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Notes to Accounts of Jubilant Foodworks Ltd.

Mar 31, 2023

Provisions and contigent liabilty

A provision is recognised when the Company has a
present obligation (legal or constructive) 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. These estimates are
reviewed at each reporting date and adjusted to reflect
the current best estimates. 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.

p. 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 recognized
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 recognized because
it cannot be measured reliably. The Company does
not recognize a contingent liability but discloses its
existence in the financial statements.

q. Dividend Distributions

The Company recognizes a liability to make payment
of dividend to owners of equity when the distribution
is authorized and is no longer at the discretion of the
Company and is declared by the shareholders. A
corresponding amount is recognized directly in equity.

r. Fair value measurement

The Company measures financial instruments at fair
value at each balance sheet date.

Fair value 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:

• In the principal market for asset or liability, or

• In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must
be accessible by the Company.

The fair value of an asset or a liability is measured
using the assumptions that market participants would
use when pricing the asset or liability, assuming that
market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes
into account a market participant''s ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant
that would use the asset in its highest and best use.

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.

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.

Level 3- Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is unobservable.

For assets and liabilities that are recognised in the
financial statements 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.

s. Employee Benefits

• Short-term obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within twelve months after the end of the

period in which the employees render the related
service are recognized in respect of employee
service upto the end of the reporting period and
are measured at the amount expected to be paid
when the liabilities are settled. The liabilities are
presented as current employee benefit obligations
in the balance sheet.

• Post-employment benefit obligations
Gratuity

The Employee''s Gratuity Fund Scheme, which
is defined benefit plan, is managed by Trust
maintained with SBI Life Insurance Company
Limited. The liabilities with respect to Gratuity Plan
are determined by actuarial valuation on projected
unit credit method on the balance sheet date,
based upon which the Company contributes to
the Company Gratuity Scheme. The difference, if
any, between the actuarial valuation of the gratuity
of employees at the year end and the balance of
funds with SBI Life Insurance Company Limited
is provided for as assets/ (liability) in the books.
Net interest is calculated by applying the discount
rate to the net defined benefit liability or asset.
Future salary increases and pension increases
are based on expected future inflation rates for
the respective countries. Further details about the
assumptions used, including a sensitivity analysis,
are given in Note 34.

The Company recognises the following changes in
the net defined benefit obligation under Employee
benefit expense in statement of profit or loss:

• Service costs comprising current service
costs, past-service costs, gains and losses
on curtailments and non-routine settlements

• Net interest expense or income

Remeasurements, comprising of 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. Remeasurements are not reclassified to
profit or loss in subsequent periods.

Superannuation

Certain employees of the Company are also
participants in the superannuation plan (''the
Plan''), a defined contribution plan. Contribution
made by the Company to the plan during the year
is charged to Statement of Profit and Loss.

Provident Fund

The Company contributes to the provident
fund scheme for its eligible employees. During
the financial year ended 31st March 2023, the
Company has transferred its Provident Fund
obligations and fund balance from recognised
provident fund - "JUBILANT FOODWORKS
EMPLOYEES PROVIDENT FUND TRUST", to the
Employee Provident Fund Organization (EPFO).
The transition did not impact the profit or loss as
the Company had sufficient provision to fulfil its
obligations.

The Provident Fund scheme is a defined
contribution plan. The Company recognises
contribution payable to the provident fund scheme
as an expense, when an employee renders the
related service.

• Other long-term employee benefit obligation
Compensated Absences/Leave Encashment

Accumulated leaves which is expected to be
utilized within next 12 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 and discharge at the
year end.

Liabilities recognised in respect of other long-term
employee benefits are measured at the present
value of the estimated future cash outflows
expected to be made by the Company in respect
of services provided by employees up to the
reporting date.

Share-based payments

Employees (including senior executives) of the
Company receive remuneration in the form of
share-based payments, whereby employees
render services as consideration for equity
instruments (equity-settled transactions).

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, together with a
corresponding increase in share-based payment
(SBP) reserves in equity, over the period in which
the performance and/or service conditions
are fulfilled in employee benefits expense. The
cumulative expense recognised for equity-
settled transactions at each reporting date until
the vesting date reflects the extent to which the
vesting period has expired and the Company best

estimate of the number of equity instruments that
will ultimately vest. The statement of profit and
loss expense or credit for a period represents the
movement in cumulative expense recognised as
at the beginning and end of that period and is
recognised in employee benefits expense.

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 Company 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 profit or loss.

The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.

t. Exceptional Items

Exceptional items are transactions which due to
their size or incidence are separately disclosed to
enable a full understanding of the Company financial
performance.

u. Earnings Per Share

Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable to
equity shareholders by the weighted average number
of equity shares outstanding during the period. The
weighted average number of equity shares outstanding

during the period and all periods presented is adjusted
for events such as bonus issue, bonus element in
a rights issue, share split, and reverse share split
(consolidation of shares), etc that have changed
the number of equity shares outstanding, without a
corresponding change in resources.

For the purpose of calculating diluted earnings 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 effect of all potentially dilutive equity
shares.

v. 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 assetsThe Company classifies its financial assets in the
following measurement categories:

• Those to be measured subsequently at fair value
(either through other comprehensive income, or
through profit or loss)

• Those measured at amortized cost

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.

Subsequent measurement

For purposes of subsequent measurement, financial
assets are classified in four categories:

• Debt instruments at amortized cost

• Debt instruments at fair value through other
comprehensive income (FVTOCI)

• Debt instruments at fair value through profit and
loss (FVTPL)

• Equity instruments

Debt instruments at amortized cost
A debt instrument is measured at amortized cost if
both the following conditions are met:

• Business model test: The objective is to hold
the debt instrument to collect the contractual
cash flows (rather than to sell the instrument prior
to its contractual maturity to realise its fair value
changes).

• Cash flow characteristics test: The contractual
terms of the Debt instrument give rise on specific
dates to cash flows that are solely payments
of principal and interest on principal amount
outstanding.

This category is most relevant to the Company.

After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (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 EIR. EIR is the rate that exactly
discounts the estimated future cash receipts over the
expected life of the financial instrument or a shorter
period, where appropriate, to the gross carrying
amount of the financial asset. When calculating the
effective interest rate, the Company estimates the
expected cash flows by considering all the contractual
terms of the financial instrument but does not consider
the expected credit losses. The EIR amortisation is
included in finance income in profit or loss. The losses
arising from impairment are recognised in the profit or
loss. This category generally applies to trade and other
receivables.

Debt instruments at fair value through OCI

A Debt instrument is measured at fair value through other
comprehensive income if following criteria are met:

• Business model test: The objective of financial
instrument is achieved by both collecting contractual
cash flows and for selling financial assets.

• Cash flow characteristics test: The contractual terms
of the financial asset give rise on specific dates to cash
flows that are solely payments of principal and interest
on principal amount outstanding.

Financial Asset included within the FVTOCI category
are measured initially as well as at each reporting date
at fair value. Fair value movements are recognized in
the other comprehensive income (OCI). However, the
Company recognized the interest income, impairment
losses and reversals and foreign exchange gain or
loss in the Profit or Loss. On dereognition of asset,
cumulative gain or loss previously recognised in OCI is
reclassified from the equity to Profit or Loss. Interest
earned whilst holding FVTOCI debt instrument is
reported as interest income using the EIR method.

Debt instruments at FVTPL

FVTPL is a residual category for financial instruments.
Any financial instrument, which does not meet the
criteria for amortized cost or FVTOCI, is classified as
at FVTPL. A gain or loss on a debt instrument that is
subsequently measured at FVTPL and is not a part of
a hedging relationship is recognized in profit or loss
and presented net in the statement of profit and loss
within other gains or losses in the period in which it
arises. Interest income from these Debt instruments is
included in other income.

Equity investments of other entities

All equity investments in scope of Ind AS 109 are
measured at fair value. Equity instruments which
are held for trading and contingent consideration
recognized by an acquirer in a business combination
to which Ind AS 103 applies are classified as at
FVTPL. For all other equity instruments, the Company
may make an irrevocable election to present in other
comprehensive income all subsequent changes in the
fair value. The Company makes such election on an
instrument-by-instrument basis. The classification is
made on initial recognition and is irrevocable.

If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value changes
on the instrument, excluding dividends, are recognized
in the OCI. There is no recycling of the amounts from
OCI to profit and loss, even on sale of investment.
However, the Company may transfer the cumulative
gain or loss within equity. Equity instruments included
within the FVTPL category are measured at fair value
with all changes recognized in the Profit and loss.

Derecognition

A financial asset (or ,where applicable, a part of a
financial asset or part of a Company of similar financial
assets) is primarily derecognised (i.e removed from the
Company statement of financial position) when:

• The rights to receive cash flows from the asset
have expired, or

• The Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under a
"pass through" arrangement and either;

• The Company has transferred the rights to receive
cash flows from the financial assets or

• The Company has retained the contractual right to
receive the cash flows of the financial asset, but
assumes a contractual obligation to pay the cash
flows to one or more recipients.

Where the Company has transferred an asset,
the Company evaluates whether it has transferred
substantially all the risks and rewards of the ownership
of the financial assets. In such cases, the financial
asset is derecognised. Where the entity has not
transferred substantially all the risks and rewards of the
ownership of the financial assets, the financial asset is
not derecognised.

Where the Company has neither transferred a financial
asset nor retains substantially all risks and rewards of
ownership of the financial asset, the financial asset is
derecognised if the Company has not retained control
of the financial asset. Where the Company retains
control of the financial asset, the asset is continued to
be recognized to the extent of continuing involvement
in the financial asset.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies
expected credit losses( ECL) model for measurement
and recognition of impairment loss on the following
financial asset and credit risk exposure

• Financial assets measured at amortised cost;

• Financial assets measured at fair value through
other comprehensive income(FVTOCI);

The Company follows "simplified approach" for
recognition of impairment loss allowance on:

• Trade receivables or contract revenue receivables;

• All lease receivables resulting from the
transactions within the scope of Ind AS 116

Under the simplified approach, the Company does
not track changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at
each reporting date, right from its initial recognition.
The Company uses a provision matrix to determine
impairment loss allowance on the portfolio of trade
receivables. The provision matrix is based on its
historically observed default rates over the expected
life of trade receivable and is adjusted for forward
looking estimates. At every reporting date, the
historical observed default rates are updated and
changes in the forward looking estimates are analysed.

For recognition of impairment loss on other financial
assets and risk exposure, the Company determines
whether there has been a significant increase in the
credit risk since initial recognition. If credit risk has
not increased significantly, 12-month ECL is used to
provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used. If, in
subsequent period, credit quality of the instrument
improves such that there is no longer a significant
increase in credit risk since initial recognition, then
the Company reverts to recognising impairment loss
allowance based on 12- months ECL.

Financial liabilitiesInitial recognition and measurement

Financial liabilities are classified at initial recognition as
financial liabilities at fair value through profit or loss,
loans and borrowings, and payables, net of directly
attributable transaction costs. The Company financial
liabilities include loans and borrowings including trade
payables, trade deposits, retention money and liability

towards services, sales incentive, other payables and
derivative financial instruments.

The measurement of financial liabilities depends on
their classification, as described below:

Trade Payables

These amounts represents liabilities for goods and
services provided to the Company prior to the end
of financial year which are unpaid. The amounts
are unsecured and are usually paid within 30 to 60
days of recognition. Trade and other payables are
presented as current liabilities unless payment is not
due within 12 months after the reporting period. They
are recognized initially at fair value and subsequently
measured at amortized cost using EIR method.

Financial liabilities at fair value through profit or
loss

Financial liabilities at fair value through profit or loss
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 also 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. Separated embedded
derivatives are also classified as held for trading unless
they are designated as effective hedging instruments.

The Company has not designated any financial liability
as at fair value through profit and loss.

De-recognition

The Company derecognizes a financial liability when
the obligation under the liability is discharged or
cancelled or expires.

Offsetting of financial instruments

The Company offsets a financial asset and a financial
liability and reports the net amount in the balance
sheet if there is a currently enforceable legal right to
offset the recognized amounts and there is an intention
to settle on a net basis, to realize the assets and settle
the liabilities simultaneously.

Reclassification of financial assets:

The Company determines classification of financial
assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for
financial assets which are equity instruments and
financial liabilities. For financial assets which are debt
instruments, a reclassification is made only if there is
a change in the business model for managing those

assets. Changes to the business model are expected
to be infrequent. The Company senior management
determines change in the business model as a result
of external or internal changes which are significant to
the Company operations. Such changes are evident
to external parties. A change in the business model
occurs when the Company either begins or ceases to
perform an activity that is significant to its operations. If
the Company reclassifies financial assets, it applies the
reclassification prospectively from the reclassification
date which is the first day of the immediately next
reporting period following the change in business
model. The Company does not restate any previously
recognised gains, losses (including impairment gains
or losses) or interest.

w. 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.

x. Segment Reporting Policies

As the Company business activity primarily falls within
a single business and geographical segment and
the Executive Management Committee monitors the
operating results of its business units not separately
for the purpose of making decisions about resource
allocation and performance assessment. Segment
performance is evaluated based on profit or loss and
is measured consistently with profit or loss in the
standalone financial statements, thus there are no
additional disclosures to be provided under Ind AS 108
- “Segment Reporting”. The management considers
that the various goods and services provided by the
Company constitutes single business segment, since
the risk and rewards from these services are not
different from one another. The Company operating
businesses are organized and managed separately
according to the nature of products and services
provided, with each segment representing a strategic
business unit that offers different products and
serves different markets. The analysis of geographical
segments is based on geographical location of the
customers.

y. Cash Flow Statement

Cash flows are reported using indirect method,
whereby profit before tax is adjusted for the effects
transactions of a non-cash nature and any deferrals or
accruals of past or future cash receipts or payments.
The cash flows from regular revenue generating,
financing and investing activities of the Company are
segregated. Cash and cash equivalents in the cash
flow comprise cash at bank, cash/cheques in hand
and short-term investments with an original maturity of
three months or less.

z. Current/Non Current classification

The Company presents assets and liabilities in

the balance sheet based on current/non- current

classification. An asset is treated as current when it is:

• Expected to be realised or intended to be sold or
consumed in normal operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realised within twelve months after
the reporting period, or

• 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 when:

• It is expected to be settled in normal operating
cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months after
the reporting period, or

• There is no unconditional right to defer the
settlement of the liability for at least twelve months
after the reporting period.

The Company classifies all other liabilities as non¬
current.

Deferred tax assets and liabilities and advance against
current tax are classified as non-current assets and
liabilities.

The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash
and cash equivalents. The Company has identified
twelve months as its operating cycle.



Mar 31, 2022

RIGHT-OF-USE ASSETS

I n respect of lease of store space: The Company has entered into various lease agreements for acquiring space to do its day to day operations. Such lease contracts include monthly fixed payments for rentals and in some cases these also have variable rent. The lease contracts are generally cancellable at the option of lessee during the lease tenure. The Company also have a renewal option after the expiry of contract terms. There are no significant restrictions imposed under the lease contracts.

In respect of lease of land: The Company has entered into lease agreements for 90 years where its commissaries are operational. The lease contract amount is fully paid and there are no significant restrictions imposed under the lease contracts.

In respect of lease of equipments: The Company has also taken certain equipments on rent. The contract is for a period of 3-5 years and includes fixed monthly payments. These contract are non cancellable. There are no significant restrictions imposed under the lease contracts.

Expense relating to short term leases with lease term of more than one month during the financial year is Nil (Previous Year: Nil).

Expense relating to low value assets with long term lease period are not considered as right-of-use assets but charged to Statement of Profit and Loss during the financial year is '' 58.57 lakhs (Previous Year '' 37.91 lakhs).

There are no sale and lease back transactions. There are no sub leases of right-of-use assets

Refer Note 36 and also Note 50 for maturity analysis of lease liability.

Terms/rights attached to equity shares

The company has only one class of equity shares having par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. (Also refer Note 31C iii) and Note 45).

Shares held by holding/ultimate holding company and/or their subsidiaries/associates

No shares are held by the subsidiary of the Company. The Company does not have any holding and ultimate holding company.

The description of the nature and purpose of each reserves within equity is as follows:

Securities premium:

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

Share-based payments reserve:

The Share-based payments reserve is used to recognise the grant date fair value of options issued to employees under employees stock options scheme.

Retained earnings:

Retained earnings represents the undistributed profits of the Company.

Remeasurement of defined benefit obligations:

The Company transfers actuarial gain/ (loss) arising at the time of valuation of defined benefit obligations to Other comprehensive income.

Fair valuation gain/(loss) on equity instruments designated as FVTOCI (net of tax):

The Company transfers gain/ (loss) arising at the time of fair valuation of equity instruments designated as Fair Value through Other comprehensive income to Other comprehensive income. At the time of disposal of the equity instruments the cumulative gain/ (loss) will be taken to retained earnings.

a) Consequential to COVID-19 pandemic the Company has negotiated several rent concessions. In view of recent amendments by the Companies (Indian Accounting Standards) Amendment Rules, 2020, the Company has elected, as a practical expedient, not to assess these rent concessions as lease modifications and has recognized impact of such rent concession in Statement of Profit and Loss. The election is made for all such rent concessions as these satisfy the conditions mentioned in Para 46A and Para 46B of Ind AS 116 (as amended). During the current year the Company has negotiated rent concessions of '' 3,652.29 lakhs (previous year '' 6,804.44 lakhs). The Rent expense for the year was '' 8,178.94 lakhs (previous year '' 7,915.49 lakhs). After netting off with the aforesaid rent concessions, the net rent expense for the year was '' 4,526.65 lakhs (previous year '' 1,111.05 lakhs) and has been included under Other expenses as above.

The Company had received a demand of '' 5,942.85 lakhs (including interest of 1,904.28 lakhs) in relation to expenditure on leasehold improvement (LHI) considered as revenue expenditure for computing income tax, relying upon the internal/external expert advice, for Assessment Years (A.Y.) 2012-13, 2013-14, 2014-15 and 2016-17. In respect of these assessments the Company had been contesting at different levels for different years.

During the current year the company has received favourable order from ITAT in respect of the above for AY 2012-13 and 2013-14. Hence no contingent liability exist as at year end on account of Leasehold improvements.

In addition Company has received the assessment order for AY 2016-17, wherein assessing officer has made a disallowance of expenses of '' 72.65 lakhs. The Company has estimated contingent liability of '' 25.14 lakhs as at the year end.

(b) (i) Includes demand of '' 284.37 lakhs (Previous year '' 284.37 lakhs) raised on M/s. Domino’s Pizza International

Franchising Inc. (DPIF) for VAT payable on Royalty received from JFL for right to use “Domino’s” brand name under Master Franchise Agreement. However, the Company has paid service tax on Royalty under reverse charge mechanism since there is no sale of goods involved rather there is purchase of service.

(ii) Includes levy of VAT on service tax charged from the customers for restaurant services for '' 58.16 lakhs (Previous year '' 58.16 lakhs) pending at Haryana Sales Tax Tribunal, Chandigarh Tax Tribunal and Rajasthan High Court, Jaipur.

(iii) Includes demand of '' 579.67 lakhs (previous year '' 579.67 lakhs) for the year 2013-14 to 2017-18 (Qtr.1) relating to VAT on service tax component charged from customers at the restaurant wherein question of VAT on service tax was raised by the Department of Commercial Taxes. The Company is of the view that the demand is not tenable, as service tax is not consideration rather it is tax collected on behalf of the Government, secondly, VAT and Service tax are mutually exclusive and cannot be levied on the same value. Company has received revised order including Vat on Service Tax in the March-2022 & has decided to file Writ Petition before Gujarat High Court.

(c) (i) GST rate on restaurant services was reduced from 18% to 5% subject to the condition that input tax credit (ITC)

on input services/ goods will not be allowed w.e.f. 15th November 2017 resulting in loss of ITC. Company reduced GST rate from 18% to 5% w.e.f. 15th November 2017 and increased menu prices of various SKUs to recoup the loss of ITC in such a manner that at overall level the loss of ITC was higher than the price increase resulting net loss to the Company at entity level. Based on customer complaint an Anti-Profiteering investigation was conducted by Director General Anti profiteering (DG). The DG extended the scope of investigation to all products of the company and submitted its report to National Anti-Profiteering Authority (NAA) on 16th July 2018.

The NAA vide its Order dated 31st January 2019 determined the profiteering amount of '' 4,142.98 lakhs by the Company for the period 15th November 2017 to 31st May 2018 and also directed the company to reduce its price by way of commensurate reduction, keeping in view the reduced rate of tax and the benefit of ITC denied, directed the DG to conduct further investigation.

The Company filled a writ petition before Hon’ble Delhi High court (HC) challenging the order of the NAA and initiation of penalty proceeding on 25th February, 2019. Delhi HC in an Interim Order passed on 13th March, 2019 stayed the NAA order and the Penalty proceeding against the company subject to deposit of '' 2,000 lakhs in Central Consumer Welfare Fund (CWF) . The Company has deposited '' 2,000 lakhs with CWF in compliance with the stay order of Hon’ble Delhi High Court.

The HC took note of the fact that there are similar cases in which the constitutional validity of Section 171 of the CGST Act, 2017 has been challenged along with other constitutional/ common issues. Hence, the entire batch of all such cases has been clubbed together. Court further directed to create the consolidated list of constitutional & common questions to be heard together. The Court has heard the arguments partially. Due to roaster change matter heard afresh from 4th April 2022 onwards. Basis legal expert opinion and other legal and commercial grounds presented in the writ petition, Company is of the view that the demand is not tenable as the Company has incurred losses at the entity level.

ii) During the FY-2020-21, the Company has received demand orders from Uttar Pradesh GST Department (UPGST) in respect of FY- 2017-18 and 2018-19 aggregating to '' 13,223.82 lakhs (including interest of '' 2,852.64 lakhs and penalty '' 5261.68 lakhs)

The key components of demand are; availing ITC in GSTR-3B which is not matched with GSTR-2A, availment of opening ITC as on 14th November, 2017 (i. e when GST rate reduced to 5% without ITC), ITC distributed by ISD against the procedures laid down under law and ITC incorrectly utilised against inter-state outward liability.

The Company has filed appeal before Commissioner (Appeals), State Tax, on 29th January 2021 and 3rd February 2021 along with predeposit of 10% of the disputed tax. Personal hearing completed for FY-2017-18 and order awaited .Personal hearing FY-2018-19 has been started.

Basis legal expert opinion and other legal and commercial grounds presented in the appeal, Company is of the view that the demand is not tenable.

(d) The Company has received favourable order from Deputy Commissioner (LBT) for the FY- 2010-11 & 2011-12 setting aside demand of '' 897.70 lakhs (including interest of '' 226.38 lakhs and penalty of '' 447.57 lakhs)

(e) Based upon the legal opinion obtained by the management, there are various interpretation issues and thus the Company is in the process of evaluating the impact of the Supreme Court Judgment in the case of “ Vivekananda Vidyamandir vs Regional Provident Fund Commissioner (II), West Bangal in relation to non-exclusion of certain allowances from the definition of “Basic Wages” of the relevant employees for the purpose of determining contribution to provident fund under the Employees Provident Fund & Miscellaneous Provisions Act, 1952. Pending issuance of guidelines by the regulatory authorities on the application of this ruling, the impact on the Company for the previous periods, if any, cannot be ascertained. The Company has started providing for the revised liability w.e.f. March 1,2019.

(f) During the current year the subsidiary company Jubilant Foodworks Netherlands B.V. (JFN) has acquired 8.51% of shareholding in associate company DP Eurasia N.V. The acquisition during the year is financed by external borrowing in JFN for which the Company has given Corporate Guarantee. The maximum value of the Corporate Guarantee is Euro 458,85,000 (Equivalent to '' 38,512.57 lakhs) and draw down made till 31st March 2022 is Euro 14,402,151 (Equivalent to '' 12,088.13 lakhs)

(g) Represents the best possible estimate by the management, basis available information, about the outcome of various claims against the Company by different parties. As the possible outflow of resources is dependent upon outcome of various legal processes, a reliable estimate of such obligations cannot be made or it is not probable that an obligation to reimburse will arise.

B. Capital and other commitments

a) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for '' 13,366.46 lakhs (Previous year '' 5,676.31 lakhs).

b) The Company has entered Master Franchisee Agreement with Domino’s Pizza International Franchising Inc., Dunkin Donuts Franchising LLC and PLK APAC PTE. LTD. based on such agreement the Company is having commitment to open specified number of stores/ restaurants under respective franchisee agreements from time to time. The amount of such commitment is not quantifiable.

C. Subsequent events:

i) Subsequent to the year ended 31st March 2022, the Company has acquired 49% shareholding in Jubilant Golden Harvest Limited (JGHL) by investing '' 3,402.46 lakhs. With this the Company holds 100% of the total shareholding of JGHL.

ii) As per Share Subscription Agreement and Shareholders’ Agreement dated 22nd September 2021, the Company agreed to acquire 25.02% stake in Wellversed Health Private Limited (Wellversed). Subsequent to the year ended 31st March 2022, the Company has further invested '' 350.08 lakhs (total investment of '' 1,005.30 lakhs) in Wellversed resulting in effective shareholding of 27.81% (25.02% on a fully diluted basis).

iii) Subsequent to the year end and pursuant to Board and Shareholder’s approval, the equity shares of the Company were split/sub-divided such that each equity share having face value of '' 10/- (Rupees Ten only) fully paid-up, was sub-divided into five (5) equity shares having face value of '' 2/- (Rupees Two only) each, fully paid-up with effect from April 20, 2022 (Record Date). Accordingly, the share under the Authorised, Issued, Subscribed and Paid Up Share Capital shall be adjusted to give effect to sub-division of shares.

# Vesting of options is a function of achievement of performance criteria or any other criteria as specified by the NRC and communicated in the grant letter. Further, the vesting takes place on staggered basis over the respective vesting period.

@ Vesting of options is a function of achievement of performance criteria or any other criteria as specified by the Nomination, Remuneration and Compensation Committee and communicated in the grant letter.

During the financial year 2015-16, ESOP 2011 was modified to align the provisions of the Scheme with SEBI (Share Based Employee Benefits) Regulations, 2014 including but not limited to facilitating secondary acquisition of shares or acquisition by way of gift in accordance with applicable laws.

(i) The Company has given stock options to certain employees and has considered the related compensation cost to recognize in the statement of profit and loss, over the vesting period.

(ii) The Company has decided to issue equity shares on exercise of ESOPs through ESOP trust. Loan has been given to ESOP trust to purchase the Equity Shares of the Company from open market as permitted by SEBI (Share Based Employee Benefits) Regulations, 2014 (Refer Note 33).

A Forfeited options include vested options not exercised within the stipulated time prescribed under the respective ESOP schemes, vested/ unvested options forfeited in accordance with terms prescribed under the respective ESOP Schemes.

Additionally, the employees holding 33,893 (Previous Year 50,583) stock options under ESOP 2011 and 7,689 (Previous Year 13,119) stock options under ESOP 2016 are entitled to bonus shares in the ratio of 1:1 upon exercise of these options.

During the year the weighted average market price of the company’s share was '' 3,403.81 (Previous Year: '' 2,235.73)

# Out of these, 1300 shares, including 650 bonus shares (previous year 4,036 shares, including 782 bonus shares) exercised by the employee in March, 2022 and were pending for transfer to employee as on March 31, 2022.

Also refer note 31C iii) on split/sub-division of equity shares of the Company subsequent to the year end. The outstanding stock options (whether vested or unvested as on the Record Date) and exercise prices as above will be adjusted to ensure fair and reasonable adjustment to the entitlement of the Eligible Employees under the Schemes due to the sub-division of equity shares.

Fair value of options granted

The weighted average fair value of stock options granted during the year pertaining to ESOP 2011 scheme is '' 1,121.80 (Previous Year '' 809.22) and for ESOP 2016 is '' 3,453.38 (Previous Year '' 2,282.23). The fair value at grant date is determined using the Black- Scholes model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option. The following tables list the inputs used for fair valuation of options for the ESOP plans

#1 Guarantee given to finance long term loan taken by Jubilant Foodworks Netherlands B. V upto maximum exposure of Euro 4,58,85,000. The drawdown till 31st Mar 2022 is Euro 1,44,02,151 equivalent to '' 12,088.13 lakhs.

if2 Includes provision for commission payable to Non Executive Directors for FY2021-22 subject to necessary approvals.

if3 Mr. Shyam S. Bhartia has opted not to take sitting fees and Commission.

f4 Includes ESOP perquisite value of '' 432.23 lakhs (Previous Year: '' 757.80 lakhs) for 5,800 equity shares (Previous Year: 29,965) and 6,940 equity shares (Previous Year: 6,282) (including Bonus shares) received by KMPs on exercise of2,900 (Previous Year: 18,073) stock options and 3,470 (Previous Year: 3,141) stock options under JFL Employees Stock Option Scheme, 2011 "ESOP Scheme 2011”) and JFL Employees Stock Options Scheme, 2016 (“ESOP Scheme 2016”) respectively of the Company.

f5 Provision for incremental gratuity liability and leave encashment for the current year in respect of key management personnels has not been considered above, since the provision is based on a actuarial basis for the Company as a whole.

f6 The amount of '' 1,949.05 lakhs includes contribution of '' 219.17 lakhs on account of net loss incurred on sale of PF trust investments during the year. The Company has reversed a provision of '' 314.90 lakhs taken in earlier years in respect of default securities sold during the year.

f7 Excludes '' 905.73 lakhs (Previous Year: '' 429.81 lakhs) as provision for gratuity provided on the basis of actuarial valuation, which will be paid in future and includes Nil (Previous Year: Nil) paid directly to employees on behalf of Gratuity Trust (Refer note 34).

General Notes:

(a) The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. For the year ended March 31, 2022, the Company has not recorded any impairment of receivables relating to amounts owed by related parties .This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

(b) No amount has been provided as doubtful debts or advances / written off or written back in the year in respect of debts due from/ to above related parties.

(c) During the year ended March 31,2022, 3,877 options (Previous Year: 13,217) and 10,774 options (Previous Year: 24,853) were granted to Key Management Personnels under ESOP scheme 2016 and under ESOP scheme 2011 respectively.

b. Defined benefit plan:

i) Gratuity :

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is partially funded.

The following tables summarises the components of net benefit expense recognised in the statement of profit and loss and the amounts recognised in the balance sheet.

ii) Provident fund

The Company makes monthly contributions to provident fund managed by trust for qualifying employees. Under the scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. As per Ind AS 19 on “Employee Benefits”, employer established provident fund trusts are treated as defined benefit plans, since the Company is obliged to meet interest shortfall, if any, with respect to covered employees. The net obligation of '' 678.04 lakhs (March 31, 2021: '' 591.35 lakhs) has been worked out by the actuary as at March 31,2022. The Company has enough provision for the above liability and there is no further provision required to be made.

36 TITLE DEEDS OF IMMOVABLE PROPERTY HELD IN THE NAME OF THE COMPANY

In respect of 80 number of leases of properties (amount '' 1,760.09 lakhs) (Previous year: 42 number of leases of properties amounting to '' 981.33 lakhs) where the Company is a lessee, the lease deed is expired as on 31 Mar 2022 and the Company is in the process of renewal of the lease deed.

In respect of a land taken on lease for commissary in Mumbai (Gross amount '' 5,342.04 lakhs, Carrying amount '' 5,334.89 lakhs), the Company has got possession during February 2022. The Company is in the process of executing lease agreement for this land.

As on the reporting date, the management has conducted impairment evaluation on value of investments in Jubilant FoodWorks Lanka (Private) Limited (‘Srilanka subsidiary’) and has concluded that there is no further provision required for diminution/impairment in the value of investment in Jubilant FoodWorks Lanka (Private) Limited (‘Srilanka subsidiary’). The recoverable amount of this cash-generating unit is determined at '' 8,409.93 lakhs, through an independent valuer, based on a value in use calculation which uses cash flow projections and a discount rate of 26.53% per annum. The valuer confirms that the valuation is conducted based upon the provisions of Ind AS 36.

Cash flow projections are based on the expected gross margins and inventory price inflation throughout the period. The terminal growth has been taken as 6% per annum. The growth rate is estimated basis overall economic growth rate for the Srilanka food industry.

The key assumptions used for computation of value in use are the sales growth rate, EBITDA margins, long-term growth rate and the risk-adjusted discount rate. The discount rates are derived from the Company’s weighted average cost of capital, taking into account the cost of capital, to which specific market-related premium adjustments are made for the Srilanka territory.

The Company has performed sensitivity analysis of the impairment test to changes in key assumptions used to determine the occurrence of impairment loss, if any, as below:

(i) If there is an increase in discount rate by 0.50%, keeping other variables constant, the charge of impairment loss would lead to '' 214.05 lakhs.

(ii) If there is an decrease in EBITDA margin in terminal year by 1 %, keeping other variables constant, the charge of impairment loss would lead to '' 287.97 lakhs.

Considering above sensitivity analysis, the Company has determined impairment loss of Nil (Previous Year: '' Nil) based upon discount rate of 26.53% (Previous Year 17.5%) and growth rate @ 6% (Previous Year 5%) and is of the view that there would be no increase to the impairment charge which would impact the decision of the user of the financial statements.

44 The Company has an investment of '' 11,153.67 lakhs (Previous Year '' 9,978.13 lakhs) (includes investment made during the year '' 1,175.54 lakhs) in it wholly owned subsidiary Company “Jubilant FoodWorks Lanka (Private) Limited” as on March 31,2022 to cater to the geographical market of Srilanka. The Company has agreed in its Board of Directors (BOD) meeting to provide continuous financial support by way of equity investment until the subsidiary is able to generate sufficient cash flows to run its operations. Based upon future business plan, the Company is confident that in foreseeable future, the subsidiary will be able to earn profits (Refer Note 38).

Further, during the current year the Company has invested '' 304.47 lakhs (Previous Year: Nil) and as at March 31,2022 the Company has an investment of '' 1746.61 lakhs (Previous Year '' 1,442.14 lakhs) in Jubilant Golden Harvest Ltd to cater to the geographical market of Bangladesh.

During the year Fides Food Systems Cooperatief U.A. (100% step down subsidiary of the Company in Netherlands) has got merged with its Parent Company Jubilant Foodworks Netherlands B.V. through Deed of Legal Merger w.e.f. 2nd March 2022. The last financial year of Fides Food Systems Cooperatief U.A. ended on 31st December 2021 and effective 1st January 2022 the books of account of Fides Food Systems Cooperatief U.A. got merged with Jubilant Foodworks Netherlands B.V. (as per the Deed of Legal Merger).

# Also refer note 31C i) and ii) in respect of subsequent investments in subsidiary and associate.

40 STANDARDS ISSUED BUT NOT YET EFFECTIVE

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, as below.

A The Board of Directors of the Company at its meeting held on 30lh May, 2022 has recommended for approval of the Dividend of '' 1.20/-each for every equity share of '' 2/- fully paid-up on existing share capital for the year ended March 31, 2022 (March 31, 2021''1.20/- per share). The dividend payment is expected to be '' 7,918.14 lakhs (March 31, 2021''7,918.14 lakhs).

Also refer note 31C iii) on split/sub-division of equity shares of the Company subsequent to the year end. The dividend per share amounts for the current and previous periods as above have been adjusted to take into account the effect of split/ sub-division of equity shares of the Company.

46 All the amounts included in the financial statements are reported in lakhs of Indian Rupees (‘INR’ or “''”) and are rounded to the nearest lakhs, unless stated otherwise.

I nd AS 16 - Property, plant and equipment - The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognised in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant, and equipment. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2022. The Company has evaluated the amendment and there is no impact on its financial statements.

Ind AS 37 - Provisions, Contingent liabilities and Contingent assets - The amendment specifies that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract). The effective date for adoption of this amendment is annual periods beginning on or after April 1,2022, although early adoption is permitted. The Company has evaluated the amendment and the impact is not expected to be material.

41 Segment reporting: As the Company’s business activity primarily falls within a single business and geographical segment i.e. Food and Beverages, thus there are no additional disclosures to be provided under Ind AS 108 - “Operating Segment’. The chief operating decision maker (CODM) considers that the various goods and services provided by the Company constitutes single business segment, to assess the performance and to make decision about allocation of resources, since the risk and rewards from these services are not different from one another.

42 Corporate Social Responsibility (CSR) : As per section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The CSR activities and spend are as per the CSR Policy recommended by the CSR Committee and approved by the Board. The same has also been uploaded on the Company’s website www.jubilantfoodworks.com (Refer Note 28C).

43 The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post employment received Presidential assent in September 2020 and was published in the Gazette of India. However, the date on which the code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

50 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities, comprise retention money payable, trade and other payables, security deposits, lease liability, book overdraft and unpaid dividend. The Company’s principal financial assets include Investments, loan, trade and other receivables, cash and cash equivalents and other financial assets that derive directly from its operations.

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and liquidity risk.

The Company’s senior management oversees the management of these risks. The senior professionals work on to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors and Audit Committee. This process provides assurance to Company’s senior management that the Company’s financial risk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with Company policies and risk objective.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below:

a. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market risks include deposits, investments and foreign currency receivables and payables. The sensitivity analyses in the following sections relate to the position as at March 31 2022. The analysis exclude the impact of movements in market variables on: the carrying values of gratuity, pension obligation and other post-retirement obligations; provisions; and the non-financial assets and liabilities.The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31,2022.

i Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company exposure to the risk of changes in foreign exchange rates relates primarily to the Company operating activities (when revenue or expense is denominated in foreign currency and the Company net investment in foreign subsidiaries). Foreign currency exchange rate exposure is party balanced by purchasing of goods from the respective countries.The Company evaluates exchange rate exposure arising from foreign currency transactions and follows appropriate risk management policies.

Foreign currency risk sensitivity

There is no material unhedged foreign currency exposures outstanding at year end and hence sensitivity analysis with respect to currency risk has not been given.

ii 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.

This is not applicable to the Company as the Company is not having any loans and borrowings.

Interest rate sensitivity

Interest rate sensitivity is not applicable to the Company.

iii Other risks (Equity price risk for Investments valued at FVTOCI):

The Company has invested in equity shares of Barbeque-Nation Hospitality Limited (BNHL) which are valued at Fair Value through OCI. The market price movement of equity shares of BNHL affects the fair valuation gain/ loss of the Company recognized into OCI and hence affects the Equity. This does not have impact on Statement of Profit and Loss of the Company. Below is the sensitivity analysis of Equity Price of BNHL share and its impact on Equity of the Company.

('' in lakhs)

Equity price sensitivity (BNHL)

As at March 31,2022

As at March 31,2021

Increase

Decrease

Increase

Decrease

by 10%

by 10%

by 10%

by 10%

Impact due to change on OCI

4,587.41

(4,587.41)

1,825.40

(1,825.40)

The Company has invested in equity shares of Wellversed Health Private Limited (Wellversed) which are valued at Fair Value through OCI. The fair value of equity shares of Wellversed has been determined by a IBBI registered valuer using the forecasted cash flows of the investment. The valuer has used assumptions on revenue and other financial numbers of the investment. The fair valuation gain/ loss of the Company recognized into OCI and hence affects the Equity. This does not have impact on Statement of Profit and Loss of the Company.

b. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. In respect of trade receivables the Company is not exposed to any significant credit risk exposure with a single counter party or a group of counter parties having similar characteristics.

c. Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.

d. Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The Company’s objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate source of financing through the use of short term bank deposits and cash credit facility. Processes and policies related to such risks are overseen by senior management. Management monitors the Company’s liquidity position through rolling forecasts on the basis of expected cash flows. The Company assessed the concentration of risk with respect to its debt and concluded it to be low.

e. Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company’s performance to developments affecting a particular industry.

Based upon the Company’s evaluation, there is no excessive risk concentration.

f. Collateral

There are no significant terms and conditions associated with the use of collateral.

51 CAPITAL MANAGEMENT

For the purposes of the Company’s capital management, Capital includes equity attributable to the equity holders of the Company and all other equity reserves. The primary objective of the Company’s capital management is to ensure that it maintains an efficient capital structure and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders or issue new shares. The Company is not subject to any externally imposed capital requirements. No changes were made in the objectives, policies or processes for managing capital during the year ended March 31,2022 and March 31,2021.

52 The Company does not have any transactions or balances with the Companies whose name is struck off under section 248 of the Companies Act, 2013.

53 The Company does not have any charges or satisfaction which are pending to be registered with ROC beyond the statutory period as at the year end.

54 The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.


Mar 31, 2021

Jubilant FoodWorks Limited

Notes

Forming part of the Standalone Financial Statements for the year ended March 31, 2021

assets. Changes to the business model are expected to be infrequent. The Company senior management determines change in the business model as a result of external or internal changes which are significant to the Company operations. Such changes are evident to external parties. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognised gains, losses (including impairment gains or losses) or interest.

u. 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.

v. Segment Reporting Policies

As the Company business activity primarily falls within a single business and geographical segment and the Executive Management Committee monitors the operating results of its business units not separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the standalone financial statements, thus there are no additional disclosures to be provided under Ind AS 108 - “Segment Reporting”. The management considers that the various goods and services provided by the Company constitutes single business segment, since the risk and rewards from these services are not different from one another. The Company operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. The analysis of geographical segments is based on geographical location of the customers.

w. Cash Flow Statement

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, financing and investing activities of the Company are segregated. Cash and cash equivalents in the cash flow comprise cash at bank, cash/cheques in hand and short-term investments with an original maturity of three months or less.

x. Current/Non Current classification

The Company presents assets and liabilities in the balance sheet based on current/non- current classification. An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realised within twelve months after the reporting period, or

• 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 when:

• It is expected to be settled in normal operating cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as noncurrent.

Deferred tax assets and liabilities and advance against current tax are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

98 Passion to serve

B. RIGHT-OF-USE ASSETS

In respect of lease of store space: The Company has entered into various lease agreements for acquiring space to do its day to day operations. Such lease contracts include monthly fixed payments for rentals and in some cases these also have variable rent. The lease contracts are generally cancellable at the option of lessee during the lease tenure. The Company also have a renewal option after the expiry of contract terms. There are no significant restrictions imposed under the lease contracts.

In respect of lease of land: The Company has entered into lease agreements for 90 years where its commissaries are operational. The lease contract amount is fully paid and there are no significant restrictions imposed under the lease contracts.

In respect of lease of equipments: The Company has also taken certain equipments on rent. The contract is for a period of 3-5 years and includes fixed monthly payments. These contract are non cancellable. There are no significant restrictions imposed under the lease contracts.

(b) Terms/rights attached to equity shares

The company has only one class of equity shares having par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. (Also refer Note 43)

(c) Shares held by holding/ultimate holding company and/or their subsidiaries/associates

No shares are held by the subsidiary of the Company. The Company does not have any holding and ultimate holding company.

(ii) The description of the nature and purpose of each reserves within equity is as follows:

Securities premium:

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

Share-based payments reserve:

The Share-based payments reserve is used to recognise the grant date fair value of options issued to employees under employees stock options scheme.

Retained earnings:

Retained earnings represents the undistributed profits of the Company.

Remeasurement of defined benefit obligations:

The Company transfers acturial gain/ (loss) arising at the time of valuation of defined benfit obligations to Other Comprehensive Income.

Fair valuation gain/(loss) on equity instruments designated as FVTOCI (net of tax):

The Company transfers gain/ (loss) arising at the time of fair valuation of equity instruments designated as Fair Value through Other Comprehensive Income to Other Comprehensive Income. At the time of disposal of the equity instruments the cumulative gain/ (loss) will be taken to retained earnings.

a) During the current year, consequential to COVID-19 pandemic the Company has negotiated several rent concessions. In view of recent amendments by the Companies (Indian Accounting Standards) Amendment Rules, 2020, the Company has elected, as a practical expedient, not to assess these rent concessions as lease modifications and has recognized impact of such rent concession in Statement of Profit and Loss. The election is made for all such rent concessions as these satisfy the conditions mentioned in Para 46A and Para 46B of Ind AS 116 (as amended). During the current year the Company has negotiated rent concessions of '' 6,804.44 lakhs. The Rent expense for the current year was '' 7,915.49 lakhs. After netting off with the aforesaid rent concessions, the net rent expense for the current year was '' 1,111.05 lakhs and has been included under Other expenses as above.

31. CONTINGENT LIABILITY AND OTHER COMMITMENTS A. Contingent Liability Not Provided For:

('' in lakhs)

March 31, 2021

March 31, 2020

Claims not acknowledged as debt:

- Income tax matters (Refer Note (a))*

235.20

388.54

- Sales tax/ Value added tax matters (Refer Note (b))

922.20

767.52

- GST matters (Refer Note (c))A

11,305.12

4,142.98

- Local Body Tax matters (Refer Note (d))

450.13

-

- Others (Refer Note (f))

299.92

209.06

* Excluding interest of '' 3,531.90 lakhs (Previous Year: '' 3,021.44 lakhs), wherever specified in the order.

A Excluding penalty of '' 5,261.68 lakhs (Previous Year: Nil), wherever specified in the order.

Notes:

(a) The Company received a demand of '' 5,942.85 lakhs (including interest of '' 1,904.28 lakhs) in relation to expenditure on leasehold improvement (LHI) considered it as revenue expenditure under income tax, for Assessment Years (A.Y.) 2012-13, 2013-14, 2014-15 and 2016-17. In respect of these assessments the Company is contesting at different levels for different years. However, basis expert advice, the Company is of the view that it will not have a material impact on the financial position of the Company. In view of Appendix C of Ind AS 12 in respect of Uncertain Tax Treatment, the Company has estimated contingent liability of '' 235.20 lakhs (Previous Year: '' 722.44 lakhs) and interest liability of '' 3,531.90 lakhs (Previous Year: '' 3,589.67 lakhs) thereon as at year end.

(b) (i) Includes demand of'' 284.37 lakhs (Previous year '' 129.69 lakhs) raised on M/s. Domino''s Pizza International

Franchising Inc. (DPIF) for VAT payable on Royalty received from JFL for right to use "Domino''s" brand name under Master Franchise Agreement. However, the Company has paid service tax on Royalty under reverse charge mechanism since there is no sale of goods involved rather this is purchase of services.

(ii) Includes levy of VAT on service tax charged from the customers for restaurant services for '' 58.16 lakhs (Previous year '' 58.16 lakhs) pending at Haryana Sales Tax Tribunal, Chandigarh and Rajasthan High Court, Jaipur.

(iii) Includes demand of '' 579.67 lakhs (previous year '' 579.67 lakhs) for the year 2013-14 to 2017-18 & April - June-2017 relating to VAT on service tax component charged from customers at the restaurant wherein question of VAT on service tax was raised by the Assistant Commissioner, Department of Commercial taxes. The Company is of the view that the demand is not tenable firstly, as service tax is not consideration rather it is tax collected on behalf of the Government, secondly, VAT and Service tax are mutually exclusive and cannot be levied on same value.

(c) (i) Pursuant to notification no 46/2017 Central tax (rate) dated 14 November 2017, Goods and Service tax (GST) rate

on restaurant services was reduced from 18% to 5% subject to a condition that input tax credit (ITC) on goods and services used in supplying the services has not been taken w.e.f. 15th November 2017. The Company has accordingly reduced GST rate from 18% to 5% w.e.f. 15th November 2017 and increased menu prices of few SKUs to recoup the loss of ITC however the loss of ITC was higher than the price increase resulting net loss to the Company at entity level. Based on customer complaint an Anti-Profiteering investigation was conducted by Director General Anti profiteering (DG). The DG extended the scope of investigation to all products of the company and submitted its report to National Anti-Profiteering Authority (NAA) on 16th July 2018.

The NAA vide its Order dated 31st January 2019 determined the profiteering amount of '' 4,142.98 lakhs by the Company for the period 15th November 2017 to 31st May 2018 and also directed the company to reduce its price by way of commensurate reduction. Further directed the DG to conduct further investigation to ascertain whether the Company has subsequently passed on the benefit of tax reduction and directed issuance of a Show Cause Notice (SCN) for imposition of penalty.

The Company filed a writ petition before Hon''ble Delhi High court challenging the order of the NAA and initiation of penalty proceeding on 25th February, 2019. Delhi High Court passed an Interim Order staying NAA order and the Penalty proceeding against the company subject to deposit of '' 2,000 lakhs in Central Consumer Welfare Fund (CWF).

The Company has deposited '' 2,000 lakhs with CWF in compliance with the stay order. DG & NAA has further filed counter affidavit against which the Company has filed the rejoinder.

The High Court took note of the fact that there are similar other cases in which the constitutional validity of Section 171 of the CGST Act, 2017 has been challenged along with other constitutional/ common issues. Hence, the entire batch of all such cases has been clubbed together. In the hearing held in August 2020 the court directed to create the consolidated list of constitutional & common questions to be heard together and thereafter merits of individual cases will be discussed. Matter has been adjourned till next hearing.

Basis expert opinion and other legal and commercial grounds presented in the writ petition, Company is of the view that the demand is not tenable as the Company has incurred losses at the entity level.

(ii) During the current financial year, the Company has received a demand order from Uttar Pradesh GST Department in respect of financial year 2017-18 and 2018-19 aggregating to '' 13,223.82 lakhs (including interest of '' 2,852.64 lakhs and penalty of '' 5,261.68 lakhs).

The key components of demands included availing input tax credit in GSTR-3B which is not matched with GSTR-2A, availment of opening input tax credit as on 14th November, 2017 (i.e. when GST rate reduced to 5% without ITC), ITC distributed by the ISD against the procedures laid down under law and ITC incorrectly utilised against inter-state outward liability.

The Company has filed appeal before Commissioner (Appeals), State Tax, G.B. Nagar, Noida on 29th January 2021 along with pre deposit of 10% of the disputed tax on the above matters, hearing awaited.

Basis legal expert opinion and other legal and commercial grounds presented in the appeal, Company is of the view that the demand is not tenable and therefore disclosed as contingent liability as at 31st March 2021 after considering the effect of provision.

(d) During current financial year, the Company has received a demand of '' 897.70 lakhs (including interest of '' 226.38 lakhs and penalty of '' 447.57 lakhs) in relation to Local Body Tax (LBT) in respect of FY 2010-11 and FY 2011-12 by disallowing Company''s claim that the goods have been exported from commissary to restaurants located outside municipal limits. Aggrieved by the order the Company has filed Writ petition before Bombay High Court on 1st April 2021.

Based upon legal expert advice, Company''s is of the view that the demand is not tenable as the Company is having sufficient evidence to prove that the goods have been exported outside the municipal limits of Mira Bhayandar and thus, the Company has not recognised any provision in the books of accounts.

(e) Based upon the legal opinion obtained by the management, there are various interpretation issues and thus the Company is in the process of evaluating the impact of the Supreme Court Judgment in the case of " Vivekananda Vidyamandir vs Regional Provident Fund Commissioner (II), West Bangal in relation to non-exclusion of certain allowances from the definition of " basis wages" of the relevant employees for the purpose of determining contribution to provident fund under the Employees Provident Fund & Miscellaneous Provisions Act, 1952. Pending issuance of guidelines by the regulatory authorities on the application of this ruling, the impact on the Company for the previous periods, if any, cannot be ascertained. The Company has started providing for the revised liability w.e.f. March 1, 2019.

(f) Represents the best possible estimate by the management, basis available information, about the outcome of various claims against the Company by different parties. As the possible outflow of resources is dependent upon outcome of various legal processes, a reliable estimate of such obligations cannot be made or it is not probable that an obligation to reimburse will arise.

B. Capital and other commitments

a) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for '' 5,676.31 lakhs (Previous year '' 4,579.67 lakhs).

b) The Company has entered Master Franchisee Agreement with Domino''s Pizza International Franchising Inc., Dunkin Donuts Franchising LLC and PLK APAC PTE. LTD. based on such agreement the Company is having commitment to open specified number of stores/ restaurants under respective franchisee agreements from time to time. The amount of such commitment is not quantifiable.

C. Subsequent events:

Subsequent to the current financial year end, Assessing Officer (Income Tax) has passed an order and raised demand of '' 13,828.73 lakhs pertaining to FY 16-17 on account of adjustment of Royalty and Advertisement, Marketing and Promotion (AMP) expense dated 20th April 2021 u/s 143(3) read with section 144B along with a demand notice order u/s 156 and penalty notices, resulted into finalization of order instead of issuance of draft order, as envisaged under section 144B and 144C of the Act.

The Company has filed writ petition before Delhi High Court on 17th April 2021 against the impugned order being against the provision of income tax and hence is bad in law, treating it void ab initio. The High Court issued the interim order and stayed operation of the impugned order and accompanying notice of demand as well as notices of penalty. Basis expert opinion and other legal and commercial grounds, the Company is of the view that the demand is not tenable and is remote in nature and thus will not have an impact on the financial statements of the Company.

#2 Includes provision for commission payable to Non Executive Directors for FY 2020-21 subject to necessary approvals.

#3 Mr. Shyam S. Bhartia has opted not to take sitting fees and Commission.

#4 Includes ESOP perquisite value of'' 757.80 lakhs (Previous Year: '' 9.81 lakhs) for 29,965 equity shares (Previous Year: 1,600) and 6,282 equity shares (Previous Year: Nil) (including Bonus shares) received by KMPs on exercise of 18,073 (Previous Year: 800) stock options and 3,141 (Previous Year: Nil) stock options under JFL Employees Stock Option Scheme, 2011 (“ESOP Scheme 2011") and JFL Employees Stock Options Scheme, 2016 ("ESOP Scheme 2016") respectively of the Company.

#5 Provision for incremental gratuity liability and leave encashment for the current year in respect of key management personnels has not been considered above, since the provision is based on a actuarial basis for the Company as a whole.

#6 Provision of Nil (Previous Year: '' 1,390 lakhs) created against investments made by Jubilant FoodWorks Employee''s Provident Fund Trust, in the corporate bonds of DHFL, Reliance Capital & IL&FS and fully provided for on account of prevailing uncertainties.

#7 Excludes '' 429.81 lakhs (Previous Year: '' 398.18 lakhs) as provision for gratuity provided on the basis of actuarial valuation, which will be paid in future and includes Nil (Previous Year: '' 0.11 lakhs) paid directly to employees on behalf of Gratuity Trust (Also refer note 34).

General Notes:

(a) The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended March 31, 2021, the Company has not recorded any impairment of receivables relating to amounts owed by related parties .This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

(b) No amount has been provided as doubtful debts or advances / written off or written back in the year in respect of debts due from/ to above related parties.

(c) During the year ended March 31, 2021, 13,217 options (Previous Year 1,238 options) and 24,853 options (Previous Year Nil) were granted to Key Management Personnels under ESOP scheme 2016 and under ESOP scheme 2011 respectively.

b. Defined benefit plan:

Gratuity :

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is partially funded.

The following tables summarises the components of net benefit expense recognised in the statement of profit and loss and the amounts recognised in the balance sheet.

b. Provident Fund

The Company makes monthly contributions to provident fund managed by trust for qualifying employees. Under the scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. As per Ind AS 19 on “Employee Benefits”, employer established provident fund trusts are treated as defined benefit plans, since the Company is obliged to meet interest shortfall, if any, with respect to covered employees. The total liability of Nil (March 31, 2020: Nil) as worked out by the actuary has been allocated to the entity based on the corpus value of the entity as at March 31, 2021. Further, the Company has made a provision of Nil (31 March 2020: '' 1,390 lakhs) against investments made by Jubilant FoodWorks Employee''s Provident Fund Trust, in the corporate bonds of DHFL, Reliance Capital & IL&FS on account of prevailing uncertainties.

As on the reporting date, the management has conducted impairment evaluation on value of investments in Jubilant FoodWorks Lanka (Private) Limited (''Srilanka subsidiary'') and has concluded that there is no further provision required for diminution/ impairment in the value of investment in Jubilant FoodWorks Lanka (Private) Limited (''Srilanka subsidiary''). The recoverable amount of this cash-generating unit is determined at '' 7,369.00 lakhs, through an independent valuer, based on a value in use calculation which uses cash flow projections based on financial budgets approved by the directors covering a five-year period, and a discount rate of 17.5% per annum. The valuer confirms that the valuation is conducted based upon the provisions of Ind AS 36.

Cash flow projections during the budget period are based on the expected gross margins and inventory price inflation throughout the budget period, after adjusting the negative impact of COVID. The cash flows beyond that five-year period have been extrapolated using a steady 5% per annum growth rate which is the projected long-term average growth rate for the Srilanka food industry.

The key assumptions used for computation of value in use are the sales growth rate, EBITDA margins, long-term growth rate and the risk-adjusted discount rate. The discount rates are derived from the Company''s weighted average cost of capital, taking into account the cost of capital, to which specific market-related premium adjustments are made for the Srilanka territory.

The Company has performed sensitivity analysis of the impairment test to changes in key assumptions used to determine the occurance of impairment loss, if any, as below:

(i) If there is an increase in discount rate by 0.50%, keeping other variables constant, the charge of impairment loss would lead to '' 173.63 lakhs.

(ii) If there is an decrease in EBITDA margin in terminal year by 1 %, keeping other variables constant, the charge of impairment loss would lead to '' 191.93 lakhs.

Considering above sensitivity analysis, the Company has determined impairment loss of Nil (Previous Year: '' 2,000 lakhs) based upon discount rate of 17.5% (Previous Year 18.1%) and growth rate @ 5% (Previous Year 6%) and is of the view that there would be no material increase to the impairment charge which would impact the decision of the user of the financial statements.

39. STANDARDS ISSUED BUT NOT YET EFFECTIVE

There are no standards which are issued but not effective as on March 31, 2021.

The Indian Parliament had approved the Code on Social Security, 2020 "the Code" in September 2020 relating to employee benefits. As the rules for the Code are yet to be notified, the impact of the same will be assessed upon the Code becoming effective and the related rules to determine the financial impact are published.

40. SEGMENT REPORTING: As the Company''s business activity primarily falls within a single business and geographical segment i.e. Food and Beverages, thus there are no additional disclosures to be provided under Ind AS 108 -“Operating Segment''. The chief operating decision maker (CODM) considers that the various goods and services provided by the Company constitutes single business segment, to assess the performance and to make decision about allocation of resources, since the risk and rewards from these services are not different from one another.

41. CORPORATE SOCIAL RESPONSIBILITY (CSR) :

CSR committee has been formed by the Company. The CSR activities and spend are as per the CSR Policy recommended by the CSR Committee and approved by the Board. The same has also been uploaded on the Company''s website www. jubilantfoodworks.com (Also refer Note 28C ).

42. The Company has an invesment of '' 9,978.13 lakhs (Previous Year '' 9,690.11 lakhs) (includes investment made during the year '' 288.02 lakhs) in it wholly owned subsidiary Company "Jubilant FoodWorks Lanka (Private) Limited" as on March 31, 2021 to cater to the geographical market of Srilanka. The Company has agreed in its Board of Directors (BOD) meeting to provide continuous financial support by way of equity investment until the subsidiary is able to generate sufficient cash flows to run its operations. Based upon future business plan, the Company is confident that in foreseeable future, the subsidiary will be able to earn profits (also refer Note 37).

Further, during the current year the Company has invested Nil (Previous Year '' 985.56 lakhs) and as at March 31, 2021 the Company has an investment of '' 1,442.14 lakhs (Previous Year '' 1,442.14 lakhs) in Jubilant Golden Harvest Ltd to cater to the geographical market of Bangladesh.

48. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s principal financial liabilities, comprise retention money payable, trade and other payables, security deposits, lease liability, book overdraft and unpaid dividend. The Company''s principal financial assets include Investments, loan, trade and other receivables, cash and cash equivalents and other financial assets that derive directly from its operations.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and liquidity risk.

The Company''s senior management oversees the management of these risks. The senior professionals work on to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors and Audit Committee. This process provides assurance to Company''s senior management that the Company''s financial risk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with Company policies and risk objective.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below: a. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market risks include deposits, investments and foreign currency receivables and payables. The sensitivity analyses in the following sections relate to the position as at March 31 2021. The analysis exclude the impact of movements in market variables on: the carrying values of gratuity, pension obligation and other post-retirement obligations; provisions; and the non-financial assets and liabilities. The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31, 2021.

i Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company exposure to the risk of changes in foreign exchange rates relates primarily to the Company operating activities (when revenue or expense is denominated in foreign currency and the Company net investment in foreign subsidiaries). Foreign currency exchange rate exposure is party balanced by purchasing of goods from the respective countries. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows appropriate risk management policies.

Foreign currency exposures recognised by the Company that have not been hedged by a derivative instrument or otherwise are as under:

ii. 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.

This is not applicable to the Company as the Company is not having any loans and borrowings.

Interest rate sensitivity

Interest rate sensitivity is not applicable to the Company.

iii. Other risks (Equity price risk for Investments valued at FVTOCI):

The Company has invested in equity shares of Barbeque-Nation Hospitality Limited (BNHL) which are valued at Fair Value through OCI. The market price movement of equity shares of BNHL affects the fair valuation gain/ loss of the Company recognized into OCI and hence affects the Equity. This does not have impact on Statement of Profit and Loss of the Company. Below is the sensitivity analysis of Equity Price of BNHL share and its impact on Equity of the Company.

b. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

c. Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

d. Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The Company''s objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate source of financing through the use of short term bank deposits and cash credit facility. Processes and policies related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through rolling forecasts on the basis of expected cash flows. The Company assessed the concentration of risk with respect to its debt and concluded it to be low.

e. Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company''s performance to developments affecting a particular industry.

Based upon the Company''s evaluation, there is no excessive risk concentration.

f. Collateral

There are no significant terms and conditions associated with the use of collateral.

49. CAPITAL MANAGEMENT

For the purposes of the Company''s capital management, Capital includes equity attributable to the equity holders of the Company and all other equity reserves. The primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders or issue new shares. The Company is not subject to any externally imposed capital requirements. No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2021 and March 31, 2020.

('' in lakhs)


Mar 31, 2018

1. Corporate information

Jubilant FoodWorks Limited (the Company) is a public limited Company domiciled in India and incorporated under the provisions of Companies Act, 1956. The Company was incorporated in 1995 and initiated operations in 1996. The Companies share are listed in India on National Stock Exchange of India Limited and BSE Limited. The Company is a food service Company. The Company and its subsidiary have the exclusive rights to develop and operate Domino’s Pizza brand in India, Sri Lanka, Bangladesh and Nepal, at present it operates in India, Sri Lanka and has signed a joint venture for operating in Bangladesh. The Company also have exclusive rights for developing and operating Dunkin’ Donuts restaurants for India. The registered office of the company is located at Plot No. 1A, Sector 16-A, Noida-201301, UP, India.

The standalone financial statements were authorised for issue in accordance with a resolution of the directors on May 08, 2018.

2. Significant accounting policies

2.1 Basis of preparation

The standalone financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015.

For all periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under the section 133 of the Companies Act 2013 (to the extent notified) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

Amounts for the year ended and as at March 31, 2017 were audited by previous auditors - S. R. Batliboi & Co LLP.

(a) Terms/rights attached to equity shares

The company has only one class of equity shares having par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders (also refer note 43).

(b) Shares held by holding/ultimate holding Company and/or their subsidiaries/associates

No shares are held by the subsidary of the Company. The Company does not have holding, ultimate holding company and associates.

*Excluding interest of Rs.1,674.56 lakhs (Previous year Rs.1,674.56 lakhs)

Note:

(a) Demand of Rs.1,420.97 lakhs (Previous year Rs.1,420.97 lakhs) related to Transfer Pricing matter in which Transfer Pricing Officer (TPO) has passed unfavourable order on account of franchisee fee pertaining to the AY 2012-13 and AY 2013-14 against which the Company has filed appeal before CIT(A) against the order of the TPO.

(b) Includes demand of Rs.137.11 lakhs (Previous year Rs. Nil) related to surcharge on value added tax (VAT) in the matter of classification of Company’s business under ‘Single Commodity Chain’ under Kerala VAT Taxes Act, 1957.

(c) Includes VAT demand of Rs.89.19 lakhs (Previous year Rs.89.19 lakhs) on franchisee fee for right to use “Domino’s” brand name under Master Franchisee Agreement. However, the Company has paid service tax on franchisee fee since there is no sale of goods involved rather there is purchase of services.

b. Capital and other Commitments

a) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs.1,912.57 Lakhs (Previous year Rs.3,846.79 Lakhs).

b) The Company has an invesment of Rs.8,217.06 lakhs (Previous year Rs.7,442.52 lakhs)(includes investment made during the year Rs.774.54 lakhs) in it wholly owned subsidiary “Jubilant FoodWorks Lanka (Pvt) Ltd.” as on March 31, 2018 to cater to the geographical market of Srilanka which is currently at initial operating stage and is having losses. The Company has agreed in its Board of Directors (BOD) meeting to provide continuous financial support by way of equity investment until the subsidiary is able to generate sufficient cash flows to run its operations. Based upon future business plan, the Company is confident that in foreseeable future, the subsidiary will be able to earn profits and therefore has not considered these losses as other than temporary diminution in the value of investments.

c) The Company has entered Master Franchisee agreement with Domino’s Pizza International Franchising Inc. and Dunkin Donuts Franchising LLC based on such agreement the Compnay is having commitment to open specified number of stores/ restaurants under respective franchisee agreements from time to time. The amount which is not quantifiable.

3. Employee Stock Option Plan

For the financial year ended March 31, 2018, the following schemes were in operation:

a) Dominos Employees Stock Option Plan, 2007 (ESOP 2007);

b) JFL Employees Stock Option Scheme 2011 (EsOp 2011); and

c) JFL Employees Stock Option Scheme 2016 (ESOP 2016)

$ The vesting takes place on staggered basis over the respective vesting period.

# Vesting of options is a function of achievement of performance criteria or any other criteria as specified by the Nomination, Remuneration and Compensation Committee and communicated in the grant letter. Further, the vesting takes place on staggered basis over the respective vesting period.

@ Vesting of options is a function of achievement of performance criteria or any other criteria as specified by the Nomination, Remuneration and Compensation Committee and communicated in the grant letter.

During the financial year 2015-16, ESOP 2011 was modified to align the provisions of the Scheme with SEBI (Share Based Employee Benefits) Regulations, 2014 including but not limited to facilitating secondary acquisition of shares or acquisition by way of gift in accordance with applicable laws.

*During the year ended March 31, 2018, Key Management Personnels of the Company, were allotted/transfer NIL equity shares (Previous year 1,39,864) under Dominos Employees Stock Option Plan, 2007 (“ESOP 2007”) and JFL Employees Stock Option Scheme, 2011 (“ESOP 2011”) of the Company, ESOP Perquisite value is Rs. Nil Lakhs (Previous year Rs.995.10 lakhs).

All the liabilities for post retirement benefits being “Gratutity” are provided on actuarial basis for the Company as whole, the amount pertaining to Key management personnnel are not included above.

Note:

(a) No amount has been provided as doubtful debts or advances / written off or written back in the year in respect of debts due from/ to above related parties.

(b) During the year ended March 31, 2018, 32,370 and 15,316 options were granted to Key Management Personnels under ESOP 2011 and ESOP 2016 respectively.

(c) The status of stock options pending vesting/exercise, granted to Key Management Personnels are as below:-

4. Employee benefits in respect of the Company have been calculated as under:

a. Defined contribution plans :

The Company has certain defined contribution plan such as provident fund (1), employee state insurance, employee pension scheme, employee superannuation fund wherein specified percentage is contributed to them. During the year, the Company has contributed following amounts to:

b. Defined benefit plan:

Gratuity :

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is partially funded.

The following tables summarises the components of net benefit expense recognised in the statement of profit and loss and the amounts recognised in the balance sheet.

b. Provident Fund

The Company makes monthly contributions to provident fund managed by trust for qualifying employees. Under the scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. As per Ind AS 19 on “Employee Benefits”, employer established provident fund trusts are treated as defined benefit plans, since the Company is obliged to meet interest shortfall, if any, with respect to covered employees. The total liability of Rs. Nil (March 31, 2017: Rs. Nil) as worked out by the actuary has been allocated to each entity based on the corpus value of each entity as at March 31, 2018. Accordingly, liability of Rs. Nil (March 31, 2017: Rs. Nil) has been allocated to Company and Rs. Nil (March 31, 2017: Rs. Nil) has been charged to Statement of Profit and Loss during the year.

5. Micro, small and medium enterprises

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at the end of year. The information as required to be disclosed in relation to Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

6. During the current year, the Company has reclassified Lease hold land from “Property, Plant and Equipment” to “Other Non-Current Assets” and “Other Current Assets” amounting to Rs.3,263.29 lakhs (March 31, 2016 Rs.3,263.29 lakhs) and Rs.37.74 lakhs (March 31, 2016 Rs.37.74 lakhs), respectively and has reclassified capital creditors from “Other current liabilities” to “Other financial liabilities” amounting to Rs.3,408.34 lakhs (March 31, 2016 Rs.2,908.86 lakhs).

7. The Company has operating lease arrangements for commissary. The details of minimum lease obligations and lease payment recognized during the year are as under:

8. Expenditure on leasehold improvement incurred during the year has been considered as revenue expenditure for computing Income tax, relying upon the expert advice. However the treatment does not impact the statement of profit and loss. Accordingly deferred tax liability of Rs.356.41 Lakhs (Previous year Rs.1,239.58 Lakhs) has been provided in books since such item has been capitalized in the books.

9. Segment Reporting: As the Company’s business activity primarily falls within a single business and geographical segment i.e. Food and Beverages, thus there are no additional disclosures to be provided under Ind AS 108 -”Operating Segment”. The chief operating decision maker (CODM) considers that the various goods and services provided by the Company constitutes single business segment, to asses the performance and to make decision about allocation of resources, since the risk and rewards from these services are not different from one another.

10. Corporate Social Responsibility (CSR) : As per section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The CSR activities and spend are as per the CSR Policy recommended by the CSR Committee and approved by the Board. The same has also been uploaded on the Company’s website www.jubilantfoodworks.com

11. Disclosure required under section 186(4) of the Companies Act 2013: During the current year the Company has further invested Rs.774.54 lakhs and as at March 31, 2018 the Company has an investment of Rs.8,217.06 lakhs in its wholly owned subsidiary Jubilant FoodWorks Lanka (Pvt) Ltd to cater to the geographical market of Sri Lanka. Also refer note 4 and note 31(b) above.

The Board of Directors at its meeting held on May 08, 2018 has recommended the following for approval of the shareholders :

- Bonus shares to the holders of equity shares of the Company in the proportion of 1:1 ( 1 (one) bonus equity share of Rs.10/- each fully paid up for every 1 (one) equity share of Rs.10/- each fully paid up as on the record date)

- Dividend of Rs.5/- each for every equity share of Rs.10/- fully paid up on existing share capital (pre bonus share capital) for the year ended March 31, 2018. The dividend payment is expected to be Rs.3,299.23 lakhs (excluding the dividend distribution tax thereon Rs.678.17 lakhs). Upon approval of issuance of Bonus shares, the dividend payout post bonus will works out to be Rs.2.5/- per equity share of Rs.10/- each fully paid up.

12. All the amounts included in the financial statements are reported in Lakhs of Indian Rupees (“INR.” or “Rs.”) and are rounded to the nearest lakhs, except per share data and unless stated otherwise.

13. Standards issued but not yet effective

(i) Appendix B to Ind AS 21, Foreign currency transactions and advance consideration: On March 28, 2018, Ministry of Corporate Affairs (“MCA”) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from April 1, 2018. The Company is of the view that it doesnot have any impact on the financial statements.

(ii) Ind AS 115- Revenue from Contract with Customers: On March 28, 2018, Ministry of Corporate Affairs (““MCA”“) has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts with customers.

The standard permits two possible methods of transition:

- Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors.

- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach).

The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018. The Company is of the view that it doesnot have any material impact on the financial statements.

14. Financial instruments

Financial assets and liabilities:

The accounting classification of each category of financial instruments, their carrying amounts and fair value amounts are set out below:

15. Financial risk management objectives and policies

The Company’s principal financial liabilities, comprise retention money payable, trade and other payables, security deposits, book overdraft, unpaid dividend. The Company’s principal financial assets include Investments, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and liquidity risk.

The Company’s senior management oversees the management of these risks. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors and Audit Committee. This process provides assurance to Company’s senior management that the Company’s financial risk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with Company policies and Company risk objective.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below:

a. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and other price risks , such as equity price risk and commodity price risk. Financial instruments affected by market risks include deposits, investments and foreign currency receivables and payables.The sensitivity analyses in the following sections relate to the position as at March 31, 2018. The analysis exclude the impact of movements in market variables on: the carrying values of gratuity, pension obligation and other post-retirement obligations; provisions; and the non-financial assets and liabilities.The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31, 2018.

i Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company exposure to the risk of changes in foreign exchange rates relates primarily to the Company operating activities (when revenue or expense is denominated in foreign currency and the Company net investment in foreign subsidiaries). Foreign currency exchange rate exposure is party balanced by purchasing of goods from the respective countries. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows establish risk management policies.

Foreign currency risk sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates, with all other variables held constant. The impact on the Company profit before tax is due to changes in the fair value of monetary assets and liabilities

Foreign currency exposures recognised by the Group that have not been hedged by a derivative instrument or otherwise are as under:

ii 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 exposure to the risk of changes in market interest rates relates primarily to the Company long-term debt obligations with floating interest rates. This is not applicable to the Company as the Company is not having any loans and borrowings.

Interest rate sensitivity

Interest rate sensitivity is not applicable to the Company.

b. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

c. Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.

d. Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The Company’s objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate source of financing through the use of short term bank deposits and cash credit facility. Processes and policies related to such risks are overseen by senior management. Management monitors the Company’s liquidity position through rolling forecasts on the basis of expected cash flows. The Company assessed the concentration of risk with respect to its debt and concluded it to be low. The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.

e. Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company’s performance to developments affecting a particular industry. Excessive risk concentration is not applicable.

f. Collateral

There are no significant terms and conditions associated with the use of collateral.

16. Capital management

For the purposes of the Company’s capital management, Capital includes equity attributable to the equity holders of the Company and all other equity reserves. The primary objective of the Company capital management is to ensure that it maintains an efficient capital structure and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders or issue new shares. The Company is not subject to any externally imposed capital requirements. No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2018 and March 31, 2017.


Mar 31, 2017

b. Share Application Money Pending Allotment

Share application money pending allotment represents application received from employees on exercise of stock options granted and vested under the ESOP 2007 and ESOP 2011 scheme of the Company.

The equity shares are expected to be allotted against the share application money within a reasonable period, not later than sixty days from the Balance Sheet date. As mentioned in Note 13, the Company has sufficient authorized share capital to cover the share capital amount on allotment of shares out of share application money.

1. Earnings Per Share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the parent by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the parent by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

The following reflects the income and share data used in the basic and diluted EPS computations:

b. Capital & other Commitments

a) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs, 3,846.79 lakhs (PY Rs, 2,480.32 lakhs).

b) The Company has a wholly owned subsidiary "Jubilant FoodWorks Lanka (Pvt.) Ltd." to which the Company has committed a continued financial support as its holding Company. The subsidiary wherein the Company has an investment of Rs, 7,442.52 lakhs (PY Rs, 6,167.86 lakhs), is currently at initial operating stage and is therefore not in profits. Based on business plans, the Company is confident that in future it would earn profits. Therefore, the Company has not considered these losses as other than temporary diminution in the value of investments.

c) Commitment to open specified number of stores/ restaurants under respective franchisee agreements. Amount not quantifiable.

2. Related Party Disclosure

(i) The related parties as per the terms of Ind AS-24, "Related Party Disclosures", (specified under section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2015) are disclosed below:-

(A) Names of related parties and description of Relationship

_relationship__

Jubilant FoodWorks Lanka (Pvt.) Ltd._Related party where control exists. Subsidiary (A)

(B) Names of other related parties with whom transactions have taken place during the year:

(i) Enterprises in which directors are (ii) Post employment benefit plan for

interested (B) the benefitted employees (C)

Jubilant Consumer Pvt. Ltd. Jubilant FoodWorks Providend Trust

Jubilant Life Sciences Limited Jubilant FoodWorks Gratuity Trust

HT Media Limited The Hindustan Times Ltd.

Jubilant Bhartia Foundation Jubilant Agri & Consumer Products Ltd.

Prority Vendors Technologies Pvt. Ltd.

(iii) Key Management Personnel (D) (iv) directors (D)

Mr. Ajay Kaul Mr. Shyam S. Bhartia

(CEO cum Whole time Director*) Mr. Hari S. Bhartia

Mr. Ravi Shanker Gupta Mr. Vishal Marwaha

(CFO - till July 11, 2016) Ms. Ramni Nirula

Mr. Sachin Sharma Mr. Phiroz Vandrevala

(CFO - effective September 3, 2016) Mr. Arun Seth

Ms. Mona Aggarwal (Company Secretary)

* Resigned as CEO cum Whole time Director w.e.f. close of business hours on March 31, 2017.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Provident Fund

The provident fund being administered by a Trust is a defined benefit scheme whereby the Company deposits an amount determined as a fixed percentage of basic pay to the fund every month. The benefit vest upon commencement of employment. The interest credited to the accounts of the employee is adjusted on an annual basis to confirm to the interest rate declared by the government for the Employees Provident Fund. The actuary has provided a valuation based on Projected Unit Credit Method (PUCM) and based on the below provided assumptions, there is no shortfall as at March 31, 2017.

3. details of due to Micro and Small Enterprise.

As at March 31, 2017, Rs, 13.12 lakhs (PY Rs, 26.23 lakhs) is outstanding to micro and small enterprises. There are no interests due or outstanding on the same.

4. Expenditure on leasehold improvement incurred during the year has been considered as revenue expenditure for computing Income Tax, relying upon the expert advice. However the treatment does not impact the statement of profit and loss. Accordingly deferred tax liability of Rs, 1,239.58 lakhs (PY Rs, 1,781.88 lakhs) has been provided in books since such item has been capitalized in the books.

5. Segment Reporting: As the Company''s business activity primarily falls within a single business and geographical segment i.e. Food and Beverages, thus there are no additional disclosures to be provided under Ind AS 108 - "Operating Segment''. The management considers that the various goods and services provided by the Company constitutes single business segment, since the risk and rewards from these services are not different from one another.

6. Corporate Social Responsibility (CSR) : As per section 135 of the Companies Act, 2013, a CSR Committee has been formed by the Company. The CSR activities and spend are as per the CSR Policy recommended by the CSR Committee and approved by the Board. The same has also been uploaded on the Company''s website www.jubilantfoodworks.com

7. Disclosure required under section 186(4) of the Companies Act 2013: During the current year, the Company has further invested Rs, 1,274.66 lakhs and as at March 31, 2017 the Company has an investment of Rs, 7,442.52 lakhs in its wholly owned subsidiary Jubilant Food Works Lanka (Pvt.) Ltd. to cater to the geographical market of Sri Lanka. Also refer Note 4 and Note 34(b) above.

8. The figures have been rounded off to the nearest lakhs of rupees up to two decimal places. The figure 0.00 wherever stated represents value less than Rs, 50,000/-.

Figures relating to April 1, 2015 (date of transition) has been regrouped/reclassified wherever necessary to make them comparable with the current year figures.

Note 1 to 29 form integral part of the balance sheet and statement of profit and loss.

9. Pursuant to notification of Ministry of Corporate Affairs dated March 30, 2017, disclosure of specified bank notes (SBN) held and transacted during the period from November 8, 2016 to December 30, 2016 is provided in table below:

The Company has a pan India presence with more than 1,100 restaurant which provide both dine in and delivery sales of food and beverages to its customers. Pursuant to the notification dated November 8, 2016 issued by the Ministry of Finance, specified bank notes (currency notes of Rs, 1,000 and Rs, 500) ceased to be legal tender with effect from November 9, 2016. Accordingly, the Company issued the necessary instructions to all its restaurant and personnel to not transact in the specified bank notes. However, given the vast network of restaurant and majority being delivery of Pizza that the Company operates with, some of the delivery team of the Company inadvertently collected payments in SBN aggregating to Rs, 148.58 lakhs during initial few days of the period from November 9, 2016 to December 30, 2016. The amount so collected was duly accounted for in the books of accounts of the Company and also immediately deposited with banks in various banks operated by the respective stores.

10. Standards issued but not yet effective

The amendments to standards that are issued, but not yet effective, up to the date of issuance of the Company''s financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective. The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) Amendment Rules, 2017 and has amended the following standard:

Amendments to Ind AS 7, Statement of Cash Flow

The amendments to Ind AS 7 requires an entity 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 noncash changes. On initial application of the amendment, entities are not required to provide comparative information for preceding periods. These amendments are effective for annual periods beginning on or after April 1, 2017. Application of this amendments will not have any recognition and measurement impact. However, it will require additional disclosure in the financial statements.

Amendments to Ind AS 102, Share-based payment

The MCA has issued amendments to Ind AS 102 that address three main areas: the effects of vesting conditions on the measurement of a cash-settled share-based payment transaction, the classification of a share-based payment transaction with net settlement features for withholding tax obligations, and accounting where a modification to the terms and conditions of a share-based payment transaction changes its classification from cash settled to equity settled. The amendments are effective for annual periods beginning on or after April 1, 2017. The Company is assessing the potential effect of the amendments on its financial statements.

The Company will adopt these amendments, if applicable from their applicability date.

11. Financial risk management objectives and policies:

The Company''s principal financial liabilities, other than derivatives, comprise retention money payable, trade and other payables, security deposits, book overdraft, unpaid dividend. The Company''s principal financial assets include Investments, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and liquidity risk.

The Company''s senior management oversees the management of these risks. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors and Audit Committee. This process provides assurance to Company''s senior management that the Company''s financial risk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with Company policies and Company risk objective.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below:

a. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and other price risks , such as equity price risk and commodity price risk. Financial instruments affected by market risks include deposits, investments and foreign currency receivables and payables. The sensitivity analyses in the following sections relate to the position as at March 31, 2017. The analysis exclude the impact of movements in market variables on: the carrying values of gratuity, pension obligation and other post-retirement obligations; provisions; and the non-financial assets and liabilities. The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31, 2017.

i Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company exposure to the risk of changes in foreign exchange rates relates primarily to the Company operating activities (when revenue or expense is denominated in foreign currency and the Company net investment in foreign subsidiaries). Foreign currency exchange rate exposure is party balanced by purchasing of goods from the respective countries. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows establish risk management policies.

Foreign currency risk sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates, with all other variables held constant. The impact on the Company profit before tax is due to changes in the fair value of monetary assets and liabilities.

Foreign currency exposures recognized by the Company that have not been hedged by a derivative instrument or otherwise are as under:

ii 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 exposure to the risk of changes in market interest rates relates primarily to the Company long-term debt obligations with floating interest rates.

This is not applicable to the Company as the Company is not having any loans and borrowings.

Interest rate sensitivity

Interest rate sensitivity is not applicable to the Company.

b. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

c. Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

d. Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The Company''s objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate source of financing through the use of short term bank deposits and cash credit facility. Processes and policies related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through rolling forecasts on the basis of expected cash flows. The Company assessed the concentration of risk with respect to its debt and concluded it to below.

e. Excessive risk concentration

Concentrations arise when a number of counter parties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company''s performance to developments affecting a particular industry.

Excessive risk concentration is not applicable.

f. Collateral

There are no significant terms and conditions associated with the use of collateral.

12. Capital management

For the purposes of Company capital management, Capital includes equity attributable to the equity holders of the Company and all other equity reserves. The primary objective of the Company capital management is to ensure that it maintains an efficient capital structure and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders or issue new shares. The Company is not subject to any externally imposed capital requirements. No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2017, March 31, 2016 and April 1, 2015.

13. disclosures as Required by Indian Accounting Standard (Ind As 101) First Time Adoption of Indian Accounting Standards

These are Company''s first financial statements prepared in accordance with Ind AS. The accounting policies set out in Note

2 have been applied in preparing the financial statements for the year ended March 31, 2017, the comparative information presented in these financial statements for the year ended March 31, 2016 and in the preparation of an opening Ind AS balance sheet as at April 1, 2015 (The Company''s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

Exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

Previous GAAP carrying value as deemed cost

Freehold land (properties), other than investment property, were carried in the balance sheet prepared in accordance with Indian GAAP on the basis of cost less accumulated depreciation. The Company has adopted to continue with the carrying value for all of its PPE as recognized in its previous GAAP financial as deemed cost at the transition date i.e. April 1, 2015.

Since there is no change in the functional currency, the Company has elected to continue with the carrying value for all of its investment property as recognized in its Indian GAAP financial as deemed cost at the transition date.

Share Based Payment Transaction

Ind AS 102 Share-based payment has not been applied to equity instruments in share-based payment transactions that vested before April 1, 2015.

Estimates

The estimates at April 1, 2015 and at March 31, 2016 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from the following items where application of Indian GAAP did not require estimation:

- FVTOCI - unquoted equity shares

- FVTOCI - debt securities

Impairment of financial assets based on expected credit loss model

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at April 1, 2015, the date of transition to Ind AS and as of March 31, 2016.

Recognition of financial assets and financial liabilities

Ind AS 109 requires certain categories of financial assets and liabilities to be measured at amortized cost using the effective interest rate method. In accordance with Ind AS 109 "effective interest rate" is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of a financial asset or to the amortized cost of a financial liability. Ind AS 101 requires a first time adopter to apply the above requirement retrospectively i.e. from the date of initial recognition of the financial asset/ liability. However, a first time adopter may find it impractical to apply the effective interest method in Ind AS 109 retrospectively. If this is the case, the fair value of financial asset or liability at the date of transition to Ind AS is the new gross carrying amount of that financial asset or the new amortized cost of that financial liability. As it is impractical to apply the effective interest method in Ind AS 109 retrospectively. The fair value of security deposits at the date of transition to Ind AS i.e. March 31, 2015 is the new amortized cost of that financial liability.

Footnotes to the reconciliation of equity as at April 1, 2015 and March 31, 2016 and Profit or loss for the year ended March 31, 2016 1 Provisions

Under Indian GAAP, proposed dividends including DDT are recognized as a liability in the period to which they relate, irrespective of when they are declared. Under Ind AS, a proposed dividend is recognized as a liability in the period in which it is declared by the company (usually when approved by shareholders in a general meeting) or paid.

In the case of the Company, the declaration of dividend occurs after period end. Therefore, the liability of '' 1,639 lakhs for the year ended on March 31, 2015 recorded for dividend has been derecognized against retained earnings on April 1, 2015. The proposed dividend for the year ended on March 31, 2016 of '' 1,979 lakhs recognized under Indian GAAP was reduced from other payables and with a corresponding impact in the retained earnings.

2 Defined benefit liabilities

Both under Indian GAAP and Ind AS, the Company recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, remeasurements (comprising of 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 recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI. Thus the employee benefit cost is reduced by Rs, 193.47 lakhs (Net of tax Rs, 126.71 lakhs) and Remeasurement gains/ losses on defined benefit plans has been recognized in the OCI net of tax.

3 Security deposits

Under Indian GAAP, the security deposits are valued at cost less any provision for security deposits. Ind AS requires certain categories of financial assets and liabilities to be measured at amortized cost using the effective interest rate method. Security Deposit is a Financial Asset as the lease agreement gives a contractual right to the company to receive cash. Security Deposit satisfies the contractual cash flow characteristic test as described in (a) above and it also satisfies the business model test as there is intention of hold to collect contractual cash flows. Thus the security deposits have to be valued at amortized cost. Accordingly, advance rentals amounting to Rs, 5,731.35 lakhs (March 31, 2015: Rs, 4,913.78 lakhs) have been reduced from the security deposits as on April 1, 2015. Advance Rental divided by term has been recognized as an expense in the books. Rent which will be amortized in the next one year FY 16-17 amounting to Rs, 690.36 lakhs (March 31, 2015: Rs, 608.98 lakhs) has been recognized as prepaid rent short term in books. Residual amounting to Rs, 4,833.22 lakhs (March 31, 2015: Rs, 4,304.81 lakhs) has been classified as prepaid rent long term in opening balance sheet as on April 1,

2015. Advance Rental expense and security deposit income amounting to Rs, 732.10 lakhs and Rs, 524.49 lakhs have been recognized in statement of profit and loss for the year ending March 31, 2016.The decrease in Deferred tax expense for current year due to aforesaid amounts is Rs, 71.91 lakhs.

4 Straight Lining Impact in Rent

Under Indian GAAP, the Company used to recognize the provision for straight lining of expense. Ind AS requires that lease payments under an operating lease shall be recognized as an expense on a straight line basis over the lease term unless the payments to the less or are structured to increase in line with expected general inflation to compensate for the less or’s expected inflationary cost increases. In lieu of the same the provision for straight lining of expense amounting to Rs, 1,689.33 lakhs (March 31, 2015: Rs, 1,343.16 lakhs) has been reversed in other non-current liabilities for the year ended March 31, 2015 and retained earnings on April 1, 2015.

Rent expense was reduced for the year March 31, 2016 due to reversal of straight lining expense amounting to Rs, 346 lakhs with the corresponding impact on retained earnings. The commutative impact of above adjustment is Rs, 386.10 lakhs.

The increase in Deferred tax expense for current year due to reversal of Straight lining expense is Rs, 119.80 lakhs.

5 Share-based payments

Under Indian GAAP, the company recognized only the intrinsic value for the long-term incentive plan as an expense. Ind AS requires the fair value of the share options to be determined using an appropriate pricing model recognized over the vesting period. An additional expense of Rs, 758.10 lakhs has been recognized in profit or loss for the year ended March 31, 2016 (March 31, 2015: Rs, 306 lakhs)

6 deferred tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the company has to account for such differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity. On the date of transition, the net impact on deferred tax liabilities is of Rs, 512.73 lakhs (March 31, 2015: Rs, 464.84 lakhs).

7 Other comprehensive income

Under Indian GAAP, the Company has not presented other Comprehensive Income (OCI) separately. Hence, it has reconciled Indian GAAP profit or loss to profit or loss as per Ind AS. Further, Indian GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.


Mar 31, 2016

1. Capital & other Commitments

a) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs. 2480.32 Lakhs (PY Rs. 1,002.37 Lakhs).

b) The Company has a wholly owned subsidiary "Jubilant FoodWorks Lanka (Pvt) Ltd." to which the Company has committed a continued financial support as its holding Company. The subsidiary wherein the Company has an investment of Rs. 6,167.86 Lakhs (Previous year Rs. 5,571.4 Lakhs),is currently at initial operating stage and is therefore not in profits. Based on business plans, the Company is confident that in future it would earn profits. Therefore the Company has not considered these losses as other than temporary diminution in the value of investments.

c) Commitment to open specified number of stores/ restaurants under respective franchisee agreements. Amount not quantifiable.

2. Gratuity and other post -employment benefit plan:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is partially funded.

The following tables summarises the components of net benefit expense recognised in the statement of profit and loss and the amounts recognised in the balance sheet.

3. Details of due to Micro and Small Enterprise.

As at March 31, 2016 Rs. 26.23 Lakhs (Previous year Rs. 3.85 Lakhs) is outstanding to micro and small enterprises. There are no interests due or outstanding on the same.

4. Expenditure on leasehold improvement incurred during the year has been considered as revenue expenditure for computing Income tax, relying upon the expert advice. However the treatment does not impact the statement of profit and loss. Accordingly deferred tax liability of Rs. 1781.88 Lakhs (Previous year Rs. 2,198.19 Lakhs) has been provided in books since such item has been capitalized in the books.

5. Segment Reporting: As the Company''s business activity primarily falls within a single business and geographical segment i.e. Food and Beverages, thus there are no additional disclosures to be provided under Accounting Standard 17 - "Segment Reporting''. The Management considers that the various goods and services provided by the Company constitutes single business segment, since the risk and rewards from these services are not different from one another.

6. Corporate Social Responsibility (CSR) : As per section 135 of the Companies Act, 2013, a CSR Committee has been formed by the Company. The CSR activities and spend are as per the CSR Policy recommended by the CSR Committee and approved by the Board. The same has also been uploaded on the Company''s website www.jubilantfoodworks.com

7. Disclosure required under section 186(4) of the Companies Act, 2013: During the current year, the Company has further invested Rs. 596.46 Lakhs and as at March 31, 2016, the Company has an investment of Rs. 6,167.86 Lakhs in its wholly owned subsidiary Jubilant FoodWorks Lanka (Pvt) Ltd. to cater to the geographical market of Sri Lanka. Also refer note 12 and note 30(b) above.

8. Subsequent to the year end, the Board of Directors in their meeting held dated May 28th, 2016 has recommended a dividend of Rs. 2.5 per Equity share of Rs. 10 each fully paid up amounting to Rs. 1,644.88 Lakhs ( excluding dividend distribution tax of Rs. 334.86 Lakhs), subject to the approval of the shareholders at the Annual General Meeting. The above amount has been provided for in the financial statement.

9. Previous period / year figures have been regrouped and /or re-arranged, wherever necessary.


Mar 31, 2015

1. Corporate Information

Jubilant FoodWorks Limited (the Company) is a Jubilant Bhartia Group Company. The Company was incorporated in 1995 and initiated operations in 1996. The Company is listed in India on National Stock Exchange and Bombay Stock Exchange. The Company is a food service company. The Company & its subsidiary have the exclusive rights to develop and operate Domino's Pizza brand in India, Sri Lanka, Bangladesh and Nepal, at present it operates in India and Sri Lanka. The Company also have exclusive rights for developing and operating Dunkin' Donuts restaurants in India.

2. Basis of Preparation

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under Section 133 of the Companies Act 2013, read together with Rule 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of the previous year, except for the change in accounting policy explained below.

3 a) Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(b) Shares held by holding/ultimate holding Company and/or their subsidiaries/associates

No shares are held by the subsidary of the Company. The Company does not have holding, ultimate holding company and associates.

(c) Shares reserved for issue under options

For details of shares reserved for issue under the Employee Stock Option Plan (ESOP) of the Company, please refer note 28.

4. CONTINGENT LIABILITY PROVIDED FOR:

(Rs. in Lakh)

Particulars Opening Balance Additions Utlisations Closing Balance

VAT cases 69.45 - - 69.45

CONTINGENT LIABILITY NOT PROVIDED FOR:

Particulars March 31, 2015 March 31, 2014

(Rs. in Lakh)

Bank Guarantee executed in favour of Government authorities 24.95 -

Excise & VAT cases 2.51 2.51

Tax demand for Excise Duty contested by the Company where the Company is confident that the ultimate decision will be in favour of the Company. It is expected that there will not be any outflow of economic resources embodying economic benefits. Hence, no provision is considered necessary against the same.

VAT Liability on Service Tax pending at 58.16 - Haryana Tax Tribunal, Chandigarh and at Appellate. Authority-. II Comm.ercial Tax, Jaipur

Income Tax cases - 10.36

The High Court dismissed the appeal filed by Assessing Officer against the order of ITAT for AY 2003-04 & 2005-06 and the Assessing Officer has passed favourable orders in respect of the matter referred back by ITAT to Assessing officer It is expected that there will not be any outflow of economic resources embodying economic benefits. Hence, no provision is considered necessary against the same.

The ITAT has passed favouarable order 57.67 56.64 except for few grounds which are referred back to the books of AO for the AY 2006-07 to 2009-10. It is expected that there will not be any outflow of economic resources embodying economic benefits. Hence, no provision is considered necessary against the same.

The Company have filed an appeal before 8.20 4.94 the CIT(A) against the Penalty order from AY 2007-08 to AY 2009-10. It is expected that there will not be any outflow of economic resources embodying economic benefits. Hence, no provision is considered necessary against the same.

Assessing Officer has passed 31.17 30.61 unfavourable order pertaining to the AY 2010-11 and 2011-12. The Company has filed appeal before CIT(A) against the order of the department.

Based on the legal opinions taken and - - inconsistencies in various Assessment Orders of AO coupled with the fact that the Company has already won the appeals made to CIT(A), it is expected that there will not be any outflow of economic resources embodying economic benefits. Hence, no provision is considered necessary against the same.

Other Legal Cases 106.09 106.09

The Company has pending claims with regards to Consumer cases pending at District Consumer forum Rs. 4.05 Lakh (previous year Rs. 4.05 Lakh), Food Safety Cases Rs. 7.1 Lakh (previous year Rs. 7.1 Lakh ), Labour cases Rs. 62.34 Lakh (previous year Rs. 62.34 Lakh), PFA cases Rs. 0.60 Lakh (previous year Rs. 0.60 Lakh), accident claim case Rs. 2 Lakh and other civil case with regards to lease agreements of Rs. 30 Lakh.

The Company has opted for intrinsic value method for valuation of options under both the ESOP Schemes.

During the year the weighted average market price of the company's share was Rs. 1,322.19 (Previous Year Rs. 1,125.84)

Under ESOP 2007, as the shares were not quoted on any stock exchange prior to grant of options by the Company, hence the fair value of its shares was determined on the basis of a valuation performed by a Category I Merchant Banker

The Compensation Committee of the Company, on December 8, 2014, granted 167,300 options to eligible Employees/Directors of the Company and its subsidiary under ESOP 2011. Each option shall entitle the holder to acquire 1 equity share of Rs. 10 each fully paid up at Rs. 1,405/- being the market price as per SEBI guidelines.

Since the Fair Market Value of shares was less than/equal to the Exercise Price at the time of grant of options, therefore no accounting is required to be done consequent to grant of options.

The weighted average fair value of stock options granted pertaining to ESOP 2007 scheme was Nil (previous year Nil).

The weighted average fair value of stock options granted during the year pertaining to ESOP 2011 scheme isRs.433.97 (previous year Rs.420.37)

5. Related Party Disclosure

(i) The list of related parties as identified by the management is as under: (with whom transactions have occurred during the year).

Jubilant FoodWorks Lanka (Pvt) Limited Subsidiary (A)

Mr. Ajay Kaul (Whole Time Director)/ Key Management Personnel (B) Mr Ravi Shanker Gupta (CFO) / Ms. Mona Aggarwal (Company Secretary)

Mr Shyam S. Bhartia Key Management Personnel Mr Hari S. Bhartia (till 23rd December 2013) /Individuals owning, directly or indirectly, an interest in the voting power of the Company that gives them significant influence over the Company (from 24th December 2013) ( C)

Jubilant LifeSciences Limited Enterprises over which any Laxman Logistic Pvt. Ltd. person described above or HT Media Limited their relative is able to Jubilant Fresh Pvt Ltd exercise significant Jubilant Agri & Consumer Products Limited influence (D)

6. Capital & other Commitments

a) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs. 1,002.37 Lakh (PY Rs. 4,172.16 Lakh).

b) The Company has a wholly owned subsidiary "Jubilant FoodWorks Lanka (Pvt.) Ltd." to which the Company has committed a continued financial support as its holding company. The subsidiary wherein the Company has an investment of Rs. 5,571.4 Lakh (Previous year Rs. 3,485 Lakh),is currently at initial operating stage and is therefore not in profits. Based on business plans, the Company is confident that in future it would earn profits. Therefore the Company has not considered these losses as other than temporary diminution in the value of investments.

c) Commitment to open specified number of stores/ restaurants under respective franchisee agreements. Amount not quantifiable.

7. Gratuity and other post -employment benefit plan:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a

gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is partially funded.

The following tables summarises the components of net benefit expense recognised in the statement of profit and loss and the amounts recognised in the balance sheet.

8. Details of due to Micro and Small Enterprise.

As at March 31, 2015 Rs.3.85 Lakh (Previous year Rs. Nil) is outstanding to micro and small enterprises. There are no interests due or outstanding on the same.

9. Expenditure on leasehold improvement incurred during the year has been considered as revenue expenditure for computing Income tax, relying upon the expert advice. However the treatment does not impact the statement of profit and loss. Accordingly deferred tax liability of Rs. 2,198.19 Lakh (Previous year Rs. 2,016.99 Lakh) has been provided in books since such item has been capitalized in the books.

10. Segment Reporting: As the Company's business activity primarily falls within a single business and geographical segment i.e. Food and Beverages, thus there are no additional disclosures to be provided under Accounting Standard 17 - "Segment Reporting'. The management considers that the various goods and services provided by the Company constitutes single business segment, since the risk and rewards from these services are not different from one another.

11. Corporate Social Responsibility (CSR) : As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The CSR activities and spend are as per the CSR Policy recommended by the CSR Committee and approved by the Board. The same has also been uploaded on the Company's website www.jubilantfoodworks.com

12. Disclosure required under Section 186(4) of the Companies act 2013: During the current year the company has further invested Rs. 2,086.88 Lakh and as at March 31, 2015 the Company has an investment of Rs. 5,571.40 Lakh in its wholly owned subsidiary Jubilant FoodWorks Lanka (Pvt) Ltd to cater to the geographical market of Sri Lanka. Also refer note 12 and note 30(b) above.

13. Subsequent to the year end the Board of Directors in their meeting held dated May 14th 2015 has recommended a dividend of Rs. 2.5 per equity share of Rs. 10 each fully paid up amounting to Rs. 1,639.25 lakhs ( including dividend distribution tax of Rs. 277.27 lakhs), subject to the approval of the shareholders at the Annual General Meeting. The above amount has been provided for in the financial statement.

14. Previous period / year figures have been regrouped and /or re-arranged, wherever necessary.


Mar 31, 2014

Forming part of the Financial Statements for the year ended March 31, 2014

1. Corporate Information

Jubilant FoodWorks Limited (the Company) is a Jubilant Bhartia Group Company. The Company was incorporated in 1995 and initiated operations in 1996. The Company is listed in India on National Stock Exchange and Bombay Stock Exchange. The Company is a food service company. The Company & its subsidiary have the exclusive rights to develop and operate Domino''s Pizza brand in India, Sri Lanka, Bangladesh and Nepal. At present it operates in India and Sri Lanka. The Company also has exclusive rights for developing and operating Dunkin'' Donuts restaurants for India.

2. Basis of Preparation

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting, unless stated otherwise and comply with the mandatory Accounting Standards (''AS'') prescribed under the Companies Act, 1956 read with the General Circular 08/2014 dated April 04, 2014 issued by the Ministry of Corporate Affairs, and other accounting principles generally accepted in India. The accounting policies adopted in the preparation of financial statements are consistent with those of the previous year.

3. CONTINGENT LIABILITY PROVIDED FOR: (Rs. in Lakh)

Particulars Opening Balance Additions Utilisation Closing Balance

VAT cases - 69.45 - 69.45

CONTINGENT LIABILITY NOT PROVIDED FOR:

(Rs. in Lakh) Particulars March 31, 2014 March 31, 2013

Appeals filed by Tamil Nadu Sales Tax Department for various orders issued by the - 114.80 Appellate Assistant Commissioner (CT) in favour of the Company pertaining to the financial years 1998-99 to 2000-01.

The Sales Tax Appellate Tribunal has passed order in favour of the Company for the year 2001-02. The Company has received favarouable order from the Sales Tax Appellate Tribunal & the orders of 1st Appellate Authority i.e. Assistant Commissioner (CT) have been sustained by the hon''ble Tribunal.

Tax demand for Excise Duty contested by the Company where the Company is confident 2.51 2.51 that the ultimate decision will be in favour of the Company. it is expected that there will not be any outflow of economic resources embodying economic benefits. Hence, no provision is considered necessary against the same.

Income Tax

The ITAT has passed favouarable order except for few grounds which are referred back 10.36 - to the books of AO for the AY 2003-04 to 2005-06. it is expected that there will not be any outflow of economic resources embodying economic benefits. Hence, no provision is considered necessary against the same.

The Income Tax Department has filed appeal in ITAT against the order passed by CIT(A) - 361.54 in favour of the Company from AY 2006-07 to AY 2009-10. it is expected that there will not be any outflow of economic resources embodying economic benefits. Hence, no provision is considered necessary against the same.

The Company has filed an appeal before the ITAT against the additions upheld by the 56.64 54.97 CIT(A) from AY 2006-07 to AY 2009-10. it is expected that there will not be any outflow of economic resources embodying economic benefits. Hence, no provision is considered necessary against the same.

The Company has filed an appeal before the CIT(A) against the Penalty order from AY 4.94 2007-08 to AY 2008-09. it is expected that there will not be any outflow of economic resources embodying economic benefits. Hence, no provision is considered necessary against the same.

Assessing officer has passed unfavourable order pertaining to the AY 2010-11 and 2011- 541.72 12. The Company has filed appeal before CIT(A) against the order of the department.

Based on the legal opinions taken and inconsistencies in various Assessment Orders of AO 30.61 coupled with the fact that the Company has already won the appeals made to CIT(A), it is expected that there will not be any outflow of economic resources embodying economic benefits. Hence, no provision is considered necessary against the same.

4 EMPLOYEE STOCK OPTION PLAN

For the financial year ended March 31, 2014, the following schemes were in operation:

a) Employees Stock Option Plan, 2007 (ESOP 2007); and

b) JFL Employees Stock Option Scheme, 2011 (ESOP 2011).

$ The vesting takes place on staggered basis over the respective vesting period.

# Vesting of options is a function of achievement of performance criteria or any other criteria as specified by the Compensation

Committee and communicated in the grant letter. Further, the vesting takes place on staggered basis over the respective vesting period.

^ Forfeited options include vested options not exercised within the stipulated time prescribed under the respective ESOP schemes, vested/ unvested options forfeited in accordance with terms prescribed under the respective ESOP Schemes.

# Includes 5,000 options against which allotment of shares has not been made till March 31, 2014.

The expected life of the stock is based on historical data and current market expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may also not necessarily be the actual outcome.

The Company measures the cost of ESOP using the intrinsic value method. Had the Company used the fair value method to determine compensation, its profit after tax and earning per share as reported would have changed to the amounts indicated below:

5. Related Party Disclosure

(i) The list of related parties as identified by the management is as under: (with whom transactions have occurred during the year).

Name of the Party Relationship

Jubilant FoodWorks Lanka (Pvt) Limited Subsidiary (A)

Mr. Ajay Kaul Key Management Personnel (B)

Mr. Shyam S. Bhartia Mr. Hari S. Bhartia Key Management Personnel (till December 23, 2013) / Individuals owning, directly or indirectly, an interest in the voting power of the Company that gives them significant influence over the Company (from December 24, 2013) ( C)

Jubilant Life Sciences Limited Enterprises over which any person described above HT Media Limited or their relative is able to exercise significant influence (D) Jubilant Fresh Pvt Ltd

Jubilant Agri & Consumer Products Limited

6 a) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs. 4,172.16 Lakh (PY Rs. 1,137.77 Lakh).

b) The Company has a wholly owned subsidiary "Jubilant FoodWorks Lanka (Pvt) Ltd." to which the Company has committed a continued financial support as its holding company. The subsidiary is currently at initial operating stage and is therefore not in profits. Based on business plans, the Company is confident that in future it would earn profits. Therefore the Company has not considered these losses as other than temporary diminution in the value of investments.

c) Commitment to open specified number of stores/ restaurants under respective franchisee agreements. Amount not quantifiable.

7 Gratuity and other post -employment benefit plan:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is partially funded.

The following tables summarises the components of net benefit expense recognised in the statement of profit and loss and the amounts recognised in the balance sheet.

Provident Fund

The provident fund being administered by a Trust is a defined benefit scheme whereby the Company deposits an amount determined as a fixed percentage of basic pay to the fund every month. The benefit vest upon commencement of employment. The interest credited to the accounts of the employee is adjusted on an annual basis to confirm to the interest rate declared by the government for the Employees Provident Fund. The actuary has provided a valuation based on Projected Unit Credit Method (PUCM) and based on the below provided assumptions, there is no shortfall as at March 31, 2014.

8 Details of due to Micro and Small Enterprise.

The Company, has during the year, not received any intimation from any of its suppliers regarding their status under the MSMED Act. Based on the above facts, there are no dues to parties registered under MSMED Act. Accordingly no disclosures relating to amounts unpaid as at the year end along with interest paid/payable have been given.

9 Expenditure on leasehold improvement incurred during the year has been considered as revenue expenditure for computing Income tax, relying upon the expert advice. However the treatment does not impact the statement of profit and loss. Accordingly deferred tax liability of Rs. 2,016.99 Lakh (Previous year Rs. 1,557.44 Lakh) has been provided in books since such item has been capitalised in the books.

10 Segment Reporting:

As the Company''s business activity primarily falls within a single business and geographical segment i.e. Food and Beverages, thus there are no additional disclosures to be provided under Accounting Standard 17 - "Segment Reporting''. The management considers that the various goods and services provided by the Company constitutes single business segment, since the risk and rewards from these services are not different from one another.

11 Previous period / year figures have been regrouped and /or re-arranged, wherever necessary.


Mar 31, 2013

1. Corporate Information

Jubilant FoodWorks Limited (the Company) is a Jubilant Bhartia Group Company. The Company was incorporated in 1995 and initiated operations in 1996. The Company is listed in India on National Stock Exchange and Bombay Stock Exchange. The Company is a food service company. The Company & its subsidiary operates Domino''s Pizza brand with the exclusive rights for India, Nepal, Bangladesh and Sri Lanka. The Company also has exclusive rights for developing and operating Dunkin'' Donuts restaurants for India.

2. Basis of Preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis.

The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

3. EMPLOYEE STOCK OPTION PLAN

For the financial year ended March 31, 2013, the following schemes were in operation

a) Employees Stock Option Plan, 2007 (ESOP 2007); and

b) JFL Employees Stock Option Scheme, 2011 (ESOP 2011)

4. a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 1,137.77 Lakh (PY Rs. 1,498.80 Lakh).

b) The Company has a wholly owned subsidiary "Jubilant FoodWorks Lanka (Pvt) Ltd." to which the Company has committed a continued financial support as its holding company. The subsidiary is currently at initial operating stage and is therefore not in profits. Based on business plans, the Company is confident that in future it would earn profits. Therefore the Company has not considered these losses as other than temporary diminution in the value of investments.

c) Commitment to open specified number of stores/ restaurants under respective franchisee agreements. Amount not quantifiable.

5. GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLAN

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is partially funded. The following tables summarises the components of net benefit expense recognised in the statement of profit and loss and the amounts recognised in the balance sheet.

6. DETAILS OF DUES TO MICRO AND SMALL ENTERPRISE.

The Company, has during the year, not received any intimation from any of its supplliers regarding their status under the MSMED Act. Based on the above facts, there are no dues to parties registered under MSMED Act. Accordingly no disclosures relating to amounts unpaid as at the year end along with interest paid/payable have been given.

7. Expenditure on leasehold improvement incurred during the year has been considered as revenue expenditure for computing Income tax, relying upon the expert advice. Accordingly deferred tax liability of Rs. 1,557.44 Lakh (Previous year Rs. 1,006.63 Lakh) has been provided in books since such item has been capitalised in the books.

8. Exceptional Items for the year ended March 31, 2012 include expenses for operationalising of the Dunkin'' Donuts business. These include expenses on Staff costs of Rs. 238.41 Lakh, Depreciation of Rs. 23.04 Lakh and Other expenses of Rs. 143.81 Lakh, which have been net off in respective expenses head. In the current year, Dunkin'' Donuts business has been operationalised.

9. Segment Reporting: As the Company''s business activity primarily falls within a single business and geographical segment i.e. Food and Beverages, thus there are no additional disclosures to be provided under Accounting Standard 17 - "Segment Reporting". The management considers that the various goods and services provided by the Company constitutes single business segment, since the risk and rewards from these services are not different from one another.

10. Previous period / year figures have been regrouped and /or re-arranged, wherever necessary.


Mar 31, 2012

1. CORPORATE INFORMATION

Jubilant FoodWorks Limited (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed in two stock exchanges in India. The Company is a food service company. The Company offers a menu of pizza and side dishes to its customers. It operates the stores pursuant to a Master Franchise Agreement with Domino's International, which provides it with the exclusive right to develop and operate Domino's Pizza delivery stores and the associated trademarks in the operation of stores in India. The Company also has an alliance with Dunkin' Donuts for developing and operating the Dunkin' Donuts restaurants.

2. BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis.

The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year, except for the change in accounting policy explained below,

(a) Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of Rs10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

As per the records of the Company, including its register of shareholders/members and other declaration received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

(Rs in Lakh)

Particulars As at As at March 31, 2012 March 31, 2011

3. CONTINGENT LIABILITY NOT PROVIDED FOR:

Bank Guarantee executed in favour of Government authorities 6.00 6.20

Appeals filed by Tamil Nadu Sales Tax Department for various orders issued by the Appellate Assistant 114.80 114.80 Commissioner (CT) in favour of the Company pertaining to the financial years 1998-99 to 2000-01 The Sales Tax Appellate Tribunal has passed order in favour of the Company for the year 2001-02. The Company is confident of receiving similar orders for other appeals for remaining assessment years. Hence, no provision is considered necessary against the same.

Tax demand for Excise Duty contested by the Company where the Company is confident that the ultimate 2.51 2.51 decision will be in favour of the Company

Income Tax

The Income Tax Department has filed an appeal against the orders passed by CIT(A) in favour of the 104.16 104.16 Company pertaining to the year 2003-04 to 2005-06 Assessing Officer has passed unfavourable order in favour of the Company pertaining to the year 2006- 686.94 309.80 07 to 2009-10. Further for the year 2004-05, the case is pending reassessment at assessing officer level Based on the legal opinions taken and inconsistencies in various Assessment Orders of AO coupled with the fact that the Company has already won the appeals made to CIT(A), it is expected that there will not be any outflow of economic resources embodying economic benefits. Hence, no provision is considered necessary against the same

The Company has opted for intrinsic value method for valuation of options under both the ESOP Schemes.

During the year, the weighted average market price of the Company's share was Rs 878.11

Under ESOP 2007, as the shares were not quoted on any stock exchange prior to grant of options by the Company, hence the fair value of its shares was determined on the basis of a valuation performed by a Category I Merchant Banker.

The Compensation Committee of the Board on 5th October, 2011, had granted 232,500 options to eligible Employees/Directors of the Company and its subsidiary as per new JFL Employees Stock Option Scheme, 2011 which was approved by the Company at its Annual General Meeting held on 20th August 2011. Each option shall entitle the holder to acquire 1 equity share of Rs10 each fully paid up at Rs 669 being the market price as per SEBI guidelines. During the current year, the Company has also constituted a trust in the name of JFL Employees Welfare Trust for the said purpose. The Company has also given a loan of Rs 300 lakh to the trust for the purpose.

Since the ESOP 2011 scheme has been approved in current year, hence the previous year's figures are not given. Under ESOP 2011, the market price of the shares as defined under SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 was taken as the exercise price.

The weighted average fair value of stock options granted pertaining to ESOP 2007 scheme was Nil (previous year Nil).

The weighted average fair value of stock options granted during the year pertaining to ESOP 2011 scheme is Rs 302.88.

The expected life of the stock is based on historical data and current market expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may also not necessarily be the actual outcome.

Notes:

1. No amount has been provided as doubtful debts or advances / written off or written back in the year in respect of debts due from/to above related parties.

2. During the current year, 50,000 options at an exercise price ofRs 669 per option (Previous year Nil) were granted to the Key Managerial Personnel, under JFL Employees Stock Option Scheme, 2011

3. As at the end of year, Stock option pending vesting/exercise, granted to the Key Management Personnel are 55,000 and 37,500 Options at exercise price ofRs 51 and Rs 73 per Option respectively (Previous year 150,000, 75,000 and 45,000 Options at exercise price of Rs35,Rs 51 and Rs 73 per Option respectively) under the Employees Stock Option Plan, 2007 and 50,000 stock options pending vesting at an exercise price ofRs 669 per option under JFL Employees Stock Option Scheme, 2011.

4. a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs 1,498.8 lakh (PY Rs 185.30 lakh).

b) The Company has a wholly owned subsidiary "Jubilant FoodWorks Lanka (Pvt) Ltd." to which the Company has committed a continued financial support as its holding Company. The subsidiary is currently at initial operating setup stage and is therefore not in profits. However, based on business plans, the Company is confident that in future it would earn profits. Therefore, the Company has not considered these losses as permanent diminution in the value of investments.

c) Commitment to open specified number of store under respective franchisee agreements. Amount not quantifiable.

5. GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLAN:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is partially funded.

The following table summarises the components of net benefit expense recognised in the profit and loss account and the amounts recognised in the balance sheet.

Profit & Loss Account

Net employee benefit expense (recognised in Employee Cost)

Provident Fund

The provident fund being administered by a Trust is a defined benefit scheme whereby the Company deposits an amount determined as a fixed percentage of basic pay to the fund every month. The benefit vest upon commencement of employment. The interest credited to the accounts of the employee is adjusted on an annual basis to confirm to the interest rate declared by the government for the Employees Provident Fund. The Guidance Note on implementing AS-15, Employee Benefits (Revised 2005) issued by the Accounting Standard Board, states that providend funds set up by employers, which requires interest shortfall to be met by employer, needs to be treated as defined benefit plan. The Actuarial Society of India has issued the final guidance for measurement of provident fund liabilities. The actuary has accordingly provided a valuation and based on the below provided assumptions, there is no shortfall as at 31st March, 2012.

6. DETAILS OF DUE TO MICRO AND SMALL ENTERPRISE

The Company, has during the year, not received any intimation from any of its suppliers regarding their status under the said Act. Based on the above facts, management has decided that none of them are registered under the said act and hence disclosures, if any, relating to amounts unpaid as at the year end along with interest paid/payable have not been given.

7. Expenditure on leasehold improvement incurred during the year has been considered as revenue expenditure for computing Income tax, relying upon the expert advice. Accordingly, deferred tax liability of Rs1,058.75 lakh has been provided in books since such item has been capitalised in the books.

8. Exceptional Items for the year ended March 31, 2012 include expenses for operationalising of the Dunkin' Donuts business. These include expenses on Staff costs of Rs238.41 lakh, Depreciation of Rs23.04 lakh and Other expenses of Rs143.82 lakh, which have been net off in respective expense heads.

9. SEGMENT REPORTING

As the Company's business activity primarily falls within a single business and geographical segment i.e. Food and Beverages, thus there are no additional disclosures to be provided under Accounting Standard 17 - "Segment Reporting. The management considers that the various goods and services provided by the Company constitutes single business segment, since the risk and rewards from these services are not different from one another.

10. PREVIOUS YEAR FIGURES

Till the year ended March 31, 2011, the Company was using pre-revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company. The Company has reclassified the previous year figures to conform to this year's classification. The adoption of revised Schedule VI does not impact the recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of balance sheet.


Mar 31, 2011

1. As the Company's business activity primarily falls within a single business and geographical segment, thus there are no additional disclosures to be provided under Accounting Standard 17 - "Segment Reporting'. The management considers that the various goods and services provided by the company constitutes single business segment, since the risk and rewards from these services are not different from one another.

2. Related Party Disclosure (As certified by Management)

Holding Company Jubilant Enpro Pvt. Ltd.

Name of the Subsidiary Jubilant Food Works Lanka (Pvt) Limited

Key Management Personnel Mr. S.S.Bhartia, Mr. H.S.Bhartia, Mr. Ajay Kaul

Enterprises owned or significantly influenced by key management personnel or their relatives Jubilant Life Sciences Limited,

(With whom transactions have occurred during the year) HT Media Limited,

Tower Promoters Pvt Limited

* During the current year Key Management person were allotted 300,000 shares, 25,000 shares and 5,000 shares (Previous year 50,000 equity shares of Rs10 each at a premium of Rs25 per Share) of Rs10 each ata premium of Rs25, Rs41 and Rs63pershare respectively as per the ESOP of the company.

Notes:

1. No amount has been provided as doubtful debts or advances /written off or written back in the year in respect of debts due from/to above related parties.

2. No Stock option (Previous Year50,000 Shares at exercise price of Rs73 per share) was granted to the Key Managerial Personnel during the current year.

3. As at the end of year Stock option pending vesting/exercise, granted to the Key Managerial Personnel are 150,000 Shares,75,000 Shares and 45,000 Shares at exercise price of Rs35, Rs51 and Rs73 per share respectively (Previous year 350,000 Shares ,100,000 Shares and 50,000 Shares at exercise price of Rs35, Rs51 and Rs73 per share respectively).

4. Assets taken under Operating Leases

The stores and office premises are obtained on operating leases. The lease term is generally for 1 -21 years and the same are generally renewable at the option of the lessee. The lease agreements have an escalation clause. There are no subleases and the leases are generally cancelable in nature. The aggregate lease rentals are charged as rent under Schedule 11.

6. The Company follows Accounting Standard (AS-22) "Accounting for taxes on Income", issued by the Institute of Chartered Accountants of India. The company has timing difference between accounting and tax records which suggest accounting for Deferred Tax Asset details of which are as follows :-

Till previous year significant timing differences between accounting and tax records were on account of accumulated losses and unabsorbed depreciation, which suggested accounting for deferred tax asset. Since there was no convincing evidence which demonstrated virtual certainty of realisation of such "deferred tax asset", the Company had prudently decided not to recognise any deferred tax asset in the previous year.

In the current year considering the performance of the Company, management is reasonably certain that it will generate taxable profits to set-off timing difference resulting into deferred tax asset

3. Estimated amount of Contracts remaining to be executed on Capital Account and not provided for Rs185.30 Lacs (Net of advances) (Previous year Rs229.64 Lacs).

4. Contingent Liabilities not provided for

(Rs in Lacs) Particulars Current Previous Year Year

a) Bank Guarantee executed in favour of Excise and Sales Tax Authorities 6.20 6.20

b) Appeals filed by Sales Tax Department for various orders issued by the Appellate Assistant Commissioner (CT) in favour of the Company. 114.80 114.80

The Sales Tax Appellate Tribunal has passed order in favour of the Company for the year 2001 -02. The Company is confident of receiving similar orders for other appeals for remaining assessment years. Hence, no provision is considered necessary against the same.

c) Tax demand for Excise Duty contested by the Company where the company is confident that the ultimate decision will be in favour of the Company. 2.51 2.51

d) Income Tax

The Income Tax Department has filed an appeal against the orders passed by CIT(A) which were favourable to the Company. 104.16 -

Company has filed an appeal against order passed by AO for Assessment Year. 309.80 69.37

Based on the legal opinions taken and inconsistencies in various Assessment Orders of AO coupled with the fact that the company has already won the appeals made to CIT(A), it is expected that there will not be any outflow of economic resources embodying economic benefits. Hence, no provision is considered necessary against the same

The Company has opted for intrinsic value method for valuation of Employee Stock option Plans. Since the shares were not quoted on any stock exchange prior to grant of options by the Company, hence the fair value of its shares was determined on the basis of a valuation performed by a Category I Merchant Banker.

Further, the Fair Market Value of shares was less than the Exercise Price at the time of grant of options, therefore no disclosure (apart from above) and accounting is required to be done consequent to grant of options.

5. Gratuity and other post-employment benefit plans

The Company has a defined benefit gratuity scheme. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is unfunded.

The following tables summarise the components of net benefit expense recognised in the Profit & Loss Account and amounts recognised in the Balance Sheet for the respective schemes.

6. Details of dues to Micro and Small Enterprise

The Company, has during the year, not received any intimation from any of its suppliers regaRiding their status under the said Act. Based on the above facts, management has decided that none of them are registered under the said Act and hence disclosures, if any, relating to amounts unpaid as at the year end along with interest paid/payable have not been given.

7. Supplementary Information Pursuant to Schedule VI of the Companies Act, 1956

Note: As the future liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a whole, the amount pertaining to the Director is not included above.

*ln view of large number of items it is not practicable to furnish quantitative information in respect of other items of raw material. However, none of the individual items are greaterthan 10% of total consumption.

8. The Company is in the business of operating and running fast food outlets, whereby it deals in various categories / sizes of different food items. In view of the large variety of products manufactured, and the production process involves significant manual intervention, hence it is not practicable to furnish the information pertaining to Installed capacity.

9. Advertisement & Publicity Expenses are net of amount received from business associates Rs927.50 Lacs (Previous Year Rs555.56 Lacs).

10. In the current year the Company has incorporated a Wholly Owned Subsidiary in Sri Lanka, "Jubilant Food Works Lanka (Private) Limited" and has invested an amount of Rs115.27 Lacs in the share capital of the company.

11. Previous Year figures have been re-grouped / re-arranged wherever considered necessary.


Mar 31, 2010

1. Based on the identical products the Company deals in, which have similar risks and returns, and also the similar economic conditions under which the Company operates, the entire business has been considered as a single segment in terms of Accounting Standard-17 on Segment Reporting issued by the Institute of Chartered Accountants of India. There being insignificant business outside India, the entire business has been considered as a single geographic segment.

2. Related Party Disclosure

Holding Company : Jubilant Enpro Pvt Ltd

Key Management Personnel : Mr. S.S.Bhartia, Mr. H.S.Bhartia, Mr. Ajay Kaul

Enterprises owned or significantly : Jubilant Organosys Limited, influenced by key management personnel or their relatives HT Media Limited,

Tower Promoters Pvt Limited

Notes:

1. No amount has been provided as doubtful debts or advances / written off or written back in the year in respect of debts due from/ to above related parties.

2. Stock option of 50,000 Shares at exercise price of Rs. 73 per share (Previous Year 100,000 Shares at exercise price of 51 per share) were granted to the Key Managerial Personnel during the current year. „

3. As at the end of year Stock option pending vesting/exercise, granted to the Key managerial Personnel are 350,000 Shares, 100,000 Shares and 50,000 Shares at exercise price of Rs.35, Rs.51 and Rs.73 per share respectively (Previous year 500,000 Shares and 100,000 Shares at exercise price of Rs.35 and Rs.51 per share respectively).

4. The Company is controlled by Mr.Shyam S Bhartia/Mr. Hari S Bhartia group ("the promoter group"), being a group as defined in the Monopolies and Restrictive Trade Practices Act, 1969.

The persons constituting the promoter group include individuals and corporate bodies who/which jointly exercise, and are in a position to exercise, control over the Company. The names of these individuals and bodies corporate are :-

Mr. Shyam S Bhartia, Mr. Hari S Bhartia, Mrs. Shobhana Bhartia, Mrs. Kavita Bhartia, Mr.Priyavrat Bhartia, Mr.Shamit Bhartia, Ms. Aashti Bhartia, Master Arjun S Bhartia, Mrs. Namrata Bhartia, Master Agastya Bhartia, Best Luck Vanijya Private Ltd., Enpro Exports Private Ltd., Jaytee Private Ltd., Jubilant Enpro Private Ltd., Jubilant Securities Private Ltd., Jubilant Capital Private Ltd., Ranee Investment Holdings Ltd., Cumin Investments Ltd., Torino Overseas Ltd., Vam Holdings Ltd., Nikita Resources Private Ltd., Jubilant Oil & Gas Pvt. Ltd., Enpro Oil Pvt Ltd, Tower Promoters Pvt. Ltd, U C Gas & Engineering Ltd., Asia Infrastructure Development Co Pvt Ltd, Western Drilling Contractors Pvt. Ltd, Jubilant Realty Pvt. Ltd, Jubilant Properties Pvt. Ltd., Indian Country Homes Pvt. Ltd., Jubilant E& P Ventures Pvt. Ltd, Jubilant Retail Pvt. Ltd., Jubilant Retail Holding Pvt. Ltd., Jubilant Motors Pvt. Ltd., Jubilant Retail Consolidated Pvt. Ltd., B &M Hot Breads Pvt. Ltd.

3. Assets taken under Operating Leases

The stores and office premises are obtained on operating leases. The lease term is generally for 1-21 years and the same are generally renewable at the option of the lessee. The lease agreements have an escalation clause. There are no subleases and the leases are generally cancelable in nature. The aggregate lease rentals are charged as rent under Schedule 11.

4. The Company follows Accounting Standard (AS-22) "Accounting for taxes on Income", issued by the Institute of Chartered Accountants of India. The Company has significant timing differences between accounting and tax records on account of accumulated losses and unabsorbed depreciation, which suggest accounting for deferred tax asset. Since there is no convincing evidence which demonstrates virtual certainty of realization of such "deferred tax asset", the Company has prudently decided not to recognize any deferred tax asset.

5. Estimated amount of Contracts remaining to be executed on Capital Account and not provided for (Net of advances) Rs. 229.64 Lacs (Previous year Rs. 530.99 Lacs).

6. Contingent Liabilities not Provided for

a) Bank Guarantees executed in favour of Sales Tax Authorities Rs. 6.20 Lacs (Previous Year Rs, 6.20 Lacs).

b) Bank Guarantees executed in favor of Bombay Stock Exchange Rs. 150 Lacs (Previous Year Rs. Nil).

c) Guarantee provided to a Foreign Bank for securing the loan given to D.P Lanka Pvt. Ltd (Companys erstwhile Subsidiary) of Rs. 13.94 Lacs [SLR 3,500,000] limited to the extent of loan outstanding as at period end Rs Nil (Previous Year Rs. 4.88 Lacs [SLR 1,320,033]). During the year, in the month of October 2009 the entire loan was repaid and Guarantee given by the Company was released by the bank.

d) The Tamil Nadu Sales Tax Department has filed appeals with the Sales Tax Appellate Tribunal, Chennai against the orders of the Appellate Assistant Commissioner (CT), Chennai; earlier passed in favour of the Company for assessment years 1997-98 to 2001-02 in respect of the differential sales tax on the products of the Company Rs. 114.80 Lacs (Previous Year Rs. 114.80 Lacs). During the earlier year, the Sales Tax Appellate Tribunal, Chennai, has passed order in favour of the Company for the year 2001-02. The Company is confident of receiving similar orders for other appeals for remaining assessment years since the facts of case are similars. Hence, no provision is considered necessary against the same. Department has till date not filed any appeal in the high Court against the Tribunal Order.

e) Excise duty demand on Chicken Wings and Dips including penalty- Rs 2.51 Lacs (Previous Year Rs. 2.51 Lacs). Based on the legal opinions taken by the Company, it is probable that there will not be any outflow of economic resources embodying economic benefits. Hence, no provision is considered necessary against the same.

7. The Company has not recognized the Franchisee Fee due from Franchisee on account of the uncertainty of recovery and has decided to recognize the same as and when received from D.P. Lanka Pvt. Ltd. Accordingly royalty income amounting to Rs 11.85 Lacs for the year (Previous Year Rs. 16.80 Lacs) has not been recognized in the books.

8.Pursuant to clarification issued by Expert Advisory Committee of Institute of Chartered Accountants of India on Accounting Standard - 19 on Leases on recognisation of operating lease rent expense, in the current year the Company has decided to recognize the scheduled rent increases over the lease term on a straight line basis in respect of all lease rent agreements entered on or after April 1, 2001 and still in force. The total impact in respect of these agreements till March 31, 2009 of Rs 44.48 Lacs is disclosed as "Prior Period Item" in Schedule 13 in accordance with Accounting Standard - 5 on "Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies.

9. Stock Option Agreement

On September 23, 2003, the Company had entered into an Option agreement with the erstwhile Managing Director "Arvind Nair" whereby 2,353,670, equity shares at Rs. 10 per share was granted to him. He had an option to exercise it up to December 2009, but restricted to 12 months from the date, shares of the Company are listed. Out of the above shares 1,176,835 shares were vested till December 14, 2004 i.e. date till he was working as a managing director in the Company.

Mr. Arvind Nair has exercised this option and as per the terms of option agreement, 1,176,835 shares have been allotted to him on 29th September, 2009.

The Company has opted for intrinsic value method for valuation of Employee Stock option Plans. Since the shares were not quoted on any stock exchange prior to grant of options by the Company, hence the fair value of its shares was determined on the basis of a valuation performed by a Category I Merchant Banker.

Further, the Fair Market Value of shares was less than the Exercise Price at the time of grant of options, therefore no disclosure (apart from above) and accounting is required to be done consequent to grant of options.

The Company has granted Stock options for 200,000 Equity Shares under the Employee Stock Option Plan 2007 to an employee of the group company, which needs shareholders approval in the ensuing Annual General Meeting.

10.Gratuity and other post-employment benefit plans:

The Company has a defined benefit gratuity scheme. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is unfunded.

The following tables summarize the components of net benefit expense recognised in the profit and loss account and amounts recognised in the balance sheet for the respective schemes.

11.Details of dues to Micro, Small and Medium Enterprise

The Company, has during the period, not received any intimation from any of its suppliers regarding their status under the said Act. Based on the above facts, management has decided that none of them are registered under the Said act and hence disclosures, if any, relating to amounts unpaid as at the period end along with interest paid/ payable have not been given.

12.The Company has changed its name from Dominos Pizza India Limited to Jubilant FoodWorks Limited, w.e.f September 24, 2009.

13.During the Current Quarter, Company has come with an Initial Public Offer for sale of 22,670,452 equity shares at a premium of Rs 135 per share, over its face value of Rs. 10 per share, consisting of fresh issue of 4,000,005 equity shares and an offer for sale of 18,670,447 equity shares by the existing shareholders viz India Private Equity Fund (Mauritius) and Indocean Pizza Holding Limited (the selling shareholders). The Company has received gross proceeds of Rs. 32,872.16 lacs (Rs 400 lacs towards capital, Rs. 5,400.01 lacs towards Security Premium and Rs. 27,072.15 lacs for remittance to the selling shareholders).

14 .Advertisement & Publicity Expenses are net of amount received from business associates Rs 555.56 Lacs (Previous Year Rs. 329.89 Lacs).

15.Previous Year figures have been re-grouped / re-arranged wherever considered necessary.

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