MBA Semester 1 (2021-23)

Accounting for Business Decision CCA-1

Assignment Report Topic

Varun Beverages Limited

By

Group E4.1

Abhishek Walunj 2
Akshay Pendavale 5
Arpan Shah 12
Chanchal Madankar 18
Snehal Parchake 51
Yogesh Pawar 63
Contents

Sr. Title Page

No. No.
1 Introduction of Varun Beverages Limited…………………………………….…… 1
2 Main Businesses of Varun Beverages Limited…………………………………… 2
3 Sectors Relevant for the Company……………………………………………….…… 3
4 Major Revenue Sources……………………………………………………………….…… 4
5 Reasons for Lack of Performance in the FY20…………………………………… 5
Consolidated Statement Profit and Loss items expressed as Percent
6
of Total Revenue…………………………………………………………….………………… 6
Consolidated Balance Sheet items expressed as Percent of Total
7
Assets and Total Equity and Liability…………………………………………….…… 9
8 Annexure…………………………………………………………………………………………… 18
Varun Beverages Limited:

Varun Beverages Limited (“VBL” or the “Company”) is a key player in the beverage industry. The
Company’s operations span across 6 countries – 3 in the Indian Subcontinent (India, Sri Lanka,
Nepal), which contributed ~81% to total revenue, and 3 in Africa (Morocco, Zambia,
Zimbabwe), which contribute~19% of revenue in CY20.

Main Business of Varun Beverages Limited:

The Company produces and distributes a wide range of carbonated soft drinks (“CSD”), as well
as a large selection of non-carbonated beverages (“NCB”), including packaged drinking water. It
has a unique business model with end-to-end execution capabilities from manufacturing,
distribution and warehousing, customer management and in-market execution, to managing
cash flows and future growth. PepsiCo offers brands, concentrates and marketing support to
VBL, which then takes complete control over the manufacturing and supply chain processes,
driving market share gains, enhancing cost efficiencies and
managing capital allocation strategies.
VBL has vast experience in managing the distribution of soft drinks, involving complex logistics
and packaging of products. While business operations in each market is similar, each territory
and sub-territory presents specific operational challenges, varying from steady electricity supply
and refrigeration and cooling equipment, logistics infrastructure as well as the demographic
profile and
general socio-economic conditions in the relevant market. VBL has undertaken a number of
strategic initiatives towards improving operational excellence. These include backward
integration of its production processes and centralized sourcing of raw materials. The Company
has established backward integration facilities for production of preforms, crowns, plastic
closures, corrugated boxes, corrugated pads, plastic crates and shrink-wrap films in certain
facilities to ensure operational efficiencies and high-quality standards.

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Sectors Relevant for the Company:

 Manufacturing:
1. Manufacturing of carbonated soft drinks (“CSD”), as well as a large selection of non-
carbonated beverages (“NCB”) is the main sector of VBL. We can place it under the food
processing sector where company produces the end product by using raw materials like
water, fruits, milk etc.

2. Ancillary products: To improve operational efficiency and high quality and ensured
supply of ancillary products, company has been manufacturing 50% of Pepsi’s can
packaging needs in India. Also produces PET preforms, new facility added for crown
corks, plastic shells and lug caps. It is the second largest bottling company of PepsiCo's
beverages in the world outside United States

 Marketing Sector:
Through business transfer agreement with PepsiCo India it acquired business of
marketing, selling and distribution of soft drink beverages and syrup mix in some of the
states in India. Hence apart from Manufacturing sector marketing and selling is another
major sector for the company. Distribution of the products is done through franchise
agreements.

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Major Revenue Sources
The major source of revenue for Varun Beverages Ltd is PepsiCo.VBL has been associated with
PepsiCo since the 1990s and have over two and half decades consolidated its business
association with PepsiCo, increasing the number of licensed territories and sub-territories
covered by the Company, producing and distributing a wider range of PepsiCo beverages,
introducing various SKUs in the portfolio, and expanding the distribution network. As on date,
VBL has been granted franchises for various PepsiCo products across 27 States and 7 Union
Territories in India. VBL has 31 manufacturing plants in India and 6 manufacturing plants in
international geographies (two in Nepal and one each in Sri Lanka, Morocco, Zambia and
Zimbabwe).
VBL’s share of PepsiCo beverages volume sales increased from ~ 26% in Fiscal 2011 to 85%+
now. Although, India is VBL’s largest market, it has also been granted the franchise for various
PepsiCo products for the territories of Nepal, Sri Lanka, Morocco, Zambia and Zimbabwe.

Revenue Source 2020 ( Rs. in Million ) 2019 ( Rs. in Million

)
Operations
 Sale of Products 64,661 71,232.22
 Other operating revenue 896.79 1,252.36

Revenue from contracts with customers 64,661.12 71,232.22

Net receivables (Trade receivables –

Allowances for expected credit loss) 2,417.97 1,725.55

Advance from customers 658.24 1,125.89

Excess provisions/aged balances written 219.56 151.83

back

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Reasons for lack of performance in the FY20

The spread of the COVID-19 pandemic in early March 2020, leading to multiple lockdowns,
resulted in significant disruption across domestic and international markets. With the period of
March to May being a key season for the Company’s performance, the disruptions in
production levels, supply chain and distribution operations, particularly in the months of April
and May negatively impacted both domestic and international business performance.
Lockdown restrictions due to the COVID-19 pandemic resulted in decline in sales volumes and
consequently, the water consumption in CY20 is lower than previous year.
Overall, revenue stood at ` 64,501.4 million as against ` 71,295.78 million in 2019. Total sales
volumes stood at 425.3 million cases in 2020 as compared to 492.7 million cases in 2019. In the
domestic market, sales volume stood at 337.4 million cases as compared to 403.7 million cases
in 2019. CSD constituted 72.6%, Juice 6.3% and Packaged Drinking water 21.1% of total sales
volumes in 2020.

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 Consolidated Statement Profit and Loss items expressed as Percent of
Total Revenue:

(All values are in millions)

Consolidated Statement of Profit and Loss

% of total % of total
Year Year
Revenue Revenue as
Sr. ended 31 ended 31
Particulars as at 31 at 31
No. December December
December December
2020 2019
2020 2019
Income
1 Revenue from operations 100 65557.91 100 72484.58
2 Other income 0 0 0 0
Total income 100 65557.91 100 72484.58
Expenses
1 Cost of materials consumed 41.01 26885.09 40.55 29395.56
2 Excise duty 1.61 1056.49 1.64 1188.8
3 Purchases of stock-in-trade 1.41 925.87 5.85 4237.33
Changes in inventories of finished goods, stock-in-
4
trade and work-in-progress 0.26 -171.59 1.98 -1438.61
5 Employee benefits expense 13.57 8897.36 11.19 8108.15
6 Finance costs 4.29 2811.04 4.27 3096.42
7 Depreciation and amortization expense 8.06 5287.02 6.74 4886.28
8 Other expenses 24.32 15946.01 22.79 16516.82
Total expenses 94.02 61637.29 91.04 65990.75
Profit before share of profit in associate, exceptional
items and tax 6.54 4290.34 9.55 6919.11
Share of profit in associate 0.00 0 0.06 43.61
Profit before exceptional items and tax 6.54 4290.34 9.61 6962.72
Exceptional items 1.01 665.29 0.00 0
Profit before tax 5.53 3625.05 9.61 6962.72
Tax expense 0.00 0.00
(a) Current tax 0.65 423.85 1.45 1048.28
(b) Adjustment of tax relating to earlier periods 0.23 153.69 0.04 29.9
(c) Deferred tax (credit)/expense 0.80 -525.2 1.60 1162.49
Total tax (credit)/expense 0.08 52.34 3.09 2240.67
Net profit for the year 5.45 3572.71 6.51 4722.05

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As we see in above Consolidated Profit and Loss statement there are some items of expenses
highlighted in yellow color are increasing/decreasing as compared to the previous year i.e.
2019. These items are further to be analyzed an explained to get to know the reason. There are
five items that have more than 5% expenses which are as follows:

 Cost of material consumed:

As we see in above Profit and Loss statement the cost of material consumed is increased
by 40.55% to 41.01% .The main reason is raw material and packing materials consumed
by company, company purchases large number of row materials, inventories at the
beginning of the year 2020 which cost more as compared to the previous year, as below
mention chart the you can see that the company consumed more row material and
packaging material and the sales of product is less which will cost the company and
increase in expenses.

(All values are in millions)

Cost of Materials Consumed

Sr. Year ended 31 Year ended 31
Particulars
No. December 2020 December 2019
Raw material and packing material consumed
1 Inventories at beginning of the year 3,925.27 2,595.55
Acquired on acquisition of control over existing
2 associate - 50.58
3 Purchases during the year (Net) 28,499.00 32,713.89
32,424.27 35,360.02
4 Sold during the year 1,573.56 2,039.19
5 Inventories at end of the year 3,965.62 3,925.27
26,885.09 29,395.56

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 Purchase of Stock-in-Trade:
The purchase of stock in trade is decreased as compare to previous year because
company did not buy any product for resale, the major reason maybe covid-19.

(All values are in millions)

Purchase of stock-in-trade
Year ended 31 Year ended 31
Sr. No. Particulars
December 2020 December 2019
1 Beverages 554.54 4,036.59
2 Others 371.33 200.74
925.87 4,237.33

 Employee Benefits Expenses:

Once the employee renders service to company the expected amount of short term
employee benefits to be paid for such services are employee expenses, in this case as
we see salaries, wages, bonus, staff welfare & contribution to provident fund are
increased (2.38%) by previous year.

(All values are in millions)

Employee Benefits Expenses

Sr. Year ended 31 Year ended 31
Particulars
No. December 2020 December 2019
1 Salaries, wages and bonus 8,131.06 7,429.61
Contribution to provident fund and other
2 funds 445.89 386.82
3 Staff welfare expenses 320.41 291.72
8,897.36 8,108.15

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 Depreciation and Amortization Expenses:
As mention in below chart the amount of depreciation is increased in 2020, because on
plant and equipment, property are reach their life expectancy that’s why depreciation is
increased by 1.32% in 2020.

(All values are in millions)

Depreciation and Amortization Expenses

Sr. Year ended 31 Year ended 31
Particulars
No. December 2020 December 2019
1 Depreciation on property, plant and equipment 5,231.91 4,826.45
2 Amortization of intangible assets 55.11 59.83
5,287.02 4,886.28

 Other Expenses:

The present share of other expenses in Total Revenue has increased in 2020 compared to
2019. Although the percent share of the other expenses have increased than the last year
but the amount of other expenses has decreased compared to previous year 2019 (as
mentioned in the Consolidated Profit and Loss Statement).

The major items contributing to the reduction in the amount of other expenses are:

o Travelling and conveyance

o Net loss on foreign currency transactions and translations
o Allowance for expected credit loss and advances

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Consolidated Balance Sheet items expressed as Percent of Total
Assets and Total Equity and Liability:

(All values are in millions)

Consolidated Balance Sheet

% of total % of total
assets as As at 31 assets as As at 31
Sr
Particulars at 31 December at 31 December
no.
December 2020 December 2019
2020 2019
Non-Current Assets
1 Property, plant and equipment 68.89 58271.88 70.25 58925.02
2 Capital work-in-progress 0.79 668.15 0.76 638.24
3 Goodwill 0.29 242.3 0.29 242.3
4 Other intangible assets 6.59 5572.01 6.70 5623.11
5 Investment in associate - -
6 Financial Assets
(i) Investments 0.00001 0.01 0.00001 0.01
(ii) Loans 0.49 417.89 0.53 445.48
(iii) Others 1.21 0.01 8.9
7 Deferred tax assets (Net) 0.13 110.18 0.15 128.48
8 Other non-current assets 1.54 1303.44 1.38 1153.96
Total non-current assets 78.72 66587.07 80.07 67165.5
Current Assets
1 Inventories 10.98 9288.04 10.51 8815.13
2 Financial Assets
(i) Trade receivables 2.86 2417.97 2.06 1725.55
(ii) Cash and cash equivalents 1.24 1045.58 1.64 1379.68
(iii) Bank balances other than (ii) above 1.01 854.92 0.39 331.09
(iv) Loans 0.12 100.16 0.08 69.37
(v) Others 1.97 1670.04 2.61 2189.83
3 Current tax assets (Net) 0.12 102.19 0.01 10.23
4 Other current assets 2.98 2517.86 2.62 2197.96
Total current assets 21.28 17996.76 19.93 16718.84
Total Assets 100.00 84583.83 100.00 83884.34
Equity and liabilities
Equity
1 Equity share capital 3.41 2886.89 3.44 2886.89
2 Other equity 38.25 32353.12 36.24 30397.33
Equity attributable to owners of the
3 Holding Company 41.66 35240.01 39.68 33284.22

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 4 Non-controlling interest 0.77 647.88 0.37 306.79
Total equity 42.43 35887.89 40.04 33591.01
Liabilities
Non-current liabilities
1 Financial liabilities
2 (i) Borrowings 23.40 19796.22 28.08 23553.76
3 (ii) Other financial liabilities 0.29 244.39 0.00 0
4 Provisions 2.41 2039.06 2.03 1703.35
5 Deferred tax liabilities (Net) 2.67 2259.43 3.37 2825.07
6 Other non-current liabilities 0.01 7.34 0.01 8.23
Total non-current liabilities 28.78 24346.44 33.49 28090.41
Current liabilities
1 Financial liabilities
(i) Borrowings 8.44 7138.58 5.57 4671.54
(ii) Trade payables
(a) Total outstanding dues of micro
enterprises and small enterprises 0.11 93.7 0.03 26.14
(b) Total outstanding dues of creditors
other than micro enterprises and small
enterprises 5.94 5020.15 5.66 4750.47
(iii) Other financial liabilities 10.10 8543.51 12.23 10258.13
2 Other current liabilities 3.76 3182.92 2.44 2044.85
3 Provisions 0.39 331.72 0.36 299.79
4 Current tax liabilities (Net) 0.05 38.92 0.18 152
Total current liabilities 28.79 24349.5 26.47 22202.92
Total liabilities 57.57 48695.94 59.96 50293.33
Total equity and liabilities 100.00 84583.83 100.00 83884.34

There are items highlighted with yellow color in the Balance sheet table above, these items are
having more than 5% share in the total assets or total equity and liabilities of the company.
These items are further to be analyzed an explained to get to know the reason for their major
share in the assets. There are eight that have more than 5% share in the total assets or total
equity and liabilities.

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These items are as follows:

 Non-current Assets:
1. Property, Plant and Equipment
2. Other Intangible Assets
 Current Assets:
3. Inventories
 Equity:
4. Other Equity
 Non- current Liabilities:
5. Borrowings
 Current Liabilities:
6. Borrowings
7. Total outstanding dues of creditors other than micro enterprises and small
enterprises
8. Other financial liabilities

 Property, Plant and Equipment (PP&E):

PP&E assets fall under the category of noncurrent assets, which are the long-term
investments or assets of a company. Noncurrent assets like PP&E have a useful life of
more than one year, but usually, they last for many years.

The percent share of Property, Plant and Equipment (PP&E) as at 31 December 2020 is
68.89% of the total assets and as at 31 December 2019 is 70.25% of the total assets.
When considering only the percent share of PP&E in total assets in 2020, it has
decreased by 1.36% as compared to that in 2019. Also the evaluation of assets has
decreased in 2020 as compared to 2019. This is due to the increase in depreciation of
Property, Plant and Equipment than the previous year 2019. Depreciation includes day-
to- day repair and maintenance expenditure and cost of replacing parts.

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  Other Intangible Assets:

Intangible assets are defined as identifiable non-monetary assets that cannot be seen,
touched or physically measured. Intangible assets are created through time and effort,
and are identifiable as a separate asset. Intangible assets are typically expensed
according to their respective life expectancy. Intangible assets have either an
identifiable or indefinite useful life. Those with identifiable useful lives are amortized on
a straight-line basis over their economic or legal life, whichever one is shorter.

The items included in the other intangible assets are:

o Market Infrastructure
o Distribution Network
o Franchise Rights/Trademarks
o Computer Software
The percent share of Other Intangible Assets in the Total assets as at 31 December 2020
is 6.59% while at 31 December 2019 is 6.70%. The percent share of other intangible
assets have decreased compared to previous year.

(All values are in millions)

Other Intangible Assets

Market Distribution Franchise Computer
Sr. Total
Particulars infrastructure network rights/trademarks software
No.
2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
Gross carrying amount
1 Balance as at 01 January 74.7 73.53 157.64 157.64 6043.62 5658.61 274.25 225.1 6550.21 6114.89
2 Additions for the year - - - - - 150 2.02 48.93 2.02 198.93
3 Acquired on business acquisition during the year - - - - - 235.1 - - - 235.1
4 Disposals/adjustments for the year -40.46 - - - - - - 0.2 -40.46 0.2
5 Foreign Exchange Fluctuation for the year 5.7 1.17 - - -0.21 -0.09 0.02 0.01 5.51 1.09
Balance as at 31 December 39.94 74.7 157.64 157.64 6043.41 6043.62 276.29 274.3 6517.28 6550.21
Amortisation and impairment
6 Balance as at 01 January 50.58 41.4 20.78 1.08 657.16 657.19 198.58 166.7 927.1 866.32
7 Amortisation charge for the year 7.61 8.42 19.7 19.7 - - 27.79 31.71 55.1 59.83
Reversal on disposals/adjustments on assets for
8
the year -40.46 - - - - - - 0.2 -40.46 0.2
9 Foreign Exchange Fluctuation for the year 3.59 0.76 - - -0.08 -0.03 0.02 0.02 3.53 0.75
Balance as at 31 December 21.32 50.58 40.48 20.78 657.08 657.16 226.39 198.6 945.27 927.1
Carrying amount as at 31 December 18.62 24.12 117.16 136.86 5386.33 5386.46 49.9 75.67 5572.01 5623.11

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 The franchise rights and trademarks acquired as part of business combinations normally
have a remaining legal life of not exceeding ten years but is renewable every ten years
at little cost and is well established. Hence, franchise rights and trademarks amount has
remain same for both years and it has no effect on other intangible assets.

The market infrastructure amount has decreased compared to previous year 2019 due
to foreign exchange fluctuation, disposals and adjustments on assets for the year.

The computer software amount has decreased compared to previous year as the
amortization charge for the year 2020 has decreased as compared to the previous year
and also the additions to the software in 2020 were much less than in 2019. Overall due
to these reasons there was reduction in the percent share of other intangible assets in
total assets compared to previous year.

 Inventories:
Inventory includes goods ready for sale, as well as raw material and partially completed
products that will be for sale when they are completed and also stocks and spare goods.

(All values are in millions)

Inventories
Sr. As at 31 As at 31
Particulars
No. December 2020 December 2019
(Valued at lower of cost or net realizable value)
Raw materials (including raw material in transit of `
1 74.39 (31 December 2019: ` 176.91) 3965.62 3925.27
2 Work in progress 85.26 64.72
Intermediate goods (including goods in transit of `
3 28.76 (31 December 2019: ` 35.86)) 1665.55 1855.05
Finished goods (including goods in transit of `
4 39.79 (31 December 2019: ` 26.03)) 1706.56 1480.89
5 Stores and spares 1865.05 1489.2
9288.04 8815.13

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 The percent share of Inventories in Total Assets has increased in the year 2020 as
compared to the year 2019. The raw material purchased and sold during the year 2020
is less compared to that in the year 2019 but as the opening stock for 2020 was greater
than the opening stock for the year 2019, hence, the overall raw material in the
inventory has increased in the 2020 as compared to 2019.

Intermediate goods have decreased while work in progress and finished goods have
increased in the year 2020 compared to the previous year. Due to this changes the
overall inventories have increased compared to the previous year

 Other equity:
(All values are in millions)

Other Equity
As at 31 As at 31
Sr.
Particulars December December
No.
2020 2019
1 Capital reserve on consolidation -2279.78 -2279.78
2 Capital reserve 533.93 533.93
3 General reserve 444.26 444.26
4 Securities premium 26178.17 26178.17
5 Retained earnings 8042.43 5560.11
Exchange differences on translating the financial statements
6
of foreign operations -565.89 -27.23
Foreign currency monetary item translation difference
7
account - -12.13
32353.12 30397.33

Created from the profit of the Group, as adjusted for distributions to owners, transfers
to other reserves, etc. As all the items in the other equity table shown above are same
for both the years except the retained earnings and Exchange differences on translating
the financial statements of foreign operations.

The retained earnings and Exchange differences on translating the financial statements
of foreign operations have increased in 2020 as compared to the previous year.

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 Non-current Borrowings:
(All values are in millions)

Non-current Borrowings
As at 31 December As at 31 December
Particulars
2020 2019
Term loans (secured)
- Loans from banks 18,877.06 22,753.47
- Loans from financial
institutions 919.16 800.29
19,796.22 23,553.76

Loans and borrowing above are recognized at amortized cost/ fair value taking into
account any discount or premium on acquisition and fee or costs that are part of
effective interest rate, accordingly the outstanding balances above may not necessarily
reconcile with repayment amounts.

The percent share of non-current borrowings in total equity and liabilities has decreased
in 2020 compared to previous year as there is reduction in the amount of loans from
banks and financial institutions.

 Current Borrowings:
(All values are in millions)

Current Borrowings
As at 31 As at 31
Sr.
Particulars December December
No.
2020 2019
1 Working capital facilities
-from banks (secured) 6,135.60 2,603.90
-from a bank (unsecured) 1,000.00 2,000.00
2 Loans repayable on demand from:
- bodies corporate (unsecured) 2.98 63.42
- others (unsecured) - 4.22
7,138.58 4,671.54

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In case of the Holding Company, the working capital facilities from banks are secured by
first charge on entire current assets of the Company ranking. One facility from bank is
secured by subservient charge over entire current assets and movable fixed assets (both
present and future) of the Company and another facility from bank is secured by
subservient charge over movable fixed assets of the Company. These facilities carry interest
rates ranging between 4.75% to 5.90% (31 December 2019: 8.35% to 9.65%). Hence, as the
interest rates increased after 31 December 2019 the evaluation of working capital facilities
from banks have increased at large amount as compared to previous year.

 Total outstanding dues of creditors other than micro enterprises

and small enterprises:
(All values are in millions)

Total outstanding dues of creditors other than micro enterprises and small
enterprises
As at 31 As at 31
Particulars
December 2020 December 2019
Total outstanding dues of-
Micro enterprises and small enterprises 93.7 26.14
Creditors other than micro enterprises and small
enterprises 5,020.15 4,750.47
5,113.85 4,776.61

The amount of interest paid by the buyer in terms of section 16 of the MSMED Act, 2006
along with the amounts of the payment made to the supplier beyond the appointed day
during each accounting year has increased in 2020 than the previous year 2019.

The amount of interest accrued and remaining unpaid at the end of each accounting
year has increased in 2020 compared to previous year.

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 The amount of further interest remaining due and payable even in the succeeding years,
until such date when the interest dues as above are actually paid to the small enterprise
for the purpose of disallowance as a deductible expenditure has increased than the
previous year 2019.

 Other current financial liabilities:

(All values are in millions)

Other Current Financial Liabilities

As at 31
Sr. As at 31
Particulars December
No. December 2020
2019
1 Current maturities of long-term debts 5,124.17 5,946.43
2 Current maturities of lease liabilities 102.26 -
3 Interest accrued but not due on borrowings 110.38 154.07
4 Payable for capital expenditures 736.83 865.01
5 Employee related payables 472.23 440.6
6 Unclaimed dividends 3.02 4.19
7 Security deposits 1,973.91 2,779.38
8 Liability for foreign currency derivative contract 20.71 68.45
8,543.51 10,258.13

The percent share of other current financial liabilities has decreased in 2020 compared
to previous year and the major contributors to this reduction are current maturities of
long term debts, payable for capital expenditure and security deposits, as these items
have decreased compared to the previous year.

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Annexure:

 Consolidated balance sheet:

(All values are in millions)

Consolidated Balance Sheet

As at 31 As at 31
Particulars December December
2020 2019
Assets
Non-current assets
(a) Property, plant and equipment 58271.88 58925.02
(b) Capital work-in-progress 668.15 638.24
(c) Goodwill 242.3 242.3
(d) Other intangible assets 5572.01 5623.11
(e) Investment in associate - -
(f) Financial assets
(i) Investments 0.01 0.01
(ii) Loans 417.89 445.48
(iii) Others 1.21 8.9
(g) Deferred tax assets (Net) 110.18 128.48
(h) Other non-current assets 1303.44 1153.96
Total non-current assets 66587.07 67165.5
Current assets
(a) Inventories 9288.04 8815.13
(b) Financial assets
(i) Trade receivables 2417.97 1725.55
(ii) Cash and cash equivalents 1045.58 1379.68
(iii) Bank balances other than (ii) above 854.92 331.09
(iv) Loans 100.16 69.37
(v) Others 1670.04 2189.83
(c) Current tax assets (Net) 102.19 10.23
(d) Other current assets 2517.86 2197.96
Total current assets 17996.76 16718.84
Total assets 84583.83 83884.34
Equity and liabilities
Equity
(a) Equity share capital 2886.89 2886.89
(b) Other equity 32353.12 30397.33
Equity attributable to owners of the Holding Company 35240.01 33284.22
Non-controlling interest 647.88 306.79
Total equity 35887.89 33591.01

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Liabilities
Non-current liabilities
(a) Financial liabilities
(i) Borrowings 19796.22 23553.76
(ii) Other financial liabilities 244.39 -
(b) Provisions 2039.06 1703.35
(c) Deferred tax liabilities (Net) 2259.43 2825.07
(d) Other non-current liabilities 7.34 8.23
Total non-current liabilities 24346.44 28090.41
Current liabilities
(a) Financial liabilities
(i) Borrowings 7138.58 4671.54
(ii) Trade payables
(a) Total outstanding dues of micro enterprises and small enterprises 93.7 26.14
(b) Total outstanding dues of creditors other than micro
enterprises and small enterprises 5020.15 4750.47
(iii) Other financial liabilities 8543.51 10258.13
(b) Other current liabilities 3182.92 2044.85
(c) Provisions 331.72 299.79
(d) Current tax liabilities (Net) 38.92 152
Total current liabilities 24349.5 22202.92
Total liabilities 48695.94 50293.33
Total equity and liabilities 84583.83 83884.34

 Consolidated Profit and Loss Statement:

(All values are in millions)

Consolidated Profit and Loss Statement

Year Year
ended 31 ended 31
Particulars
December December
2020 2019
Income
Revenue from operations 65557.91 72484.58
Other income 369.72 425.28
Total income 65927.63 72909.86
Expenses
Cost of materials consumed 26885.09 29395.56
Excise duty 1056.49 1188.8
Purchases of stock-in-trade 925.87 4237.33
Changes in inventories of finished goods, stock-in-trade and work-in-
progress -171.59 -1438.61

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Employee benefits expense 8897.36 8108.15
Finance costs 2811.04 3096.42
Depreciation and amortization expense 5287.02 4886.28
Other expenses 15946.01 16516.82
Total expenses 61637.29 65990.75
Profit before share of profit in associate, exceptional items and tax 4290.34 6919.11
Share of profit in associate - 43.61
Profit before exceptional items and tax 4290.34 6962.72
Exceptional items 665.29 -
Profit before tax 3625.05 6962.72
Tax expense
(a) Current tax 423.85 1048.28
(b) Adjustment of tax relating to earlier periods 153.69 29.9
(c) Deferred tax (credit)/expense -525.2 1162.49
Total tax (credit)/expense 52.34 2240.67
Net profit for the year 3572.71 4722.05
Other comprehensive income
(a) Items that will not to be reclassified to Profit or Loss:
(i) Re-measurement losses on defined benefit plans -115.38 -101.41
(ii) Income tax relating to items that will not be reclassified to
Profit or Loss 29.53 33.19
(iii) Gain from a bargain purchase - 344.43
(b) Items that will be reclassified to Profit or Loss:
(i) Exchange differences arising on translation of foreign
operations -531.02 416.26
(ii) Income tax relating to items that will be reclassified to Profit or Loss -7.64 -96.97
Total other comprehensive income -624.51 595.5
Total comprehensive income for the year (including non-controlling
interest) 2948.2 5317.55
Net profit attributable to:
(a) Owners of the Company 3289.95 4689.75
(b) Non-controlling interest 282.76 32.3
Other comprehensive income attributable to:
(a) Owners of the Company -624.57 595.52
(b) Non-controlling interest 0.06 -0.02
Total comprehensive income attributable to:
(a) Owners of the Company 2665.38 5285.27
(b) Non-controlling interest 282.82 32.28
Earnings per equity share of face value of
Basic 11.4 16.83
Diluted 11.4 16.83

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