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Notes to Accounts of Jubilant Foodworks Ltd.

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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