Consolidated Balance Sheet

As at 31 December 2022

(` in million)
Notes As at As at
31 December 2022 31 December 2021
Assets
Non-current assets
(a) Property, plant and equipment 4A 54,415.78 51,551.72
(b) Capital work-in-progress 4B 6,066.32 4,966.08
(c) Right of use assets 4C 9,155.01 5,727.99
(d) Goodwill 5A 242.30 242.30
(e) Other intangible assets 5B 5,509.10 5,585.74
(f) Investment in associate and joint venture 6 0.04 -
(g) Financial assets
(i) Investments 7 0.01 0.01
(ii) Other financial assets 8 486.80 420.63
(h) Deferred tax assets (Net) 9 - 24.07
(i) Other non-current assets 10 6,266.77 1,839.23
Total non-current assets 82,142.13 70,357.77
Current assets
(a) Inventories 11 19,938.85 14,480.87
(b) Financial assets
(i) Trade receivables 12 2,993.38 2,212.49
(ii) Cash and cash equivalents 13 1,543.32 1,507.50
(iii) Bank balances other than (ii) above 14 1,309.35 1,858.72
(iv) Others 15 3,977.06 2,455.55
(c) Current tax assets (Net) 16 - 11.08
(d) Other current assets 17 4,278.34 2,934.92
Total current assets 34,040.30 25,461.13
Total assets 116,182.43 95,818.90
Equity and liabilities
Equity
(a) Equity share capital 18 6,495.50 4,330.33
(b) Other equity 19 44,528.30 36,468.75
Equity attributable to owners of the Parent Company 51,023.80 40,799.08
Non-controlling interest 1,131.07 1,167.89
Total equity 52,154.87 41,966.97
Liabilities
Non-current liabilities
(a) Financial liabilities
(i) Borrowings 20A 17,270.22 18,133.27
(ii) Lease liabilities 20B 1,654.25 312.63
(b) Provisions 21 2,041.13 2,085.43
(c) Deferred tax liabilities (Net) 9 3,368.48 3,111.41
(d) Other non-current liabilities 22 5.94 6.73
Total non-current liabilities 24,340.02 23,649.47
Current liabilities
(a) Financial liabilities
(i) Borrowings 20C 19,677.90 15,285.68
(ia) Lease liabilities 20D 235.77 136.02
(ii) Trade payables
(a) Total outstanding dues of micro enterprises and small 23 659.11 342.85
enterprises
(b) Total outstanding dues of creditors other than micro 23 7,583.50 6,774.68
enterprises and small enterprises
(iii) Other financial liabilities 24 5,593.90 3,929.66
(b) Other current liabilities 25 4,889.77 3,096.76
(c) Provisions 21 291.91 497.40
(d) Current tax liabilities (Net) 26 755.68 139.41
Total current liabilities 39,687.54 30,202.46
Total liabilities 64,027.56 53,851.93
Total equity and liabilities 116,182.43 95,818.90
Significant accounting policies 3

The accompanying notes are an integral part of the consolidated financial statements.
As per our report of even date attached.

For Walker Chandiok & Co LLP For O P Bagla & Co LLP For and on behalf of the Board of Directors of
Chartered Accountants Chartered Accountants Varun Beverages Limited
Firm’s Registration No.: 001076N/N500013 Firm’s Registration No.:
000018N/N500091

Ashish Gupta Neeraj Kumar Agarwal Varun Jaipuria Raj Pal Gandhi
Partner Partner Whole Time Director Whole Time Director
Membership No.: 504662 Membership No.: 94155 DIN 02465412 DIN 00003649

Rajesh Chawla Ravi Batra

Place : Gurugram Chief Financial Officer Chief Risk Officer and
Dated : 06 February 2023 Group Company Secretary
Membership No.: F-5746

182 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Consolidated Statement of Profit and Loss

For the year ended 31 December 2022

(` in million, unless otherwise stated)

Notes Year ended Year ended
31 December 2022 31 December 2021
Income
Revenue from operations 27 133,905.58 89,582.91
Other income 28 388.49 679.25
Total income 134,294.07 90,262.16
Expenses
Cost of materials consumed 29 64,170.92 39,689.13
Excise duty 2,174.16 1,350.61
Purchases of stock-in-trade 30 1,885.71 1,654.69
Changes in inventories of finished goods, stock-in-trade and work-in-progress 31 (3,445.07) (997.22)
Employee benefits expense 32 12,166.42 10,076.99
Finance costs 33 1,861.22 1,847.00
Depreciation, amortisation and impairment expense 34 6,171.89 5,312.62
Other expenses 35 29,072.39 21,262.26
Total expenses 114,057.64 80,196.08
Profit before share of loss of associate & joint venture and tax 20,236.43 10,066.08
Share of loss of associate and joint venture 6 (0.06) -
Profit before tax 20,236.37 10,066.08
Tax expense
(a) Current tax 26 4,258.66 1,341.98
(b) Adjustment of tax relating to earlier periods 26 226.91 350.06
(c) Deferred tax expense 9 249.66 913.52
Total tax expense 4,735.23 2,605.56
Net profit for the year 15,501.14 7,460.52
Other comprehensive income 36
(a) Items that will not to be reclassified to Profit or Loss:
(i) Re-measurement losses on defined benefit plans 107.87 85.99
(ii) Income tax relating to items that will not be reclassified to Profit or (27.02) (18.93)
Loss
(b) Items that will be reclassified to Profit or Loss:
(i) Exchange differences arising on translation of foreign operations (3,799.27) (365.92)
Total other comprehensive loss (3,718.42) (298.86)
Total comprehensive income for the year (including non-controlling 11,782.72 7,161.66
interest)
Net profit attributable to:
(a) Owners of the Company 14,974.33 6,940.52
(b) Non-controlling interest 526.81 520.00
Other comprehensive income attributable to:
(a) Owners of the Company (3,154.79) (298.87)
(b) Non-controlling interest (563.63) 0.01
Total comprehensive income attributable to:
(a) Owners of the Company 11,819.54 6,641.65
(b) Non-controlling interest (36.82) 520.01
Earnings per equity share of face value of ` 10 each
Basic (`) 40 23.05 10.69
Diluted (`) 40 23.05 10.69
Significant accounting policies 3

The accompanying notes are an integral part of the consolidated financial statements.
As per our report of even date attached.

For Walker Chandiok & Co LLP For O P Bagla & Co LLP For and on behalf of the Board of Directors of
Chartered Accountants Chartered Accountants Varun Beverages Limited
Firm’s Registration No.: 001076N/N500013 Firm’s Registration No.:
000018N/N500091

Ashish Gupta Neeraj Kumar Agarwal Varun Jaipuria Raj Pal Gandhi
Partner Partner Whole Time Director Whole Time Director
Membership No.: 504662 Membership No.: 94155 DIN 02465412 DIN 00003649

Rajesh Chawla Ravi Batra

Place : Gurugram Chief Financial Officer Chief Risk Officer and
Dated : 06 February 2023 Group Company Secretary
Membership No.: F-5746

Annual Report 2022 183

Consolidated Cash Flow Statement
For the year ended 31 December 2022

(Indirect Method) (` in million)

Particulars Year ended Year ended
31 December 2022 31 December 2021
A. Operating activities
Profit before tax and share of loss in associate and joint venture 20,236.43 10,066.08
Adjustments to reconcile profit before tax to net cash flows:
Depreciation and impairment on property, plant and equipment 5,830.99 5,037.54
Amortisation of intangible assets and right of use assets 340.90 275.08
Interest expense at amortised cost 1,854.49 1,850.37
Interest income at amortised cost (228.29) (145.16)
Profit on sale of current investments (3.67) (0.70)
Excess provisions written back (9.20) (58.38)
Share based payment to employees 29.06 -
Loss on disposal/written off of property, plant and equipment (Net) 623.26 258.71
Bad debts and advances written off 25.71 -
Allowance for expected credit loss 73.51 58.92
Unrealised foreign exchange fluctuation (1,287.68) (1,098.50)
Operating profit before working capital changes 27,485.51 16,243.96
Working capital adjustments
Increase in inventories (5,568.33) (5,192.83)
(Increase)/decrease in trade receivables (1,233.80) 146.56
Increase in current and non-current financial assets and other current and (3,257.13) (921.85)
non-current assets
Increase in current financial liabilities and other current and non-current 4,207.33 3,280.66
liabilities and provisions
Total cash from operations 21,633.58 13,556.50
Income tax paid (3,733.29) (1,242.28)
Net cash flows from operating activities (A) 17,900.29 12,314.22
B. Investing activities
Purchase of property, plant and equipment and intangible assets (including (18,009.92) (8,348.00)
adjustment on account of capital work-in-progress, capital advances and
capital creditors)
Proceeds from disposal of property, plant and equipment and 510.93 193.51
intangible assets
Change in advance received for capital assets - (1,074.43)
Investment in associate and joint venture (0.10) -
Interest received 232.42 132.46
Proceeds from sale of current investments (Net) 3.67 0.70
Decrease/(increase) in other bank balances 217.02 (1,010.63)
Net cash used in investing activities (B) (17,045.98) (10,106.39)
C. Financing activities
Proceeds from long-term borrowings 14,777.20 8,548.06
Repayment of long-term borrowings (11,373.59) (6,408.51)
Repayment of lease liabilities (234.40) (188.65)
Repayments of short-term borrowings (Net) (7.97) (853.66)

184 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Consolidated Cash Flow Statement

For the year ended 31 December 2022

(Indirect Method) (` in million)

Particulars Year ended Year ended
31 December 2022 31 December 2021
Interest paid (inclusive of interest paid on lease liabilities ` 44.26 (1,716.79) (1,791.48)
(31 December 2021: ` 30.50))
Dividend paid (1,623.87) (1,082.58)
Net cash used in financing activities (C) (179.42) (1,776.82)
Net change in cash and cash equivalents (D=A+B+C) 674.89 431.01
Cash and cash equivalents at the beginning of year (E) 1,507.50 1,045.58
Unrealised exchange difference on translation of cash and cash equivalent (639.07) 30.91
in subsidiaries (F)
Cash and cash equivalents at the end of year (G= D+E+F) (Refer note 13) 1,543.32 1,507.50

Notes:
(a) Reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing
activities, including both changes arising from cash flows and non-cash changes pursuant to Ind AS 7:
(` in million)
Non-current borrowings* Current borrowings Lease Liabilities
(Non-current and current)
Balance as at 01 January 2022 27,134.03 6,284.92 448.65
Cash flows (Net) 3,403.61 (7.97) (234.40)
Non-cash changes:
Recognition of lease liabilities - - 1,665.92
Impact of fair value changes 74.19 - -
Impact of exchange fluctuations 59.34 - 9.85
Balance as at 31 December 2022 30,671.17 6,276.95 1,890.02

(` in million)
Non-current borrowings* Current borrowings Lease Liabilities
(Non-current and current)
Balance as at 01 January 2021 24,920.39 7,138.58 346.65
Cash flows (Net) 2,139.55 (853.66) (188.65)
Non-cash changes:
Recognition of lease liabilities - - 341.37
Impact of fair value changes 89.27 - -
Impact of exchange fluctuations (15.18) - (50.72)
Balance as at 31 December 2021 27,134.03 6,284.92 448.65
*includes current maturity of long-term debts amounting to ` 13,400.95 million (31 December 2021: ` 9,000.76 million)

The accompanying notes are an integral part of the consolidated financial statements.
As per our report of even date attached.

For Walker Chandiok & Co LLP For O P Bagla & Co LLP For and on behalf of the Board of Directors of
Chartered Accountants Chartered Accountants Varun Beverages Limited
Firm’s Registration No.: 001076N/N500013 Firm’s Registration No.:
000018N/N500091

Ashish Gupta Neeraj Kumar Agarwal Varun Jaipuria Raj Pal Gandhi
Partner Partner Whole Time Director Whole Time Director
Membership No.: 504662 Membership No.: 94155 DIN 02465412 DIN 00003649

Rajesh Chawla Ravi Batra

Place : Gurugram Chief Financial Officer Chief Risk Officer and
Dated : 06 February 2023 Group Company Secretary
Membership No.: F-5746

Annual Report 2022 185

186
Consolidated Statement of Changes in Equity
For the year ended 31 December 2022

A. Equity share capital

(` in million)
Particulars Notes Number of shares Amount
Balance as at 01 January 2021 288,688,720 2,886.89
Changes in equity share capital during the year 2021 144,344,360 1,443.44

Varun Beverages Limited

Balance as at 31 December 2021 18 433,033,080 4,330.33
Changes in equity share capital during the year 2022 216,516,540 2,165.17
Balance as at 31 December 2022 18 649,549,620 6,495.50

B. Other Equity
(` in million)
Particulars Note Attributable to Owners of the Company Non- Total
controlling
Reserve and surplus Exchange Total interests
differences attributable
Capital Capital Securities Share General Retained earnings on translating to owners of
reserve on reserve premium option reserve the financial the Group
consolidation outstanding statements
account of foreign
operations
Balance as at 01 January 2021 (2,279.78) 533.93 26,178.17 - 444.26 8,042.43 (565.89) 32,353.12 647.88 33,001.00
Profit for the year - - - - - 6,940.52 - 6,940.52 520.00 7,460.52
Other comprehensive income for the year
(Net of deferred taxes)
Re-measurement gains on defined - - - - - 67.05 - 67.05 0.01 67.06
benefit plans
Exchange differences arising on - - - - - - (365.92) (365.92) - (365.92)
translation of foreign operations
Dividend paid** (Refer note 41) - - - - - (1,082.58) - (1,082.58) - (1,082.58)
Amount utilised for bonus issue - - (1,443.44) - - - - (1,443.44) - (1,443.44)
 Consolidated Statement of Changes in Equity
For the year ended 31 December 2022

(` in million)
Particulars Note Attributable to Owners of the Company Non- Total
controlling
Reserve and surplus Exchange Total interests
differences attributable
Capital Capital Securities Share General Retained earnings on translating to owners of
reserve on reserve premium option reserve the financial the Group
consolidation outstanding statements
account of foreign
operations
Balance as at 31 December 2021 21 (2,279.78) 533.93 24,734.73 - 444.26 13,967.42 (931.81) 36,468.75 1,167.89 37,636.64
Profit for the year - - - - - 14,974.33 - 14,974.33 526.81 15,501.14
Other comprehensive income for the year
(Net of deferred taxes)
Re-measurement gains on defined - - - - - 80.96 - 80.96 (0.11) 80.85
benefit plans
Exchange differences arising on - - - - - - (3,235.76) (3,235.76) (563.52) (3,799.28)
translation of foreign operations
Dividend paid** (Refer note 41) - - - - - (1,623.87) - (1,623.87) - (1,623.87)
CORPORATE OVERVIEW

Recognition of share based payment - - - 29.06 - - - 29.06 - 29.06

expenses (Refer note 51)
Amount utilised for bonus issue - - (2,165.17) - - - - (2,165.17) - (2,165.17)
Balance as at 31 December 2022 21 (2,279.78) 533.93 22,569.56 29.06 444.26 27,398.84 (4,167.57) 44,528.30 1,131.07 45,659.37
**Transaction with owners in their capacity as owners.

The accompanying notes are an integral part of the consolidated financial statements.
As per our report of even date attached.

For Walker Chandiok & Co LLP For O P Bagla & Co LLP For and on behalf of the Board of Directors of
STATUTORY REPORTS

Chartered Accountants Chartered Accountants Varun Beverages Limited

Firm’s Registration No.: 001076N/N500013 Firm’s Registration No.:
000018N/N500091

Ashish Gupta Neeraj Kumar Agarwal Varun Jaipuria Raj Pal Gandhi
Partner Partner Whole Time Director Whole Time Director
Membership No.: 504662 Membership No.: 94155 DIN 02465412 DIN 00003649

Rajesh Chawla Ravi Batra

Place : Gurugram Chief Financial Officer Chief Risk Officer and

Annual Report 2022

Dated : 06 February 2023 Group Company Secretary
Membership No.: F-5746
FINANCIAL STATEMENTS

187