITED (CONSOLIDATED)
195
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
46B
. Tra
nsac
tion
s w
ith
rela
ted
part
ies
Des
crip
tion
ult
imat
e Co
ntro
llin
g Pa
rty
kM
P a
nd th
eir
rela
tive
sEn
titi
es in
whi
ch a
di
rect
or o
r hi
s/he
r
rela
tive
is a
mem
ber
or
dire
ctor
Enti
ties
whi
ch a
re p
ost
empl
oym
ent b
enefi
ts
plan
s
Ass
ocia
te (o
r an
as
soci
ate
of a
ny m
embe
r of
a g
roup
)
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
sal
e of
goo
ds a
nd s
ervi
ces
Alis
ha R
etai
l Pri
vate
Lim
ited
-
-
-
-
-
-
-
-
-
7.3
8 A
rctic
Ove
rsea
s P
te. L
td.
-
-
-
-
28.
60
-
-
-
-
-
Line
age
Hea
lthc
are
Lim
ited
-
-
-
-
-
-
-
-
0.1
9 0
.12
Mal
a Ja
ipur
ia F
ound
atio
n -
-
-
-
1
.57
1.1
7 -
-
-
-
S
MV
Bev
erag
es P
riva
te
Lim
ited
-
-
-
-
15.
56
12.
24
-
-
-
-
Luna
rmec
h Te
chno
logi
es
Pri
vate
Lim
ited
-
-
-
-
-
-
-
-
13.
96
15.
32
Alis
ha T
orre
nt C
losu
re
Pri
vate
Lim
ited
-
-
-
-
3.4
6 8
.15
-
-
-
-
Nec
tor
Bev
erag
es P
riva
te
Lim
ited
-
-
-
-
6.4
9 4
8.36
-
-
-
-
Ste
el C
ity B
ever
ages
Pri
vate
Li
mite
d -
-
-
-
-
2
.58
-
-
-
-
Jai B
ever
ages
Pri
vate
Li
mite
d -
-
-
-
4
3.40
1
35.8
0 -
-
-
-
Cha
mpa
Dev
i Jai
puri
a C
hair
itabl
e Tr
ust
-
-
-
-
45.
79
41.
61
-
-
-
-
sal
e of
sto
re it
ems
Jai B
ever
ages
Pri
vate
Li
mite
d -
-
-
-
3
.03
-
-
-
-
-
Nec
tor
Bev
erag
es P
riva
te
Lim
ited
-
-
-
-
21.
64
-
-
-
-
-
SM
V B
ever
ages
Pri
vate
Li
mite
d -
-
-
-
6
5.56
-
-
-
-
-
sal
e of
ser
vice
s m
arke
ting
and
oth
er s
uppo
rt s
ervi
ces
Line
age
Hea
lthc
are
Lim
ited
-
-
-
-
-
-
-
-
-
0.0
4 C
ham
pa D
evi J
aipu
ria
Cha
irita
ble
Trus
t -
-
-
-
-
0
.87
-
-
-
-
Pur
chas
e of
goo
ds L
unar
mec
h Te
chno
logi
es
Pri
vate
Lim
ited
-
-
-
-
-
-
-
-
781
.43
627
.12
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
196
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
Nec
tor
Bev
erag
es P
riva
te
Lim
ited
-
-
-
-
369
.73
1.0
6 -
-
-
-
Jai B
ever
ages
Pri
vate
Li
mite
d -
-
-
-
0
.26
-
-
-
-
-
Alis
ha R
etai
l Pri
vate
Lim
ited
-
-
-
-
-
-
-
-
-
0.9
2 P
urch
ase
of p
rope
rty,
pla
nt a
nd e
quip
men
t N
ecto
r B
ever
ages
Pri
vate
Li
mite
d -
-
-
-
3
28.6
7 -
-
-
-
-
Ste
el C
ity B
ever
ages
Pri
vate
Li
mite
d -
-
-
-
1
01.4
9 -
-
-
-
-
SM
V B
ever
ages
Pri
vate
Li
mite
d -
-
-
-
1
53.6
6 -
-
-
-
-
The
Min
or F
ood
Gro
up
(Indi
a) P
riva
te L
imite
d -
-
-
-
-
-
-
-
0
.52
-
Pro
mot
iona
l cha
rges
pai
dA
lisha
Ret
ail P
riva
te L
imite
d -
-
-
-
-
-
-
-
-
3
.46
Div
iden
d Pa
idM
r. Va
run
Jaip
uria
-
-
97.
94
97.
94
-
-
-
-
-
-
Mr.
Raj
Pal
Gan
dhi
-
-
1.0
2 1
.06
-
-
-
-
-
-
R.K
. Jai
puri
a &
Son
s H
UF
97.
97
97.
97
-
-
-
-
-
-
-
-
Mrs
. Dha
ra J
aipu
ria
-
-
0.0
1 -
-
-
-
-
-
-
M
rs. D
evya
ni J
aipu
ria
-
-
0.0
0 -
-
-
-
-
-
-
In
vest
men
t in
equi
ty s
hare
siC
linic
Hea
lthc
are
Pri
vate
Li
mite
d -
-
-
-
-
-
-
-
2
6.00
-
Pur
chas
e of
Mis
c It
emA
lisha
Ret
ail P
riva
te L
imite
d -
-
-
-
-
-
-
-
-
0
.01
sal
e of
Inve
stm
ent
R.K
. Jai
puri
a &
Son
s H
UF
-
0.0
5 -
-
-
-
-
-
-
-
D
evya
ni J
aipu
ria
-
-
-
0.1
6 -
-
-
-
-
-
Va
run
Jaip
uria
-
-
-
0.2
5 -
-
-
-
-
-
Em
pire
Sto
ck P
vt L
td.
-
-
-
-
-
0.0
1 -
-
-
-
Lo
an g
iven
S
amee
r A
gric
ultu
re &
Li
vest
ock
(Ken
ya) L
imite
d -
-
-
-
-
-
-
-
-
2
82.9
1
Des
crip
tion
ult
imat
e Co
ntro
llin
g Pa
rty
kM
P a
nd th
eir
rela
tive
sEn
titi
es in
whi
ch a
di
rect
or o
r hi
s/he
r
rela
tive
is a
mem
ber
or
dire
ctor
Enti
ties
whi
ch a
re p
ost
empl
oym
ent b
enefi
ts
plan
s
Ass
ocia
te (o
r an
as
soci
ate
of a
ny m
embe
r of
a g
roup
)
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
197
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
Des
crip
tion
ult
imat
e Co
ntro
llin
g Pa
rty
kM
P a
nd th
eir
rela
tive
sEn
titi
es in
whi
ch a
di
rect
or o
r hi
s/he
r
rela
tive
is a
mem
ber
or
dire
ctor
Enti
ties
whi
ch a
re p
ost
empl
oym
ent b
enefi
ts
plan
s
Ass
ocia
te (o
r an
as
soci
ate
of a
ny m
embe
r of
a g
roup
)
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
Par
kvie
w C
ity L
td -
-
-
-
-
-
-
-
5
,246
.41
2,6
02.6
5 Em
pire
Sto
cks
Pri
vate
Li
mite
d -
-
-
-
5
36.9
0 6
67.9
5 -
-
-
-
Afr
icar
e Li
mite
d -
-
-
-
-
-
-
-
3
4.66
-
Lo
an r
ecei
ved
back
P
arkv
iew
City
Ltd
-
-
-
-
-
-
-
-
4,8
48.7
1 2
,407
.15
Empi
re S
tock
s P
riva
te
Lim
ited
-
-
-
-
849
.92
848
.45
-
-
-
-
Loan
take
n Va
run
Jaip
uria
-
-
5
95.0
0 -
-
-
-
-
-
-
Em
pire
Sto
ck P
vt L
td.
-
-
-
-
78.
83
277
.45
-
-
-
-
Cry
oviv
a (T
haila
nd) L
td.
-
-
-
-
-
-
-
-
295
.46
-
Par
kvie
w C
ity L
td -
-
-
-
-
-
-
-
3
,199
.85
-
unp
aid
Inte
rest
con
vert
ed to
loan
Empi
re S
tock
Pri
vate
Li
mite
d -
-
-
-
2
1.32
-
-
-
-
-
Loan
rep
aid
Varu
n Ja
ipur
ia
-
-
278
.32
1,2
88.5
1 -
-
-
-
-
-
P
arkv
iew
City
Ltd
-
-
-
-
-
-
-
-
3,1
35.8
9 -
H
igh
Str
eet F
ood
Ser
vice
s P
riva
te L
imite
d -
-
-
-
-
2
2.02
-
-
-
-
Empi
re S
tock
Pri
vate
Li
mite
d -
-
-
-
1
74.4
7 2
60.5
2 -
-
-
-
Com
puls
ary
conv
erti
ble
debe
ntur
es is
sued
R.K
. Jai
puri
a &
Son
s H
UF
650
.00
-
-
-
-
-
-
-
-
-
Conv
ersi
on o
f Com
puls
ary
conv
erti
ble
debe
ntur
es in
to e
quit
y sh
ares
R
.K. J
aipu
ria
& S
ons
HU
F 2
,100
.00
-
-
-
-
-
-
-
-
-
Conv
ersi
on o
f Com
pula
sary
con
vert
ible
pre
fere
nce
shar
es in
to e
quit
y sh
ares
R.K
. Jai
puri
a &
Son
s H
UF
1,0
00.3
7 -
-
-
-
-
-
-
-
-
Va
run
Jaip
uria
-
-
1
,958
.43
-
-
-
-
-
-
-
sec
urit
y D
epos
it p
aid
/ (r
ecei
ved)
Nec
tor
Bev
erag
es P
riva
te
Lim
ited
-
-
-
-
120
.00
-
-
-
-
-
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
198
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
Des
crip
tion
ult
imat
e Co
ntro
llin
g Pa
rty
kM
P a
nd th
eir
rela
tive
sEn
titi
es in
whi
ch a
di
rect
or o
r hi
s/he
r
rela
tive
is a
mem
ber
or
dire
ctor
Enti
ties
whi
ch a
re p
ost
empl
oym
ent b
enefi
ts
plan
s
Ass
ocia
te (o
r an
as
soci
ate
of a
ny m
embe
r of
a g
roup
)
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
SM
V B
ever
ages
Pri
vate
Li
mite
d -
-
-
-
2
30.0
0 -
-
-
-
-
Line
age
Hea
lthc
are
Lim
ited
-
-
-
-
-
-
-
-
50.
00
-
Paym
ent t
o gr
atui
ty tr
ust
VBL
Empl
oyee
s G
ratu
ity
Trus
t -
-
-
-
-
-
1
.84
51.
67
-
-
DIL
Em
ploy
ee G
ratu
ity T
rust
-
-
-
-
-
-
10.
00
25.
00
-
-
(Exp
ense
s in
curr
ed b
y th
e Co
mpa
ny o
n be
half
of o
ther
s)/e
xpen
ses
incu
rred
by
othe
rs o
n be
half
of t
he C
ompa
nyLu
narm
ech
Tech
nolo
gies
P
riva
te L
imite
d -
-
-
-
-
-
-
-
(0
.01)
-
Nec
tor
Bev
erag
es P
riva
te
Lim
ited
-
-
-
-
(0.0
0) (0
.62)
-
-
-
-
Acc
or In
dust
ries
(Pri
vate
) Li
mite
d -
-
-
-
0
.99
-
-
-
-
-
The
Min
or F
ood
Gro
up
(Indi
a) P
riva
te L
imite
d -
-
-
-
-
-
-
-
(0
.60)
-
Adv
ance
and
exp
ense
pai
d /
(rec
over
ed)
Afr
icar
e Li
mite
d -
-
-
-
-
-
-
-
-
0
.16
Line
age
Hea
lthc
are
Lim
ited
-
-
-
-
-
-
-
-
0.6
1 -
iC
linic
Hea
lthc
are
Pri
vate
Li
mite
d -
-
-
-
-
-
-
-
(0
.12)
-
Pur
chas
e of
bus
ines
ses
SM
V B
ever
ages
Pri
vate
Li
mite
d -
-
-
-
-
1
,419
.50
-
-
-
-
SM
V A
genc
ies
Pri
vate
Li
mite
d -
-
-
-
-
1
,022
.13
-
-
-
-
Mar
keti
ng s
uppo
rt F
eeS
MV
Bev
erag
es P
riva
te
Lim
ited
-
-
-
-
4.8
7 -
-
-
-
-
Lin
eage
Hea
lthc
are
Lim
ited
-
-
-
-
-
-
-
-
0.0
6 -
N
ecto
r B
ever
ages
Pri
vate
Li
mite
d -
-
-
-
2
0.35
-
-
-
-
-
Test
ing
Char
ges
rece
ived
Afr
icar
e Li
mite
d -
-
-
-
-
-
-
-
-
1
.27
Line
age
Hea
lthc
are
Lim
ited
-
-
-
-
-
-
-
-
2.4
2 6
.09
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
199
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
Des
crip
tion
ult
imat
e Co
ntro
llin
g Pa
rty
kM
P a
nd th
eir
rela
tive
sEn
titi
es in
whi
ch a
di
rect
or o
r hi
s/he
r
rela
tive
is a
mem
ber
or
dire
ctor
Enti
ties
whi
ch a
re p
ost
empl
oym
ent b
enefi
ts
plan
s
Ass
ocia
te (o
r an
as
soci
ate
of a
ny m
embe
r of
a g
roup
)
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
iClin
ic H
ealt
hcar
e P
riva
te
Lim
ited
-
-
-
-
-
-
-
-
1.1
1 -
Rem
uner
atio
n Pa
idLa
lit S
ingh
-
-
3.2
4 2
.89
-
-
-
-
-
-
Mr.
Varu
n Ja
ipur
ia -
-
3
1.22
3
1.22
-
-
-
-
-
-
M
r. R
aj P
al G
andh
i -
-
3
5.59
5
3.85
-
-
-
-
-
-
M
r. R
ajes
h C
hopr
a -
-
-
7
.47
-
-
-
-
-
-
Mr.
Mah
avir
Pra
sad
-
-
3.3
9 0
.67
-
-
-
-
-
-
Mrs
. Mon
ika
Bha
rdw
aj -
-
-
1
.47
-
-
-
-
-
-
Mrs
. Dev
yani
Jai
puri
a -
-
6
.00
6.0
0 -
-
-
-
-
-
M
r. S
anjo
y M
uker
ji -
-
6
.01
10.
02
-
-
-
-
-
-
Mrs
. Dha
ra J
aipu
ria
-
-
12.
02
12.
02
-
-
-
-
-
-
Ren
t/ le
ase
char
ges
paid
Mr.
S.V
. Sin
gh -
-
-
0
.08
-
-
-
-
-
-
R.K
. Jai
puri
a &
Son
s H
UF
6.9
5 6
.62
-
-
-
-
-
-
-
-
Mrs
. Dha
ra J
aipu
ria
-
-
2.4
0 2
.18
-
-
-
-
-
-
Mee
nu S
ingh
-
-
0.3
8 0
.31
-
-
-
-
-
-
Dir
ecto
r s
itti
ng F
ees
Gir
ish
Ahu
ja -
-
0
.40
-
-
-
-
-
-
-
Ms.
Ras
hmi D
hari
wal
-
-
3
.70
-
-
-
-
-
-
-
Rav
indr
a D
hari
wal
-
-
-
2
.00
-
-
-
-
-
-
Com
mis
sion
pai
dS
habn
am P
rope
rtie
s P
vt
Lim
ited
-
-
-
-
-
0.0
9 -
-
-
-
Ang
elic
a Te
chno
logi
es P
vt.
Ltd.
-
-
-
-
-
-
-
-
-
0.0
7
Aga
rwal
Col
d D
rink
s P
vt L
td.
-
-
-
-
-
-
-
-
-
0.0
8 Co
mm
issi
on r
ecei
ved
Par
kvie
w C
ity L
imite
d -
-
-
-
-
-
-
-
0
.42
0.2
2 R
eim
burs
emen
t of E
xpen
ses
Mrs
. Dev
yani
Jai
puri
a -
-
3
.17
0.9
4 -
-
-
-
-
-
M
anag
emen
t Fee
s a
nd R
oyal
ty R
ecei
ved
Sam
eer
Agr
icul
ture
&
Live
stoc
k (K
enya
) Lim
ited
-
-
-
-
-
-
-
-
-
20.
94
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
200
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
Des
crip
tion
ult
imat
e Co
ntro
llin
g Pa
rty
kM
P a
nd th
eir
rela
tive
sEn
titi
es in
whi
ch a
di
rect
or o
r hi
s/he
r
rela
tive
is a
mem
ber
or
dire
ctor
Enti
ties
whi
ch a
re p
ost
empl
oym
ent b
enefi
ts
plan
s
Ass
ocia
te (o
r an
as
soci
ate
of a
ny m
embe
r of
a g
roup
)
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
Pro
fess
iona
l cha
rges
and
oth
er r
eim
burs
emen
ts p
aid
Sag
acito
Tec
hnol
ogy
Pvt
. Lt
d. -
-
-
-
6
.00
-
-
-
-
-
S.V
. Sin
gh -
-
-
1
.92
-
-
-
-
-
-
CBC
coll
ecti
on c
harg
esLi
neag
e H
ealt
hcar
e Lt
d. -
-
-
-
-
-
-
-
1
.68
1.7
5 A
fric
are
Lim
ited
-
-
-
-
-
-
-
-
0.1
6 0
.09
Ren
t rec
eive
dA
lisha
Ret
ail P
riva
te L
imite
d -
-
-
-
-
-
-
-
-
1
.81
Alis
ha T
orre
nt C
losu
re
Pri
vate
Lim
ited
-
-
-
-
0.2
4 2
.59
-
-
-
-
The
Min
or F
ood
Gro
up
(Indi
a) P
riva
te L
imite
d -
-
-
-
-
-
-
-
0
.83
1.2
8
Line
age
Hea
lthc
are
Lim
ited
-
-
-
-
-
-
-
-
0.0
0 0
.00
Par
kvie
w C
ity L
imite
d -
-
-
-
-
-
-
-
0
.01
0.1
5 Em
pire
Sto
ck P
vt L
imite
d -
-
-
-
0
.00
0.0
0 -
-
-
-
D
evya
ni A
irpo
rt S
ervi
ces
Mum
bai P
vt L
td -
-
-
-
-
-
-
-
-
-
Dev
yani
Foo
d S
tree
t Pvt
Ltd
-
-
-
-
-
-
-
-
-
-
Sha
bnam
Pro
pert
ies
Pvt
Li
mite
d -
-
-
-
0
.00
0.0
0 -
-
-
-
Pin
nacl
e To
wn
Pla
nner
s P
vt
Ltd.
-
-
-
-
0.0
0 0
.00
-
-
-
-
Pin
nacl
e To
wns
hip
Pvt
Ltd
-
-
-
-
0.0
0 0
.00
-
-
-
-
Cap
ital I
nfra
con
Pvt
Ltd
. -
-
-
-
-
-
-
-
0
.00
0.0
0 C
apita
l Tow
er P
vt L
td.
-
-
-
-
0.0
0 0
.00
-
-
-
-
Aga
rwal
Col
d D
rink
s P
vt L
td.
-
-
-
-
-
-
-
-
0.0
0 -
A
ngel
ica
Tech
nolo
gies
Pvt
. Lt
d. -
-
-
-
-
-
-
-
0
.00
0.0
0
Inte
rest
rec
eive
dP
arkv
iew
City
Lim
ited
-
-
-
-
-
-
-
-
111
.45
69.
90
SM
V B
ever
ages
Pri
vate
Li
mite
d -
-
-
-
4
.00
-
-
-
-
-
Sam
eer
Agr
icul
ture
&
Live
stoc
k (K
enya
) Lim
ited
-
-
-
-
-
-
-
-
-
14.
53
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
201
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
Des
crip
tion
ult
imat
e Co
ntro
llin
g Pa
rty
kM
P a
nd th
eir
rela
tive
sEn
titi
es in
whi
ch a
di
rect
or o
r hi
s/he
r
rela
tive
is a
mem
ber
or
dire
ctor
Enti
ties
whi
ch a
re p
ost
empl
oym
ent b
enefi
ts
plan
s
Ass
ocia
te (o
r an
as
soci
ate
of a
ny m
embe
r of
a g
roup
)
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
Cha
mpa
Dev
i Jai
puri
a C
hair
itabl
e Tr
ust
-
-
-
-
-
3.0
7 -
-
-
-
Empi
re S
tock
s P
riva
te
Lim
ited
-
-
-
-
0.9
0 1
7.59
-
-
-
-
Afr
icar
e Li
mite
d -
-
-
-
-
-
-
-
4
2.95
9
.31
Cont
ribu
tion
to s
ocia
l res
pons
ibili
ty a
ctiv
itie
sC
ham
pa D
evi J
aipu
ria
Cha
irita
ble
Trus
t -
-
-
-
4
0.30
2
5.35
-
-
-
-
Conv
ersi
on o
f Loa
n In
to E
quit
yS
amee
r A
gric
ultu
re &
Li
vest
ock
(Ken
ya) L
imite
d -
-
-
-
-
-
-
-
-
2
54.7
5
Fina
ncia
l gau
rant
ees
give
nLi
neag
e H
ealt
hcar
e Li
mite
d -
-
-
-
-
-
-
-
-
5
00.0
0 In
tere
st p
aid
Varu
n Ja
ipur
ia -
-
7
.69
138
.61
-
-
-
-
-
-
Mr.
Rav
i Kan
t Jai
puri
a -
-
1
8.81
-
-
-
-
-
-
-
R
.K. J
aipu
ria
& S
ons
HU
F 1
46.0
5 1
75.1
3 -
-
-
-
-
-
-
-
C
ryov
iva(
Thai
land
) Ltd
. -
-
-
-
-
-
-
-
1
5.38
-
H
igh
Str
eet F
ood
Ser
vice
s P
riva
te L
imite
d -
-
-
-
-
1
.12
-
-
-
-
Empi
re S
tock
Pri
vate
Li
mite
d -
-
-
-
8
8.13
3
5.58
-
-
-
-
Par
kvie
w C
ity L
imite
d -
-
-
-
-
-
-
-
1
8.16
1
4.39
B
alan
ce O
utst
andi
ng a
t the
end
of t
he y
ear
Rec
eiva
bles
/ (P
ayab
les)
Varu
n Ja
ipur
ia -
-
(6
01.4
9) (3
38.0
5) -
-
-
-
-
-
M
r. R
ajes
h C
hopr
a -
-
-
8
.93
-
-
-
-
-
-
Luna
rmec
h Te
chno
logi
es
Pri
vate
Lim
ited
-
-
-
-
-
-
-
-
(56.
90)
(17.
04)
Acc
or In
dust
ries
(Pri
vate
) Li
mite
d -
-
-
-
1
.43
-
-
-
-
-
SM
V B
ever
ages
Pri
vate
Li
mite
d -
-
-
-
2
10.5
8 (5
0.35
) -
-
-
-
SM
V A
genc
ies
Pri
vate
Li
mite
d -
-
-
-
-
0
.36
-
-
-
-
Ste
el C
ity B
ever
ages
Pri
vate
Li
mite
d -
-
-
-
-
7
7.40
-
-
-
-
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
202
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
Des
crip
tion
ult
imat
e Co
ntro
llin
g Pa
rty
kM
P a
nd th
eir
rela
tive
sEn
titi
es in
whi
ch a
di
rect
or o
r hi
s/he
r
rela
tive
is a
mem
ber
or
dire
ctor
Enti
ties
whi
ch a
re p
ost
empl
oym
ent b
enefi
ts
plan
s
Ass
ocia
te (o
r an
as
soci
ate
of a
ny m
embe
r of
a g
roup
)
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
Alis
ha T
orre
nt C
losu
re
Pri
vate
Lim
ited
-
-
-
-
0.3
4 0
.50
-
-
-
-
Nec
tor
Bev
erag
es P
riva
te
Lim
ited
-
-
-
-
(145
.56)
1.2
1 -
-
-
-
Jai B
ever
ages
Pri
vate
Li
mite
d -
-
-
-
5
.87
6.9
5 -
-
-
-
Sag
acito
Tec
hnol
ogy
Pvt
. Lt
d. -
-
-
-
(2
.16)
-
-
-
-
-
Mr.
Rav
i Kan
t Jai
puri
a -
-
(4
50.5
9) -
-
-
-
-
-
-
S
habn
am P
rope
rtie
s P
vt
Lim
ited
-
-
-
-
(38.
07)
(38.
07)
-
-
-
-
Cha
mpa
Dev
i Jai
puri
a C
hair
itabl
e Tr
ust
-
-
-
-
6.2
1 1
0.83
-
-
-
-
Mal
a Ja
ipur
ia F
ound
atio
n -
-
-
-
1
.24
0.6
5 -
-
-
-
Th
e M
inor
Foo
d G
roup
(In
dia)
Pri
vate
Lim
ited
-
-
-
-
-
-
-
-
(0.2
9) 0
.14
Hig
h S
tree
t Foo
d S
ervi
ces
Pri
vate
Lim
ited
-
-
-
-
(0.8
6) (0
.82)
-
-
-
-
iClin
ic H
ealt
hcar
e P
riva
te
Lim
ited
-
-
-
-
-
-
-
-
4.9
4 -
Arc
tic O
vers
eas
Pte
. Ltd
. -
-
-
-
8
1.96
6
7.52
-
-
-
-
C
ryov
iva(
Thai
land
) Ltd
. -
-
-
-
-
-
-
-
(2
42.2
9) 0
.21
Sam
eer
Agr
icul
ture
&
Live
stoc
k (K
enya
) Lim
ited
-
-
-
-
-
-
-
-
-
283
.93
Mrs
. Dev
yani
Jai
puri
a -
-
-
0
.04
-
-
-
-
-
-
R.K
. Jai
puri
a &
Son
s H
UF
-
(3.3
8) -
-
-
-
-
-
-
-
A
fric
are
Lim
ited
-
-
-
-
-
-
-
-
931
.17
396
.47
Line
age
Hea
lthc
are
Lim
ited
-
-
-
-
-
-
-
-
54.
99
(0.4
0)Em
pire
Sto
cks
Pri
vate
Li
mite
d -
-
-
-
(9
0.56
) 1
73.8
8 -
-
-
-
Par
kvie
w C
ity L
imite
d -
-
-
-
-
-
-
-
7
24.1
5 3
33.0
9 B
alan
ce o
f Com
puls
ary
conv
erti
ble
debe
ntur
es
Empi
re S
tock
Pri
vate
Li
mite
d -
-
-
-
6
00.0
0 6
00.0
0 -
-
-
-
R.K
. Jai
puri
a &
Son
s H
UF
-
-
-
-
-
1,4
50.0
0 -
-
-
-
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
203
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
Des
crip
tion
ult
imat
e Co
ntro
llin
g Pa
rty
kM
P a
nd th
eir
rela
tive
sEn
titi
es in
whi
ch a
di
rect
or o
r hi
s/he
r
rela
tive
is a
mem
ber
or
dire
ctor
Enti
ties
whi
ch a
re p
ost
empl
oym
ent b
enefi
ts
plan
s
Ass
ocia
te (o
r an
as
soci
ate
of a
ny m
embe
r of
a g
roup
)
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
31.0
3.20
1931
.03.
2018
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
Fina
ncia
l gau
rant
ees
Line
age
Hea
lthc
are
Lim
ited
-
-
-
-
-
-
-
-
425
.00
500
.00
Afr
icar
e Li
mite
d -
-
-
-
-
-
-
-
1
11.3
0 2
00.8
0
RJ CORP LIMITED (CONSOLIDATED)
204
47 Leases
A. Operating Leases:
The Group has taken various premises and other fixed assets on operating leases. The lease agreements generally have
a lock-in-period of 3 Months to 5 years and are cancellable at the option of the lessee thereafter. Majority of the leases
have escalation terms after certain years and are extendable by mutual consent on expiry of the lease. During the year,
lease payments under operating leases amounting to ` 3,330.65 (31 March 2018 ` 2,501.03) has been recognised as an
expense in the Statement of Profit and Loss.
Non-cancellable operating lease rentals payable (minimum lease payments) for these leases are as follows:
As at 31.03.2019
As at 31.03.2018
Payable within one year 2,400.41 1,700.22
Payable between one and five years 9,220.10 6,026.90
Payable after five years 7,085.05 2,619.20
Total 18,705.56 10,346.32
B. Financial Lease:
The minimum lease payments and the present value of minimum lease payments in respect of arrangement classified
as finance leases are as below:
As at 31.03.2019
As at 31.03.2018
Minimum lease payment
Future finance charges
Minimum lease payment
Future finance charges
Payable within one year 11.26 0.50 24.22 1.58
Payable between one and five years 3.00 0.06 14.80 0.61
Payable after five years 10.03 3.19 9.25 3.03
Total 24.29 3.75 48.27 5.22
Present value of minimum lease payment - 20.54 - 43.05
48 Dues to Micro and small Enterprises
Particulars As at 31.03.2019
As at 31.03.2018
The amounts remaining unpaid to micro and small suppliers as at the end of the year
- Principal 27.65 42.67
- Interest 0.01 0.12
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.
- -
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.
0.16 0.43
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
205
(` in millions, except as stated otherwise)
The amount of interest accrued and remaining unpaid at the end of each accounting year.
0.91 0.74
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.
0.91 0.74
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 Company had
constituted CSR Committee. However, due to losses the company is not required to incurr for CSR activities. The details for
CSR activities is as follows.
Particulars For the year ended 31 March
2019
For the year ended 31 March
2018
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
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
RJ CORP LIMITED (CONSOLIDATED)
206
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
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
ser
vice
s
prov
ided
and
geo
grap
hies
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
chie
f ope
ratin
g
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 i
nfor
mat
ion
for
the
year
end
ed a
nd a
s of
Mar
ch 3
1, 2
019
REP
OR
TAB
LE s
EgM
EnTs
Ret
ails
B
usin
ess
Cha
rter
h
irin
g s
ervi
ces
hea
lthc
are
ser
vice
s R
eal
Esta
te
Dai
ry
Pro
duct
s E
duca
tion
s
ervi
ces
Qui
ck
serv
ices
re
stau
rant
s
Bev
erag
es
Oth
ers
Tota
l
Rev
enue
Rev
enue
from
ext
erna
l cu
stom
er 1
,376
.56
151
.64
1,2
16.2
4 -
7
,594
.48
55.
32
13,
442.
96
54,
863.
25
489
.38
79,
189.
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)
Tota
l Rev
enue
1,3
69.4
9 2
7.38
1
,203
.53
-
7,5
64.5
2 5
5.32
1
3,37
7.34
5
4,73
2.56
3
81.8
2 7
8,71
1.96
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
Fina
nce
cost
5,0
63.3
3
Fina
nce
inco
me
605
.36
Non
ope
ratin
g in
com
e 1
,414
.29
Extr
a O
rdin
ary
Item
s-
Pri
or p
erio
d ite
ms
-
Pro
fit B
efor
e Ta
x 1
,929
.82
Oth
er s
egm
ent i
tem
s
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
Oth
er In
form
atio
n
Seg
men
t Ass
ets
117
.59
445
.08
1,4
19.5
5 1
,084
.50
15,
907.
14
22.
21
7,7
91.7
8 6
6,07
2.96
2
0,51
7.83
11
3,37
8.62
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
10
3,43
0.06
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
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
207
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
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
ser
vice
s
prov
ided
and
geo
grap
hies
in
whi
ch s
ervi
ces
are
prov
ided
, w
ith e
ach
segm
ent
repr
esen
ting
a st
rate
gic
busi
ness
uni
t. Th
ese
busi
ness
uni
ts a
re r
evie
wed
by
chie
f
oper
atin
g de
cisi
on m
aker
- ‘C
OD
M’).
The
bus
ines
s ac
tiviti
es o
f the
Gro
up fa
ll in
follo
win
g se
gmen
ts:
sum
mar
y of
seg
men
tial
info
rmat
ion
for
the
year
end
ed a
nd a
s of
Mar
ch 3
1, 2
018
REP
OR
TAB
LE s
EgM
EnTs
Ret
ails
B
usin
ess
Cha
rter
h
irin
g s
ervi
ces
hea
lthc
are
ser
vice
s R
eal
Esta
te
Dai
ry
Pro
duct
s E
duca
tion
s
ervi
ces
Qui
ck
serv
ices
re
stau
rant
s
Bev
erag
es
Oth
ers
Tota
l
Rev
enue
Rev
enue
from
ext
erna
l cu
stom
er 1
,137
.87
114
.51
1,7
78.1
2 1
04.4
8 5
,881
.92
49.
30
11,
106.
12
45,
877.
23
263
.38
66,
312.
93
Inte
r se
gmen
t rev
enue
(2.1
3) (1
00.6
7) (2
3.36
) -
(4
.72)
-
(65.
83)
(244
.50)
(95.
91)
(537
.12)
Tota
l Rev
enue
1,1
35.7
4 1
3.84
1
,754
.76
104
.48
5,8
77.2
0 4
9.30
1
1,04
0.29
4
5,63
2.73
1
67.4
7 6
5,77
5.81
Res
ult
Seg
men
t Res
ult
(204
.15)
(54.
26)
(516
.81)
31.
16
(14.
97)
5.2
1 3
79.2
3 5
,125
.09
(67.
04)
4,6
83.4
6
Fina
nce
cost
4,5
67.7
7
Fina
nce
inco
me
464
.75
Non
ope
ratin
g in
com
e 1
,253
.58
Extr
a O
rdin
ary
Item
s
Pri
or p
erio
d ite
ms
Pro
fit B
efor
e Ta
x 1
,834
.02
Oth
er s
egm
ent i
tem
s
Dep
reci
atio
n an
d am
ortiz
atio
n ex
pens
e 3
4.09
2
2.59
7
6.93
1
.18
452
.26
2.0
5 6
69.8
1 3
,551
.91
16.
09
4,8
26.9
1
Oth
er In
form
atio
n
Seg
men
t Ass
ets
680
.10
457
.06
1,1
93.4
0 1
,017
.59
10,
035.
65
22.
29
7,2
83.6
5 5
9,30
3.18
1
8,92
8.79
9
8,92
1.71
Elim
inat
ion
(4.6
5) (3
1.24
) (7
.97)
-
(135
.40)
-
(18.
94)
(641
.10)
(1,1
08.4
1) (1
,947
.71)
Ind
AS
Elim
inat
ion
(23.
72)
-
-
-
(53.
13)
-
-
-
(7,7
80.2
3) (7
,857
.08)
seg
men
t Ass
ets
651
.73
425
.82
1,1
85.4
3 1
,017
.59
9,8
47.1
2 2
2.29
7
,264
.71
58,
662.
08
10,
040.
15
89,
116.
92
Seg
men
t Lia
bilit
ies
866
.54
157
.72
4,6
51.8
2 1
,065
.38
7,6
83.3
8 1
9.77
6
,228
.07
41,
400.
39
15,
953.
34
78,
026.
41
Elim
inat
ion
(3.9
2) (1
25.8
5) (9
.00)
-
(1,3
70.1
9) (0
.16)
(1.6
9) (1
70.9
0) (2
53.0
1) (1
,934
.72)
Ind
AS
Elim
inat
ion
(23.
72)
-
(44.
61)
-
16.
24
-
-
(35.
49)
24.
33
(63.
25)
seg
men
t Lia
bilit
ies
838
.90
31.
87
4,5
98.2
1 1
,065
.38
6,3
29.4
3 1
9.61
6
,226
.38
41,
194.
00
15,
724.
66
76,
028.
44
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
208
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
Information about geographical segments :.
The following table presents revenue from external customers, segment non-current assets regarding geographical
segments:
As at 31 March 2019
As at 31 March 2018
non-current assets*
-Within India 50,656.74 46,022.95
-Outside India 18,654.55 12,614.54
69,311.29 58,637.49
* excluding financial instruments, deferred tax assets and post-employment benefit assets.
As at 31 March 2019
As at 31 March 2018
Revenue from external customers
-Within India 55,358.03 52,114.22
-Outside India 23,353.93 13,661.59
78,711.96 65,775.81
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 2019
As at 31 March 2018
Non-current borrowings other than compulsorily convertible preference shares and compulsorily convertible debentures (Refer note 22A)
37,286.84 36,450.87
Current borrowings (Refer note 22B) 10,152.73 6,622.41
Current maturities of long-term debts (Refer note 27) 9,233.03 7,496.66
56,672.60 50,569.94
Less: Cash and cash equivalents (Refer note 14) 1,950.05 1,916.08
net debt 54,722.55 48,653.86
Equity share capital (Refer note 20) 2.12 1.88
Other equity (Refer note 21) 6,867.91 1,651.33
Compulsorily convertible preference shares (Refer note 22A) - 2,579.34
Compulsorily convertible debentures (Refer note 22A) 592.70 1,750.00
Total capital 7,462.73 5,982.55
Capital and net debt 62,185.28 54,636.41
gearing ratio 88.00% 89.05%
There have been no breaches in the financial covenants of any borrowing in the reporting periods.
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
209
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
52 Recent accounting pronouncements (Ind As issued but not yet effective)
(a) Ind AS 116, Leases
Ind AS 116 Leases will replace the existing leases standard, Ind AS 17 Leases (Refer accounting policy 2.2 (d)). It introduces
a single, on-balance sheet lessee accounting model for lessees. A lessee recognises right-of-use (ROU) asset representing
its right to use the underlying asset on lease and a lease liability representing its obligation to make lease payments. The
standard is applicable from 1 April 2019.
The Group plans to apply Ind AS 116 initially on 1 April 2019, using the modified retrospective approach. On that
date, the Group will recognise a lease liability measured at the present value of the remaining lease payments using
the lessee’s incremental borrowing rate as at 1 April 2019 and corresponding ROU asset is measured at an amount
equivalent to lease liability. Therefore, there will be no effect of adopting Ind AS 116 on retained earnings as at 1
April 2019 and no restatement of comparative information. In accordance with the standard, the Group will elect not
to apply the requirements of Ind AS 116 to short-term leases and leases for which the underlying asset is of low
value.
The Group has elected certain available practical expedients on transition to Ind AS 116.
The nature of expenses presently presented under “Rent” under the head “Other expenses” as per Ind AS 17, will now be
presented as per Ind AS 116 in the form of:
•AmortizationchargefortheROUasset.Further,ROUassetmaybesubjecttoimpairment,whereverindicatorsexist.
•Financecostfrominterestaccruedonleaseliability.
There will be consequent reclassifications in the cash flow categories in the consolidated Cash Flow Statement.
Certain stores and office premises, which are taken on operating lease will now be capitalised under Ind AS 116.
The Group has completed an initial assessment of the potential impact on its consolidated financial statements but has
not yet completed its detailed assessment. The quantitative impact of adoption of Ind AS 116 on the consolidated financial
statements in the period of initial application cannot be estimated reasonably as at present. However, the impact on
transition will be significant.
(b) The following amended standards and interpretations are not expected to have a significant impact on the Group’s
consolidated financial statements:
- Appendix C to Ind AS 12, Income taxes
- Amendments to Ind AS 12, Income taxes
- Amendments to Ind AS 19, Employee Benefits
- Amendments to Ind AS 23, Borrowing Costs
- Amendments to Ind AS 28, Investments to Associates and Joint Ventures
- Amendments to Ind AS 103, Business Combinations
- Amendments to Ind AS 109, Financial Instruments
- Amendments to Ind AS 111, Joint Arrangements
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
RJ CORP LIMITED (CONSOLIDATED)
210
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
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
carries 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:
usD gBP Euro LkR MAD nPR ZMW sgD
31 March 2019
Financial assets
(a) Loans Given - - - - 1.92 - 0.26 -
(b) Royalty Receivable - - - - - - - -
(c) Trade Receivables 2.57 0.02 - 1,188.79 46.52 193.73 118.46 0.13
(d) Other financial assets (current)
0.37 - 0.10 - 0.01 13.38 3.26 -
(e) Cash and cash equivalents
3.10 - - 18.42 2.96 430.00 9.32 -
(f) Other bank balances 7.11 - - 107.01 - 22.67 - -
Total financial assets 13.15 0.02 0.10 1,314.23 51.41 659.78 131.30 0.13
Financial liabilities
(a) Borrowings 30.45 - - 6,243.34 420.34 496.63 195.00 33.13
(b) Foreign Currency Loans from Banks
- - - - - - - -
(c) Trade Payables 25.93 0.11 1.95 490.07 79.56 1,064.10 80.19 -
(d) Other financial liabilities
18.45 - - 377.71 40.43 1,236.49 49.83 0.50
Total financial liabilities
74.83 0.11 1.95 7,111.12 540.33 2,797.22 325.02 33.63
RJ CORP LIMITED (CONSOLIDATED)
211
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
usD gBP Euro LkR MAD nPR ZMW sgD
31 March 2018
Financial assets
(a) Loans Given 4.40 - - - 1.80 - 0.32 -
(b) Royalty Receivable 0.02 - - - - - - -
(c) Trade receivables (current)
1.62 - - 1,405.51 50.46 161.90 41.97 0.06
(d) Other financial assets (current)
0.02 - - - - - - -
(e) Cash and cash equivalents
5.52 - - 9.12 19.67 75.68 4.58 -
(f) Other bank balances - - - - - 472.57 - -
Total financial assets 11.58 - - 1,414.63 71.93 710.15 46.87 0.06
Financial liabilities
(a) other financial liability (current)
22.84 - - 980.33 12.16 1,810.02 36.42 -
(b) Borrowings 6.17 - - - - - - -
(c) Trade Payables 8.85 0.13 4.10 250.22 73.69 1,207.70 44.87 -
(d) Other financial liabilities
3.19 - 5.05 477.91 17.51 1,085.05 43.66 -
Total financial liabilities
41.05 0.13 9.15 1,708.46 103.36 4,102.77 124.96 -
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 2019 (31 March 2018: +/-
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 2018: 1%), then profit for the year and
equity as at 31 March 2019 would have been higher by ` 143.47 million (31 March 2018: ` 56.19 million). If the INR had
weakened against respective foreign currency by 1% (31 March 2018: 1%), then profit for the year and equity as at the
would have been lower by ` 143.47 million (31 March 2018: ` 56.19 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.
53 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
RJ CORP LIMITED (CONSOLIDATED)
212
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
+/- 1% (31 March 2018: +/- 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 2019 (346.99) 346.99 (346.99) 346.99
31 March 2018 (304.80) 304.80 (304.80) 304.80
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 2019
As at 31 March 2018
Classes of financial assets-carrying amounts:
Investments (non-current) 6,463.38 6,310.31
Loans (non-current) 1,205.66 1,335.02
Trade receivables 3,367.82 3,292.29
Loans 3,764.98 3,079.87
Cash and cash equivalents 1,950.05 1,916.08
Bank balances other than mention above 556.69 301.83
Other financial assets (current and non-current) 1,887.33 1,526.81
19,195.91 17,762.21
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.
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
213
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
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 be low.
As at 31 March 2019, the Group’s non-derivative financial liabilities have contractual maturities (excluding interest
payments thereon) as summarised below:
31 March 2019 0 to 1 year 1 to 5 years Later than 5 years
Borrowings (current and non-current) 19,385.76 36,899.44 980.10
Trade payables 7,830.08 - -
Other financial liabilities (current and non-current) 6,417.30 1,071.02 -
Total 33,633.14 37,970.46 980.10
This compares to the maturity of the Group’s non-derivative financial liabilities in the previous reporting periods as
follows:
31 March 2018 0 to 1 year 1 to 5 years Later than 5 years
Borrowings (current and non-current) 14,119.07 39,330.45 1,449.76
Trade payables 6,040.95 - -
Other financial liabilities (current and non-current) 5,384.92 1,008.50 -
Total 25,544.94 40,338.95 1,449.76
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 cost
31 March 2019
31 March 2018
31 March 2019
31 March 2018
Financial assets
Fair value through profit and loss ('FVTPL')
(i) Non-current financial assets
(a) Investment (non-current) Level 1 7.17 8.84 7.17 8.84
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
214
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
Fair value through other comprehencive income ('FVTOCI')
(i) Non-current financial assets
(a) Investment (non-current) Level 1 4,823.48 8.30 4,823.48 8.30
Level 2 - 4,409.91 - 4,409.91
Level 3 1,032.72 1,283.20 1,032.72 1,283.20
Amortised cost
(i) Non-current financial assets
(a) Investment in Compulsorily convertible debenture
600.00 600.00 600.00 600.00
(b) Loans 1,205.66 1,335.02 1,205.66 1,335.02
(c) Other 51.73 56.11 51.73 56.11
(ii) Current financial assets
(a) Trade receivables 3,367.82 3,292.29 3,367.82 3,292.29
(b) Cash and cash equivalents 1,950.05 1,916.08 1,950.05 1,916.08
(c) Bank balances other than above 556.69 301.83 556.69 301.83
(d) Loans 3,764.98 3,079.87 3,764.98 3,079.87
(e) Other 1,835.60 1,470.70 1,835.60 1,470.70
Total 19,195.90 17,762.15 19,195.90 17,762.15
Financial liabilities
FVTPL
(i) Current financial liability
(a) Liability for derivative contract Level 2 88.08 33.53 88.08 33.53
Amortised cost
(i) Non-current borrowings (excluding those disclosed under FVTPL category above)
37,879.54 40,780.21 37,879.54 40,780.21
(ii) Others Non Current financial liabilities 1,071.02 1,008.50 1,071.02 1,008.50
(iii) Current financial liabilities
(a) Borrowings 10,152.73 6,622.41 10,152.73 6,622.41
(b) Trade payables 7,830.08 6,040.95 7,830.08 6,040.95
(c) Other 15,562.25 12,848.06 15,562.25 12,848.06
Total 72,583.70 67,333.66 72,583.70 67,333.66
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.
Particulars Fair Value Measurement
using Level
Carrying value Fair value/amortised cost
31 March 2019
31 March 2018
31 March 2019
31 March 2018
RJ CORP LIMITED (CONSOLIDATED)
215
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
The Group’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 :
Equity share of Lemon Tree Hotels Limited - March 31 2018 - Price at which the shares were issued in Inital Public offer,
issue was open during March 26,2018 to March 28, 2018.
Equity share of Global Health Private Limited (Formerly Dr.Naresh Trehan and Associates Health Services Pvt. Ltd.) -
Price estimated by using discounted cash flow method by discounting forcasted cash flow to their present value at a rate
of return that incorporates the risk free rate for the use of fund plus the expected rate of inflation and the risk associated
with the particular investment
Cost of other unquoted equity instruments has been considered as an appropriate estimate of fair value because of a
wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.
- The fair values of Investment in Compulsorily convertible debentures have been estimated by using discounted cash
flow method by discounting the expected cash flows using the appropriate discount rate. The discount rate is determined
using other similar instruments incorporating the risk associated and probabilities are based on management’s
expectations.
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value
hierarchy together with a quantitative sensitivity analysis are as shown below.
Type Valuation Technique significant observable input
Inter-relationship between significant observable
input and fair value measurement
Investment in unquoted Equity Shares
Discounted cash flow method by discounting forcasted cash flow to their present value at a rate of return that incorporates the risk free rate for the use of fund plus the expected rate of inflation and the risk associated with the particular investment
"Forecast Profitability, Risk Adjusted Discount rate."
Estimated fair value would increase (Decrease) - if forcased profitability was higher (lower) - risk adjusted discount rate were lower (higher)
Compulsorily convertible preference shares ('CCDS')
Discounted cash flow method by discounting the expected cash flow using approriate rate under different conversion event, probability is then attached to each conversion event to drive final valuation
Discount rate and Probability of occurrence of conversion event.
Estimated fair value would increase (Decrease) - if discount rate was higher (lower) - probability of occurence were lower (higher)
RJ CORP LIMITED (CONSOLIDATED)
216
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
Type Valuation Technique significant observable input
Inter-relationship between significant observable
input and fair value measurement
Compulsorily convertible preference shares ('CCPS')
Discounted cash flow method by discounting the expected cash flow using approriate rate under different conversion event, probability is then attached to each conversion event to drive final valuation
Discount rate and Probability of occurrence of conversion event.
Estimated fair value would increase (Decrease) - if discount rate was higher (lower) - probability of occurence were lower (higher)
During the year ended March 31, 2018, Unquoted equity shares of ` 4409.91 million were transferred from Level 3 to
Level 2 of fair value hierarchy, since these were valued based on Initial Public offer price.
The following table presents the changes in level 3 items for the periods ended 31 March 2019 and 31 March 2018:
Particulars Investment in unquoted equity
shares
Investment in CCPs Borrowings CCPs
As at 01 April 2017 2,976.72 - 2,750.28 Purchased during the year 0.01 - - Impact of fair value movement (0.44) - 208.42 Moved out from Level 3 to Level 2 (1,693.09) - - Moved from FVTPL to Amortised Cost - - (2,958.70)As at 31 March 2018 1,283.20 - (0.00)Impact of fair value movement (250.48) - - As at 31 March 2019 1,032.72 - (0.00)
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
Fair value at Dividend income recognised during
Fair value at
31 March 2019 2018-19 31 March 2018Global Health Private Limited (Formerly Dr. Naresh Trehan and Associates Health Services Pvt. Ltd.)
1,029.06 - 1,279.55
Shabnam Properties Private Limited 3.44 - 3.44 Empire Stocks Pvt Limited 0.01 - 0.01 Lemon Tree Hotels Limited 4,308.95 - 4,409.91 Shivalik Solid Waste Management Ltd. 0.18 - 0.18 Capital India Finance Limited 514.53 8.30 Sellwell Foods & Beverages Pvt. Ltd. 0.02 - 0.02 Pinnacle Infracon Ltd. 0.00 - 0.00
5,856.19 - 5,701.41
(` in millions, except as stated otherwise)
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
217
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
55 Disposal & Acquisition of subsidiaries
Disposal & Acquisition of subsidiaries during current 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.
Particluars Devyani Food Industries (kenya) Ltd. (Earlier known
as sameer Agriculture & Livestock (kenya) Ltd.
Date of control 28 September 2018
Percentage 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 -
Disposal & Acquisition of subsidiaries during last year
A On 31 August 2017 the Group reduced the stake of Empire Stocks Private Limited to 19%, of Lineage Healthcare Limited
to 49.60% and Parkview City Limited to 38%. On 04 December 2017, the Group reduced the stake of Africare Limited to
27.5%.
(a) The details of subsidiaries disposed off and profit/(loss) on disposal is as below:
Particulars For the year ended 31 March 2018
Africare Ltd Lineage healthcare
Ltd
Parkview City Ltd
Empire stock Pvt Ltd
Total
Sale consideration 0.03 0.25 5.51 0.10 5.89
Exchange differences recycled to consolidated statement of profit and loss
7.88 - - - 7.88
Net consideration 7.90 0.25 5.51 0.10 13.77
Carrying value of net assets disposed off
-337.25 -212.54 -271.89 -38.08 -859.76
Profit/(Loss) on disposal 345.15 212.79 277.40 38.18 873.52
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
218
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
B The Holding Company had acquired controlling stakes in the following two entities:
Particluars Alisha Retail Private Limited
Cryoviva International Pte
Ltd (Consolidated)
Date of control 28 July 2018 31 August 2018
Percentage of the ownership stake 51.00% 56.00%
Net Assets on the date of acquisition -418.23 -334.78
Net Assets attributable to Holding Company -213.30 -187.48
Purchase consideration settled through payment - 0.01
Amount (reduced from)/ transferred to capital reserve -213.30 -187.49
Share of identifiable net assets attributable to:
Non-controlling interest -204.93 -147.30
Holding Company -213.30 -187.48
Business combination expense charged to other expenses - -
C (i) With effect from 28 March 2018, the Holding Company has acquired additional 48.95% equity of Alisha Retail Private
Limited, consisting of 19,980,000 shares for a consideration of ̀ 199.8 million , thereby increasing the Holding Company’s
ownership stake to 99.95%.
Since Alisha Retail 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 48.95% equity and the value
of consideration i.e ` 346.98 million is directly recognised in other equity in Transaction with NCI Reserve.
C (ii) With effect from 31 March 2018, the Holding Company has acquired additional 6.16% equity of Devyani International
Limited, consisting of 6,533,333 shares for a consideration of ` 1,522.26 million , thereby increasing the Holding
Company’s ownership stake to 76.40%.
Since Devyani International 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 6.16% equity and the value
of consideration i.e ` 1,426.58 million is directly recognised in other equity in Transaction with NCI Reserve.
56. Investment in joint ventures and associates
Detail of Joint Ventures :
name of the company Principal activities shareholding percentage Incorporated in
As at 31 March 2019
As at 31 March 2018
The Minor Food Group (India) Private Limited
Business of developing, managing and operating ice cream parlours
30% 30% India
Sameer Agriculture & Livestock (Kenya) Ltd, a joint venture *
Business of dairy products
49.99% Kenya
(` in millions, except as stated otherwise)
RJ CORP LIMITED (CONSOLIDATED)
219
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
Detail of Associates :
name of the company Principal activities shareholding percentage Incorporated in
As at 31 March 2019
As at 31 March 2018
Africare Limited Healthcare Services
27.5% 27.5% Kenya
Lineage Health Care Limited Healthcare Services
49.8% 49.8% India
Park View City Limited Real Estate 38.0% 38.0% India
Capital Infracon Private Limited Trading 49.5% 49.5% India
Ratnakar Foods & Beverages Pvt. Ltd. Trading 50.0% 50.0% India
Aggarwal Cold Drinks Pvt. Ltd. Trading 25.0% 25.0% India
Iclinic Healthcare Private Limited Healthcare Services
37.1% 0.0% India
Cryoviva Thailand Limited Healthcare Services
50% 50% Thailand
Angelica Technologies Private Limited Trading 47.30% 47.30% India
* Sameer Agriculture & Livestock (Kenya) Ltd. became subsidiary as “Devyani Food Industries (Kenya) Ltd.” from
associates on account of increase in stake from 49.96% to 62.50% with effect from 28 September 2018.
The amounts recognised in the balance sheet are as follows:
Particulars As at 31 March 2019
As at 31 March 2018
Joint Ventures - 447.75
Associates 187.48 123.27
187.48 571.02
The following table summarises the financial information of Minor and the carrying amount of the Group’s interest in
Sameer Agriculture & Livestock (Kenya) Ltd.
The amounts recognised in the statement of profit and loss are as follows:
Particulars As at 31 March 2019
As at 31 March 2018
Recognised in profit and loss
Joint Ventures - (98.93)
Associates 38.20 34.41
38.20 (64.52)
Recognised in other comprehensive income
Joint Ventures - -
Associates - -
- -
RJ CORP LIMITED (CONSOLIDATED)
220
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
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
ss
umm
aris
ed B
alan
ce s
heet
Part
icul
ars
Line
age
hea
lth
Care
Li
mit
edPa
rk V
iew
Cit
y Li
mit
edA
fric
are
Lim
ited
Ang
elic
a Te
chno
logi
es P
riva
te
Lim
ited
The
Min
or F
ood
gro
up (I
ndia
) Pri
vate
Li
mit
ed
sam
eer
Agr
icul
ture
&
Liv
esto
ck
(ken
ya) L
td.
As
of
Mar
ch 3
1,
2019
As
of
Mar
ch 3
1,
2018
As
of
Mar
ch 3
1,
2019
As
of
Mar
ch 3
1,
2018
As
of
Mar
ch 3
1,
2019
As
of
Mar
ch 3
1,
2018
As
of
Mar
ch 3
1,
2019
As
of
Mar
ch 3
1,
2018
As
of
Mar
ch 3
1,
2019
As
of
Mar
ch 3
1,
2018
As
of M
arch
31
, 201
8
Ass
ets
Non
-cur
rent
ass
ets
56.
25
84.
29
29.
15
21.
45
199
.25
231
.38
142
.92
274
.60
0.1
1 9
0.09
2
,926
.42
Cur
rent
ass
ets
Cur
rent
ass
ets
excl
udin
g ca
sh a
nd
cash
equ
ival
ent
9.9
5 3
6.24
1
,290
.53
1,7
25.6
9 2
63.1
3 3
04.7
4 3
13.7
0 2
25.1
3 1
.15
14.
54
1,0
22.6
2
Cas
h an
d C
ash
Equi
vale
nt 1
.11
2.1
4 5
.93
3.3
1 2
7.42
1
8.92
3
.71
16.
00
5.6
5 4
.47
72.
33
Liab
iliti
es
Non
-cur
rent
liab
ilitie
s 3
22.7
0 4
20.3
2 6
26.4
0 7
99.3
6 1
,127
.98
998
.80
20.
42
121
.99
-
-
1,4
53.8
5
Cur
rent
liab
ilitie
s 3
25.2
5 1
74.6
3 1
,494
.83
1,4
33.6
0 9
21.4
1 7
55.0
9 1
85.4
9 1
96.7
6 1
4.92
2
5.76
1
,815
.79
Equi
ty (5
80.6
3) (4
72.2
9) (7
95.6
2) (4
82.5
1)(1
,559
.59)
(1,1
98.8
4) 2
54.4
3 1
96.9
8 (8
.01)
83.
34
751
.73
Per
cent
age
of G
roup
's O
wne
rshi
p In
tere
st49
.80%
49.8
0%38
.00%
38.0
0%27
.50%
27.5
0%47
.30%
47.3
0%30
.00%
30.0
0%49
.99%
Inte
rest
in J
oint
Ven
ture
/ A
ssoc
iate
(289
.15)
(235
.20)
(302
.33)
(183
.35)
(428
.89)
(329
.68)
120
.34
93.
17
(2.4
0) 2
5.00
3
75.7
9
Con
solid
atio
n A
djus
tmen
t 2
89.1
5 2
35.2
0 3
02.3
3 1
83.3
5 4
28.8
9 3
29.6
8 -
(0
.00)
2.4
0 (2
5.00
) 7
2.00
Car
ryin
g A
mou
nt o
f Inv
estm
ent
-
-
-
-
-
-
120
.34
93.
17
-
-
447
.79
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
221
sum
mar
ised
sta
tem
ent o
f Pro
fit &
Los
s
Part
icul
ars
Line
age
hea
lth
Care
Li
mit
edPa
rk V
iew
Cit
y Li
mit
edA
fric
are
Lim
ited
Ang
elic
a Te
chno
logi
es P
riva
te
Lim
ited
The
Min
or F
ood
gro
up (I
ndia
) Pri
vate
Li
mit
ed
sam
eer
Agr
icul
ture
&
Liv
esto
ck
(ken
ya) L
td.
For
the
year
en
ded
Mar
ch 3
1,
2019
For
the
year
en
ded
Mar
ch 3
1,
2018
For
the
year
en
ded
Mar
ch 3
1,
2019
For
the
year
en
ded
Mar
ch 3
1,
2018
For
the
year
en
ded
Mar
ch 3
1,
2019
For
the
year
en
ded
Mar
ch 3
1,
2018
For
the
year
en
ded
Mar
ch 3
1,
2019
For
the
year
en
ded
Mar
ch 3
1,
2018
For
the
year
en
ded
Mar
ch 3
1,
2019
For
the
year
en
ded
Mar
ch 3
1,
2018
For
the
year
end
ed
Mar
ch 3
1,
2018
Rev
enue
from
ope
ratio
ns
98.
32
85.
35
93.
14
123
.88
376
.49
235
.57
775
.47
621
.30
28.
92
64.
87
3,1
42.7
5
Oth
er In
com
e 1
.37
2.0
2 2
9.06
2
2.18
8
.40
0.4
0 1
1.02
6
.53
0.0
3 2
.20
10.
35
Tot
al In
com
e 9
9.69
8
7.37
1
22.2
0 1
46.0
6 3
84.8
9 2
35.9
6 7
86.4
9 6
27.8
3 2
8.95
6
7.07
3
,153
.09
Exp
ense
Cos
t of M
ater
ial C
onsu
med
-
-
-
251
.38
-
459
.74
336
.21
- -
2
,441
.04
Cos
t of l
and,
plot
s, c
onst
ruct
ed
prop
ertie
s an
d de
velo
pmen
t rig
ht
- -
1
00.8
8 1
00.7
4 -
-
-
-
-
-
-
Pur
chas
es o
f sto
ck in
trad
e 1
.00
1.9
8 -
-
-
-
-
-
-
-
-
Cha
nges
in in
vent
orie
s of
sto
ck in
tr
ade
0.2
8 0
.07
167
.93
19.
80
-
-
1.8
3 2
.32
- -
(6
7.70
)
Exc
ise
duty
on
sale
of G
oods
-
-
-
-
-
-
-
1
6.44
-
-
-
Em
ploy
ee b
enefi
ts e
xpen
se
27.
07
28.
43
7.6
6 3
.57
144
.98
66.
36
42.
52
39.
24
- -
2
39.9
4
Fin
ance
cos
t 5
0.14
1
9.09
1
42.1
9 9
7.55
5
8.87
2
2.54
4
.45
7.9
2 0
.95
0.0
1 7
9.53
Mai
nten
ance
cha
rges
-
-
5
.01
4.1
2 -
-
-
-
-
-
-
Dep
reci
atio
n an
d am
ortis
atio
n 2
6.76
2
1.61
1
.10
0.2
7 3
3.86
1
1.42
4
6.84
4
6.84
5
.99
11.
51
-
Oth
er e
xpen
se
104
.42
66.
33
9.7
8 7
.16
150
.00
8.8
3 1
23.1
7 8
4.59
1
13.3
6 1
13.8
9 6
24.9
1
Inco
me
tax
expe
nse
- -
-
-
-
0
.25
29.
85
32.
82
- -
(1
.73)
Tot
al E
xpen
se
209
.67
137
.50
434
.55
233
.20
639
.09
109
.40
708
.39
566
.38
120
.30
125
.41
3,3
16.0
0
Pro
fit/
(Los
s) fo
r th
e ye
ar
(109
.97)
(50.
13)
(312
.35)
(87.
14)
(254
.20)
126
.57
78.
10
61.
45
(91.
35)
(58.
34)
(162
.90)
Oth
er c
ompr
ehen
sive
inco
me
1.6
4 (0
.45)
(0.7
6) (0
.08)
- -
0
.60
(0.1
2) -
-
-
Tot
al c
ompr
ehen
sive
inco
me
(108
.34)
(50.
58)
(313
.11)
(87.
22)
(254
.20)
126
.57
78.
70
61.
33
(91.
35)
(58.
34)
(162
.90)
Pro
fit/
(Los
s) fo
r th
e ye
ar
atri
buta
ble
to N
CI
- -
-
-
- -
2
1.18
1
4.12
-
-
-
Pro
fit/
(Los
s) fo
r th
e ye
ar
atri
buta
ble
to o
wne
rs
(109
.97)
(50.
13)
(312
.35)
(87.
14)
(254
.20)
126
.57
56.
92
47.
33
(91.
35)
(58.
34)
(162
.90)
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
222
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
Oth
er c
ompr
ehen
sive
inco
me
atri
buta
ble
to N
CI
- -
-
-
- -
0
.09
(0.0
3) -
-
-
Oth
er c
ompr
ehen
sive
inco
me
atri
buta
ble
to o
wne
rs
1.6
4 (0
.45)
(0.7
6) (0
.08)
-
-
0.5
2 (0
.09)
-
-
-
Tot
al c
ompr
ehen
sive
inco
me
atri
buta
ble
to N
CI
-
-
-
-
-
-
21.
26
14.
09
-
-
-
Tot
al c
ompr
ehen
sive
inco
me
atri
buta
ble
to o
wne
rs
(108
.34)
(50.
58)
(313
.11)
(87.
22)
(254
.20)
126
.57
57.
44
47.
24
(91.
35)
(58.
34)
(162
.90)
Per
cent
age
of g
roup
's O
wne
rshi
p In
tere
st
49.8
0%49
.80%
38.0
0%38
.00%
27.5
0%27
.50%
47.3
0%47
.30%
30.0
0%30
.00%
49.9
9%
gro
up's
sha
re in
pro
fit f
or th
e ye
ar
(54.
77)
(24.
96)
(118
.69)
(33.
11)
(69.
90)
34.
81
26.
92
22.
39
(27.
41)
(17.
50)
(81.
43)
gro
up's
sha
re in
OCI
for
the
year
0
.82
(0.2
3) (0
.29)
(0.0
3) -
-
0
.24
(0.0
4) -
-
-
Con
solid
atio
n A
djus
tmen
ts
53.
70
24.
94
116
.70
30.
86
69.
88
(34.
83)
0.0
0 (0
.00)
27.
41
(0.0
0) (0
.00)
gro
up's
sha
re in
pro
fit
reco
gnis
ed
(0.2
5) (0
.25)
(2.2
8) (2
.28)
(0.0
3) (0
.03)
27.
17
22.
34
-
(17.
50)
(81.
43)
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
223
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
57. s
umm
aris
ed fi
nanc
ial i
nfor
mat
ion
of s
ubsi
diar
ies
(incl
udin
g ac
quis
itio
n da
te fa
ir v
alua
tion
and
adj
ustm
ents
ther
eto,
and
acc
ount
ing
polic
ies
alig
nmen
t) h
avin
g 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
Part
icul
ars
Varu
n B
ever
ages
Li
mit
edD
evya
ni In
tern
atio
nal
Lim
ited
Cryo
viva
Bio
tech
Pri
vate
Li
mit
ed
Cryo
viva
Inte
rnat
iona
l P
te L
td.
Dev
yani
Foo
d In
dust
ries
Lt
d.
As
at
31.0
3.20
19A
s at
31
.03.
2018
As
at
31.0
3.20
19A
s at
31
.03.
2018
As
at
31.0
3.20
19A
s at
31
.03.
2018
As
at
31.0
3.20
19A
s at
31
.03.
2018
As
at
31.0
3.20
19A
s at
31
.03.
2018
Ass
ets
Non
-Cur
rent
Ass
ets
50,
506.
02
45,
084.
80
6,3
32.2
3 5
,844
.36
617
.37
684
.40
150
.56
170
.47
10,
357.
86
5,5
40.4
7
Cur
rent
Ass
ets
15,
566.
93
14,
218.
39
1,4
59.5
5 1
,439
.29
144
.89
150
.84
455
.47
322
.69
4,2
06.5
7 3
,528
.99
Liab
iliti
es
Non
-Cur
rent
Lia
bilit
ies
23,
776.
10
25,
308.
77
3,9
91.6
8 3
,266
.25
1,0
32.5
3 1
,036
.99
-
-
5,9
38.9
6 3
,837
.60
Cur
rent
Lia
bilit
ies
21,
787.
70
16,
091.
62
3,4
36.7
4 2
,961
.83
2,2
53.4
9 2
,093
.58
1,3
66.9
2 1
,049
.52
5,0
91.4
9 3
,626
.24
Non
-con
trol
ling
inte
rest
s 7
1.82
(3
.26)
(455
.13)
(336
.19)
0.0
2 0
.02
(123
.74)
(45.
52)
1,0
68.9
1 3
1.55
Equi
ty 2
0,43
7.34
1
7,90
6.05
8
18.4
9 1
,391
.76
(2,5
23.7
8) (2
,295
.35)
(637
.15)
(510
.84)
2,4
65.0
6 1
,574
.08
% o
f ow
ners
hip
inte
rest
hel
d by
NC
I69
.44%
69.4
3%23
.60%
23.6
0%12
.54%
12.5
4%44
.00%
44.0
0%0.
08%
0.08
%
Acc
umul
ated
nCI
14,
263.
51
12,
428.
91
(261
.97)
(7.7
3) (3
16.4
6) (2
87.8
2) (4
04.0
8) (2
70.2
9) 1
,070
.88
32.
81
sum
mar
ised
sta
tem
ent o
f Pro
fit a
nd L
oss
Part
icul
ars
Varu
n B
ever
ages
Li
mit
ed (C
onso
l)D
evya
ni In
tern
atio
nal
Lim
ited
Cryo
viva
Bio
tech
Pri
vate
Li
mit
ed
Cryo
viva
Inte
rnat
iona
l P
te L
td.
Dev
yani
Foo
d In
dust
ries
Lt
d.
For
the
year
end
ed
31.0
3.20
19
For
the
year
end
ed
31.0
3.20
18
For
the
year
end
ed
31.0
3.20
19
For
the
year
end
ed
31.0
3.20
18
For
the
year
end
ed
31.0
3.20
19
For
the
year
end
ed
31.0
3.20
18
For
the
year
end
ed
31.0
3.20
19
For
the
year
end
ed
31.0
3.20
18
For
the
year
end
ed
31.0
3.20
19
For
the
year
end
ed
31.0
3.20
18
Rev
enue
55,
014.
22
46,
018.
54
13,
673.
60
11,
356.
70
578
.86
569
.68
371
.93
135
.28
7,7
68.6
6 5
,469
.35
Net
Pro
fit /
(Los
s) 3
,201
.61
2,3
34.3
8 (6
64.3
1) 3
11.2
5 (2
29.0
9) (2
91.7
4) (2
08.8
7) (1
77.3
8) 5
10.7
3 (4
7.40
)
Oth
er C
ompr
ehen
sive
In
com
e /(
Loss
) (5
7.45
) 9
8.01
(3
0.04
) 6
8.32
0
.66
2.6
0 1
.75
(25.
12)
(92.
63)
(1.5
9)
Tota
l Com
preh
ensi
ve
Inco
me/
(Los
s) 3
,144
.17
2,4
32.3
9 (6
94.3
5) 3
79.5
7 (2
28.4
5) (2
89.1
4) (2
07.1
2) (2
02.4
9) 4
18.0
9 (4
8.99
)
Pro
fit /
(Los
s) a
lloc
ated
to
nCI
2,1
46.2
3 1
,680
.40
(121
.22)
153
.78
(28.
64)
(36.
26)
(69.
61)
(77.
46)
0.4
4 (0
.04)
(` in
mill
ion)
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
224
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
sum
mar
ised
sta
tem
ent o
f Cas
h Fl
ows
Part
icul
ars
Varu
n B
ever
ages
Li
mit
ed (C
onso
l)D
evya
ni In
tern
atio
nal
Lim
ited
Cryo
viva
Bio
tech
Pri
vate
Li
mit
ed
Cryo
viva
Inte
rnat
iona
l P
te L
td.
Dev
yani
Foo
d In
dust
ries
Lt
d.
For
the
year
end
ed
31.0
3.20
19
For
the
year
end
ed
31.0
3.20
18
For
the
year
end
ed
31.0
3.20
19
For
the
year
end
ed
31.0
3.20
18
For
the
year
end
ed
31.0
3.20
19
For
the
year
end
ed
31.0
3.20
18
For
the
year
end
ed
31.0
3.20
19
For
the
year
end
ed
31.0
3.20
18
For
the
year
end
ed
31.0
3.20
19
For
the
year
end
ed
31.0
3.20
18
Net
cas
h (o
utfl
ow) /
infl
ow
from
ope
ratin
g ac
tiviti
es 9
,358
.71
8,6
32.9
2 7
60.9
7 9
09.7
1 8
1.38
1
14.4
1 (2
17.6
6) (4
76.5
1) (1
78.3
8) 1
,208
.63
Net
cas
h (o
utfl
ow) /
infl
ow
from
inve
stin
g ac
tiviti
es (8
,543
.40)
(11,
152.
97)
(1,6
79.7
3) (1
,409
.31)
(11.
99)
(21.
26)
(28.
53)
(9.9
9) (2
,851
.31)
(2,6
84.9
0)
Net
cas
h (o
utfl
ow) /
infl
ow
from
fina
ncin
g ac
tiviti
es (6
72.4
8) 3
,264
.22
714
.61
564
.08
(69.
49)
(93.
10)
243
.03
474
.46
1,4
24.3
8 1
,962
.70
Effec
t of e
xcha
nge
rate
ch
ange
--
26.
86
7.2
3 -
-
--
- -
net
cas
h (o
utfl
ow)/
infl
ow 1
42.8
3 7
44.1
7 (1
77.2
9) 7
1.71
(0
.10)
0.0
7 (3
.16)
(12.
04)
(1,6
05.3
1) 4
86.4
3
(` in
mill
ions
, exc
ept a
s st
ated
oth
erw
ise)
RJ CORP LIMITED (CONSOLIDATED)
225
Summary of significant accounting policies and other explanatory information on the consolidated financial statements for the year ended 31 March 2019
58. Impairment of asset
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. Due to 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 and other intangible assets
value of these stores aggregating ` 410.28 (net of opening provision for impairment of ` 153.35) have been reduced to the
recoverable amount aggregating to ` 136.34 by way of impairment charge of ` 273.94. Recoverable amount is value in use of
these stores computed based upon projected cash flows from operations with sales growth of 5% - 20% and salary growth
rate of 8% consistently, over balance useful life of plant and machinery being the principle asset, discounted at rate of 12.97
% p.a (previous year: 12.63% p.a). Carrying value of a store includes property, plant and equipment, intangible assets used at
a store and allocated corporate assets.
Moreover, the impairment reversal of ` 80.75 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 Rs. 777.27 has exceeded the written
down value (after considering impairment charge recorded in previous years amounting to ` 136.99). Further, impairment
reversal also occurs in respect of certain property, plant and equipment at stores which have been closed during the year.
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 loss 31 March 2019 31 March 2018
Discount Rate
(Increase by 1%) (7.49) 7.53
(Decrease by 1%) 7.82 (7.81)
sales growth Rate
(Increase by 1%) (48.11) (32.79)
(Decrease by 1%) 52.40 46.06
salary growth Rate
(Increase by 1%) 12.28 13.31
(Decrease by 1%) (11.91) (11.76)
Alisha Retail (P) Limited
In view of the significant losses, the Alisha Retail (P) Ltd., one of Company’s subsidiary, has closed all the store and sold out/
in the process of selling all the identifiable and saleable fixed assets of the company. Accordingly, the financial statements of
the Company for the year ended 31 March 2019 have not been prepared on the assumption of going concern. Consequently,
the Company carried out a detailed evaluation of its various assets/liabilities and stated them at net realisable value of ` 4.03
with impairment loss of ` 18.35 charged to Profit and Loss account.
(` in million)
RJ CORP LIMITED (CONSOLIDATED)
226
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
59 A
ddit
iona
l Inf
orm
atio
n , a
s re
quir
ed to
con
solid
ated
fina
ncia
ls s
tate
men
ts p
ursu
ant t
o sc
hedu
le II
I to
com
pani
es a
ct ,2
013
nam
e of
the
enti
ties
incl
uded
in
Cons
olid
ated
fina
ncia
l sta
tem
ents
net
Ass
ets
( Tot
al a
sset
s m
inus
tota
l lia
bilit
ies)
s
hare
in p
rofi
t or
(los
s) s
hare
in o
ther
com
preh
ensi
ve
inco
me
sha
re in
Tot
al c
ompr
ehen
sive
in
com
e A
s %
of
cons
olid
ated
ne
t Ass
ets
Am
ount
in
mill
ion
As
% o
f co
nsol
idat
ed
Pro
fit /
loss
Am
ount
in
mill
ion
As
% o
f co
nsol
idat
ed
othe
r co
mpr
ehen
sive
In
com
e
Am
ount
in
mill
ion
As
% o
f co
nsol
idat
ed
Tota
l co
mpr
ehen
sive
In
com
e
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.
28
9,6
10.9
3 (1
25.4
4) (8
32.5
0) 9
2.41
1
,198
.86
18.
68
366
.36
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
. Li
mite
d (c
onso
lidat
ed)
0.5
1 1
07.5
3 (7
2.12
) (4
78.6
1) 1
8.08
2
34.5
1 (1
2.45
) (2
44.1
0)
Cry
oviv
a In
tern
atio
nal P
te L
td
(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 Lim
ited
(con
solid
ated
) 3
.86
818
.49
(72.
86)
(483
.54)
(1.2
4) (1
6.05
) (2
5.48
) (4
99.5
9)
Dia
gno
Labs
Indi
a P
riva
te L
imite
d (6
.21)
(1,3
19.0
5) (5
4.20
) (3
59.7
0) 0
.30
3.9
6 (1
8.14
) (3
55.7
5) M
oder
n M
onte
ssor
i Int
erna
tiona
l (In
dia)
Pri
vate
Ltd
.
0.0
3 5
.39
0.4
3 2
.87
-
-
0.1
5 2
.87
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
Lim
ited
(con
solid
ated
) 1
1.61
2
,465
.03
97.
26
645
.45
(4.5
8) (5
9.48
) 2
9.88
5
85.9
7
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
) Pri
vate
Li
mite
d (0
.00)
(0.2
7) (0
.01)
(0.0
9) -
-
(0
.00)
(0.0
9)
Anu
j Tra
ders
(P) L
td.
(0.0
2) (4
.31)
(0.0
6) (0
.37)
-
-
(0.0
2) (0
.37)
Sno
wpe
aks
Ente
rpri
ses
Pvt
Ltd
0
.02
3.8
8 (0
.01)
(0.1
0) -
-
(0
.01)
(0.1
0) A
lisha
Ret
ail P
riva
te L
imite
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
70.3
0 3,
121.
15
(4.4
3) (5
7.45
) 1
56.2
3 3,
063.
70
Em
pire
Sto
cks
Pri
vate
Lim
ited
-
-
0.0
0 0
.00
-
-
0.0
0 0
.00
RJ CORP LIMITED (CONSOLIDATED)
227
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
Min
ority
Inte
rest
in a
ll su
bsid
iari
es
(incl
udin
g st
ep s
ubsi
diar
ies)
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
.75)
(21,
384.
06)
(249
.14)
(1,6
53.3
8) 4
.78
62.
06
(81.
15)
(1,5
91.3
3) A
ssoc
iate
s/Jo
int v
entu
res
( In
vest
men
t as
per
Equi
ty m
etho
d)
For
eign
Afr
icar
e Li
mite
d (C
onso
lidat
ed)
-
-
-
-
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 L
imite
d (0
.10)
(0.6
8) (0
.03)
(0.6
8) R
atna
kar
Food
s &
Bev
erag
es P
vt.
Ltd.
-
-
-
-
The
Min
or F
ood
Gro
up (I
ndia
) P
riva
te L
imite
d -
-
-
-
Ang
elic
a Te
chno
logi
es P
riva
te
Lim
ited
4.0
9 2
7.17
1
.39
27.
17
Aga
rwal
Col
d D
rink
s P
vt.L
td.
0.0
0 0
.03
0.0
0 0
.03
Tot
al
100
.00
21,
224.
67
100
.00
663
.65
100
.00
1,2
97.3
9 1
00.0
0 1,
961.
05
For
the
year
end
ed 3
1 M
arch
201
8 P
aren
t Com
pany
R
J C
orp
Lim
ited
31.
98
4,1
85.5
1 (7
6.75
) (7
56.4
7) 9
7.17
2
,445
.24
48.
22
1,6
88.7
7 s
ubsi
diar
ies
(For
eign
)
Wel
lnes
s H
oldi
ngs
Lim
ited
2.2
9 2
99.3
5 (6
.55)
(64.
52)
0.0
0 0
.02
(1.8
4) (6
4.50
) A
rctic
Inte
rnat
iona
l (M
auri
tius)
Pvt
. Li
mite
d (c
onso
lidat
ed)
2.6
0 3
39.9
4 (9
.45)
(93.
18)
(2.2
2) (5
5.93
) (4
.26)
(149
.12)
Afr
icar
e Li
mite
d(co
nsol
idat
ed)
-
-
(10.
12)
(99.
73)
-
-
(2.8
5) (9
9.73
) C
ryov
iva
Inte
rnat
iona
l Pte
Ltd
(C
onso
lidat
ed)
(3.9
0) (5
10.8
4) (1
5.31
) (1
50.9
4) (1
.00)
(25.
12)
(5.0
3) (1
76.0
6)
(` in
mill
ion)
nam
e of
the
enti
ties
incl
uded
in
Cons
olid
ated
fina
ncia
l sta
tem
ents
net
Ass
ets
( Tot
al a
sset
s m
inus
tota
l lia
bilit
ies)
s
hare
in p
rofi
t or
(los
s) s
hare
in o
ther
com
preh
ensi
ve
inco
me
sha
re in
Tot
al c
ompr
ehen
sive
in
com
e A
s %
of
cons
olid
ated
ne
t Ass
ets
Am
ount
in
mill
ion
As
% o
f co
nsol
idat
ed
Pro
fit /
loss
Am
ount
in
mill
ion
As
% o
f co
nsol
idat
ed
othe
r co
mpr
ehen
sive
In
com
e
Am
ount
in
mill
ion
As
% o
f co
nsol
idat
ed
Tota
l co
mpr
ehen
sive
In
com
e
Am
ount
in
mill
ion
RJ CORP LIMITED (CONSOLIDATED)
228
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
sub
sidi
arie
s (I
ndia
n)
Dev
yani
Inte
rnat
iona
l Lim
ited
(con
solid
ated
) 1
0.63
1
,391
.77
48.
42
477
.22
2.2
8 5
7.31
1
5.26
5
34.5
3
Dia
gno
Labs
Indi
a P
riva
te L
imite
d (8
.89)
(1,1
63.1
0) (4
0.50
) (3
99.1
6) (0
.06)
(1.4
1) (1
1.44
) (4
00.5
6) M
oder
n M
onte
ssor
i Int
erna
tiona
l (In
dia)
Pri
vate
Ltd
.
0.0
2 2
.52
0.4
1 4
.04
-
-
0.1
2 4
.04
Cry
oviv
a B
iote
ch P
vt L
td
(con
solid
ated
) (1
7.54
) (2
,295
.35)
(29.
60)
(291
.74)
0.1
0 2
.60
(8.2
6) (2
89.1
3)
Dev
yani
Foo
ds In
dust
ries
Lim
ited
(con
solid
ated
) 1
2.03
1
,574
.08
2.9
2 2
8.82
(0
.05)
(1.1
4) 0
.79
27.
68
SVS
Indi
a P
vt. L
td.
0.0
4 5
.82
0.0
0 0
.01
-
-
0.0
0 0
.01
Acc
orB
ev (T
elan
gana
) Pri
vate
Li
mite
d (0
.00)
(0.1
8) (0
.00)
(0.0
3) -
-
(0
.00)
(0.0
3)
Anu
j Tra
ders
(P) L
td.
(0.0
3) (3
.94)
0.0
1 0
.12
-
-
0.0
0 0
.12
Sno
wpe
aks
Ente
rpri
ses
Pvt
Ltd
0
.03
3.9
8 (0
.03)
(0.3
1) -
-
(0
.01)
(0.3
1) A
lisha
Ret
ail P
riva
te L
imite
d (3
.72)
(486
.95)
(29.
99)
(295
.57)
0.0
2 0
.40
(8.4
3) (2
95.1
7) V
arun
Bev
erag
es L
imite
d (C
onso
lidat
ed)
136
.81
17,
906.
05
233
.36
2,2
99.9
5 3
.89
98.
01
68.
47
2,3
97.9
6
Em
pire
Sto
cks
Pri
vate
Lim
ited
-
-
(1.5
1) (1
4.91
) -
-
(0
.43)
(14.
91)
Lin
eage
Hea
lthc
are
Lim
ited
-
-
(3.6
7) (3
6.18
) (0
.01)
(0.3
3) (1
.04)
(36.
51)
Par
kvie
w C
ity L
imite
d -
-
(6
.38)
(62.
89)
(0.0
0) (0
.06)
(1.8
0) (6
2.95
) M
inor
ity In
tere
st in
all
subs
idia
ries
(in
clud
ing
step
sub
sidi
arie
s)
87.
37
11,
435.
27
113
.96
1,1
23.1
9 3
.36
84.
50
34.
48
1,2
07.6
9
Tot
al e
limin
atio
ns
(149
.72)
(19,
595.
46)
(62.
67)
(617
.64)
(3.4
8) (8
7.55
) (2
0.14
) (7
05.2
0) A
ssoc
iate
s/Jo
int v
entu
res
( In
vest
men
t as
per
Equi
ty m
etho
d)
For
eign
Afr
icar
e Li
mite
d (C
onso
lidat
ed)
(0.0
0) (0
.03)
(0.0
0) (0
.03)
Sam
eer
Agr
icul
ture
& L
ives
tock
(K
enya
) Ltd
. (8
.26)
(81.
43)
(2.3
3) (8
1.43
)
Cry
oviv
a Th
aila
nd P
vt L
td 1
.56
15.
39
0.4
4 1
5.39
(` in
mill
ion)
nam
e of
the
enti
ties
incl
uded
in
Cons
olid
ated
fina
ncia
l sta
tem
ents
net
Ass
ets
( Tot
al a
sset
s m
inus
tota
l lia
bilit
ies)
s
hare
in p
rofi
t or
(los
s) s
hare
in o
ther
com
preh
ensi
ve
inco
me
sha
re in
Tot
al c
ompr
ehen
sive
in
com
e A
s %
of
cons
olid
ated
ne
t Ass
ets
Am
ount
in
mill
ion
As
% o
f co
nsol
idat
ed
Pro
fit /
loss
Am
ount
in
mill
ion
As
% o
f co
nsol
idat
ed
othe
r co
mpr
ehen
sive
In
com
e
Am
ount
in
mill
ion
As
% o
f co
nsol
idat
ed
Tota
l co
mpr
ehen
sive
In
com
e
Am
ount
in
mill
ion
RJ CORP LIMITED (CONSOLIDATED)
229
Sum
mar
y of
sig
nifi
cant
acc
ount
ing
polic
ies
and
othe
r ex
plan
ator
y in
form
atio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
for
the
year
end
ed 3
1 M
arch
201
9
RJ C
ORP
LIM
ITED
(CO
NSO
LID
ATED
)
In
dian
Lin
eage
Hea
lthc
are
Lim
ited
(0.0
3) (0
.25)
(0.0
1) (0
.25)
Par
kvie
w C
ity L
imite
d (0
.23)
(2.2
8) (0
.07)
(2.2
8) C
apita
l Inf
raco
n P
riva
te L
imite
d (0
.08)
(0.7
8) (0
.02)
(0.7
8) R
atna
kar
Food
s &
Bev
erag
es P
vt.
Ltd.
-
-
-
-
Raj
asth
an B
ever
ages
Pvt
.Ltd
. -
-
-
-
T
he M
inor
Foo
d G
roup
(Ind
ia)
Pri
vate
Lim
ited
(1.7
8) (1
7.50
) (0
.50)
(17.
50)
Ang
elic
a Te
chno
logi
es P
riva
te
Lim
ited
2.2
7 2
2.34
0
.64
22.
34
Aga
rwal
Col
d D
rink
s P
vt.L
td.
0.0
0 0
.02
0.0
0 0
.02
Tot
al
100
.00
13,
088.
48
100
.00
985
.57
100
.00
2,5
16.5
5 1
00.0
0 3
,502
.12
For
and
on b
ehal
f of t
he B
oard
of D
irec
tors
of R
J CO
RP
LIM
ITED
Pla
ce :
New
Del
hiD
ated
: Sep
tem
ber
23, 2
019
(sum
it k
athu
ria)
Par
tner
M. N
o. 5
2007
8
For
APA
s &
Co.
Cha
rter
ed A
ccou
ntan
tsFi
rm R
egn.
No.
000
340C
Mah
avir
Pra
sad
gar
g C
ompa
ny S
ecre
tary
Rav
i kan
t Jai
puri
aD
irec
tor
DIN
: 000
0366
8
Raj
Pal
gan
dhi
Dir
ecto
rD
IN: 0
0003
649
Lalit
kum
ar s
ingh
Chi
ef F
inan
cial
Offi
cer
The
acco
mpa
nyin
g no
tes
are
an in
tegr
al p
art o
f the
fina
ncia
l sta
tem
ents
.A
s pe
r ou
r re
port
of e
ven
date
att
ache
d.
(` in
mill
ion)
nam
e of
the
enti
ties
incl
uded
in
Cons
olid
ated
fina
ncia
l sta
tem
ents
net
Ass
ets
( Tot
al a
sset
s m
inus
tota
l lia
bilit
ies)
s
hare
in p
rofi
t or
(los
s) s
hare
in o
ther
com
preh
ensi
ve
inco
me
sha
re in
Tot
al c
ompr
ehen
sive
in
com
e A
s %
of
cons
olid
ated
ne
t Ass
ets
Am
ount
in
mill
ion
As
% o
f co
nsol
idat
ed
Pro
fit /
loss
Am
ount
in
mill
ion
As
% o
f co
nsol
idat
ed
othe
r co
mpr
ehen
sive
In
com
e
Am
ount
in
mill
ion
As
% o
f co
nsol
idat
ed
Tota
l co
mpr
ehen
sive
In
com
e
Am
ount
in
mill
ion
nOTEs
nOTEs
nOTEs
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