Management Discussion and Analysis

i
Contents
Corporate Theme Introduction
Corporate Information
02
04

Overview
Management Discussion and Analysis 05
Statutory Directors’ Report 79
Report on Corporate Governance 121
Reports

Financial Standalone Financials

Consolidated Financials
149
213

Statements

1
 Annual Report 2018-19

WORLD’S MOST

versatile crop
2
Theme Introduction
Management Discussion and Analysis

More than
Every third More than

1billion person hundred

farmers on earth eats it every
day in one form
countries
make their living across the globe
from this crop or another grow this crop

It is the staple It is the It is one of the

diet of more than
source of most important

2 billion nourishment commercial

people for over half the food crops
world’s population across the globe

This magic crop is Rice – a crop with This is where our visionary founder, Mr. varieties of Basmati rice across
more than 130 million years of history Anil Kumar Mittal, saw an opportunity the globe.
and that’s cooked all over the world and stepped in to transform the
We helped evolve the value
whether in a small hut or a big mansion. Basmati rice industry forever.
proposition of Basmati rice and
And amongst the thousand varieties From the plates of the select few, modernized the crop. This helped
of aromatic rice available today, Basmati rice is today one of India’s steer the Company’s growth in the
there is a handful which is of great major commodity exports. KRBL past and helps sustain growth today
renown across the globe for its Limited, the largest exporter of and is likely to continue to do so in
distinctive & aromatic smell, length of branded Basmati rice in the world and the future.
grain, delicious taste and pearl-like India’s first integrated rice company,
We continue to innovate our product
whiteness. made this possible.
offerings while inspiring optimism
Often referred to as the ‘White Pearl’, In recent times, advances in amidst our many stakeholders.
this rice variety is called Basmati Rice. agricultural science have transformed This is why KRBL has never simply
this grain. catered to an existing market; it has
God of Grains It is, however, KRBL and its visionary
always broadened beyond the existing
markets and will always continue to
However, this ancient variety of rice founder who transformed the Indian
do so.
used to have limited availability and Basmati rice industry. Truly believing
due to being extremely expensive, it in the potential of newly developed
graced the plates of only the rich and varieties of Basmati rice, KRBL took
affluent. the onus of popularizing these new

3
 Annual Report 2018-19

Corporate Information
BOARD OF DIRECTORS • Risk Management Committee CORPORATE OFFICE
Chairman & Managing Director Mr. Arun Kumar Gupta – Chairman C-32, 5th & 6th Floor, Sector 62,
Mr. Anil Kumar Mittal Mr. Anoop Kumar Gupta – Member Noida, Uttar Pradesh - 201 301
Mr. Rakesh Mehrotra – Member Phone: 0120 - 4060 300
Joint Managing Directors Fax: 0120 - 4060 398
Mr. Arun Kumar Gupta • Stakeholders Relationship Committee
Mr. Anoop Kumar Gupta Mr. Ashwani Dua – Chairman BANKERS
Mr. Shyam Arora – Member State Bank of India
Whole Time Director Mr. Vinod Ahuja – Member ICICI Bank Limited
Ms. Priyanka Mittal DBS Bank Limited
STATUTORY AUDITORS HDFC Bank Limited
Independent Non-Executive Directors M/s. Walker Chandiok & Co LLP Kotak Mahindra Bank Ltd.
Mr. Alok Sabharwal Chartered Accountants Karnataka Bank Limited
Mr. Ashwani Dua 21st Floor DLF Square, Jacaranda Marg, Corporation Bank
Mr. Devendra Kumar Agarwal DLF Phase II, Gurgaon -122 002 MUFG Bank Ltd.
Mr. Shyam Arora Induslnd Bank Limited
Mr. Vinod Ahuja SECRETARIAL AUDITORS Coöperatieve Rabobank U.A.
M/s. DMK Associates
CHIEF FINANCIAL OFFICER Company Secretaries WORKS
Mr. Rakesh Mehrotra 31/36, Basement, Old Rajinder Nagar, • Gautam Budh Nagar Unit
Delhi-110 060 9th Milestone, Post Dujana,
COMPANY SECRETARY AND Bulandshahar Road,
COMPLIANCE OFFICER INTERNAL AUDITORS Distt. Gautam Budh Nagar,
Mr. Raman Sapra M/s. S S Kothari Mehta & Co., Uttar Pradesh - 203 207
Chartered Accountants
BOARD COMMITTEES Plot No. 68, Okhla Industrial Area, • Dhuri Unit
• Audit Committee Phase-III, New Delhi - 110 020 Village Bhasaur (Dhuri),
Mr. Devendra Kumar Agarwal – Chairman Distt. Sangrur,
Mr. Anoop Kumar Gupta – Member COST AUDITORS Punjab - 148 024
Mr. Ashwani Dua – Member M/s. HMVN & Associates
Mr. Shyam Arora – Member Cost Accountants • Alipur Unit
Mr. Vinod Ahuja – Member 1011, Pearls Best Heights-II, C-9, 29/15-29/16, Village Jindpur,
Netaji Subhash Place, Pitampura, G.T. Karnal Road & Plot 258-260,
Delhi- 110 034 Extended Lal Dora
• Borrowing and Investment Committee Both at Alipur, Delhi - 110 036
Mr. Anil Kumar Mittal – Chairman REGISTRAR & SHARE TRANSFER
Mr. Arun Kumar Gupta – Member AGENTS • Barota Unit
Mr. Anoop Kumar Gupta – Member Alankit Assignments Limited Village Akbarpur Barota,
Mr. Rakesh Mehrotra – Member 3E/7 Jhandewalan Extension, Distt. Sonipat, Haryana - 131 104
New Delhi - 110 055
• Corporate Social Responsibility Phone: 011 - 4254 1955/59
Committee
Mr. Anil Kumar Mittal – Chairman REGISTERED OFFICE
Mr. Anoop Kumar Gupta – Member 5190, Lahori Gate, Delhi - 110 006
Mr. Ashwani Dua – Member Phone: 011 - 2396 8328
Ms. Priyanka Mittal – Member Fax: 011 - 2396 8327
E-mail: investor@krblindia.com
• Nomination and Remuneration Website: www.krblrice.com
Committee CIN: L01111DL1993PLC052845
Mr. Ashwani Dua – Chairman
Mr. Shyam Arora – Member
Mr. Vinod Ahuja – Member

4
Management Discussion and Analysis

MANAGEMENT
DISCUSSION AND
ANALYSIS

5
 Annual Report 2018-19

Global Economy Overview

The uptick in global activity which Japan, one of the major economies of 4.5% for both the years, before improving
started in 2016 picked up steam in 2017 the world, is all set to grow by 1.1% in to 4.9% in 2020. Emerging Asia will
and further strengthened in 2018. 2019. The increased growth percentage remain the growth leader and is expected
reflects additional fiscal support to the to clock a growth rate of 6.3% in 2019
In 2017, global economic growth reached economy this year, including measures compared to 6.5% in 2018, and further
3.0%, a significant acceleration compared to mitigate the effects of the planned recover to 6.4% in 2020. India’s economy
to the growth of just 2.4% in 2016, consumption tax rate increase in October is poised to pick up in 2019, benefiting
and the highest rate of global growth 2019. Following the implementation from lower oil prices and a slower pace
recorded since 2011. In 2018, the global of the mitigating measures, growth of of monetary tightening than previously
GDP grew at 3.7%, according to World the economy in 2020 is expected to be expected, as inflation pressures ease.
Economic Outlook (WEO) despite weaker around 0.5%.
performance in some economies like Sub-Saharan Africa and Latin America
Europe and Asia. The global economic GDP growth across emerging market indicate a moderate growth rate in 2019.
growth would be at 3.5% in 2019 and economies (EMEs) is expected to hold In Latin America, growth is projected to
then would pick up slightly to grow at their composure in 2018 and 2019 and recover over the next two years, from 1.1%
3.6% in 2020. are expected to clock a growth rate of in 2018 to 2.0% in 2019 and 2.5% in 2020.

Global Economy Growth

Percent

0
2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

World Advance economies Emerging Markets and Developing Economies

Source: Global Economic Prospects, January 2019, World Bank

6
Management Discussion and Analysis

U.S. Economic Outlook 2019, 2020, and 2021

Comparative projected rates for growth, unemployment, inflation, and manufacturing

3.8% 3.9%
3.7%
3.6%

2.4%
2.1%
2.0% 1.9% 2.0%
1.8% 1.8% 1.9%

GDP Growth Unemployment Core Inflation Manufacturing

2019 2020 2021

Chart: The Balance Source: The Federal Reserve

https://www.thebalance.com/us-economic-outlook-3305669

7
 Annual Report 2018-19

8
Management Discussion and Analysis

India Economy Overview

Continuing its journey as the fastest GDP Growth of the Indian economy (y-o-y)
growing economy in the world, the Central
Statistics Office (CSO) expects the Indian 8.2%
economy to clock a growth rate of 7.2% 7.3%
for the fiscal year 2018-19, and 7.3% in 7.2% 7.2%
the following two years. Key attributes 7.0%
to this sustained growth of the Indian
economy, according to World Bank, are
likely to be the upswing in consumption
and investment.

Strengthened by the benefits derived from

the structural reforms such as the Goods
and Services Tax (GST) harmonization
and bank recapitalization, uptick in
domestic demand gained momentum in
2018. Further impetus was provided by
the sustained investment growth, which
has firmed as the effects of temporary
factors wane.
2016 2017 2018 2019 2020
forecast forecast
Source: https://www.adb.org/countries/india/economy

9
 Annual Report 2018-19

GDP growth trends

A slowdown is expected in the second half of FY19 with GDP growth dipping to 6.75% from 7.65% in the first half.

FY17 7.85
6.45

5.95
FY18
7.35

7.65
FY19
6.75
Year-on-year (in %)

April-September October-March

FY17, FY18 and Apr-Sep FY19 are actual figures.

*CSO estimate.

Source: CSO: (https://www.livemint.com/Politics/zxNzYKQfLHUCB2yR3vKE8J/What-India-GDP-growth-rate-forecast-for-2018-19-means.html)

Starting at a high growth for the fiscal 7.3% due to rising global volatility, largely Indian economy still remains one of the
2018-19, the Indian economy recorded from financial volatility, normalized fastest growing and possibly the least
a growth rate of 8.2% in the first monetary policy in advanced economies, impacted by the recent global turmoil.
quarter of FY19 on the back of a strong externalities from trade disputes, and Strong macroeconomic fundamentals
domestic resilience. However, over the investment rerouting. and proactive policy changes helped
subsequent quarters, growth eased to the Indian economy absorb the
aforementioned external shocks.

India’s GDP growth vis-à-vis other nations

0
2018 2019 2020 2021

World Euro area India China BRICS

Source: https://economictimes.indiatimes.com/news/economy/indicators/indias-gdp-expected-to-grow-at-7-3-in-2018-19/articleshow/67451511.cms)

10
Management Discussion and Analysis

Slated to clock a growth rate in-between

7.2% to 7.5% range, the Indian economy
is expected to grow steadily while
prospects of inflationary pressures
remain benign. Fiscal expansion remains
key to accelerating growth, it may
weigh on government coffers if private
investment loses steam.

While increased government investments

have helped retain a healthy sentiment
for capital formation, the stretch in
government expenses has already
become evident in the expansion of
fiscal deficit net. The fiscal deficit target
was amended previously, but the recent
budget announcement expanded it
further to 3.4% of GDP for both FY19
and FY20 (from 3.3% and 3.1% earlier,
respectively). This became necessary
given the expected higher expenditure
toward income support scheme for farm
households, pension scheme for the
unorganized sector workers, and income
tax rebate.

On the macroeconomic front, according

to the government data released, India
saw its annual retail inflation rate fall to
an 18-month low of 2.19% in December
as food prices fell for third straight
month. Benign inflation rate witnessed

Fiscal deficit vs Revenue deficit

in the recent past has been facilitated
Percentage of GDP by favourable supply side factors
associated with food and fuel coupled
4.5 with lower demand as wage growth has
4.0 decelerated on account of the negative
output gap.
3.5
3.0 On the export front, government expects
2.5 the overall Indian merchandise export
to stand at $325 billion in 2018-19
2.0 compared to $303 billion in 2017-18 after
1.5 growing by 7.3%, lower than 9.8% clocked
in 2017-18. Muted growth of traditional
1.0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 export items such as gems and jewellery,
[RE] [BE] [P] farm and engineering, liquidity crunch,
Fiscal deficit Revenue deficit and some other global factors, resulted
into slowing export growth. However,
Note: RE, BE, and P denote revised estimates, budget estimates, and provisional as given in the budget
document for 2019-20, respectively. total exports from India (merchandise
Source: CEIC: Deloitte. and services) is expected to increase by
https://www2.deloitte.com/content/dam/Deloitte/in/Documents/finance/DI_India-economic-outlook.pdf 8.73% on a year-on-year (y-o-y) basis in

11
 Annual
AnnualReport
Report2018-19
2019-20

2018-19 (up to February 2019) to US$ billion, boosted by a rise in net earnings billion and the secondary income surplus
483.92 billion, while total imports expected from telecommunications, computer rose to US$ 17.3 billion from US$ 16.1
to have increased by 9.42% on a y-o-y and information services and financial billion. Net FDI inflows in H1 of 2018-
basis to US$ 577.31 billion, according services. The primary income gap 19 moderated to US$ 17.7 billion from
to data from the Ministry of Commerce decreased to US$ 6 billion from US$ 6.5 US$ 19.6 billion in H1 of 2017-18.
& Industry. By 2019 end, end exports are
expected to reach US$ 540 billion. Rising CAD of India

20 2.9 3
Balance of payments: India’s current
account deficit (CAD) at US$ 19.1 19.1
16 2.5
billion (2.9% of GDP) in Q2 of 2018-19 0.4
increased from US$ 6.9 billion (1.1% of 2
12
GDP) in Q2 of 2017-18 and US$ 15.9 0.1 1.5
billion (2.4% of GDP) in the preceding 8
quarter. The widening of the CAD on a 1
y-o-y basis was primarily on account 4 0.5
of a higher trade deficit at US$ 50.0
billion as compared to US$ 32.5 billion 0 0
a year ago. The goods deficit increased Q1 Q2
FY17 FY19
to US$ 49.5 billion from US$ 44 billion
a year ago as overall imports rose CAD in $ billion (Left-hand scale) CAD as a % of GDP
higher than overall exports. On the other
hand, the services surplus increased Source: RBI
to US$ 21.3 billion from US$ 20.7 https://www.livemint.com/politics/ckdhpgeundxvan/where-is-indias-current-account-deficit-headed.html

12
Management Discussion & Analysis

13
 Annual Report 2018-19

Major budgetary
initiatives 2019

A 750 billion-rupee ($10.5 billion) farm income support program.

Farmers with less than two hectares of land will receive 6,000
rupees ($84) each year. This initiative is expected to benefit about
120 million small and marginal farmers.

Increased spending on the animal husbandry and fisheries sectors.

An interest subvention plan so that small and medium-sized
businesses could benefit the companies with exposure to rural India.

“Mega” pension program for India’s informal sector workers with

income belows` 15,000. The vast majority of the country’s workers
are employed in small enterprizes, often with little job security and
no social security benefits.

Enhanced tax rebate for the tax-payers of the country.

Outlook
Despite the recent budgetary measures taken by the government of India to strike a balance between fiscal prudence and growth,
some uncertain risks still loom large in the Indian economy. India needs to solidify its investment position while maintaining fiscal
deficit within the targeted range. The need to remain steadfast on fiscal numbers has risen largely from the need to stimulate
growth amid pressure to cut taxes, increased budgetary allocations to social sectors, and enhanced infrastructure spending that
could pressure public finance. Therefore, meeting the revenue collection and disinvestment targets would be crucial to ensure
the budgeted reduction in the fiscal deficit-to-GDP ratio. Overall, the government could do well to carefully manage its public
finances and shift focus to projects that can foster private investment. The real challenge is likely to arise from making the right
policy decisions about the fiscal expenditure mix and incentivizing private players so as to avoid any long-term costs.

14
Management Discussion and Analysis

Overview of the Indian agricultural sector

One of the main stays of the Indian economy spices, pulses, milk, tea, cashew, and jute; grain. The total rice production for 2018-
– agriculture, plays an important role in the and the second largest producer of wheat, 19 is estimated to be around 115.63
overall mix of it. The Indian economy is one rice, fruits & vegetables, sugarcane, million tonnes, 2.87 million tonnes higher
of the fastest growing economies in the cotton, and oilseeds. Further, with 46 out than the production of 112.76 million
world. Estimated to contribute about 30% to of the 60 soil types in the world, India is tonnes in 2017-18. Wheat production in
the country’s GDP, agriculture is the primary the second in the global production of 2018-19 is estimated to be around 101.20
source of livelihood for ~58% of India’s fruits and vegetables along with being the million tonnes compared to 99.87 million
population. Playing a big role in improving largest producer of mango and banana. tonnes in the previous year.
rural incomes and securing India’s food According to third advance estimates
and nutritional needs, agricultural industry released by the Department of Agriculture, Total pulses production during 2018-19 is
of India has been the backbone of the total food grain production in India is estimated at 23.22 million tonnes which
economy for centuries now. estimated at 283.37 million tonnes during is marginally higher than the previous
2018-19 higher by 17.62 million tonnes year’s 2nd Advance Estimates of 23.95
With the 2nd largest arable land in the than the previous five years’ (2013-14 million tonnes. However, the production
world, India is the largest producer of to 2017-18) average production of food of pulses during 2018-19 is higher by

Gross Value Added by Agriculture and Allied sectors (US$ billion, in terms of value)

CAGR 2.75%

300.00 283.37

266.37
249.68 249.21 250.62
250.00 236.51
233.04

200.00

150.00

100.00

50.00

0.00
FY12 FY13 FY14 FY15 FY16 FY17* FY18**
* 1st revised estimates
** 3rd advance estimates
Source: https://www.ibef.org/download/Agriculture_and_Allied_Industries_May_2019.pdf
http://pib.nic.in/newsite/PrintRelease.aspx?relid=190227

15
 Annual Report 2018-19

Agricultural exports from India (US$ billion in terms of value)

50.00
CAGR 16.45%

45.00 42.86
39.13
38.70 38.21
40.00

33.87
35.00 32.08
29.20
30.00
24.70
25.00

20.00
15.60
15.00
11.30

10.00

5.00

0.00
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Source: https://www.ibef.org/download/Agriculture_and_Allied_Industries_May_2019.pdf

2.96 million tones than the five years’ in the world. Total agricultural exports systematic water resource management
average production of 20.26 million from India grew at a CAGR of 16.45% over techniques are followed, the country can
tonnes. Total production of Sugarcane in FY10-18 to reach US$ 38.21 billion in improve agricultural output greatly.
the country during 2018-19 is estimated FY18 and in FY19 total agriculture exports
at 400.37 million tonnes with an increase stood at US$ 39.13 billion. One of the primary reasons for fall in
by 20.46 million tonnes over 2017-18 (as agricultural productivity is the lack of
per 3rd Advance Estimates). Further, the Challenges faced by the advanced farming technology. Poor
production of sugarcane during 2018-19 farming communities in the country lack
is higher by 50.59 million tonnes than the Indian agriculture sector the understanding of modern agriculture
average sugarcane production of 349.78 Despite the overwhelming market size, methods to improve productivity. Along
million tonnes. Total area in India, sown agricultural sector continues to lag in with these problems, the majority of the
with Rabi crops reached 64.29 million various sections. One of the major parts is farmers lack proper marketing channels and
hectares in 2018. that the yields per hectare of crops in India mediums to sell their products, reducing their
are generally low compared to international revenues. An inadequate storage facility and
Agricultural item constituting nearly 13% standards. Experts in the field of agriculture improper marketing channels lead wastage
of the total exports, India is among the 15 points out that proper management and result in poor agricultural exports and
leading exporters of agricultural products of water is the primary reason and if maintaining quality in many cases.

16
Management Discussion and Analysis

Government Initiatives
In recent years much emphasis has been given on commercializing Indian agriculture. Some of the recent strategies planned and
schemes launched in the sector are:

1 2 3 4 5
Air cargo Benefit Innovation and Launched Extension
support to through entrepreneur- Pradhan of the urea
agriculture digital ship in Mantri Krishi subsidy
export technology agriculture Sinchai Yojana

Planning to provide air Allotment of ` 2000 Crore New AGRI-UDAAN Launched Pradhan Extension of the urea
cargo support to promote (US$ 306.29 million) programme launched Mantri Krishi Sinchai subsidy to the farmers till
agriculture exports from for computerization of to boost innovation and Yojana (PMKSY) with an 2020 estimated at ` 45,000
India. Primary Agricultural Credit entrepreneurship in investment of ` 50,000 Crore (US$ 6.95 billion).
Society (PACS) to ensure agriculture. Crore (US$ 7.7 billion).
cooperatives are benefited
through digital technology.

Growth drivers for the Indian agriculture industry

Growth Drivers

Demand- Supply-side Policy

side drivers drivers support

• Population and income • Hybrid and genetically • Growing institutional credit

growth modified seeds • Increasing MSP
• Increasing exports • Favourable climate for • Introduction of new schemes
• Favourable demographics agriculture: wide variety of like Paramparagat Krishi
crops Vikas Yojana, Pradhanmantri
• Mechanization Gram Sinchai Yojana,
• Irrigational facilities Sansad Adarsh Gram Yojana
• Green Revolution in • Opening up of exports of
Eastern India wheat and rice
• Approval of National Mission
on Food Processing

Outlook
Agriculture is now a sector with great potential of triggering growth. The AgriTech sector is witnessing a number of startups in
India. The sustainable intensification of agriculture systems offers synergistic opportunities for combined growth of agriculture and
capital investment. India has set to achieve an ambitious target of doubling farm income by 2022. It has also planned to increase
the average income of a farmer to ` 219,724 (US$ 3,420) by 2022-23 from ` 96,703 (US$ 1,505) in 2015-16.

17
 Annual Report 2018-19

Rice industry overview

GLOBAL RICE INDUSTRY
Hovering around record 495.9 million, hectares, up 131,000 hectares from the forecast was lowered by 0.4 million
the global rice production in 2018-19 previous forecast but nearly 2% below tonnes to 7.75 million tonnes, 6% below
was up by 4.7 million tonnes from the a year earlier. This came down as the a year earlier. On the 2019 global import
previous forecast largely owing to larger smallest rice area for China since 2011- side, import forecasts were lowered for
crop forecast for China. Countries like 12. The 2018-19 area decline is largely Bangladesh, China, Nigeria, and Turkey;
Bangladesh, Madagascar, Nepal, Sri due to reduced Government support but raised for Brazil, Cote d’Ivoire, Nepal,
Lanka, Thailand, United States, and prices for both indica and japonica rice. the Philippines, and Venezuela. With
Vietnam account for most of the 2018-19 The Government of China first reduced 2018-19 global production exceeding
global production increase. support prices in 2016/17, but the consumption, global ending stocks for
price reductions were quite small until 2018-19 were increased 5.6 million tonnes
China, one of the largest producers of 2018-19. to 167.6 million tonnes, the highest on
rice in the world, saw its yield per hectare record. Global consumption is projected
go up almost 2% from a year earlier and The 2018-19 U.S. crop forecast was also at a record 492.4 million tonnes, 9.0
stood at 7.03 tonnes per hectare – the increased, as were production forecasts million tonnes less than production, with
highest on record. China’s harvested for Chile, Paraguay, and Suriname. In ending stocks of 171.4 million tonnes the
area is estimated at 30.2 million contrast, Brazil’s 2018-19 production highest on record.

Global rice production, utilization and stock

million tonnes, milled eq. million tonnes, milled eq.

520 190

490 150

460 110

430 70

400 30
09/10 11/12 13/14 15/16 17/18 19/20
forecast
Production (left axis) Utilization (left axis) Stocks (right axis)

Source: http://www.fao.org/3/ca4526en/ca4526en.pdf

18
Management Discussion
Management Discussion and Analysis
& Analysis

INDIAN RICE INDUSTRY

Nearly 90% rice production happens in Contributing nearly 21% to the global India has the largest area under rice in the
Asia and India is second largest producer rice production share, India is the second world. Rice is cultivated in 534 districts
of rice. Accounting for nearly 40% of the largest rice producer in the world after of the country. Out of which, 218 districts
country’s food grain production, rice is the China. Indian rice production largely are having productivity more than the
most important cereal food crop of India - depends on monsoon rains but only 59% national average productivity of 1,947 kg/
occupying as much as one-fourth of the rice area has assured irrigation. Major rice ha. Remaining 316 districts are having
gross cropped area of the country. As the producing states in India are West Bengal, productivity below the national average.
basic food crop, rice is cultivated in India Uttar Pradesh, Andhra Pradesh, Punjab, Thus, 41% of total rice growing districts are
comfortably in hot and humid climate and Tamil Nadu, Odisha, and Bihar. India has above the national average productivity
across the year. In India, the crop is mainly been the top exporter in global rice trade, and remaining 59% districts are below
grown as a Kharif crop and majorly in the accounting for 25% of the export in the the national average productivity. This
rain fed areas of the country that receive last four years. Indian rice caters to the year the total rice transplanted area in
heavy annual rainfall. Middle East and Africa for non-Basmati, India has decreased by 2.54% i.e. from
and the EU and the US for Basmati variety. 39,396,000 ha to 38,485,000 ha in the
kharif 2018-19 season.

However, despite patchy rainfall in some

parts, total rice production in India in
India’s rice production 2018-19 is expected to touch a record
115.6 million tonnes. Total production of
118 Kharif rice is estimated at 99.24 million
116 tonnes. This is higher by 1.74 million
114 tonnes than the last year’s production of
112 97.50 million tonnes. Further, it is higher
110 by 6.64 million tonnes over the average
108 production of Kharif rice during the last
106 five years.
104
102 Indian rice export scenario
100 In 2017-18, the total rice export from India
98 stood at a record 12.71 million tonne
2014-15 2015-16 2016-17 2017-18 2018-19
($7.74 billion), up from 10.76 million tonne
Production (Mn Tonnes) ($5.75 bn) in the previous year. But for the
first six months of 2018-19, India exported
Source: http://agricoop.gov.in/sites/default/files/2ndADVEST201819_E.pdf

19
 Annual Report 2018-19

5.8 million tonne (MT) of rice worth $3.8 ‘Grade A’ variety rises from ` 1,770 to Rice being a staple crop for 70% of the
billion and the total number of export ` 1,835 a quintal. world and thus the demand for rice is
shipments slumped 14% in the first three expected to continue to grow in the years
quarters of 2018-19. While from April Outlook ahead. The food security concerns all
to February, the overall export stood over the world is likely to drive growth for
Surplus rice stockpiles and improved the India rice industry, which by exporting
at 10.57 million tonnes, after dropping methods of production have helped
nearly 9.4% compared to the previous rice to various countries is contributing
India position itself competitively in towards global food security.
year, as leading buyer Bangladesh the global rice trade market. But low
trimmed its purchases due to a bumper productivity and lack of measures to With the climate change, continuous
local harvest. The government in the last improve productivity have been a reason rising demand by consumers and the food
July increased the paddy MSP by 13% to for worry for the Indian players. The low security, rice industry is facing the challenge
` 1,750/quintal, the biggest hike in six yield in India is on account of rain fed of producing rice without compromising
years. It was part of an electoral promise agriculture and poor irrigation system. on efficiency, equitability, environmentally-
to ensure farmers get at least 50% profit In addition, farmers grow multiple friendly, and more resilience to climate
over cost of crops for which MSPs are crops in a year on the cultivated land change. It has become imperative to
fixed. Further to support the farmers, the and hence, per day productivity of most produce rice at lesser land, with lesser
Government again increased the MSP crops is lower in comparison to the water and labor. India is also facing lack of
of kharif crops in line with the rising global average. With the government’s adequate agriculture infrastructure such
cost of production. The support price renewed focus on the rice industry, these as technologically advanced equipment,
of common variety rises from ` 1,750 a are the areas that should be focused on transportation network, and effective
quintal to ` 1,815 while higher quality initially. public private partnership.

20
Management Discussion and Analysis

INDIAN BASMATI RICE India’s export of Basmati Rice (in million tonnes)

Grown only once a year in the Indo- 5

Gangetic plain, Basmati rice is considered 4.41
4.5
the finest variety of rice produced in India. 3.99 4.06
With India and Pakistan being the only 4
two countries producing Basmati rice, 3.48
3.5
India accounts for over 70% of the world’s
3
basmati rice production.
2.5
Although by volume, Basmati rice
2
constitutes a very small portion of the
total rice produced in India, around 6 to 1.5
10%, but in terms of value Basmati rice 1
exports account for ~60% of India’s total
rice exports. 0.5
0
With the total Basmati rice production 2015-16 2016-17 2017-18 2018-19
in the 7 major Basmati rice producing
states of India for 2018-19 is expected Source: http://www.tpci.in/blogs/basmati-rice-time-for-cautious-optimism/
to hover somewhere in between 52 - 54 http://agriexchange.apeda.gov.in/indexp/monthexport.aspx

Lacs tonnes, after the initial estimate,

compared to 56.43 Lacs tonnes basmati
overall Basmati rice production is likely 4.41 million tonnes compared to 4.06
production on last year. The decrease
to hit 5.56 million tonnes, after witnessing million tonnes in FY18, an increase of 9%.
in production can be largely attributed
a 1.4% year-on-year fall in 2018-19, In terms of value, overall exports in FY19
to reduction in the acreage area, about
compared to 5.64 million tonnes achieved saw a growth of ~22% compared to the
40 thousand hectare area of basmati
in the previous year. previous year from ` 26,87,016 Lacs to
acreage has been shifted either to Non-
` 32,80,430 Lacs.
Basmati varieties or shifted to other
major competitive crops in 2018-19. Export scenario The key factors which helped drive such
On the verge of clocking its highest a growth are strong demand from Iran,
India’s 2018-19 (Oct-Sep) basmati rice ever exports, exports of Basmati rice improvement in average realizations and
output at 5.31 million tonnes. At 5.31 from India are expected to grow to a consecutively increasing prices of paddy
million tonnes, basmati rice output record high of ` 30,000 Crore in 2018-19 over the last three years. Average export
projection for 2018 is lower than the beating the previous record of ` 29,300 realizations increased by 14% over the
industry estimate of 5.56 Million tonnes. Crore achieved in FY14. India’s total previous fiscal year, due to increase in
For the full sowing year (Jul-Jun) the Basmati rice export for FY19 stood at paddy prices and rupee depreciation

21
 Annual Report 2018-19

Three-year export statement of APEDA for Basmati rice and Non-Basmati rice
(Value in ` Lacs, Volume in metric tonnes)

Cereals 2016-17 2017-18 2018-19

Volume Value Volume Value Volume Value
Basmati Rice 39,85,195 21,51,290 40,56,758 26,87,016 44,14,584 32,80,430
Non-Basmati 67,70,804 16,92,987 86,48,488 22,96,782 75,99,674 21,18,527
Rice

Source: http://agriexchange.apeda.gov.in/indexp/exportstatement.aspx

Top 5 rice exporting countries in terms of value in 2018

(in US$ billion)

7.4

5.6

2.2 2.0
1.7

India Thailand Vietnam Pakistan United

States

Source: http://www.worldstopexports.com/rice-exports-country/

vis-à-vis the US dollar, while the volumes ` 64,997/MT during the same period in adoption of strict pesticide rules by
have only been marginally higher (2%). FY18. Iran accounted for nearly one-third Saudi Arabia, the pesticide residue issue
Further, the fear of US sanctions also of the total basmati rice exports from in the EU, payment problems with some
helped in the increased export numbers as India in FY19. Iranian importers and imposition of
it prompted aggressive buying by Iran in trade sanctions on Iran by the US. The
the first half of FY19. The average export Basmati rice exporters of India faced a loss owing to EU pesticide rules was
realizations have also firmed up to ` 74,053/ number of challenges during the year, estimated at ` 1,000 Crore during the first
MT in the first 10 months of FY19, against prominent amongst them being planned nine months of FY18-19.

Expected consumption drivers in India - Basmati rice

Growing Rising income Organized retail Gradually changing

business trend and
urbanization levels growth - spread of
customer needs, as more
modern trade and more consumers are
now opting for quality and
branded rice

22
Management Discussion and Analysis
& Analysis

Outlook
The Indian basmati rice industry
is expected to continue its growth
momentum in 2019-20, with a projected
growth of 4-5% on a y-o-y basis. Hike in
Basmati rice average realizations is likely
to sustain in H1 FY20, given the increase
in paddy costs in the recently concluded
procurement season and steady
international as well as domestic demand
outlook. Further exploring other avenues
of growth like markets in the other major
countries such as China, US and Latin
America is something the exporters would
like to continue.

23
 Annual Report 2018-19

Company Overview
With more than a century in the industry, after spending
KRBL today needs no introduction. Starting more than three
off from humble beginnings in 1889 as an generations in
agricultural commodities producer in the perfecting the
region of Lyallpur, Faisalabad (Pakistan), Basmati grain. It
the Company has evolved with time is also a major
to become India’s first integrated rice producer of
company with a comprehensive product Non-Basmati
chain under the dynamic leadership of its rice and milling
Chairman & Managing Director, Mr. Anil by-products like
Kumar Mittal. bran oil, furfural,
rice bran, and de-
The Company has emerged not just oiled cakes.
as one of the largest branded rice
manufacturers in India but also as one of KRBL has built a robust foundation for KRBL’s agri-business division is the
the most integrated rice companies in the rice production aptly complemented major contributor to the Company’s
country with a presence across a number by corresponding investments in the revenue stream which consists of rice,
of other business verticals like energy. downstream processing of by-products furfural, seed, bran, and bran oil among
Known for its sustainable business like power, furfural oil and in the glucose others. With a presence across the entire
practices, the Company’s energy division business. Thus, KRBL progressively value-chain of the rice industry, KRBL
not only helps it in meeting its captive evolved its personality; what was once Limited today has emerged as a brand
energy requirements but has also helped principally an agricultural commodity name in itself, evoking enormous respect
in opening up a new revenue stream for manufacturing company gradually and recognition among the other players
the Company in terms of selling power to became a rice and other ancillary product in the industry.
the local grid. manufacturing Company. Contributing
to the nation’s power requirement The Company’s energy division comprises
One of the first companies in India’s by establishing itself as a significant power generated from wind turbines,
agricultural industry to see a life beyond diversified power generator, the Company solar power plants and husk-based power
rice, KRBL is today a global leader in continues to partner in the nation’s plants.
the branded Basmati rice segment growth.

24
 Management Discussion & Analysis

Power plants locations

The Company’s power plants are located across
seven states in India.

Wind power plants Solar power plants

Tamil Nadu Karnataka Maharashtra Gujarat Madhya Pradesh Rajasthan Madhya Pradesh
(Tirupur, (Raichur & (Dhule, (Devbhoomi (Agar-Malwa, (Jodhpur, (Rajgarh, Agar-
Tirunelveli) Koppal, Sangli) Dwarka) Mandsaur) Jaisalmer) Malwa, Sehore)
Bellary)

Andhra Pradesh
(Gandikota,
Tallimandugulla)
25
 Annual Report 2018-19

What Makes ‘KRBL’ Unique

LEGACY STRENGTH PRIDE OFFERINGS

130+ #1 #1 #14
years of rich KRBL is the KRBL’s market Total number
industry largest exporter of status in the of rice brands
experience branded Basmati Indian Basmati sold under the
rice in the world packaged rice banner of KRBL
segment with
` 4,120 more than 35% A wide array of
Crore market share products helps
operating revenue the Company
in 2019 address
“God of growing
2,18,320 Grains” consumer
One of KRBL’s needs (masses
MT KRBL’s total
proudest moment to premium).
export of Rice in
in FY19 was At KRBL, we
2019
being featured on introduce
globally renowned innovative
Largest Discovery products,
KRBL has the Channel’s making it
world’s largest flagship series possible
rice milling plant Inside Out in an to address
located in Punjab, episode named emerging
India spread ‘God of Grains’ needs
across 200 acres depicting the
entire journey
of Basmati Rice
from Farms of
India to the plates
of unlimited
cuisines across
the world and the
role played by
KRBL in the same

26
Management Discussion &
and
Analysis
Analysis

LEVERAGING
PRESENCE CAPABILITY NETWORK
POWER

82 195 484 ` 1,851

countries MT/hour - KRBL’s KRBL dealers, a Crore
where KRBL rice milling good distributor Net current assets
has its product capacity is the network in India showcases the
presence across 6 largest in the world and a strong financial strength
continents. KRBL distribution of the Company.
exports to 82
countries out of the
140 presence across
the world
Driven by
MT/hour - KRBL’s enhanced sales
156 countries that realization and
rice processing
consume Basmati
rice and leads
and packaging Largest high operating
capacity is the KRBL has largest efficiency
the Basmati rice
largest in the contact farming
consuming market
in the branded
world network 52%
segment coverage for rice Capacity
10 utilization
Lacs MT - KRBL’s
warehouse 15%
capacity 5 year CAGR
growth in net
10,500 profit
tests conducted
by KRBL’s R&D
team each day on
the different rice
varieties

27
 Annual Report 2018-19

PERFORMANCE HIGHLIGHTS FY19

Augmented by enhanced price realization and increased penetration, FY19 proved to be another important year in the history of the
Company as a number decisive steps on the part of the Company coupled with a reasonably favourable business environment, led to
the achieving of a number of highs during the year.

Numbers validating our performance

TURNOVER PROFITS OTHER HIGHLIGHTS

• Net sales grew by 27% to • Achieved highest ever EBIDTA of ` • Achieved capacity utilization of 52% and
` 4,120 Crore in FY19 865 Crore, growth of 9% produced 5.49 million metric tonnes of
rice in FY19
• Domestic sales grew by • Achieved an EBIDTA margin of 21%
17% to ` 2,275 Crore in FY19 and PAT margin of 12% • Grew net worth by 19% to stand at ` 2,727
Crore
• Export sales grew by 42% to • Achieved highest ever PBT of ` 733
` 1,845 Crore in FY19 Crore, growth of 12% • Declared dividend of ` 2.50 per share,
250% of the face value
• Achieved highest ever PAT of
` 503 Crore, growth of 16% • Achieved a debt-equity ratio of 0.52:1 as
of 31 March 2019 compared to 0.53:1 as
• EPS stood at ` 21.37, growth of 16%
of 31 March 2018

During FY19, the Company’s sustained focus on debottlenecking its operations,

7% 14%
minimizing costs and making the most of a positive macroeconomic environment
resulted in it bettering its performance over the previous year. Achieved higher
capacity utilization compared to the previous year resulting into higher throughput.

Being in a working capital and labour-intensive business, we believe that success CAGR growth in CAGR growth in
is derived from the ability to maximize offtake, making it possible to cover fixed net sales over the EBIDTA over the
costs more effectively. Over the years, the Company has spread its wings not just last five years last five years.
across the length and breadth of India but also globally. The Company’s flagship Enhanced margins
Basmati rice brand ‘India Gate’ has established its reputation in both international have been driven by
and Indian markets. KRBL commands a strong presence in Gulf Cooperation strong brand, stable
Council (GCC) countries and the Middle East Region which contributes nearly business model and
36% to its export revenues. Other countries where KRBL has a substantial market focused strategy
presence includes Australia, Canada, USA, and South Africa among others.

28
Management Discussion & Analysis

KRBL’S STORY IN NUMBERS

Net sales (` Crore) RoACE (%)

4,120
21 21 21 21
3,363 3,247 17
3,160 3,148

2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19

Net worth (` Crore) EBIDTA (` Crore)

2,727
865
2,288 792
1,907 654
1,498 532 508
1,284

2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19

PAT (` Crore) Dividend payout (` per share)

503 2.50
434 2.30
399 2.10
1.90
322 1.70
293

2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19

*Based on Consolidated Financials.

29
 Annual Report 2018-19

KRBL LIMITED. MORE THAN KRBL’s growing export realization (in `)

JUST A RICE MANUFACTURING 80,735

74,309
86,465

COMPANY 66,236
Up by
Up by 16%
22%
KRBL is world’s largest exporter of branded Basmati rice.
Also, KRBL’s export realization is much higher than the
industry average.

Basmati rice’s Realization per MT Basmati rice’s Realization per MT

Industry KRBL Industry KRBL
FY18 FY19

KRBL is no longer just the No 1 national Basmati brand. It inspires an international brand recall too.

30
KEY FINANCIAL RATIOS*
22.30

19.43 19.00
18.45

13.62
12.80 13.38
10.85 12.21

9.50

1.96 2.12 2.05 2.07

0.53 0.52

Debtors Inventory Interest Current Debt equity Operating Net profit Return on net
turnover ratio turnover ratio# coverage ratio ratio ratio profit margin margin (%) worth (%)
(%)

FY18 FY19
*Based on Consolidated Financials.
#
Since our Paddy Basmati Season is from October to December every year, the closing inventory as on 30th September has been considered for calculating Inventory turnover ratio.

Formulae used for calculation of the ratios

Debtors turnover ratio Net sales/Average of opening and closing trade receivables
Inventory turnover ratio #
Net sales/Average of opening and closing inventories
Interest coverage ratio Profit before interest, taxes/Finance costs
Current ratio Current assets/Current liabilities
Debt equity ratio (including financial liabilities) Debt (Net of cash and cash equivalent and investment in liquid
funds)/Equity
Operating profit margin (%) Profit before interest, taxes and exceptional items/Net sales
Net profit margin (%) Profit after tax/Net sales
Return on net worth (%) Profit after tax/Equity
There is no significant change (i.e. change of 25% or more as compared to the immediately previous financial year) in the key financial ratios.

30
Management Discussion and Analysis

ENHANCING FINANCIAL STABILITY

By reducing cash conversation cycle despite growing procurement 3,129

(` Crore) Inventory Net Debt

2,462

2,019
1,858 1,793
1,690

1,353 1,301 1,325 1,287 1,424

1,150 1,176
1,087 1,416

1,316 1,042
545
566 586
0
375
125 220

14 14 15 15 16 16 17 17 18 18 19 19
13- 13- 14- 14- 15- 15- 16- 16- 17- 17- 18- 18-
FY FY FY FY FY FY FY FY FY FY FY FY
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2

Note: The above graph is based on standalone financials.

* As on Sep’18, KRBL is at zero debt with cash surplus of INR 107cr.

The above data indicates the growing financial strength of KRBL Current Ratio*
as it continues to reduce its dependency on external funds for
building its inventory. As of September 2018, KRBL is a zero debt
company with a cash surplus of ` 107 Crore on the books. 2.06 2.05 2.07
0.71 1.77
Why this is important?
Generally, net debt starts rising with the commencement of
procurement period of paddy i.e. H2 every year and reaches
the maximum level during the period. But starts coming down
significantly by end of H1 of the next financial year. This is a
cyclical phenomenon. FY15 FY16 FY17 FY18 FY19

And it is during this cycle. KRBL emerged as a zero debt Company.

Total Debt to Equity Ratio* Interest Coverage Ratio*

10.85
9.64 9.50
0.80
7.97
0.58 0.55 0.53 0.52 5.59

FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19
*Based on Consolidated Financials.

31
 Annual Report 2018-19

CORPORATE STRENGTHS Company as the leader within the branded DRIVERS OF SUCCESS
Basmati rice segment for years now.
Principal supplier: KRBL enjoys principal Business enabler I
supplier status for majority of its Value chain: KRBL’s foray into the healthy
Manufacturing
institutional customers in the agricultural food segment helped the Company
rice segment, resulting in revenue further widen its presence across the In a working capital and labour-intensive
predictability. value-chain. Basmati rice business, manufacturing
plays a pivotal role in determining the
Prominent clients: KRBL is associated Robust distribution system: KRBL’s long-term sustainability of a company,
with some of the most reputed names of state-of-the-art manufacturing facilities since the performance of a company
the hospitality industry. Some of KRBL’s and a deep-rooted distribution model hinges on several uncontrollable external
biggest institutional clients include helped the Company deliver its products and controllable internal factors. At
names like Taj Group of Hotels, The Leela, efficiently and timely across the length KRBL, we believe that exercising efficient
and ITC Hotels. and the breadth of the country. control over the internal factors is what
sets a corporate apart from the rest.
Enduring relationships: KRBL enjoys
enduring relationships with customers
owing to its ability to provide products An efficient manufacturing Reduced
of consistent quality across different process results in wastage
categories. Majority of KRBL’s
relationships last more than a decade.

Evolving product basket: KRBL over Optimum capacity Increased

utilization results into cost saving
the years has developed an innovative
product range that not only met the
demanding customer requirements but
exceeded them. This positioned the
Enhanced
Enhancement of productivity profitability

How did KRBL ensure the best possible manufacturing facility within its industry
space while matching international standards?

 y consistently partnering with

B
different technological players
By adopting
like Buhler from Switzerland for
 y constantly questioning
B manufacturing

01 03 05
constant improvement of our
ourselves on ‘how’ we can do practices which
manufacturing processes to ensure
better or ‘how’ we can push are in line with
reduced wastage while ensuring
the envelope those of the best
efficient and timely product
in the world
deliveries to markets

 y delving deep into each

B
component of our manufacturing By utilizing our

02
process and periodically investing in
different processes. Case-in-point:
KRBL invested in customizing milling
04 long-standing
industry experience

equipment’s to ensure better and

longer grains in each milling cycle.

32
Management Discussion and Analysis

 esult: The success of this approach is

R • By creating depth in dealer networks, Raw material management at KRBL
validated by the fact that today we are promoting its brands extensively and consists of three key aspects of raw
one of the most low cost Basmati rice opening up new strategic markets material procurement coming together.
manufacturer in India which has grown at
a CAGR of 15% over the last five years on Talking points 2018-19 KRBL’s competent material management
net profit. comprises
• Continued to empower its sales force
team with GPS-enabled hand-held Strong farmer connect wherein over the
Road ahead devices, enabling real-time tracking of years KRBL has built a strong farmer
Moving forward, the Company plans to orders and better co-ordination with network with more than 70,000 farmers
undertake periodical enhancement of the sales team. Helped the Company spread across more than 2,50,000
equipment across all its state-of-the- geo-tagging of more than 50,000 retail hectares in the states of Western Uttar
art manufacturing facilities without outlets during the year, thereby making Pradesh, Uttarakhand, Punjab, and
compromising productivity in all the them direct service outlets Haryana.
manufacturing units and focus on to
further improving cost efficiencies and • Participated in different food exhibitions Sincerely believing that farmers
labour productivity. The Company also across the world, which further community forms the backbone of our
expects to further enhance the capacity enhanced the Company’s visibility business and we can only do well if they
of healthy food segment along with are doing well. Hence, we have always
the improvement in the captive power Result: This has allowed the Company to considered the farming community to
generation capacity. move upwards on the learning curve and be the torch bearers of the success
develop a keen insight into the psyche of achieved by the Company consistently.
Business enabler II the customers. KRBL’s dedicated media Consequently, we have handed over their
initiatives have translated into a stronger share of profits generated from the sales
Marketing and distribution
brand recall, resulting into accelerated of KRBL’s products, responsibly and
The Indian Basmati rice market is highly offtake not only in India but also outside promptly.
fragmented and is marked by low entry India. It helped the Company achieve
barriers and increasing number of higher sales by catering to different Talking points 2018-19
unorganised players who creates regular segments at different price bands. It
price disturbances. In such a competitive • Advance planning: The Company has
also helped in debottlenecking its dealer
scenario, it is imperative to efficiently in place a dedicated procurement
network, thereby enhancing savings.
market products to our customers and team, who based on the demand,
then distribute them with speed across the Road ahead plans for the raw material requirement
different markets. At KRBL, we feel that it in advance.
Moving forward, the Company plans
is necessary to market a diverse product
to further strengthen its domestic and • Partnership: By forging strong
range addressing wide customer needs. To
international presence by enhancing ties with different facilitators – by
do so, the Company created a robust pan-
its brand equity through effective remunerating its vendor on time
India distribution network to market its high
communications and by strengthening and every time conducting periodic
quality packaged Basmati rice.
its distribution network. To focus workshops - translating into lower
on strengthening relationship with prices and steady availability of
How did we do that?
key accounts. Develop differentiated materials and transporters.
By successfully differentiating itself
•  marketing initiatives for different
from industry peers in a highly markets, taking into account the channel
competitive market with continual development as well as consumer trends
Business enabler IV
change its marketing, branding, and and competitors’ actions. Quality
media strategies We believe that the quality of our
Business enabler III products is one of the key determinants
By offering consistent high quality
•  of our success. Our persistent emphasis
Raw material management and
branded Basmati rice to customers on enhancing the product quality is
procurement
what helped us successfully meet the
By investing in building a strong
•  At KRBL, we believe that a prudent raw customers’ expectations along with
distribution network which helps in material management and procurement meeting the desired growth target. The
putting KRBL’s products in every nook is the first step towards a quality product. inherent outcome of our quality products
and corner of the country

33
 Annual Report 2018-19

is evident in the fact that over the years

the Company has gained the preferred
supplier status amongst its institutional
and retail clients not only in India but also
abroad.

Known for its impeccable product quality,

the Company enjoys widespread respect
as a quality-focused agri-products
manufacturer and marketer. KRBL has
consistently addressed customer needs
by benchmarking products in line with
global standards.

KRBL’s quality rationale

Thanks to our quality products matching

the international standards resulting into
greater acceptance not only in India but
also in different international markets
across the world.

Road ahead
Moving forward we continue to remain
committed towards delivering products
conforming to national standards and
meeting customer requirements to their
total satisfaction. We continuously improve
the quality performance and effectiveness
of our products. We periodically review
quality objectives to enhance customer
satisfaction and cost-effectiveness.

CERTIFICATIONS INVESTMENTS OTHER

HIGHLIGHTS
The Company’s quality focus Truly believing that KRBL is
is validated by certifications not just another Basmati rice We invested regularly in our
like FSSC 22000, Halal Product manufacturer, the Company R&D activities which resulted
Certification, SQF Code continuously invested in into industry-leading innovative
Edition 8.0, USFDA and BRC different quality improvement products that helped KRBL
certification, among others. measures so that the differentiate its brands,
Company’s quality-intensive provide additional value in the
innovative product range marketplace and create new
takes the brand name of the value for the years ahead.
Company ahead.

34
Management Discussion and Analysis

Business enabler V to grow their career in a learning

How KRBL intend to deliver environment by investing in our people, by
Our people
value to its customers? attracting the best of the available talent
At KRBL, we truly believe that the exciting and by providing a committed, engaged,
Consumer insights drive our product journey that we have traversed over the fulfilling, rewarding, and responsible work
development, and together with the last century has been made possible environment along with a structured
sector knowledge of our R&D team, by the strength of our people. It is the work-life-balance policy, making the
differentiate us from our competitors performance, knowledge and skills of our overall journey both meaningful as well as
and help us meet consumer needs. people that we believe played a pivotal role pleasurable.
in the success achieved by the Company.
We apply our rich industry experience
With 2,202 employees as on 31 March
and manufacturing know-how to As we continue to reflect on innovation 2019, at KRBL, we firmly believe that
produce high-quality agri-products and quality enhancement, we are
our employees are key to success and
for delivery to our customers across reminded of who make it all possible –
the reason for our competitive edge.
the globe. our employees. We are aware that our
Therefore, we never hesitate to invest
employees power the success achieved by
in them. Only with such talent we are
We work closely with our customers the Company and we are also committed
to understand their needs. Engaging able to foster a healthy and productive
to empowering theirs. In line with this
with them earlier and throughout the environment and ensure excellence
strategy we have a devolved structure
innovation process helps drive quicker through a strong performance.
wherein our employees come together
adoption cycles. to produce ground-breaking and game-
Road ahead
changing innovations.
Case-in-point: KRBL forayed in the As we continue to grow bigger and better
super healthy product segment seeing Over the years we tried offering the ideal as an organization, we would continue to
the rising awareness of healthy food platform for growth to all our employees focus in the well-being of our people and
and rapidly growing super premium and making them future ready, to take up would continue to invest in them to ensure
food segment in India. any challenge that comes their way. In line that we have the right people, teams, and
with this tenet, we enable our employees skills to grow our business.

Our key
differentiators
Economies
Brand image
of scale

Enduring Across the

Superior Qualitative
partnerships value chain
technology excellence
presence

35
 Annual
AnnualReport
Report2018-19
2019-20

Theme Introduction

36
 & Analysis
Management Discussion and Analysis

A MOMENT OF PRIDE – KRBL GETTING FEATURED ON DISCOVERY CHANNEL

One of KRBL’s proudest moment in FY19 was being featured

on the internationally reputed Discovery Channel. KRBL was
delighted to feature in the channel’s flagship series ‘Inside Out’
in the episode ‘God of Grains’. 23 February 2019
The special feature
The program took an inside tour of the Company’s plants in got aired on the
Dhuri and its different business practices. Discovery Channel

Starting from KRBL’s first export order of 1000 MT to its current

export order book of more than 2 Lacs MT, it showcased the
role played by KRBL in transforming the Basmati rice industry
Most prestigious
in India and aboard.
company
Discovery Channel
It showcased the journey of KRBL from just another rice
bestowed KRBL with the
manufacturing company to an Indian rice superpower with a tag of the most prestigious
dominating presence in the Basmati Rice business across rice manufacturing
India and the world. It also talked about how KRBL ensures the company in India
quality of grains and its products which eventually makes the
plates of people across the world tastier and more enjoyable.

The episode, thus helped buttress KRBL’s image as a global

rice superpower as Discovery Channel bestowed KRBL with the Please scan the QR code given alongside to see
tag of the most prestigious rice company in India. KRBL God of Grains.

37
 Annual Report 2018-19

BUSINESS SEGMENT OVERVIEW

Agri-business division This is how KRBL has has tried to build a milling capacity which
provides it with economies of scale. KRBL
selected to grow its agri- today boasts of having the largest rice
With a presence across the entire value
business milling capacity in the world.
chain of the rice industry, KRBL has over
the years emerged as one of the leading How this is beneficial for KRBL:
players in the Indian agri-processing
• By enhancing distribution
and marketing industry. Equipped with a efficiency • This helped KRBL in providing farmers
with the confidence that it has
wide range of products, the Company’s Over the years, the Company invested abundant processing capacity, thereby
product portfolio helps address diverse substantially in its distribution channels ensuring regular raw-material supply.
consumer preferences across income to stay ahead of the curve. Thus, today • Enhanced the Company bargaining
classes and geographies. Owing to KRBL distributes its product through both strength in the market.
different brand promotion activities modern and traditional trade channels, • Made possible for KRBL to address
coupled with unflinching product quality, including e-commerce. diverse customer types (retail and
KRBL’s flagship Basmati Rice brand
institutional).
‘India Gate’ is a market leader within its This is how KRBL has made it happen:
• Enhanced KRBL’s preparedness
industry space.
• The Company successfully established in addressing sudden increases in
diverse strategies for different demand.
distribution channels. It enabled • Enabled KRBL to save on costs incurred
KRBL to not only grow its business by an increased level of production.
successfully but has also enabled us to
is India Gate’s market
share. The highest
beat competition by supplying quality • By enhancing the brand value

35%
products to its customers in time.
market share for any KRBL’s position as a unique and industry-
• In order to sustain its leadership
company in the sector leading agro company is backed by its
position, KRBL continued to focus on
in combined urban and strong brand value. Despite the increased
improving the efficiency of its delivery
rural areas in 2018-19 competition from unorganized players,
model across different traditional
the Company has been successful in not
channels while also focusing on
only maintaining its market share but has
further improving its online presence
been successful in gradually increasing
and presence across other modern its market share.
distribution channels.
• The Company continues to strengthen This is how KRBL has made it possible:
its delivery network through the
ongoing implementation of GPS- • By adopting a unique business strategy,
enabled tracking devices for the wherein KRBL offered its customers
branded Basmati rice across a wide
Company employees. Through this the
range of price points.
Company was able live track demand
• By making products more affordable
and supply scenario and take decisions
for consumers across various
accordingly.
economic levels while also offering
• Backed by a deep-rooted distribution
them choice of selection, depending on
network of 484 distributors, the
the occasion or budget.
Company’s product range are available
• By innovating new products which
across the length and breadth of the
helped address the unmet customer
country.
needs.
• By attaining economies of • By focusing on creating brands
and products which emerged as
scale
its major business drivers, despite
Operating in a highly competitive being present in a very dynamic and
environment, the Company over the years competitive market.

38
Management Discussion and Analysis

DOMESTIC MARKET PERFORMANCE

Despite the stiff competition in the Indian efforts in marketing, trade investments, Relationship-driven approach: The
market, demand for rice in India remained market development, and in market Company evolved from a vendor to a
quite strong during the year. Although execution helped achieve the expected partner to a solutions provider, marked
India still remains one of the highly growth. by the ability to convert incipient trends
price sensitive rice markets across the into tangible products, address value-
globe, the organized players performed With the growing practice of having added customer needs and respond with
relatively better during the year compared healthy food and riding on the health new product development to meet the
to the unorganized players, thanks to the benefits of KRBL’s different products changing customer requirements.
implementation of GST in the previous in the Healthy Food segment, the
financial year. segment continued to find increased Road ahead
traction across the different markets.
FY19 proved to be another year of The segment record a 34% sales growth Being industry leader and the oldest
exceptional performance for the Company. during the year. organization in the Indian branded
Building on our numerous successes of Basmati rice industry, KRBL has closely
the past years with more passion, in FY19 Segment competencies witnessed the retail evolution. Beginning
we continued to improve our profitability. A as an organization pioneering Basmati
favourable industry scenario, coupled with Product mix: A diversified product mix rice business, we are today transforming
the seamless execution of our strategic places KRBL in an advantageous position ourselves to champion active retailing.
plans led to visible growth in terms of
and helped the Company sustain its
revenues, profits, volumes as well as values. In line with this tenet, we intend to double
leadership position in the Indian organized
During the year, the Company reported a our retail presence - in terms of value
rice market.
13% y-o-y volume growth and 17% y-o-y
by 2021. To do so, we intend to double
value growth at the back of our strong
Brand: The growing brand recognition of our current sales force team, focus on
focus on branding, customer engagement,
the Company enhanced brand leadership active retailing and reach out to more
and wide distribution network.
and revenue potential. and more retail outlets. The reason being
despite the recent growth of modern trade
A strong brand image coupled with an
Cost control: The Company’s strategic channels and e-commerce, local kirana
impressive product range, catering the
locations, near the major raw material stores are still a major contributor in the
needs of the customers across different
sources and also the major consumption Indian rice market accounting for nearly
income segments, is what helped the
Company stay ahead of the curve. Over centers, make it possible to supply 70% of the overall sales. Keeping this in
the years, the wide portfolio has translated products anywhere in India, saving mind, we intend to grow our outreach into
into the ability to engage with different considerably on freight and transportation more and more kirana stores across India.
kinds of customer, grow their exposure, costs.
emerge as the preferred supplier and Further, we plan to constantly upgrade our
attract new customers, creating a virtuous Regulated industry: KRBL enjoys distribution and supply chain network and
cycle of growth and profitability. a competitive advantage with the re-frame our go-to market strategies. A
government’s imposition of GST which careful analysis of the geographies of our
India Gate brand saw its domestic makes it difficult for new entrants or the presence, product penetration, customer
sales improve in FY19. Vigorous unorganized players to find a footing. requirements, and purchase behaviour
are expected to help in driving more
throughput from the existing distribution
network. Along with this, we plan to use
the different new-age technologies like
sales force automation, big data analytics
and advanced supply chain tools in taking
KRBL a whole new level. We intend to use
all these while striving to form an organic
growth machine which is constantly
navigating through the challenges and
steers growth opportunity from within.

39
 Annual Report 2018-19

CONSUMER PACK SEGMENT

Backed by KRBL’s deep-rooted

distribution network and strong brand Overall sales value in FY19 grew by 19% over the previous
visibility, KRBL’s consumer packaging year, compared to 16% overall industry growth in this
segment continued to grow from strength segment.
to strength in FY19.

When majority of the other competing From premium to mass, KRBL has a KRBL’s Unity rice brand was majorly
brands focused on gaining market presence across the value chain enabling catering to the institutional clients.
share by lowering the prices or by the company to serve a wide range of During the year, the Company undertook
targeting the bottom of the pyramid, customers. a conscious decision of introducing the
KRBL continued with its premium brand in the retail segment as a part of its
pricing strategy owing to its impeccable During the year, the Company adopted an repositioning strategy. Thus, repositioned
product quality. innovative packaging strategy. In line with Unity as a biryani basmati rice from just a
the tenet, KRBL repackaged its India Gate basmati rice brand and for the first time
Backing our innovative positioning, new Classic’s 1 kg rice pack to a brand-new introduced a new pack of the Unity Biryani
packaging strategy and inherent product occasion special celebration pack. rice brand in the consumer pack segment.
qualities like the longest rice grain,
superior quality, and exotic taste, KRBL’s In FY19, one of the focus areas of the All these initiatives helped in further
India Gate brand continued its dominance Company was creating strong brand enhancing KRBL’s brand perception in the
in Indian market. presence for the Unity rice brand in the consumer packaging segment.
retail consumer segment. Previously,

40
Management Discussion and Analysis
& Analysis

BULK PACK SEGMENT

A specially crafted segment aimed at servicing the needs of the institutional clients like hotels,
restaurants, and caterers.

Major brands Clientele

Growth rationale
A dedicated and well-strategized approach towards enhancing
brand visibility and showcasing brand strength has helped
the Company’s bulk packaging segment grow year after year
despite the imposition of GST.

KRBL’s approach
Focused on showcasing the distinct quality features of its product,
the wide range of product varieties to choose from and the
Company’s ability to consistently deliver products of top quality
Segment growth across different price points. Thereby, enhancing the brand equity.
Overall sales value in FY19 grew by 22% in this segment.

Traditional approach
Largest supplier It is perceived that in this segment one can achieve growth by
KRBL is the largest supplier of biryani rice to majority of focusing on volume-play at minimum price and not on brand
restaurants in the southern states of India. equity. Thus, it not only helped KRBL in consistently growing the
bulk packaging segment but also helped KRBL stay ahead of
competition.

Why India Gate is the preferred choice in bulk pack segment?

Longer
holding time
Higher
Fluffy and
elongation
non-sticky
ratio

Greater Consistent
cooking yield quality

41
 Annual Report 2018-19

GEOGRAPHY-WISE MARKET SHARE

Top 5 Brands (% All India Share) – Value Wise Top 5 Brands (% Share in Town class I) – Value Wise

35% 37%

25% 26%

9%
7%
4% 4% 3%
3%

India Gate Peer 1 Peer 2 Peer 3 Peer 4 India Gate Peer 1 Peer 2 Peer 3 Peer 4
Basmati Rice Basmati Rice
Brand Brand

Highest all India (Urban and Rural combined) Highest all India Town class I market share of KRBL
market share of KRBL Limited Limited
In value terms, India Gate Basmati Rice brand enjoys a leading In value terms, India Gate Basmati Rice is a dominant brand in
position in the Indian urban and rural areas combined with a town class I cities with a 37% market share.
35% market share.

Top 5 Brands (% Share in Metro Market) – Value Wise Top 5 Brands (% Share in Traditional Market) – Value Wise

37% 31%

26% 21%

10%
10%
5% 5%
3% 3%

India Gate Peer 1 Peer 2 Peer 3 Peer 4 India Gate Peer 1 Peer 2 Peer 3 Peer 4
Basmati Rice Basmati Rice
Brand Brand

Highest all India Metros market share of KRBL Highest all India Traditional Trade Market Share of
Limited KRBL Limited
In value terms, India Gate Basmati Rice is a dominant brand in In value terms, India Gate Basmati Rice is a leading brand
Indian Metropolitan area with a 37% market share. dominating the all India traditional trade with a 31%
market share.

Source: AC Nielsen MAT March 2019 data

42
Management Discussion and Analysis

MODERN TRADE

In its modern trade distribution channel, the Company in improved same-store sales and category share. The
has enhanced its presence to more than 8,800 stores, Company’s strong business development team undertakes
while growing market share from 39% to 41% in value significant research and analysis to identify the right city,
terms. Initiatives undertaken by the Company towards right catchment area, and right store. This facilitates the
retail activation and dominating shelf-space, has resulted Company in consistently growing its market share.

Top 5 Brands (% Share in Modern Trade) – Value Wise

41%

32%

7% 6%
3%

India Gate Peer 1 Peer 2 Peer 3 Peer 4

Basmati Rice
Brand

Highest All India Modern Trade Market Share of

KRBL Limited
In value terms, India Gate Basmati Rice is a leading brand
dominating the all India modern trade with a 41% market share.

Source: AC Nielsen MAT March 2019 data

43
 Annual Report 2018-19

E-COMMERCE PRESENCE

With an eye on cashing in on the increasing opportunity from The e-commerce business has transformed the way business
the online distribution network, KRBL continued to strengthen is done in India. Propelled by rising smartphone penetration,
its e-commerce presence in FY19. Regular introduction of its the launch of 4G networks and increasing consumer wealth,
different products on the different e-commerce platforms and the Indian e-commerce market is expected to grow to
increasing its strategic tie-ups with different e-commerce US$ 84 billion by 2021. Online retail sales growth is expected
players were KRBL’s major strategy for expanding its to be driven by the major e-commerce giants like Flipkart,
e-commerce presence. Amazon, and Paytm among others.

Ensured presence across all the major e-commerce players in the country.

44
Management Discussion and Analysis

GROWING OPPORTUNITIES IN THE INDIAN FOOD PROCESSING INDUSTRY

The Indian food processing industry is today one of the fastest growing industries in India and nurtures the potential for substantial
growth in the foreseeable future as well. This exciting growth has been fuelled by many factors.

Factors fuelling the growth of the Indian food processing industry

01 02 03 04

Growing popularity of Wide penetration Rising incomes Favourable macro-

e-commerce of low cost/free will drive higher economic picture
internet consumption Heightened yearly
Provides the
business houses with contributions in the
an unprecedented domestic as well as
reach across Tier I global food trade
and Tier II cities business

All these favourable factors are likely to create a favourable position for the Indian food industry, especially its food processing segment.

The India food processing industry at a glance

100% FDI in Food

Processing

1.3 bn Potential One Nation

Consumers One Tax-GST

Globally Ranked #2 in Total

Food Production
Amongst Fastest
Growing Economies in Globally Ranked #1 in
the World Production of Several Agri-Commodities

45
 Annual Report 2018-19

INNOVATION AT KRBL
HEALTH FOOD SEGMENT
As we position ourselves as an innovation
and research led agri-products company, it
is imperative that we deliver innovative and
tailored solutions for our customers which
helps meet their evolving needs. With the
rising consciousness among urban consumers
to keep a watch on one’s diet and weight,
growing instances of increasing stress levels
and growing health issues owing to sedentary
lifestyle, consumers were on a constant lookout
for healthy foods within their staple diet which
help control their diet and minimize the stress
levels yet they are good to eat and not low on
nutrition content. KRBL answered this with the
launch of its ‘Health Food’ segment.

As a proactive Company, KRBL ventured into

the health food segment a couple of years
back keeping in mind the increasing trend
of consumers wanting to have healthy and
nutritionally superior food. Over the years,
KRBL positioned itself as a manufacturer of
‘healthy’ food products. This not only helped the
Company to tap a new customer segment but
also enabled to enhance offtake in the packaged
rice segment as more and more consumers
opted for branded rice from established players
such as KRBL, instead of purchasing it from the
unorganized sector.

The new ‘Health’ product offerings of the Company

helped to strengthen its already enriched and
diversified product basket. The different product
offerings of the Company are strategically
positioned to cater to different categories of
consumers at different geographical locations
and across different price points to enhance
affordability and greater offtake.

46
Management Discussion & Analysis

Non Basmati
Brown Rice

Basmati Quinoa
Brown Rice
• 100% whole
grain brown
rice
• Provides
• Low GI
• Great source of balanced
(glycaemic
dietary fiber nutrition
index) levels
• Ready to serve in • Protein-rich
• High on fibre
just 12 minutes grain
density
• A nutrient-rich • Rich in minerals
alternative to
• High on dietary
carb-based
fibre
diets, which
supports an
active lifestyle

47
 Annual Report 2018-19
2019-20

KRBL’s
MEDIA OUTREACH
Key trends that played a major role in defining KRBL’s media strategy in FY19

48
Management Discussion and Analysis

KRBL's Media Strategy 2018-19

Overview Through its differentiated media strategy, As a market leader in the branded Basmati
the Company has not only been able rice segment, KRBL is intimately aware of
In an endeavor to remain at the top of its to stay ahead of the competition but the role media outreach can play in both
business and competition, the Company has been highly successful in taking consolidating and augmenting its growth
through its flagship brand India Gate the conversation away from price while potential in the industry.
continues to offer products which have intimating the customers what value it
transformed to be more meaningful to brings to the table. In a first-of-its-kind effort, the Company
customers right at the point of purchase. launched two new festival special
Backed by a dedicated media and television commercial during the 2018
In line with this tenet, KRBL has formulated marketing team, the Company strived festive season with one celebrating
a different marketing and promotion towards engaging its customers the concept of Diwali while the second
strategy which aims at transforming through innovative product range and emphasizing on the importance of
the consumer’s perception about the packaging along with relevant advertising festivals and occasions in our life.
Company, its products and the different campaigns.
brands. Majority of the advertisement and A well crafted media strategy across
marketing campaigns of the Company are Further, keeping in mind the importance different channels and media, over the
aimed at making the consumers aware of festivals in India, in FY19 the Company years, has helped KRBL showcase the
about how the Company is continuously devised tactical promotional campaigns right product to the right customer
striving to answer the core requirements along with revamping the packaging of its segment across the nation as well as in
of its customers and that it’s not just flagship brand India Gate Classic in an all the international markets.
available as mere options on the shelf. new avatar.

49
 Annual Report 2018-19

Key Highlights – FY19

Masterfully balancing old with new -
‘India ki Puraani Aadat’ & Festive Celebration Campaign

KRBL continued to promote its highly Iss Tyohaar Sirf Classic Banega
successful ‘India ki Puraani Aadat’
brand promotional advertising campaign Truly believing that special days deserve
in FY19 whilst bringing in some new something special on your plate,
marketing initiatives like repackaging and KRBL launched a massive 360-degree
relaunching ‘India Gate’s’ flagship brand advertising campaign during the festive
‘India Gate Classic’ rice 1 kg pack in an season of 2018. Thus, making it perfectly
all-new occasion special ‘Celebration aligned with the sentiments of the season
Pack’. and the value of its flagship brand.
During the year, the Company undertook
KRBL added a new dimension to the extensive promotional activities across
campaign, by focusing on specific different media platforms like TV, radio,
geographies and introducing India Gate newspaper, magazines, and digital for
Classic as a product which is affordable the ‘Iss Tyohaar Sirf Classic Banega’
as a festive buy for everyone. advertisement campaign. Further KRBL,
undertook focused trade level marketing
Blending the old with new, the Company initiatives like dealer distributor boards,
in FY19 launched a massive media diverse POSM elements and introduced a
campaign surrounding its India Gate growth focused dealer scheme to further
Classic brand called ‘Iss Tyohaar Sirf boost the visibility of the Classic brand.
Classic Banega’. All these initiatives helped the Classic
brand reach new heights in terms of brand
visibility as well as revenue.

50
Management Discussion and Analysis
& Analysis

Campaigns Outreach

4,00,00,000+ 16,000+ Radio

spots 15,000+ Retail
outlets

Digital impressions across across 20 cities covered by POSM

media platforms like YouTube

3,860 Television
spots 609 OOH units 500 Premium outlet

across 51 channels across 22 cities in India branding

50 National magazines
and dailies

which showcased Iss Tyohaar

Sirf Classic Banega
advertisement

This multi-channel campaign helped enhance the Campaign’s impact

Retail penetration growth

47%
visibility of the newly launched packaging of the
India Gate Classic and establishing it as an occasion achieved by KRBL’s ‘India
special product in households across India. Gate Classic’ brand in FY19

51
 Annual Report 2018-19
2019-20

Media Initiatives – FY19

KRBL is not just the market leader in different product categories but is also the leader within the Indian rice
industry in terms of total investment in the media and advertising segment.

KRBL’s Share of Expense (Media and Advertising)

56%
KRBL Peer1 Peer2 Peer3 Peer4

KRBL’s Share of Voice (Media and Advertising)

53%
KRBL Peer1 Peer2 Peer3 Peer4

India Gate-Today the brand is synonymous to the best quality Basmati Rice and has emerged as the
most preferred packaged rice brand in India and abroad.

52
Management Discussion and Analysis

53
 Annual Report 2018-19

Dominant Media Presence

Television
The ubiquitous presence
and reach of television
meant that we continued to
strive for greater presence
in the medium the past year.
Kasauti Zindagi Ki Master Chef Canada
Likewise, KRBL through Show featured advertisement from
their brand India Gate Shahrukh Khan, helping KRBL clock Helped KRBL enhance brand
higher viewership compared to visibility in an international market
invested heavily in television
industry peers. which has a significant South-
campaigns and doggedly Asian diasporic community.
pursued partnerships with
some of the most talked-
about TV serials and films
produced in the country.
These collaborations
proved very successful as
it massively enhanced the
visibility of KRBL’s different Jhansi ki Rani
brands and helped us connect A popular TV serial on ‘Colors’
better with our customer. channel.

54
Management Discussion & Analysis

Padmavat Big Boss (Tamil) Yari Gunttu Yarigalla

2018’s Biggest Bollywood movie Captured the attention of more Popular women’s game show on
premier. Provided visibility across than 3,30,000 people across the ‘Zee Kannada’. Helped KRBL to
different channels like ‘Colors’, state of Tamil Nadu. reach many female viewers in the
‘Colors (Tamil)’, ‘Cineplex’ and Southern states of India.
‘MTV’.

Big Boss (Kannada) Curries of India Hungry for

Provided visibility across channels on ‘Living Foodz’ Home Cooked Food
like ‘Colors Super’ and ‘Colors
Popular food show featuring Chef Highly appropriate partnership
Kannada’. Teamed up with ‘Big
Kunal Kapoor and Chef Ranveer - ‘TLC’ channel show seeks out
Boss’ housemates to prepare
Brar. Use of ‘India Gate Classic home-cooked food prepared by
biryani with the India Gate Classic
Basmati Rice’ on the show gave the housewives. Its viewers are a
rice for the unprivileged children.
brand a widespread visibility. potential consumer base.

Result, a dominating screen presence

53,000+ 7,68,000+ 4,300+ 46%

Spots in 73 channels Seconds of screen Total GRP mapping Spots in premium
presence across India channels
screen presence

3,600+ 13
Total sponsorships in
FY19, one of the highest
20+
Total promo tags within its industry space Total integrations in FY19

55
 Annual Report 2018-19

Dominant Media Presence

Radio
Well-thought out radio advertising
campaigns continue to be immensely
popular and have massive reach.
During the year under review,
KRBL launched several innovative
promotion campaigns targeting all
the metro cities and also the Tier I,
National channels where KRBL’s radio advertisements got aired
Tier II, and Tier III cities. India Gate
remained the main brand in focus in
most of the campaigns. 16,000 4,00,000
Spots Total running period
of the spots for a period
of three weeks

Print
Print, likewise, remains ever
important medium of advertising
for the Company. KRBL targeted
North India, its promotional campaigns at
select publications, including
Maharashtra, regional ones, to reach our target
consumer base. Keeping in mind
Karnataka,
50+
that Indian households still tend
West Bengal, to reflect a traditional division of
labour within households, with
Total ad insertions
placed by KRBL
and women being responsible for
meeting the nutritional needs of
Tamil Nadu family members, KRBL ensured an

24+
Magazines
Important
regions where the
advertising presence in all leading
women’s magazines and dailies
across India.
where ad insertions have advertisements have
been placed been published

56
Management Discussion and Analysis

Outdoor
Being strategic in its approach, KRBL’s BTL activities
were based on the choice of opportune locations and innovative ideas.

Outdoor initiatives undertaken in FY19

Wrapped an entire metro train in Classic Launched one of KRBL’s biggest outdoor Diverse and innovative advertising
Celebration Campaign with the ‘India campaigns with the ‘India Gate Classic’ displays across different mediums like
Gate Classic’ brand – for the first time in brand metro trains and digital screens
the history of KRBL

22 600
This helped the Company with an enhanced visibility and Cities covered by Sites across the
positioned its brands around ‘health’, ‘affordable’ and ‘choice’ KRBL’s biggest outdoor 22 cities
translating into an ability to provide safe and healthy products campaigns with the
across diverse price points. ‘India Gate Classic’

57
 Annual Report 2018-19

Dominant Media Presence

Digital Why there is so much emphasis on going digital now?
With a paradigm shift towards a digital economy, there is an increasing need to blend
Being a proactive company, traditional marketing strategies with new-age digital ones.
KRBL has always been
ahead of the curve in terms This is how KRBL continued to enhance its digital presence in FY19
of product innovations We continued to enhance our digital presence through strategic investment in different
digital marketing initiatives and social media drives. By effectively utilizing the digital
and strategic marketing
platform both from the social media prospective as well as television prospective.
innovations and is also We continued enhancing our digital presence by forming a dedicated team of
accelerating these through professionals who helped us in building capabilities, devise effective media strategy
pertinent digital interventions. and create specialized content targeting different customer segment. Strategic tie-
Digital promotion strategies ups with different e-commerce giants and other electronic media platforms coupled
now form a core part of with regular release of different promotional videos on YouTube and other social
media platforms also helped us in expanding our digital presence.
KRBL’s growth and promotion
strategies and going forward
it would continue to hold the
limelight.

Digital associations in FY19

India’s Digital Chef
For the promotion of KRBL’s brown rice, the Company associated The association helped the Company get huge amount of user
with Master Chef Sanjeev Kapoor, Master Chef Saransh Goirala, generated content from its customers on different social media
and active TV personality Amrita Raichand in an original digital channels like Facebook and Instagram through specific contests
show called ‘India’s Digital Chef’. This unique association targeting at with specific customer groups like office goers,
provided KRBL with a great mileage across different social media gym enthusiasts, and kids. This activity helped in promoting
platforms and also helped in popularising the brands across the India Gate Brown rice brand across the different digital media
different platforms. platforms.

22.4 million people

Reached through India’s Digital Chef

6.9 million views

Total views garnered by the show on
Sanjeev Kapoor’s YouTube Channel

4.3 million minutes

Total watch time of the show
across different platforms

58
Management Discussion and Analysis
& Analysis

Big Boss Kannada & Big Boss Tamil

Got associated with the show on Voot, the show’s digital broadcasting partner. It was one of the most popular and engaging shows
in the market with a massive following on both TV and Digital platform. KRBL’s biryani preparation activity with the India Gate
Classic rice for the underprivileged children along with the teammates was also showcased on different social media platforms and
it garnered a huge viewership.

A special campaign – Mother’s Day Campaign

KRBL created a special campaign on the occasion of ‘Mother’s Day’ which received an overwhelming response and did wonders for
the digital visibility of KRBL’s brands. In a span of just six weeks, it received over 2 million views across different social media sites
like YouTube, Facebook and some other social media platforms.

All these initiatives helped the Company further strengthen its visibility across the digital channel and entrench its brands in the
minds of the young population of the nation. KRBL also focused on customizing its digital campaigns around different products and
different customer segments.

Social media reach

For India Gate classic campaign

2 Crores+ 62 Lacs+ 2 Crores+ 20 Lacs+

Views on Hotstar Views on VOOT Views on YouTube Views on Facebook

59
 Annual Report 2018-19

‘Corporate Master Chef’

A strategic brand promotion activity

undertaken by the Company during
the year. Through this activity, we tried
to promote and popularize the Brown
Rice products to different corporate
houses by relating its health benefits.
It proved to be a highly successful
activity as it got the attention of a
large number of audiences in over
30 corporates. It also helped KRBL’s
India Gate Brown rice brand garner a
strong digital footprint.

Thinking differently – India Gate touches hearts across India

In FY19, KRBL began a new campaign called
‘India Dega Aashirwad - For a Hunger Free
India’ that advocates against the wastage of
rice on occasions like weddings so that it can
be distributed among the needy and the hungry.
As a part of this unique campaign, the Company
created different videos and posts and has spread
the same across different social media platforms
so that it reaches thousands of people.

2 million people
Reach of the campaign till date

1 million +
Total video views of the campaign
till date

10,000
Total packets of rice received by
KRBL till date

60
Management Discussion &
and
Analysis
Analysis

INTERNATIONAL MARKET PERFORMANCE

The Company ventured into the international market in 1985 FY19 proved to be another year of great performance for
with a small order of basmati exports of 1,000 tonnes from the KRBL’s export business as the Company continued to widen
UAE. Over the next few years, KRBL Limited developed a strong its international presence during the fiscal year. Contributing
network of distributors in 82 countries across the globe. nearly 45% to the overall revenue mix, KRBL’s export revenue
grew by 42% during the year to record an overall export sales of
Positioning itself as a global agri product manufacturing ` 1,845 Crore compared to ` 1,303 Crore in FY18.
company, KRBL has built a strong international presence
over the years and is today one of the largest Indian players Continuing to hold the leadership position in the UAE market,
in the branded rice segment to have such a global outreach. KRBL’s flagship Basmati rice brand India Gate commanded a
A household name in several international markets, KRBL has market share of 33% (in terms of value) in the region compared
built a strong presence in a number of Gulf countries. to its next best peer who commanded a market share of 11%.
India Gate is also a well-recognised brand in some of the other
markets like GCC countries, Australia, and South-East Asian
markets, among others.

61
 Annual Report 2018-19

KRBL’s export business

India Gate is
the #1 Indian
Basmati brand
in Canada both
in Ethnic and
Modern Trade

India Gate and

Bab Al Hind are
the #2 brand
in the Indian
Basmati white
rice segment in
Saudi Arabia

Nur Jahan
emerged as
the #1 brand
in South Africa
commanding
a total import
share of 32%
with KRBL
brands in South
Africa

Source: Retail Data, Distributors Data, APEDA Data, KRBL Export Data

62
Management Discussion & Analysis

India Gate is
the #1 premium
Indian Basmati
rice brand in
Bahrain and
Lebanon

India Gate is
the #1 Indian
Basmati rice
brand in UAE
India Gate and
Nur Jahan are the
#1 and #4 Indian
Basmati rice brand India Gate is
in Qatar with the #1 brand in
combined 38% Australia and
market share New Zealand
with a total
import share of
28%

63
 Annual Report 2018-19

Media initiatives in international market

Growing the PR Drive in the Gulf Region
We at KRBL strive to push the boundaries of the business constantly and innovate with our PR strategies to take the message
of our brand, expertize and quality of products in newer ways to existing as well as to new markets.

Within the Gulf region, we have exponentially grown our Public Relations outreach in the past year, aiming to consolidate and
strengthen our engagement with consumers and customers.

Two major aims in FY19

To create an attractive buzz and awareness

To enhance brand awareness and top of the mind
around our healthy foods category which was
recall amongst our target consumers
recently launched in the region

Recently
launched
healthy
food
products

64
Management Discussion & Analysis

Actively disseminating press releases and

1 articles introducing the new products

Highlighting the nutritive benefits and USP of

2 the products

3
Developing innovative health stories and
features around the health attributes

How
KRBL’s PR
4
By reaching out to target consumers through

team
digital and social media channels to great effect

create the
buzz? By clearly conveying the Company’s view in the

5 form of publications (in various industry story

feature) or through radio channel interviews of
the top management

6
By directly interacting with our target consumers
through regular blogger collaborations

By creating editorial opportunities for the brand

7 by crafting creative media alerts based on

occasions and features relevant to the local
media through sharing of tips and recipes

65
 Annual Report 2018-19

Publication features

6,798,829 AED Total estimated PR value

202 Media Alerts & Recipes features

PR Activity Total No. of Coverage

Print = 1
Interviews 5
Online = 4

Print = 12
Media Alert Features 161
Online = 149

Print = 1
Press Releases 6
Online = 5

English = 19
Blogger Collaborations 35
Arabic = 16

Print = 10
Recipes Featured 41
Online = 31

Print = 4
Articles 8
Online = 4

Print = 3
Industry Stories Featured 5
Online = 2

Total PR Value Estimated AED 6,798,829*

(*Above shown results are achieved from April 2018 until March 2019)

66
Management Discussion & Analysis

KRBL presence in the international market

Market Share of various rice brands in UAE Basmati Rice Market

Top 5 Brands (Value Wise)

33%

11%

4% 4%
3%

India Gate UK based UAE based Kuwait Other India

Basmati Rice brand brand based brand based brand
Brand

In value terms, India Gate Basmati Rice is the largest selling Basmati Brand in UAE Basmati Rice market with 33 % Market Share.

Market Share of various rice brands in Qatar Basmati Rice Market

Top 5 Brands (Value Wise)
29%

20%

9% 9%

5%

India Gate UK based Nur Jahan India Based India Based

Basmati Rice brand Brand Brand Brand
Brand

In value terms, India Gate Basmati Rice is a leading brand in Qatar Basmati Rice market with 29% market share. While, Nur Jahan
Basmati Rice is gaining traction with 9% market share.

Source: AC Nielsen Middle East - for the period Feb 2018 - Jan 2019)

67
 Annual Report 2018-19

Market Share of various rice brands in Kuwait Basmati Rice Market

Top 5 Brands (Value Wise)
24%

14%
11%

6%

2%

India Gate Kuwait Kuwait India Bab Al Hind

Basmati Rice Based Based Based Brand
Brand
Brand Brand Brand

In value terms, India Gate Basmati Rice is a leading brand in Kuwait Basmati Rice market with 24% market
share. Being a newly introduced brand in the market, Bab AI Hind is slowly & steadily picking up pace with respect to other brands.

Source: AC Nielsen Middle East - for the period Feb 2018 - Jan 2019)

KRBL’S Traditional Marketing Consumer Activation in GCC Through this partnership, KRBL is
working towards many goals, including:
Initiatives in MENA Region At KRBL, we have always believed that
At KRBL, we set our sights on becoming we are a company built by farmers and
• Encouraging and inspiring young
internationally recognized and loved by loyal consumers and constantly strive
chefs through training and
consumers coming from diverse cultural to reward our consumers who believe in
competitions and enhancing
and geographical backgrounds. It makes the brand and quality of our products.
the culinary prestige of the UAE
us proud that our products transcend We were delighted to launch a scheme
internationally;
the limitations of language, ethnicities, that offered a Free Electric Kettle with
cultures, eating habits, and geographical every pack of 5kg ‘India Gate Classic
• Encouraging UAE nationals in
locations. In the past year, we reinforced Rice’ across the Gulf and LEVANT
considering a career within the
this essence of the brand by continuously regions.
hospitality industry;
investing in and communicating with our Strategic partnership: KRBL’s Corporate
consumer universe across the world. Membership of Emirates Culinary GUILD • The partnership is likely to enhance
KRBL made yet another innovative KRBL’s brands and brand value in
KRBL adopted an aggressive BTL the UAE chef community
move by partnering with the Emirates
strategy to reach out to the Arabic, Asian,
Culinary Guild (ECG) in FY19. The ECG is
and Western expat target consumer base • Help KRBL further enhance
an association of professional chefs in
within the MENA region, promoting ‘India awareness about the Company in
the UAE and is a non-profit organization
Gate Classic’, ‘India Gate Super’, ‘India terms of the varieties of rice offered
run by volunteers dedicated solely to
Gate Quinoa’, ‘India Gate Chia Seeds’, by KRBL and KRBL’s health food
the advancement of the culinary arts in
‘India Gate Flax Seeds’, and ‘India Gate range among others.
the UAE.
GABA Rice’.

68
Management Discussion and Analysis

Event participation in the Gulf region

KRBL at HORECA Kuwait 2019 is strictly for hospitality visitors and A global food sector power brand,
this year was attended by more than Gulfood’s 24th iteration at the Dubai
KRBL participation at the prestigious
7,000+ visitors from the Food & Beverage World Trade Centre (DWTC) was held
HORECA Kuwait 2019 exhibition was
Industry. from 17-21 February 2019. With more
one of the major events that transpired
than 1,00,000 visitors coming to the
during the year.
KRBL made a strong appearance at the five-day event, it witnessed the latest
event, courtesy our food service team global trends in the Food & Beverages
HORECA Kuwait and local distributor who took charge of industry.
Country’s biggest B2B Hospitality setting everything up. KRBL’s stand drew
Exhibition, where all companies in food many visitors and our team made the The KRBL stand was inaugurated by our
and food related sectors participate most of this opportunity by proactively Hon’ble Chairman & Managing Director
to showcase their latest products, connecting with visitors and customers Mr. Anil Kumar Mittal and Director Ms.
technologies and services to the personally and briefing them about the Priyanka Mittal. The Hon’ble CMD put
hospitality industry, which is the fastest brand portfolio. forward the Company’s vision, mission
growing market in Kuwait. and launch rationale of the India Gate
KRBL at Gulfood 2019 Health range during the event and also
The event also boasts about a Hospitality Yet another feather in the cap for KRBL’s showcased how the Company would
Salon Culinary, where top chefs from PR goals for this year was a strong like to expand its healthy food segment
Kuwait participate in various cooking showing at the world’s largest annual keeping in mind the increasing trend for
shows judged by international Master food and beverages trade exhibition, healthy food across the globe.
Chef’s from all over the world. The event Gulfood.

69
 Annual Report 2018-19

Power sector
In a power-intensive business like rice to ensure constant power supply for This investment not just helped in
milling and processing, the onus is on its operations and has currently total meeting the captive power requirements
the Company’s ability is to maximize installed capacity of 146.94 MW across of the Company, resulting into a
the generation of power from the different verticals like biomass, wind, substantial saving in the power and fuel
downstream utilization of byproducts. and solar power segment. KRBL today costs, but also opened up a new revenue
enjoys one of the largest renewables and stream for KRBL.
Keeping this in mind, KRBL ventured in alternate power generation capacities
the business of captive power generation within India’s agricultural industry.

129 4% 114.35
Total revenue Growth in the revenue KRBL’s total wind
generated from generated from power generation
` the sale of power the sale of power
Crores capacity*
in FY19 compared to FY18 MW

*Wind power generation capacity as of 31 March 2019.

70
Management Discussion and Analysis

Details of KRBL’s power generation capacity

Installed Power Generation Capacity Power Business

Particulars 2018-19 Plant Location Function Capacity
Total Wind power project capacity (MW)
114.35 MW
Dhuri Biomass 12.34
Total Solar power project capacity 15.00 MW
Gautam Budh Nagar Biomass 5.25
Total Biomass capacity 17.59 MW
Sub-Total (A) Biomass 17.59
Power Generated Maharashtra Wind 33.50
Details of Units Generated Rajasthan Wind 11.85
Details of Project
2018-19 2017-18 Tamil Nadu Wind 8.10
(A) Wind Karnataka Wind 11.10
Maharashtra Andhra Pradesh Wind 10.50
Dhule (1.25 MW *10) 1,89,53,268 1,50,99,718 Madhya Pradesh Wind 12.00
Sangli (2.10 MW *10) 3,84,21,679 3,09,94,362
Gujarat Wind 27.30
Tamil Nadu
Sub-Total (B) Wind 114.35
Tirupur (1.50 MW *4) 1,18,76,098 1,29,12,740
Tirunelveli (2.10 MW *1) 29,14,432 35,14,361 Madhya Pradesh Solar 15.00
Karnataka Sub-Total (C) Solar 15.00
Raichur & Koppal (1.50 Biomass /
MW *6) 2,29,06,389 2,14,54,617 Total (A+B+C) Wind / Solar 146.94
Bellary (2.10 MW *1) 44,68,932 41,81,339
Rajasthan
Jodhpur (1.50 MW *4) 1,01,82,737 87,01,054
Jaisalmer (2.10 MW *1) 30,83,634 24,69,005
Jodhpur (1.25 MW *3) 59,10,624 47,60,563
Andhra Pradesh
Kaddappa (2.10 MW *1) 47,98,664 38,96,984
Anantapuram (2.10 MW *4) 1,73,20,659 1,55,83,296
Madhya Pradesh
Agar-Malwa (1.50 MW *4) 1,18,94,254 1,02,14,077
Mandsaur (1.50 MW *4) 89,62,121 80,02,830
Gujarat
Devbhoomi Dwarka
(2.10 MW *13) 7,77,78,007 7,06,46,652
Sub Total (A) 23,94,51,905 21,24,31,598
(B) Solar
Madhya Pradesh
Rajgarh (2.50 MW) 40,71,360 41,28,907
Agar-Malwa (6.63 MW) 1,10,93,848 1,12,76,427
Agar-Malwa (5.60 MW) 94,19,467 95,21,330
Sehore (0.27 MW) 3,75,049 4,93,626
Sub Total (B) 2,49,59,724 2,54,20,290
TOTAL (A+B) 26,44,11,629 23,78,51,888

15.00 MW
KRBL’s total solar power
generation capacity* 17.59
MW
KRBL’s total biomass power
generation capacity*

*Wind power generation capacity as of 31 March 2019.

71
 Annual Report 2018-19

Research and development

At KRBL, we feel that our research and their yield. Collaborating with some of KRBL’s core R&D strength lies in
development is a critical enabler of our the renowned agricultural academic/ developing modern seed farm and product
growth and has been our key differentiator. research institutions of the nation, the testing. The four members R&D team
New product development and launches core focus of KRBL’s R&D unit is to of KRBL endeavours to make existing
coupled with product upgradation develop new Basmati seed varieties products better and develop niche
year after year has ensured that KRBL which are of superior quality. With a products through continuous process
address the changing demand pattern keen eye on continuously upgrading the development. Every R&D activity at KRBL
of its customers. Further, new product seed quality, KRBL’s R&D team works is vetted through stringent quality checks
launches contribute to the efficiency and closely with the Indian Agriculture to ensure that the products adheres to
sustainability of product portfolio and Research Institute (IARI), New Delhi to established parameters.
improved profitability. develop new and improved seed varieties.
Constant improvement of process and
Thus, KRBL is known today for pioneering
Pioneer
enhancement of operational efficiency in
several cropping methodologies and line with the international standards is KRBL pioneered the development and use
harvesting techniques which have also an area where the R&D teams look of premium PUSA 1121 Basmati seed
enormously helped the farmers enhance into. variety. This variety is considered superior
than the Pakistan Basmati seed variant.

72
Management Discussion and Analysis

Certifications endorsing KRBL’s quality quotient

FSSC 22000 Halal Product SQF Code Edition 8.0

issued by Cotecna, an Certification issued by Intertek. An internationally
internationally recognized issued by Halal Certification Services recognized certification on food quality
certification. India Pvt. Ltd. hazards as well as food safety.

GMP Certification
for export to US & China
(Issued by NPPO)
USFDA BRC certification
Registered issued by Intertek

KRBL’s SWOT Analysis

Strengths Extensively integrated: KRBL is one exported to more than 80 countries

of few fully integrated agri-product across the globe.
Rich legacy: With a successful track
manufacturers in India with a presence
record of more than a century, KRBL
across the entire value chain. Scale: KRBL is India’s largest exporter of
today is an established and respected
branded Basmati rice. The Company is
business entity in the agri-food industry.
Strong farmer connect: Since inception also the largest rice miller of the world.
we remain committed to create value
Strong management team: Thanks
for our farmer community. We continue Weakness
to KRBL’s well-qualified and highly
our association with farmers beyond
experienced management team aptly Highly dependent on weather conditions:
business by assisting them with different
assisted by a strong team of dedicated, Rice production is heavily dependent
knowledge-based technical know-how on
committed and talented people, helped on the weather conditions, shortage
best agricultural practices and facilitating
the Company grow from strength to of water, rainfall or adverse climatic
them in sourcing quality inputs.
strength over the years overcoming conditions.
different challenges and adverse market
Widespread distribution network: A
conditions. High risk of crop damage: Being an
strong supply chain network spread
across the length and breadth of India, agricultural commodity, rice is highly
Strong R&D capabilities: Backed by prone to different plant diseases which
enables the Company’s products to
a state-of-the-art R&D capability, can adversely impact plant yield.
reach the farthest and remotest corner
the Company has been successful in
of India.
developing high yielding varieties of rice
High working capital requirement: As
seeds along with innovative rice products
Global footprint: India Gate, the the entire rice production process from
that helped meet the unmet needs of the
Company’s flagship rice brand, is creating facilities for aging of rice to
customers.

73
 Annual Report 2018-19

enhancing and maintaining quality takes the industry players do not want to be left preferences for branded products,
quite some time, thus the working capital out and are devising strategies especially unorganized players, operating at low
requirement is quite high. for the rural consumer. margins and accounting for nearly 40-45%
of the Basmati market, pose a threat to the
Higher propensity of inventory loss: As Increased household spending large organized players. Non-inclusion
paddy is a perishable goods, fluctuation With rising affluence in India, households of unbranded rice products in GST has
in the market prices may lead to lower are climbing up the income ladder to drive further compounded the situation.
offtake which in turn can lead to inventory nearly 3.5 times growth in consumption.
loss. Economic slowdown and currency
This growth, fundamentally, is driven
fluctuations
by two main factors—average spend
Opportunities per household and the total number of Looming threat of tariff war started by
Evolving consumer preferences and households. the US administration, coupled with
changing lifestyle: With the rise in the per geo-political tensions in Iran and Russia
capita income, more and more customers Greater acceptability among others, and sharp fluctuations
are preferring premium, branded and in currency exchange valuations could
Increasing acceptance of rice as a
healthy products instead of low quality adversely impact international/export
staple diet has enhanced accessibility
and cheap ones. This is likely to push business.
of Basmati rice across different markets
up demand for branded and healthy round the globe.
rice products like Basmati rice across Growing competition from Pakistan
modern retail chains. Increasing competition from Pakistan
Threats
may impact India’s dominance in the
Increasing count of working women: Competition from unorganised segment
global Basmati market.
An increase in the young working Despite the recent trend of increasing
population, especially women,
with rising incomes and increasing
purchasing power is likely to fuel growth
of the sector - consumer spending in
India is expected to grow from US$ 1.5
trillion at present to nearly US$ 6 trillion
by 2030, according the WEF.

Global market expansion and increased

consumption
With the growing popularity of
Basmati rice owing to its aromatic and
aesthetically pleasing features, demand
for Basmati rice has seen a constant rise
over the last decade and especially in
the Middle East region where rice-based
delicacies are world famous.

Changing landscape of rural India

Extreme rural poverty has declined
from 94% in 1985 to 61% in 2005 and
is projected to drop to 26% by 2025.
With the rise in affordability of the rural
economy, rural retailing is another area
of prime focus for many branded players
now. Rural India accounts for two-fifths
of the total consumption in India. Thus,

74
Management Discussion and Analysis

Risk management
Risk which is the manifestation of business uncertainty, affecting corporate performance and prospects, is an integral part of all
businesses but can be controlled through awareness, discipline, and commitment.

As a proactive company, KRBL has a systems-based approach to risk management. Its risk mitigation framework comprises a
study of emerging business trends, framing policies and strategies, and structured reporting and control.

At KRBL, risk management is addressed through a three-pronged approach:

Identification Ascertainment Mitigation

of risk of risk of risk

Industry risk: Sectoral slowdown Raw material risk: Non-timely Brand risk: In a crowded
could impact growth. The demand for availability of raw materials may marketplace, KRBL’s brand might
agri-products is directly linked with impact the production and which lose recall, resulting in sluggish
the economic growth of the country. A in turn may have an impact on offtake, lower realizations and
slowdown in the economy may adversely the sales and profitability of the reduced profitability. Inability to keep
impact growth of the industry. Company. At the same time, high pace with evolving preferences could
cost of raw materials may also affect growth.
How will KRBL be protected? impact the bottom-line.
• KRBL is the market leader of branded How will KRBL be protected?
segment of Basmati Rice and is the How will KRBL be protected?
• Over the years, KRBL has been
most aspirational brand for high/ • The major raw material
successful in positioning itself
middle income groups who are least required to produce premium
as a quality rice manufacturer
affected by this risk. quality rice is quality of
marketed under different brands.
• Basmati rice industry is expected to Basmati paddy. Further over
This has translated into a market
witness significant growth, reflecting the decades, the Company has
share of 35%, making it the
in a growing demand for affordable and built a strong farmer connect
number one brand in India. Thanks
quality products. through its well-established
to its innovative and strategic
contact farming system,
• With the growing health consciousness marketing and advertising
ensuring KRBL the supply of
among the consumers, healthy food campaigns coupled with strategic
quality Basmati Paddy which is
segment is likely to witness significant associations, total rice sales have
GI product and grown in highly
growth going forward. increased by 28% in FY19.
irrigated areas and therefore
• Although the Company has a strong availability of Basmati paddy A strong brand recall has enabled
international presence but going will not be a constraint. KRBL to establish itself as the
forward the Company plans to further
largest exporter of branded
increase its presence in some of the
Basmati rice in the world.
under-penetrated global geographies.

75
 Annual Report 2018-19

Competition risk: Rising competition from the organized and unorganized players and other major rice producing nations could
impact sales and in turn profitability.

How will KRBL be protected?

• KRBL is the market leader of branded segment of Basmati rice which is grown only in India and Pakistan and therefore risk
from other rice producing nations is mitigated.
• Enduring market goodwill as an ethical and transparent company and a supplier of quality agricultural products.
• Enhanced focus on a 360-degree brand building exercise comprising of successful brand promotions and engaging customers
at multiple points resulting in an integrated communication approach. Thereby, has been successful in maintaining its
leadership position for years now.
• Attractive price-value propositions helping the Company in creating new product categories.

Quality risk: KRBL’s brand value Cost risk: Owing to KRBL’s nature Geopolitical risk: KRBL markets
and customer loyalty has been over of business, it requires huge storage and sells products across the globe.
its product quality. Any fluctuation in facilities to store the rice safely for A geopolitical tension or event in
the product quality would result into aging to enhance its premiumness. any of the major markets can impact
a reputational damage, loss of faith This involves huge working capital the business of the Company. US
recently imposed trade and economic
and a drop-in offtake. and operational cost which in turn
sanctions against Iran. This might
makes the business highly capital have a serious impact on the
How will KRBL be protected? intensive. Any compromise in the company’s export business as Iran is
• The Company has always storage facilities would lead to one of India’s biggest export markets
strengthened its culture of checks fluctuation in the product quality, for Basmati Rice for a number of
and balances at all production which might lead to decreased offtake players including KRBL.
points to ensure that the product is and finally to decline in margins.
of high standard and best quality.
How will KRBL be protected?
• From sourcing of quality raw
How will KRBL be protected? • The Company embarked on
materials to testing of the final
• Products of KRBL are of premium strengthening its counter-initiative
output, quality check is prevalent
and much superior quality as by widening its global footprint.
at each and every stage.
compared to its peers which helps Further, KRBL deepened its
• Sustained investment in R&D,
the Company in commanding presence in select countries with
state-of-the-art equipment and
a higher price and in turn helps an objective to graduate from mere
manufacturing facilities and
recover the various overhead costs. shop share to national share. This
indifferent process improvement
• Further, the Company has in place multi-country presence is likely
measures, has helped the Company
different SKU’s for all pricing to moderate the risks arising from
to maintain its quality quotient.
levels which ensure a steady cash geopolitical instability in any select
inflow. region or country.
• The Company has also diversified
in the power business, which not • In Iran KRBL exports only rice, which
only helps in reducing the power is a food item and is out of the
cost but also adds a new revenue purview of the sanctions. Further,
Foreign currency risk: With export stream. to mitigate from such country
revenues contributing a significant specific risks the company enters
chuck to the overall revenue mix, any into Letter of Credit (LC) contracts
unwanted fluctuations in the foreign with its foreign counter-party which
currency rates could adversely safeguards the Company from
impact the bottom line. payment defaults.

How will KRBL be protected?

• The company has already put Regulatory risk: Any sudden change in the regulatory policies can adversely
in place a well thought-out and affect the industry which in turn can impact the Company’s business.
well-structured foreign exchange
risk management policy which How will KRBL be protected?
safeguards the Company from • With a wide product basket, the Company has ensured its presence across the
any unwanted foreign currency value chain.
fluctuations by competently hedging • Presence in different countries also facilitates in negating downfall in sales from
all the foreign currency exposures. one country with focused increase in sales in the other.
• Company’s major source of revenue is Basmati rice which is not poor man’s
food and therefore there is no such risk of sudden change in regulation policies.

76
Management Discussion and Analysis

Human Resource (HR) Development products, services, and reputation. We standardized across the board in order to
invested towards nurturing, developing, ensure streamlining of systems across
At KRBL, we believe that people who feel
and training our employees and also the operational value chain. The Company
truly associated with the organisation
recruiting high-calibre talent to ensure we is also investing heavily in data analytics
are the ones who perform to their
have the right people, teams, and skills to optimize its sales and distribution
peak capability. As a core part of our
to grow our business. Ensuring that our strategy.
business strategy, we’re committed to
employees are well accomplished, safe,
providing an environment where all of our
motivated, and productive is an essential Audit Systems
employees feel enabled and have a sense
element of our business model. The The Company puts the highest priority on
of belonging. We believe greater diversity
Company’s total employee strength as on transparency, ethics, and good corporate
within our business will maximize our
31 March 2019 stands at 2,202. governance and has established strong
collective capability, allow us to leverage
diversity of thought, better reflect and internal controls which have been integral
Information Technology to its growth process. It maintains proper
understand our diverse customer base.
This should in turn lead to better decision Information technology (IT) has been an accounting control and monitoring of
making and higher shareholder value. integral part of the process of the Company operational efficiency; its policies ensure
and has been one of the key driving forces strict compliance with laws and it works
The Company’s human resource behind the growth achieved by KRBL. towards maintaining reliable financial and
strategy is to consistently provide a Effective management of the Company’s operational information. KRBL’s Audit
work environment where our employees vast network of distribution channels is Committee is consistent in its periodic
are encouraged to pursue their passion facilitated by its use of top-of-the-line review of all audit reports, audit plans,
for excellence. Equipping everyone with technology. We are thus consistently audit findings, adequacy of internal
opportunities, we ensure the growth scaling up our IT investments to upgrade controls and compliance with Indian
and sustainability of our single largest our technological processes and evolve Accounting Standards (Ind AS). Over and
investment, our employees, and in turn, an infrastructure capable of maximizing above this, the Audit Committee proposes
the success of our organization. the potential of the countless growth improvements whenever necessary.
opportunities in the digital universe.
We invest in recruitment, development, Outlook
and wellbeing programmes supporting The Company uses SAP to manage After having established itself as a leading
a diverse & inclusive, safe, transparent, employee and distributor data, which also supplier of quality rice products, the
and rewarding workplace. We have been allows it to track information flow in real management is once again brainstorming
successful in building a strong team of time at the distributor and sub-distributor on how to optimally leverage its existing
passionate, dedicated, and highly skilled level. This has greatly improved qualitative strengths. Being an agile and proactive
workforce because we believe that our control and strengthened supply chain Company, it has been on a constant
people are fundamental to our great efficiencies. Further, processes have been lookout for different avenues of growth
which would help KRBL sustain its
leadership position and also sustain its
future growth strategy. Venturing into
the healthy food segment is one such
initiative, moving forward the Company
would continue further cement its place in
this newly formed segment and would be
on a constant lookout to further widen its
offering within this segment.

Going forward with an increased focus

on coming up with consumer-centric
products instead of price-centric
products, the Company has embarked
on the path making it ready for the future
which would allow them to sustain
the growth momentum over the long-
run. Over the years, KRBL has been
successful in creating niche for itself in

77
 Annual Report 2018-19

terms of suppliers of superior quality rice, The Company expects to reinforce Forward-Looking Statements
thereby has been successful in garnering its presence in the industry through
Statement in this report, particularly those
better margins and secured increased continuous investments in technological
which relate to Management Discussion
returns for its different stakeholders. upgradation and infrastructural
and Analysis, describing your Company’s
Moving forward, the Company is likely development. Widening the farmer
objectives, projections, estimates and
to continue working on these areas also. network would also be an area of focus
expectations may constitute “forward-
Innovation across different verticals like for the company in the years ahead, as
looking statements” within the meaning
product manufacturing, packaging, raw it plans to undertake a number of farmer
of applicable laws and regulations. Actual
material procurement, marketing, and initiatives to further strengthen the
distribution among others, has been relations with farmers. A strong farmer results may materially differ from those
the key differentiator for the Company. base coupled with an aptly strong people expressed or implied.
Additionally, the Company is likely to strength; the Company is likely to sustain
continue its focus on innovation to help it as the market leader within its industry
stay ahead of the curve. space in the years to come.

78
Directors’ Report

DIRECTORS’
REPORT

79
 Annual Report 2018-19

DIRECTORS’ REPORT

To
The Members,
KRBL Limited
5190, Lahori Gate,
Delhi - 110 006

Your Directors are delighted to present the Twenty Sixth Annual Report on Company’s Business Operations along with the Standalone
and Consolidated Audited Financial Statements for the year ended 31 March 2019.

1. RESULTS OF OUR OPERATIONS

 he Company’s financial performance for the year under review has been encouraging. Key aspects of Consolidated and
T
Standalone Financial Performance of the Company for the current financial year 2018-19 along with the previous financial year
2017-18 are tabulated below:
(` in Lacs, except as stated)
Particulars Consolidated Standalone
Year Ended Year Ended Year Ended Year Ended
31 March 2019 31 March 2018 31 March 2019 31 March 2018
Revenue from Operations 4,12,049 3,24,652 4,11,957 3,24,644
Other Income 1,515 1,781 1,490 4,034
Total Income 4,13,564 3,26,433 4,13,447 3,28,678
Operating Expenditure 3,27,061 2,47,259 3,26,929 2,46,782
Earnings before Interest, Tax, 86,503 79,174 86,518 81,896
Depreciation and Amortization (EBITDA)
Finance cost 6,758 6,895 6,756 6,893
Depreciation and amortisation expenses 6,446 6,778 6,438 6,768
Profit before Tax (PBT) 73,299 65,501 73,324 68,235
Tax expense:
Current tax 23,016 20,233 23,016 20,232
Deferred tax 1,471 1,824 1,471 1,824
MAT credit entitlement (1,490) - (1,490) -
Profit for the year (PAT) 50,302 43,444 50,327 46,179
Other Comprehensive Income 95 40 4 17
Total Comprehensive Income for the year 50,397 43,484 50,331 46,196
Balance as per the last Financial 1,77,718 1,45,684 1,78,712 1,43,942
Statements
Appropriations
i) Final Dividend including Tax on 6,516 5,426 6,516 5,426
Dividend
ii) Transfer to General reserve 7,000 6,000 7,000 6,000
Retained Earnings 2,14,508 1,77,718 2,15,527 1,78,712
Earning per share (Face Value of ` 1 each)
i) Basic (In `) 21.37 18.46 21.38 19.62
ii) Diluted (In `) 21.37 18.46 21.38 19.62

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Directors’ Report

2. FINANCIAL REVIEW (Amount in ` Lacs)

 ushed by strong shift in consumer preference towards
P Particulars of Dividend Total Dividend Declared
branded basmati rice in the domestic market and export (Excluding Dividend Distribution
market, KRBL reported excellent numbers during the year Tax)
2018-19. The Company performed extremely well and the 31 March 2019 31 March 2018
highlights of the performance on consolidated basis are as
Final Dividend on 5,885 -
under:
23,53,89,892 equity
• Company’s Revenue from Operations increased by 27% shares of ` 1 each @
to ` 4,12,049 Lacs (31 March 2018 ` 3,24,652 Lacs). ` 2.50 per equity share.
• Company is able to maintain its strong Earnings before Final Dividend on - 5,414
Interest, Tax, Depreciation and Amortisation (EBITDA) 23,53,89,892 equity
and the same increased by 9% to ` 86,503 Lacs (31 shares of ` 1 each @
March 2018 ` 79,174 Lacs). ` 2.30 per equity share.
•  ompany’s Profit before Tax (PBT) increased by 12% to
C 4. NAMES OF COMPANIES WHICH HAVE BECOME OR
` 73,299 Lacs (31 March 2018 ` 65,501 Lacs). CEASED TO BE ITS SUBSIDIARIES, JOINT VENTURES
•  ompany’s Profit after tax (PAT) increased
C OR ASSOCIATE COMPANIES DURING THE YEAR
by 16% to ` 50,302 Lacs (31 March 2018 During the financial year ended 31 March 2019, no entity
` 43,444 Lacs). became or ceased to be the subsidiary, joint venture or
associate of the Company.
• Company’s Return on Capital Employed (ROCE) stands
at 21%. 5. TRANSFER TO RESERVES
•  et Worth of the Company increased by 19% to
N In view of the robust financial strength, the Company has
` 2,72,670 Lacs (31 March 2018 ` 2,28,790 Lacs). voluntarily transferred ` 7,000 lacs (31 March 2018 ` 6,000
lacs) from retained earnings to general reserve and an
•  arket Capitalization of the Company stands at
M amount of ` 2,15,527 Lacs has been carried over to the
` 7,92,205 Lacs. Balance Sheet.
•  years Net Sales growth at CAGR of 7% and EBITDA
5
growth at CAGR of 14%. 6. SHARE CAPITAL
The paid up equity share capital of the Company as
• Earning per Equity Share (EPS) increased to ` 21.37 (31 on 31 March 2019 was ` 2354 Lacs. There has been
March 2018 ` 18.46). no change in the Equity Share Capital of the Company
• Dividend payable by the Company on the Profits earned during the year. The Company has no other type of
in FY 2018-19 is 250% (i.e. ` 2.50 per equity share of face securities except equity shares forming part of Equity
value of ` 1 each) as compared to 230% (i.e. ` 2.30 per share capital.
equity share of face value of ` 1 each for FY 2017-18.)
7. TRANSFER OF UNCLAIMED DIVIDEND/ SHARES TO
3. DIVIDEND INVESTOR EDUCATION AND PROTECTION FUND
Based on Company’s performance in the current year,  ursuant to the provisions of Section 124 read with Section
P
the Board of Directors of the Company in their meeting 125 of the Companies Act, 2013, and Rule 6 of the Investor
held on 15 May 2019, has recommended a final dividend Education and Protection Fund Authority (Accounting,
@ 250% i.e. ` 2.50 per equity share of face value of ` 1/- Audit, Transfer and Refund) Rules, 2016, (as amended from
each for the year ended 31 March 2019. The same shall time to time) (IEPF Rules), all dividend which were unpaid
be paid subject to the approval of shareholders in the or unclaimed for seven consecutive years or more are liable
ensuing Annual General Meeting (“AGM”) of the Company. to be transferred to Investor Education and Protection
The Dividend proposed is in accordance with the dividend Fund (IEPF) Authority. Accordingly, the Company during
distribution policy of the company framed pursuant the year 2018-19 has transferred an amount aggregating
to Regulation 43A of SEBI (Listing Obligations and to ` 7,05,844 to the Investor Education and Protection
Disclosure Requirements) Regulations, 2015 (hereinafter Fund. This amount was lying unclaimed with the Company
referred to as “SEBI Listing Regulations”). The Dividend for a period of seven years after declaration of dividend for
Distribution Policy may be accessed on the company’s the financial year 2010-11.
website at the link http://www.krblrice.com/policy-
guidelines/REVISED_DIVIDEND_DISTRIBUTION_POLICY.  ursuant to the provisions of Section 124(6) of the
P
pdf The details of Dividend declared by the Company for Companies Act, 2013, read with Rule 6 of the Investor
the financial year 2018-19 as compared to financial year Education and Protection Fund Authority (Accounting,
2017-18 are as below: Audit, Transfer and Refund) Rules, 2016, (as amended

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 Annual Report 2018-19

from time to time) the Company in the previous year 12. FAMILIARIZATION PROGRAMME FOR INDEPENDENT
2017-18 has transferred 41,042 equity shares, which DIRECTORS
belongs to total 45 Shareholders whose dividend was Pursuant to Regulation 25(7) of the SEBI Listing Regulations,
not been paid or claimed for seven consecutive years the Company familiarizes its directors with their role and
or more, to the demat account of IEPF Authority. Upon responsibilities at the time of their appointment through a
the same, the Company during the year 2018-19 has formal letter of appointment. Presentations are regularly
transferred underlying dividend aggregating to ` 94,397 made at the meetings of the Board and its various
to the Investor Education and Protection Fund towards Committees on the relevant subjects. All efforts are made
final dividend of ` 2.30/- per equity share pertaining to keep Independent Directors aware. The familiarization
to 2017-18 as paid by the Company during the year programme of Independent directors may be accessed on
2018-19. the Company website at the link http://www.krblrice.com/
Familarization-Programs-for-Independent-Directors.pdf
Further, Pursuant to the provisions of Section 124(6) of
the Companies Act, 2013 read with Rule 6 of the Investor 13. 
SUBSIDIARY COMPANY AND CONSOLIDATED
Education and Protection Fund Authority (Accounting, FINANCIAL STATEMENTS
Audit, Transfer and Refund) Rules, 2016, (as amended The Company has two subsidiaries viz., KRBL DMCC,
from time to time) during the financial year 2018-19 the Dubai, UAE and K B Exports Private Limited, India and
Company has transferred 21,578 equity shares which one step down subsidiary viz. KRBL LLC, USA. There are
belongs to total 153 Shareholders whose dividend has no associate companies within the meaning of Section
not been paid or claimed for seven consecutive years or 2(6) of the Companies Act, 2013. Further, there has been
more to the demat account of IEPF Authority i.e. INVESTOR no material change in the nature of business of the
EDUCATION AND PROTECTION FUND AUTHORITY subsidiaries during the financial year 2018-19.
MINISTRY OF CORPORATE AFFAIRS, bearing DP ID
IN300708 and Client ID 10656671, being maintained with 
The Consolidated Financial Statements of the
NSDL. Before transferring the above mentioned shares, the Company for the financial year 2018-19 are prepared in
Company has published the newspaper advertisement and compliance with applicable provisions of the Companies
also sent individual letters to the shareholders concerned Act, 2013, read with the Rules issued thereunder,
who have not claimed or encashed their dividend for seven applicable Indian Accounting Standards (Ind-As) and
or more consecutive years, to claim the same. SEBI Listing Regulations. The consolidated financial
statements have been prepared by consolidating the
8. MATERIAL CHANGES AND COMMITMENTS, IF ANY, audited financial statements of the Company and
AFFECTING THE FINANCIAL POSITION OF THE its subsidiaries. Further, pursuant to the proviso of
COMPANY WHICH HAVE OCCURRED BETWEEN THE sub section (3) of section 129 of the Companies Act,
END OF THE FINANCIAL YEAR OF THE COMPANY TO 2013 read with Companies (Accounts) Rules, 2014, a
WHICH THE FINANCIAL STATEMENTS RELATE AND separate statement containing the salient features of
THE DATE OF THE REPORT the financial statements of Subsidiaries of the Company
No material changes and commitments affecting the in the prescribed form AOC-1 is attached as ‘Annexure 1’
financial position of the Company occurred between the and forms part of this report.
end of the financial year to which this financial statement
relates and till the date of this Report.
 he financial statements of the subsidiary companies
T
9. CHANGE IN THE NATURE OF BUSINESS, IF ANY and related information are also available for inspection
There is no change in the nature of business of the by the members at the Registered Office / Corporate
Company during the financial year 2018-19. Office of the Company during business hours on all
days except Sunday and holiday upto the date of AGM
10. SEGMENT REPORTING as required under Section 136 of the Companies Act,
A separate reportable segment forms part of notes to the 2013. Any member desirous of obtaining a copy of the
financial statements. said financial statements may write to the Company
Secretary at the Registered Office / Corporate Office of
11. CASH FLOW STATEMENT the Company. The financial statements including the
The Statement of cash flows for the year ended 31 March consolidated financial statements, financial statements
2019 prepared in accordance with Ind AS 7, ‘Statement of of subsidiaries and all other documents are also
Cash Flows’ is attached and forming part of the financial available on the Company’s website http://www.krblrice.
statements of the Company. com under the link Investors Relations.

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Directors’ Report

14. BOARD OF DIRECTORS Retirement by rotation and subsequent re-appointment

Pursuant to the provisions of Section 149(13) of the
Board Composition Companies Act, 2013 and Articles of Association of the
As on 31 March 2019, the Company’s Board has a strength Company all directors except Independent Directors are
of 9 (Nine) Directors including 1 (One) Woman Director. liable to retire by rotation. Accordingly, Ms. Priyanka Mittal
The Chairman of the Board is an Executive Director. The (DIN 00030479), Whole Time Director of the Company,
composition of the Board is as below: being the longest in the office amongst the directors liable
to retire by rotation, retire from the Board by rotation this
year and being eligible, has offered her candidature for
Category Number of % to Total
Directors Number of re-appointment. This shall not constitute a break in her
Directors office as the Whole Time Director of the Company.

Executive Directors 4 44 
Re-appointment of Executive Directors for a period of 5
(Including Woman Director) (five) years
Independent Non-Executive 5 56 The existing tenure of Mr. Anil Kumar Mittal (DIN: 00030100)
Directors as Chairman & Managing Director is going to expire on
02 December 2019. Considering the recommendation of
The detailed section on ‘Board of Directors’ is given in Nomination and Remuneration Committee of the Company,
the ‘Report on Corporate Governance’ forming part of the the Board of Directors of the Company in its meeting held
Annual Report. on 01 August 2019, has recommended for further approval
of shareholders to re-appoint Mr. Anil Kumar Mittal as

Re-appointment of Independent Non-Executive Directors Chairman & Managing Director of the company, for a
for a second term of 5 (five) consecutive years further period of five years w.e.f 02 December 2019 to 01
The term of office of Mr. Vinod Ahuja, Mr. Shyam Arora, Mr. December 2024. Mr. Anil Kumar Mittal will continue to hold
Ashwani Dua and Mr. Devendra Kumar Agarwal, is going to the position of chairman of the board till the appointment
expire in the ensuing AGM of the Company. The Nomination of any non- executive director as a Chairman of the
and Remuneration Committee and the Board of Directors Company in compliance with the provisions of Regulation
at their respective meetings held on 01 August 2019 has 17(1B) of the SEBI Listing Regulations.
recommended their re-appointments as Independent
Non-Executive Directors of the Company for a second term  he existing tenures of Mr. Arun Kumar Gupta (DIN:
T
of 5 (five) consecutive years, subject to the approval of the 00030127) and Mr. Anoop Kumar Gupta (DIN: 00030160)
members by way of special resolution in the ensuing AGM both Joint Managing Directors, are going to expire on 02
of the Company. December 2019. Considering the recommendation of
Nomination and Remuneration Committee of the Company,
Pursuant to the provisions of Section 149(13) of the the Board of Directors of the Company in its meeting held
Companies Act, 2013 and Articles of Association of the on 01 August 2019, has recommended for further approval
Company all directors except Independent Directors are of shareholders to re-appoint both Mr. Arun Kumar Gupta
liable to retire by rotation. The Independent Directors of and Mr. Anoop Kumar Gupta as Joint Managing Directors
the Company will hold office for 5 (Five) consecutive years of the company for a further period of five years w.e.f
from 14 September 2019 to 13 September 2024 (except 02 December 2019 to 01 December 2024.
Mr. Alok Sabharwal who will continue to hold office for 5
(Five) consecutive years w.e.f. 11 August 2016). Cessation of directorship of Mr. Ashok Chand Whole Time
Director
Declaration by Independent Directors Mr. Ashok Chand, Whole Time Director of the Company has
All Independent Directors of the Company have given resigned from directorship w.e.f. 23 July 2018. The Board
declarations that they meet the criteria of independence placed on record its appreciation for the assistance and
as laid down under Section 149(6) of the Act and guidance provided by Mr. Ashok Chand during his tenure.
Regulation 16(1)(b) of the SEBI Listing Regulations. In
the opinion of the Board, the Independent Directors, fulfil Brief Resume of the Directors being re-appointed
the criteria of independence specified in Section 149(6) As required under Regulation 36 of the SEBI Listing
of the Act and Regulation 16(1)(b) of the SEBI Listing Regulations, the brief resume of the Directors being
Regulations. The Independent Directors have also re-appointed, the nature of their expertise in specific
confirmed that they have complied with the Company’s functional areas, names of companies in which they
Code of Business Conduct & Ethics laid down for the have held Directorships, Committee Memberships/
Board of Directors, Senior Management Personnel and Chairmanships, their shareholding, etc. are forming part
Other Employees. of the Notice calling AGM of the Company.

83
 Annual Report 2018-19

 he special resolutions for the above re-appointments are

T 17. POLICY ON REMUNERATION OF DIRECTORS, KMPs,
included in the Notice calling AGM of the Company. The SENIOR MANAGEMENT PERSONNEL AND OTHER
Board recommends their re-appointment at the ensuing EMPLOYEES
AGM.  he remuneration paid to the Executive Directors is in
T
accordance with the Nomination and Remuneration Policy
15. AUDIT COMMITTEE of KRBL Limited formulated in accordance with Section
I n compliance with the provisions of Section 177 of the 134(3)(e) and Section 178(3) of the Companies Act,
Companies Act, 2013 and Regulation 18 of the SEBI Listing 2013 read with Regulation 19 of SEBI Listing Regulations
Regulations, as on 31 March 2019, the Audit Committee (including any statutory modification(s) or re-enactment(s)
of KRBL Limited comprises of following 5 (five) Members, for the time being in force). The salient aspects covered
4(four) members are Independent Non-Executive Directors in the Nomination and Remuneration Policy have been
and 1 (one) is Executive Director: outlined below:

Name Designation Category i)  o identify the persons who are qualified to become
T
Mr. Devendra Chairman Independent Non- directors and who may be appointed in senior
Kumar Agarwal Executive management in accordance with the criteria laid
Mr. Ashwani Dua Member Independent Non- down, and recommend to the board of directors their
Executive appointment and removal.
Mr. Vinod Ahuja Member Independent Non-
Executive ii) To formulate the criteria for determining qualifications,
Mr. Shyam Arora Member Independent Non- positive attributes and independence of a director
Executive and recommend to the Board a policy relating to the
remuneration of Directors, key managerial personnel
Mr. Anoop Kumar Member Executive & Joint
and other employees of KRBL Limited.
Gupta Managing Director

The recommendation made by the Audit Committee from iii)  o formulate the criteria for evaluation of Independent
T
time to time was accepted by the Board of Directors. The Director and the Board.
details of the terms of reference, meetings held during the
year, attendance of directors at such meetings etc. are iv)  o evaluate the performance of the members of
T
provided in the Report on Corporate Governance forming the Board and provide necessary report to the
part of this Annual Report. Board for further evaluation of the Board and to
determining whether to extend or continue the term
16. KEY MANAGERIAL PERSONNELS of appointment of the independent director, on the
 he details of Key Managerial Personnels (KMPs) of the
T basis of the report of performance evaluation of
Company in accordance with the provisions of Section independent directors.
2(51) and Section 203 of the Companies Act, 2013, read
with rules framed thereunder, are as follows: v) To recommend to the Board on all Remuneration
in whatever form, payable to the Directors, Key
Managerial Personnel and Senior Management.
S.No. Name of KMPs Designation
1. Mr. Anil Kumar Chairman & Managing vi) To provide to Key Managerial Personnel and Senior
Mittal Director Management reward linked directly to their effort,
2. Mr. Arun Kumar Joint Managing Director performance, dedication and achievement relating to
Gupta the Company’s operations.
3. Mr. Anoop Kumar Joint Managing Director
Gupta vii)  o retain, motivate and promote talent and to ensure
T
4. Ms. Priyanka Mittal Whole Time Director long term sustainability of talented managerial
5. Mr. Rakesh Chief Financial Officer persons and create competitive advantage.
Mehrotra
6. Mr. Raman Sapra Company Secretary viii)  o develop a succession plan for the Board and to
T
regularly review the plan.
During the year Mr. Ashok Chand, Whole Time Director of
the Company who falls under the category of KMPs has ix) To assist the Board in fulfilling responsibilities.
resigned from directorship w.e.f. 23 July 2018. Apart from
this there is no change (appointment or cessation) in the x) To implement and monitor policies and processes
office of KMPs. regarding principles of corporate governance.

84
Directors’ Report

The Nomination and Remuneration policy of KRBL Limited  he Board members had submitted to Nomination and
T
is available on the website of the company at the weblink Remuneration Committee, their response in the form
http://www.krblrice.com/policy-guidelines/nomination- of scaling from 5 (Excellent) to 1 (Performance Needs
renumeration-policy.pdf Improvement) for evaluating the entire Board, respective
Committees of which they are members and of their peer
18. NUMBER OF MEETINGS OF THE BOARD Board members, including Chairman of the Board.
During the Financial Year 2018-19, 4 (Four) meetings of the
Board of Directors were held on 10 May 2018, 24 July 2018, The Nomination and Remuneration Committee has also
29 October 2018 and 08 February 2019. For details thereof carried out evaluation of every Director’s performance.
kindly refer to the section ‘Board Meeting and Procedures
- Details of Board Meetings held and attended by the 
The Directors expressed their satisfaction with the
directors during the financial year 2018-19’ in the Report on evaluation process.
Corporate Governance forming part of this Annual Report.
It was further acknowledged that every individual Member
19. 
PERFORMANCE EVALUATION OF THE BOARD, ITS and Committee of the Board contributed its best in the
COMMITTEES AND INDIVIDUAL DIRECTORS overall growth to the organization.
 s the ultimate responsibility for sound governance and
A
prudential management of a company lies with its Board, 20. DIRECTORS’ RESPONSIBILITY STATEMENT
its imperative that the Board remains continually energized, Pursuant to the provisions under Section 134(5) of
proactive and effective. the Companies Act, 2013, with respect to Directors’
Responsibility Statement, the Directors confirm:
 he Board evaluated the effectiveness of its functioning
T
and that of the Committees and of individual directors by i) that in the preparation of the Annual Accounts for
seeking their inputs on various aspects of Board/Committee the year ended 31 March 2019, the applicable Indian
Governance. Accounting standards (Ind AS) have been followed
and that there are no material departures;
The aspects covered in the evaluation included the
contribution to and monitoring of corporate governance ii) t hat appropriate accounting policies have been
practices, participation in the long-term strategic planning selected and applied consistently and judgments and
and the fulfillment of Directors’ obligations and fiduciary estimates that are reasonable and prudent have been
responsibilities, including but not limited to, active made so as to give a true and fair view of the state of
participation at the Board and Committee meetings. affairs as at 31 March 2019 and of the profit of the
Company for the financial year ended 31 March 2019;
 he Companies Act, 2013, not only mandates board and
T
director evaluation, but also requires the evaluation to be iii) t hat proper and sufficient care has been taken for
formal, regular and transparent. Subsequently, SEBI Listing the maintenance of adequate accounting records in
Regulations has also contained the provisions regarding accordance with the provisions of the Companies
requirement of performance evaluation of independent Act, 2013 for safeguarding the assets of the Company
directors by the entire board of directors. and for preventing and detecting fraud and other
irregularities;
In accordance with the framework as recommended by the
Nomination and Remuneration Committee and approved iv) t hat the annual accounts for the year ended 31 March
by the Board of Directors, the Board of Directors of the 2019 have been prepared on a going concern basis;
Company in their Meeting held on 08 February 2019, had
carried out the performance evaluation process. v) t hat they had laid down internal financial controls to
be followed by the Company and that such internal
The Independent Directors of the Company met separately financial controls are adequate and were operating
without the presence of Non-Independent Directors and effectively; and
inter-alia reviewed the performance of the members of
Management, Non-Independent Directors, Board as a vi) t hat they had devised proper systems to ensure
whole, performance of the Chairman of the Company and compliance with the provisions of all applicable laws
the Committees, after taking into consideration the views of and that such systems were adequate and operating
Executive and Non-Executive Directors. effectively.

I n compliance with the provisions of SEBI Listing 21. 

OPERATIONS, PERFORMANCE AND FUTURE
Regulations, the Board of Directors has also carried out OUTLOOK OF THE COMPANY
evaluation of every Independent Director’s performance A detailed review of operations and performance and
during the year. future outlook of the Company is given separately under


85
 Annual Report 2018-19

the head ‘Management Discussion and Analysis’ Report AGM is also recommending for confirmation for the
pursuant to Regulation 34 read with Part B of Schedule V appointment of M/s. Walker Chandiok & Co. LLP,
of SEBI Listing Regulations, and the same is annexed and Chartered Accountants as statutory auditors of the
forms part of this Annual Report. Company to hold office till the conclusion of the 30th
AGM to be held in the year 2023.
22. 
ENERGY CONSERVATION, RESEARCH AND
DEVELOPMENT, TECHNOLOGY ABSORPTION AND  he notes on financial statement referred to in the
T
FOREIGN EXCHANGE EARNINGS AND OUTGO Auditors’ Report are self-explanatory and do not call
Pursuant to provisions of Section 134 (3) (m) of the for any further comments. The Auditors’ Report does
Companies Act, 2013 read with rules framed thereunder, not contain any qualification, reservation or adverse
the details of activities in the nature of Energy Conservation, remark.
Research and Development, Technology Absorption and
Foreign Exchange Earnings and Outgo is attached as During the year, there have been no instances of fraud
‘Annexure 2’ and forms part of this report. reported by the Statutory Auditors under Section
143(12) of Companies Act, 2013 read with rules
23. PARTICULARS OF REMUNERATION OF DIRECTORS framed thereunder, either to the Company or to the
AND KMPs Central Government.
A statement containing the details of the Remuneration of
Directors and KMPs as required under Section 197(12) of II.) COST AUDITORS
the Companies Act, 2013 read with rules framed thereunder, As per Section 148 of the Companies Act, 2013 read
is attached as ‘Annexure 3’ and forms part of this Report. with notification issued by Ministry of Corporate
Affairs regarding the Cost Audit of Power Generation
24. EXTRACT OF ANNUAL RETURN segment, the Company is required to have the audit of
Pursuant to the provisions of Section 92(3) of the Companies its cost records pertaining to power segment by a Cost
Act, 2013 read with rules framed thereunder, an extract of Accountant in Practice. In this connection, considering
the Annual Return in Form MGT-9 is attached as ‘Annexure the recommendation of Audit Committee, the Board
4’ and forms part of this Report. The same is also available of Directors has approved the re-appointment of M/s.
on the Company’s website http://www.krblrice.com under HMVN & Associates, Cost Accountants, having their
the link Investor Relations. office at, 1011, Pearls Best Heights-II, C-09, Netaji
Subhash Place, Pitampura, Delhi-110034, as Cost
25. AUDITORS AND AUDITORS’ REPORT Auditors of the Company to conduct the Cost Audit
for the financial year 2019-20.
I.) STATUTORY AUDITORS
In accordance with the provisions of Section 140
As required under the provisions of Companies Act,
of the Companies Act, 2013 read with rules framed
2013, a resolution seeking members approval for
thereunder one of our Joint Statutory Auditors i.e.
the remuneration payable to the Cost Auditors for
M/s S S A Y & Associates, Chartered Accountants,
the financial year 2019-20, forms part of the Notice
(Firm Registration No. 012493N) have resigned
convening the AGM of the Company.
from the position of Joint Statutory Auditors of the
Company w.e.f. 16 October 2018.
The Company is maintaining the requisite cost
records pertaining to power segment whose
Pursuant to the above, M/s. Walker Chandiok &
turnover for the financial year 2018-19 is ` 12,860
Co LLP, Chartered Accountants (Firm Registration
lacs (excluding inter-unit sale).
No. 001076N/N500013), having their office at 21st
Floor, DLF Square, Jacaranda Marg, DLF Phase
Further the Cost Audit Report for the financial year
II, Gurgaon-122002, the other Joint Statutory
2017-18 has filed with Ministry of Corporate Affairs.
Auditors of the Company, whose appointment was
recommended by the board of directors in their
III.) SECRETARIAL AUDITORS
meeting on 24 July 2018 and accordingly approved
As required under Section 204(1) of the Companies
by the Shareholders of the Company in the last AGM
Act, 2013 read with rules framed thereunder, the
held on 20 August 2018, is continuing to act as the
Company has appointed M/s. DMK Associates,
Statutory Auditors of the Company to hold office till
Company Secretaries, having their office at, 31/36
the conclusion of 30th AGM of the Company to be
Basement, Old Rajender Nagar, Delhi-110060, to
held in the year 2023.
conduct the Secretarial Audit for the financial year
2019-20.
Since M/s. Walker Chandiok & Co LLP is appointed
as Joint Statutory Auditors and presently acting as  he Secretarial Audit Report submitted by M/s DMK
T
statutory auditors pursuant to the resignation of M/s Associates in the prescribed form MR- 3 is attached
S S A Y & Associates, the Company in its ensuing as ‘Annexure 5’ and forms part of this Report.

86
Directors’ Report

As per the observations given by the Secretarial •  Code of conduct to regulate, monitor and report
Auditors, the explanation to the same has been given trading by insiders.
to them which forms part of the Secretarial Audit • Code of business conduct and ethics for the board of
Report. Further the justification for unspent Corporate directors, senior management personnel and other
Social Responsibility (CSR) amount is also been given employees.
in ‘Annexure 6’ under Annual Report on CSR Activities
and forms part of this Report. All the above mentioned policies and codes are available
on the Company’s website www.krblrice.com under the link
The Company is taking all necessary steps to comply Investors Relations.
with the observations given by the secretarial auditors.
27. CORPORATE SOCIAL RESPONSIBILITY (CSR)
26. CORPORATE GOVERNANCE  RBL Limited believes sustained growth of business lies
K
 t KRBL Limited, it is our firm belief that the quintessence
A on triple bottom line that is growth of people around our
of Good Corporate Governance lies in the phrase ‘Your operation, protection of environment where we operate and
Company’. It is ‘Your Company’ because it belongs to you profit from our business. We understand wellbeing of the
–the stakeholders. The Chairman and Directors are ‘Your’ community around our business which helps in growth of
fiduciaries and trustees. business and hence we value people around our operational
locations and promote inclusive growth.
 our Company has evolved and followed the corporate
Y
governance guidelines and best practices sincerely to not We endeavour to serve the society and achieve excellence.
just boost long-term shareholder value, but to also respect We continue to remain focused on improving the quality of life
minority rights. We consider it our inherent responsibility and engaging communities through ensuring environment
to disclose timely and accurate information regarding our sustainability, promoting healthcare, promoting education
financials and performance, as well as the leadership and and many more activities.
governance of the Company.
Pursuant to Section 135 of the Companies Act, 2013, read
 our Company is devoted to benchmarking itself with
Y with rules framed thereunder, the Company is having in
global standards for providing Good Corporate Governance. place the Corporate Social Responsibility (CSR) Committee
The Companies Act, 2013 and SEBI Listing Regulations under the chairmanship of Mr. Anil Kumar Mittal, Chairman
have strengthened the governance regime in the country. & Managing Director. The other members of the Committee
Your Company is in compliance with the governance are Mr. Anoop Kumar Gupta, Joint Managing Director, Ms.
requirements provided under SEBI Listing Regulations. Priyanka Mittal, Whole Time Director and Mr. Ashwani Dua,
Independent Non-Executive Director.
 he Board has also evolved and implemented a Code
T
of Conduct based on the principles of Good Corporate The Company’s policy on CSR envisages expenditure
Governance and best management practices being followed in areas falling within the purview of Schedule VII of the
globally. The Code is available on the Company’s website Companies Act, 2013. The detailed CSR policy is available
at the web link: http://www.krblrice.com/codes/Code-of- on the company’s website at the weblink: http://www.
Business-Conduct-and-Ethics.pdf A separate section titled krblrice.com/policy-guidelines/policy-corporate-social-
‘Report on Corporate Governance’ has been included in this responsibility.pdf
Annual Report along with Secretarial Auditors Certificate on
Corporate Governance. The Annual Report on CSR activities is attached as ‘Annexure
6’ and forms part of this report.
The Company has also adopted the below mentioned policies
and codes in line with corporate governance requirements: 28. BUSINESS RESPONSIBILITY REPORT (BRR)
Fulfilment of environmental, social and governance
• Policy on preservation of documents and archival. responsibilities is part of KRBL’s business culture.
• Policy on sexual harassment . KRBL Limited is fortunate to be among the top 500
• Nomination and remuneration policy. listed entities and finds itself within the ambit of SEBI
• Vigil mechanism (whistle blower policy). Listing Regulations, which mandate the inclusion of
• Corporate social responsibility policy. the Business Responsibility Report (BRR) as part of the
• Dividend distribution policy. Annual Report for the top 500 listed entities based on
• Policy for determination of materiality. market capitalization. In compliance with SEBI Listing
• Policy on related party transactions. Regulations, the BRR disclosures are integrated into the
• Policy for determining material subsidiaries. Annual report and aimed at describing KRBL’s initiatives
• Policy on board diversity. in discharging responsibilities from an environmental,
• Code of practice and procedure for fair disclosure of social and governance perspective. The BRR is attached
unpublished price sensitive information. as ‘Annexure 7’ and forms part of this report.

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 Annual Report 2018-19

29. INTERNAL FINANCIAL CONTROL SYSTEM 31. RISK MANAGEMENT

According to Section 134(5)(e) of the Companies Act, The Board of Directors of the Company has constituted
2013, the term Internal Financial Control (IFC) means a Risk Management Committee to frame, implement,
the policies and procedures adopted by the company and monitor the risk management plan for the Company
for ensuring the orderly and efficient conduct of its and ensuring its effectiveness. The purpose of this
business, including adherence to company’s policies, the committee shall be to assist the Board in fulfilling its
safeguarding of its assets, the prevention and detection corporate governance oversight responsibilities with
of frauds and errors, the accuracy and completeness of regards to the identification, evaluation and mitigation of
the accounting records, and the timely preparation of operational, strategic and external environmental risks.
reliable financial information. The committee has overall responsibility for monitoring
and approving the risk policies and associated practices
The Company has a well-placed, proper and adequate of the company. The Company is having a duly approved
internal financial control system which ensures that risk management policy.
all assets are safeguarded and protected and that the
transactions are authorized, recorded and reported 32. RATINGS
correctly.  uring the financial year 2018-19 the Company is holding
D
various ratings, which are as follows:
 he Company has appointed M/s. S S Kothari Mehta
T
& Co., Chartered Accountants, having their office at • ICRA: In August 2018, “ICRA” has reviewed and
Plot No. 68, Okhla Industrial Area, Phase-III, New reaffirmed [ICRA] AA Stable (pronounced as ICRA
Delhi-110020, as the Internal Auditor of the Company double A Stable) rating for Fund Based Working
to focus on internal audit function of the company. The Capital Limits and Term Loans Limits and [ICRA]
independence of the audit and compliance is ensured A1+ (pronounced as ICRA A One Plus) for Non-Fund
by direct reporting of internal audit team to the audit Based Facilities of KRBL Limited.
committee of the company.
• ICRA: In August 2018, “ICRA” has also reviewed and
30. 
ADEQUACY OF INTERNAL FINANCIAL CONTROLS reaffirmed [ICRA] A1+ (pronounced as ICRA A One
WITH REFERENCE TO THE FINANCIAL STATEMENTS Plus) rating for Commercial Paper (CP) programme of
 he Companies Act, 2013, re-emphasizes the need for an
T KRBL Limited.
effective Internal Financial Control System in the Company.
The system should be designed and operated effectively. • CARE: In September 2018, “CARE” has given the
Rule 8(5)(viii) of Companies (Accounts) Rules, 2014, requires [CARE] A1+ (pronounced as CARE A one plus) rating
the information regarding adequacy of Internal Financial for Commercial Paper (CP) of KRBL Limited.
Controls with reference to the financial statements to be
disclosed in the Board report. 33. DISCLOSURE ON DEPOSITS UNDER CHAPTER V
The Company has neither accepted nor renewed any
 o ensure effective Internal Financial Controls the Company
T deposits during the Financial Year 2018-19 in terms of
has laid down the following measures: Chapter V of the Companies Act, 2013. Further, the Company
is not having any Unpaid or Unclaimed Deposits at the end
• The Company’s books of accounts are maintained of the Financial Year.
in SAP and transactions are executed through SAP
(ERP) setups to ensure correctness/effectiveness of 34. PARTICULARS OF EMPLOYEE
all transactions, integrity and reliability of reporting. During the year under review, no employees, whether
employed for the whole or part of the year, was drawing
• The Company is having in place a risk management remuneration exceeding the limits as laid down under
framework. Section 197(12) of the Companies Act, 2013 read with rules
framed thereunder.
•  he Company is having in place a well-defined Vigil
T
Mechanism (Whistle Blower Policy). The particulars regarding the remuneration of directors
and KMPs as per Section 197 of the Companies Act,
•  ompliance of secretarial functions is ensured by
C 2013, (“the Act”) read with rules framed thereunder, is
way of secretarial audit. attached as “Annexure 3” forms part of the Directors’
Report. However, as per the provisions of Section 136
• Compliance relating to cost records of the company of the Act, the report and accounts are being sent to
is ensured by way of cost audit. the Members and others entitled thereto, excluding the
information on employees’ remuneration particulars.
• Compliance relating to internal control system of the The same is available for inspection by the members at
company is ensured by way of internal audit. the Registered Office/Corporate Office of the Company

88
Directors’ Report

during business hours on all days except Sunday and II. BSE Limited (BSE)
holiday upto the date of the ensuing AGM. Any member 25th Floor, Phiroze Jeejeebhoy Towers,
desirous of obtaining a copy thereof may write to the Dalal Street,
Company Secretary at the Registered Office / Corporate Mumbai-400 001
Office of the Company.
38. 
PARTICULARS OF LOAN(S), GUARANTEE(S) OR
35. 
PREVENTION OF SEXUAL HARASSMENT AT INVESTMENT(S) UNDER SECTION 186 OF THE
WORKPLACE COMPANIES ACT, 2013
 he Company is committed to provide a protective
T During the financial year ended 31 March 2019, the Company
environment at workplace for all its woman employees. has neither made any investment(s) nor given any loan(s) or
To ensure that every woman employee is treated with guarantee(s) or provided any security.
dignity and respect and as mandated under “The Sexual
Harassment of Woman at Workplace (Prevention, Prohibition 39. 
CONTRACTS OR ARRANGEMENTS WITH RELATED
and Redressal) Act, 2013”, the Company has in place a PARTIES UNDER SECTION 188(1) OF THE COMPANIES
formal policy for prevention of sexual harassment at work ACT, 2013
place and the Company has also Constituted the Internal  uring the financial year 2018-19, the Company has entered
D
Complaint Committee in compliance with the requirement into transactions with related parties. The transactions as
of the Act. The policy is available on company’s website at entered into by the company with the related parties were in
the weblink: http://www.krblrice.com/policy-guidelines/ the ordinary course of business and on arm’s length basis
SEXUAL%20HARASSMENT%20POLICY.pdf and in accordance with the provisions of the Companies Act,
2013, read with the rules framed thereunder and the SEBI
 he Company has not received any Complaints on Sexual
T Listing Regulations. Further, there were no transactions with
Harassment during the year. The Internal Complaints related parties which qualify as material transactions under
Committees of the Company has also submitted its Annual the SEBI Listing Regulations.
Report on Sexual Harassment to Mr. Anoop Kumar Gupta,
Joint Managing Director and also to Concerned District  he Audit Committee of KRBL Limited has considered,
T
officer where the Committee locates declaring that no approved and recommended to Board for Omnibus
Complaints were received during the year. Approval and criteria for omnibus approval for entering
into transactions with related parties for the financial year
36. DEPOSITORY SYSTEMS 2018-19, which was further approved by the Board. The
 he Company’s shares are compulsorily tradable in
T transactions entered pursuant to the omnibus approval so
electronic form. As on 31 March 2019, almost 99.92% of granted and statement giving details of all transactions with
the Company’s Paid-up Equity Share Capital representing related parties are placed before the Audit Committee for
23,51,94,260 Equity Shares are in dematerialized form with their review on a periodic basis.
both the depositories.
The details of the related party transactions as per Indian
 he Company has established connectivity with both
T Accounting Standard Ind AS 24 are set out in Note 40 to the
depositories viz. National Securities Depository Limited Financial Statements forming part of this report.
(NSDL) and Central Depository Services (India) Limited
(CDSL). In view of the numerous advantages offered by the  urther, Pursuant to the provisions of Section 188 of the
F
depository system, members holding Shares in physical Companies Act, 2013 read with rules framed thereunder, the
mode are requested to avail of the dematerialization facility disclosure of particulars of contracts/arrangements with
with either of the depositories. related parties in Form AOC-2 is attached as ‘Annexure 8’
and forms part of this Report.
The Company has appointed M/s. Alankit Assignments
Limited, a Category-I SEBI registered R&T Agent as its The Company has also adopted a Policy on related party
Registrar and Share Transfer Agent across physical and transactions, the same is also available on the Company’s
electronic alternative. website at the weblink http://www.krblrice.com/policy-
guidelines/Policy-on-Related-Party-Transactions.pdf
37. CHANGE IN CAPITAL STRUCTURE AND LISTING OF
SHARES 40. 
DISCLOSURE ON VIGIL MECHANISM (WHISTLE
 uring the year under review there was no change in Capital
D BLOWER POLICY)
Structure and Listing of Shares. The Company’s shares are  ursuant to the provisions of Section 177 of the Companies
P
listed and actively traded on the below mentioned Stock Act, 2013 and Regulation 22 of SEBI Listing Regulations,
Exchanges:- the Company has established a mechanism called ‘Vigil
I. National Stock Exchange of India Ltd. (NSE) Mechanism (Whistle Blower Policy)’ for directors and
“Exchange Plaza” C-1, Block G, employees to report to the appropriate authorities of
Bandra-Kurla Complex, unethical behavior, actual or suspected fraud or violation
Bandra (East), Mumbai – 400 051 of the Company’s code of conduct or ethics, policy and

89
 Annual Report 2018-19

provides safeguards against victimization of employees the employees have enabled the Company to remain at
who avail the mechanism. The policy permits all the the forefront of the Industry. It has taken various steps to
directors and employees to report their concerns directly to improve productivity across organization.
the Chairman of the Audit Committee of the Company.
 he Company is continue to receive co-operation and
T
‘The Vigil Mechanism (Whistle Blower Policy)’ as approved unstinted support from the distributors, retailers, stockiest,
by the Board, is uploaded on the Company’s website at the suppliers and others associated with the Company as its
weblink http://www.krblrice.com/policy-guidelines/Vigil- trading partners. The Directors wish to place on record their
Mechanism-(Whistle-Blower%20Policy).pdf appreciation for the same and the Company will continue its
endeavor to build and nurture strong links with trade, based
41. ENVIRONMENT, HEALTH AND SAFETY on mutuality, respect and co-operation with each other and

The Company is continues to focus on employee consistent with consumer interest.
well-being, developing safe and efficient products,
minimizing environmental impact of our operations and 45. SECRETARIAL STANDARDS
products and minimizing the impact of our operations on The Company has complied with the applicable Secretarial
society. Company is conducting its operations in such a Standards - 1 and Secretarial Standards - 2 issued by the
manner so as to ensure safety of all concerned, compliances Institute of Company Secretaries of India and approved by
of environmental regulations and preservation of natural the Central Government.
resources.
46. CODE OF CONDUCT FOR PREVENTION OF INSIDER
For safety and protection of employees, the company has TRADING
formulated and implemented a policy on preservation of In accordance with the provisions of SEBI (Prohibition of
sexual harassment at the workplace with a mechanism of Insider Trading) Regulations, 2015, KRBL Limited is having
lodging complaints. the Code of Conduct to Regulate, Monitor and Report Trading
by Insiders. The Company has also adopted and revised its
42. 
SIGNIFICANT AND MATERIAL ORDERS PASSED Code in accordance with SEBI (Prohibition of Insider Trading)
BY THE REGULATORS OR COURTS OR TRIBUNALS (Amendment) Regulations, 2018 and SEBI (Prohibition of
IMPACTING THE GOING CONCERNS STATUS AND Insider Trading) (Amendment) Regulations, 2019. The said
COMPANY’S OPERATIONS IN FUTURE Code is available on the website of the Company at the web
 o significant and material order has been passed by the
N link http://www.krblrice.com/codes/Code-of-Conduct-to-
regulators, courts, tribunals impacting the going concern Regulate,-Monitor-and-Report-Trading-by-Insiders.pdf
status and Company’s operations in future.
47. APPRECIATION
43. DISCLOSURE ON INCOME TAX DEMAND I t is our strong belief that caring for our business
 he Company has received demand notices under Section
T constituents has ensured our success in the past and will
153A/143(3) of the Income-tax Act, 1961, with respect do so in future. The Board acknowledges with gratitude the
to assessment years 2010-11 to 2016-17, amounting to co-operation and assistance provided to the company by
` 75,744 lacs and interest thereon ` 51,176 lacs. The Board of its bankers, financial institutions, and government as well
Directors of the Company in its meeting held on 08 February as Non-Government agencies. The Board wishes to place
2019 reviewed the demand and approved to challenge same on record its appreciation to the contribution made by
through the appellate process enunciated in the Income Tax employees of the company during the year under review.
Act, 1961 on the grounds of it being erroneous in facts and The Company has achieved impressive growth through
in law. the competence, hard work, solidarity, cooperation and
support of employees at all levels. Your Directors gives
The management of the Company has contested this their sincere gratitude to the customers, clients, vendors
demand at CIT (Appeals), New Delhi. Further, the Company and other business associates for their continued support
is required to pay ` 25,384 lacs under protest for contesting in the Company’s growth.
such demand. Till 31 March 2019, the Company has paid
` 7,500 lacs under protest and thereafter, required to pay  he Board also takes this opportunity to express its deep
T
monthly installments of ` 1,200 lacs as agreed with the gratitude for the continued co-operation and support
income tax department. The management, based on legal received from its valued shareholders.
assessment, is confident that it has a favourable case and
that the demand shall be deleted at the appellate stage.  For and on behalf of the Board of Directors

44. INDUSTRIAL RELATIONS


The Company has maintained healthy, cordial and  Anil Kumar Mittal
harmonious industrial relations at all levels. Despite severe Place: Noida, Uttar Pradesh  Chairman & Managing Director
competition, the enthusiasm and unstinting efforts of Date: 01 August 2019 DIN-00030100

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Directors’ Report

Annexure-1

FORM AOC-1

STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT OF SUBSIDIARIES/ASSOCIATE COMPANIES/

JOINT VENTURES
[Pursuant to first proviso to sub-section (3) of Section 129 read with Rule 5 of Companies (Accounts) Rules, 2014]

Part “A”: Subsidiaries

(` in Lacs except as stated)
S. Particulars Name of the Subsidiary
No. KRBL DMCC K B Exports Private Limited
As on As on As on As on
31 March 2019 31 March 2018 31 March 2019 31 March 2018
1. Reporting period for the subsidiary NA NA NA NA
concerned, if different from the
holding company’s reporting period
2. Reporting currency AED AED INR INR
3. Exchange rate to ` as on the last 18.889 17.718 NA NA
date of the relevant Financial year
in the case of foreign subsidiaries
4. Share Capital (` in Lacs) 217 217 300 300.00
5. Reserves & Surplus 925 860 (5) (5)
6. Total Assets 1,174 1,085 295 295
7. Total Liabilities 31 8 0.16 0.13
8. Details of investments - - - -
9. Turnover 92 59 - -
10. Profit/(Loss) before taxation (25) (164) - -
11. Provision for taxation - - - -
12. Profit/(Loss) after taxation (25) (164) - -
13. Proposed dividend - - - -
14. % of Shareholding 100% 100% 70% 70%

a) K B Exports Pvt. Ltd. has not commenced commercial activities since incorporation and currently is not operational.

b) Part B of the Annexure is not applicable as there are no associate companies/ joint ventures of the Company as on 31 March
2019.

 For and on behalf of the Board of Directors

Anil Kumar Mittal Anoop Kumar Gupta

Chairman & Joint Managing
Managing Director Director
DIN-00030100 DIN-00030160


Raman Sapra Rakesh Mehrotra
Place: Noida, Uttar Pradesh Company Secretary Chief Financial Officer
Date: 01 August 2019 M.No. F9233 M.No. 84366

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 Annual Report 2018-19

Annexure-2

Disclosure Pursuant to Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014:

A. CONSERVATION OF ENERGY to conserve energy and to provide automation for

optimum production:
(a) Energy Conservation Measures Taken:
 The Company is committed to continuously i) Installed 1 X 18.5 KW AC on pump TG cooling
reduce energy consumption at its various units. tower.
Besides sustaining previous year initiatives, new
measures were implemented during the year ii) Installed 1 X 5.5 KW AC on pump in furfural.
under report. The Company has been striving
to ensure environment friendly initiatives when iii) I nstalled 2 X 2.2 KW AC on new worm motors
implementing various projects on energy saving old sella.
at its units. List of initiatives taken in this regard
are as under: iv) Installed 2 X 11 KW AC on new dryer in old sella.

At Gautam Budh Nagar Unit of KRBL Limited: v) Installed 2 X 11 KW AC on organic and

Following are the key changes done during the year inorganic pumps mini ETP.
to conserve energy and to provide automation for
optimum production: vi) Installed 1 X 5.5 KW AC on nakku blower.

i)  C Drive installed on Compressor to operate

A vii) Installed 1 X 37 KW AC on new CWC pump
the compressor in close loop. furfural.

ii) AC Drive installed for Centrifugal Blower. viii) Installed 2 X 1.5 KW AC on printing conveyor
old 20TPH.
iii) Power Capacitors installed for improvement
of Power Factor.
ix) Installed 1 X 75 KW AC on new ID fan LP boiler.
iv) Replacement of traditional light with new LED
lights. (b) Additional Investments and proposals, if any, being
implemented for reduction of consumption of
v) Replacement of old motor with high efficient energy: Nil
IE3 motor.
(c) Impact of the measures at (a) and (b) above for
vi) Water Harvesting to conserve water reduction of energy consumption and consequent
impact on the cost of production of goods: Energy
At Dhuri Unit of KRBL Limited: conservation measures have helped the Company in
Following are the key changes done during the year its drive towards cost reduction.

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Directors’ Report

Disclosure of Particulars with Respect to Conservation of Energy: 2018-19:

(a) Power and Fuel Consumption
S. Particulars Current Year Previous Year Reason for Variation
No.
1. Electricity
(A) Purchased
Unit 1,68,30,720 66,07,156 Quantity increased due to Production
Total Amount 11,35,26,903 4,96,35,502 and unit rate has decreased due to
Rate/Unit 6.75 7.51 reduction in Demand Load Charges &
Fuel Surcharge
(B) Own Generation
(i) Through Diesel Generator (DG)
Unit 14,29,652 7,25,849 Dependency on diesel generated
Units Per ltrs. of Diesel Oil 3.69 3.41 increased due to increase in plant
capacity and production. Also Cost of
Cost/Unit 16.46 15.36 diesel per unit has increased due to
increase in price of diesel.
(ii) Through Steam Turbine
Unit 5,49,79,339 5,51,01,188 The variation in cost per unit is due to
increase in Husk rate.
Husk/Unit (in KG) 1.35 1.33
Cost/Unit 5.49 4.91
2. Coal (Specify quantity and where used)
Quantity (Tonnes) - - -
Total Cost - - -
Average Rate - - -
3. Furnace Oil
Quantity (k. ltrs.) - - -
Total Cost - - -
Average Cost - - -
4. Other/Internal Generation
Quantity - - -
Total Cost - - -
Rate/Unit - - -

(b) Total Energy Consumption and Energy Consumption per MT of Production:

Total Energy Consumption is as under:
 (In Units)
Particulars As at As at
31 March 2019 31 March 2018
Production Unit-Gautam Budh Nagar 1,84,37,966 1,71,40,179
Production Unit-Dhuri 4,53,06,423 3,62,59,760
Packaging Unit-Barota 44,54,073 38,65,235

Energy Consumption per MT of Production is as under:

 (In Units)
Particulars As at As at
31 March 2019 31 March 2018
Production Unit-Gautam Budh Nagar
Rice 145 97
Production Unit-Dhuri
Rice Bran Oil 183 195
Rice 120 115
Packaging Unit-Barota
Rice 38 37

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 Annual Report 2018-19

B. RESEARCH AND DEVELOPMENT (R & D) C. 

TECHNOLOGY ABSORPTION, ADAPTATION AND

Disclosure of Particulars with Respect to Research and INNOVATION
Development (R & D): 2018-19 
Disclosure of Particulars with Respect to Technology
Absorption, Adaptation and Innovation: 2018-19
a)  he Company continues to pursue innovation and
T
a)  fforts, in brief, made towards technology absorption,
E
applied research as means to sustain its global
adaptation and innovation:
leadership in a competitive environment. Following
are the areas in which the R&D is being carried out
 echnologies were successfully absorbed, resulting
T
by the Company in the Financial Year 2018-19:
in a desired production and in meeting the existing
and new customer requirements.
i)  evelopment, testing and specification setting
D
of packaging materials.
 echnology
T innovations were successfully
implemented to achieve the desired production and
ii)  ormulation and evaluation of Agricultural
F
reduce the consumption of raw material, energy and
inputs to enhance farm productivity, crop
utilities.
quality and for other such applications.
b) Benefits derived as a result of the above efforts,
b) Benefits derived as a result of the above R&D:
e.g., product improvement, cost reduction, product
i) Cost reduction, import substitution and
development, import substitution, etc.:
strategic resource management.
Cost reduction in manufacturing in spite of increase
ii)  uality evaluation of finished products and
Q
in inputs. Launch of New product variants in addition
raw materials.
to existing product basket.
iii) Ensuring product quality.
a) 
Imported Technology (imported during the
last three year reckoned from the beginning of
iv) Entering new market segments.
the financial year):
I)  Technology Imported (during the
c) Future plan of action:
financial year 2018-19):
 he Company’s creative & innovation team will
T
continue to work on energy efficient process like:
i)  uring the financial year 2018-
D
i) Reducing packaging weight / volume. 19, company has imported capital
goods like S5 screen, high speed
ii) Roll out of new range of differentiated products
door control panel screen, cover
of international quality.
hood welded grinding wheel
iii) Improvement of process and resource use along with other spare parts and
efficiencies. accessories from Turkey, China,
Germany and Switzerland.
iv) Enlarge the scope of Agri-inputs options.
v)  ll the efforts are being continued in the
A ii)  as
H technology been fully
directions of product/process development absorbed: Yes, Technology
as mentioned above. imported was fully absorbed.

d) Expenditure on R & D (`in Lacs) iii) I f not fully absorbed, areas where
this has not taken place, reasons
The Company has incurred the following expenditure therefore and future plans of action:
on R & D in the Financial Year 2018-19 as compared N.A.
to previous year:
2018-19 2017-18 II) 
Technology Imported (during the
financial year 2017-18):
i) Capital Nil Nil
ii) Recurring 523 480 i)  uring the Financial year 2017-
D
iii) Total 523 480 18, Company has imported Capital
iv) Total R & D 0.13% 0.14% Goods like Petkus Cleaner A 12,
expenditure as a Petkus Multi Cleaner M 12, Petkus
percentage of total Gravity Table G40 and Petkus
turnover Seed Treator CT10 with screen and
accessories from Germany.

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Directors’ Report

ii)  as
H technology been fully  he Company major income comes from rice, which
T
absorbed: Yes, Technology are sold throughout the world and company’s
imported was fully absorbed. highly professional teams of marketing personnel,
distributors, dealers and retailers continuously
iii) I f not fully absorbed, areas where steering the Company’s growth strategy in the
this has not taken place, reasons global markets. Company Brand India Gate
therefore and future plans of action: continued to command a significant premium over
N.A. most other brands in the Global industry. Company’s
other brand is also have overwhelming response in
III) 
Technology Imported (during the overseas market.
financial year 2016-17):
 he Company is certified as BRC Certification for
T
i)  uring the Financial year 2016-
D meeting the requirements of Global Standard for
17, Company has imported Capital Food Safety issued by Intertek and also meeting
Goods like Sortex Colour Sorting the requirements of the SQF 8th Edition for
Machine, Flow Controller, Gas Comprehensive Safety and Quality Management
Chromatography Paddy Separator, System issued by Intertek. The Company is also
Floor Washer, Mysilo 5.5mtr dia certified for Food Safety System Certification
Commercial Hopper, Adaptive FSSC-22000 issued by Cotecna, an internationally
Frequency Drive Kit, Sweeper set recognized certification. The Company is also
with essential parts and Metal certified by Halal Product Certification issued by
Separator from U.K., Germany, Halal Certification Service India Private Limited.
Singapore Thailand, China, Italy,
Turkey and USA. All these above mentioned certifications represent a
clear endorsement of its strong quality thrust.
ii) Has technology been fully
absorbed: Yes, Technology ii) Total foreign exchange used and earned:
imported was fully absorbed.
 he Company, on Standalone basis, expended
T
iii) I f not fully absorbed, areas where ` 8,412 Lacs (P.Y. ` 3,377 Lacs) in foreign exchange
this has not taken place, reasons while earnings in foreign exchange on mercantile
therefore and future plans of action: basis were ` 1,49,342 Lacs (P.Y.` 1,30,725 Lacs).
N.A. Thus the net inflow in foreign exchange was
` 1,40,930 Lacs (P.Y. ` 1,27,348 Lacs) during the year
D. FOREIGN EXCHANGE EARNINGS AND OUTGO under review.

Disclosure of particulars with respect to foreign exchange
initiatives taken, earnings and Outgo: 2018-19  For and on behalf of the Board of Directors

i)  ctivities relating to exports, initiatives taken

A  Anil Kumar Mittal
to increase exports, development of new export Place: Noida, Uttar Pradesh Chairman & Managing Director
markets for products, services and export plans: Date: 01 August 2019 DIN-00030100

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 Annual Report 2018-19

Annexure-3

Disclosure pursuant to Section 197(12) of the Companies Act, 2013 read with Rule 5 of Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 as amended by Companies (Appointment and Remuneration of Managerial Personnel)
Amendment Rules, 2016:

PARTICULARS OF REMUNERATION C. 
The Percentage Increase in the Median Remuneration
of Employees in the Financial Year 2018-19: There was
A. The Ratio of the Remuneration of each Director to the
increase of 7 % in the median remuneration of employees
Median Remuneration of the Employees of the Company
in the financial year 2018-19.
for the Financial Year 2018-19:
S. Nature of Directorships Held & Ratio of Median D. The Number of Permanent Employees on the rolls of
No. Name of Directors Remuneration Company: 2202
1 Executive Directors* E. Average Percentile Increase already made in the Salaries
a) Mr. Anil Kumar Mittal 60.22:1 of Employees other than the Managerial Personnel in the
b) Mr. Arun Kumar Gupta 60.22:1 last Financial Year and its Comparison with the Percentile
c) Mr. Anoop Kumar Gupta 60.22:1 Increase in the Managerial Remuneration: The average
increase in salaries of employees other than managerial
d) Ms. Priyanka Mittal 31.28:1
personnel in 2018-19 was 9%, average percentage increase
2 Non-Executive Directors**
in the managerial remuneration for the year was 8%.
a) Mr. Ashwani Dua 0.14:1
b) Mr. Devendra Kumar Agarwal 0.47:1 F. Affirmation that the remuneration is as per the remuneration
c) Mr. Shyam Arora 0.47:1 policy of the Company: The Company’s remuneration policy
d) Mr. Vinod Ahuja 0.47:1 is driven by the success and performance of the individual
e) Mr. Alok Sabharwal 0.47:1 employees and the Company. Through its compensation
package, the Company’s endeavors to attract, retain,
*  he remuneration paid to Mr. Ashok Chand as a Whole
T develop and motivate a high performance staff. Individual
Time Director of the Company was not considered performance pay is determined by business performance
while calculating the Median Remuneration since he and the performance of the individuals measured through
has resigned from the directorship w.e.f. 23 July 2018. the annual appraisal process. The Company affirms
** Non-Executive directors are being paid with the sitting that the remunerations are as per the Nomination and
fees for attending the Board Meetings. Remuneration Policy of the Company.

B. The Percentage Increase in Remuneration of each Director,

Chief Financial Officer and Company Secretary in the
Financial Year 2018-19:
S. Name of the Director % Increase in
No. remuneration
1 Mr. Anil Kumar Mittal 10%
2 Mr. Arun Kumar Gupta 10%
3. Mr. Anoop Kumar Gupta 10%
4. Mr. Ashwani Dua* Nil
5. Mr. Devendra Kumar Agarwal* Nil
6. Ms. Priyanka Mittal Nil
7. Mr. Shyam Arora* Nil
8. Mr. Vinod Ahuja* Nil
9. Mr. Alok Sabharwal* Nil
10. Mr. Rakesh Mehrotra, Chief 5%
Financial Officer
11 Mr. Raman Sapra, Company 10%
Secretary
* Non-Executive directors are being paid with the sitting
fees for attending the Board Meetings.

96
Directors’ Report

G. Employees employed throughout the financial year ended on 31 March 2019 and was in receipt of Remuneration for that
financial year, in the aggregate not less than Rupees One Crore Two Lacs only:-

Name Designation Gross Age Date Qualifications Experience Name of Nature of

Remuneration (In Commencement (In Years) Previous Employment
(in `) years) of Employment Employer
Mr. Anil Chairman & 1,08,63,600 68 30 March 1993 Arts Graduate 43 - Contractual
Kumar Managing from Delhi
Mittal Director University
Mr. Arun Joint 1,08,63,600 62 30 March 1993 Commerce 37 - Contractual
Kumar Managing Graduate from
Gupta Director Delhi University
Mr. Anoop Joint 1,08,63,600 60 30 March 1993 Science 33 - Contractual
Kumar Managing Graduate from
Gupta Director Delhi University

Notes:
1. The nature of employment in all above cases is contractual as per the rules and conditions of the Company.
2. Remuneration includes basis salary, allowances, perquisites, contribution to provident fund and other funds as per Company
Policy.

 For and on behalf of the Board of Directors

 Anil Kumar Mittal

Place: Noida, Uttar Pradesh Chairman & Managing Director
Date: 01 August 2019 DIN-00030100

97
 Annual Report 2018-19

Annexure-4

Form MGT-9
EXTRACT OF ANNUAL RETURN
FOR THE YEAR ENDED 31 MARCH 2019
[Pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12 (1) of the Companies
(Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS:

S.No. Particulars
1. CIN L01111DL1993PLC052845
2. Registration Date 30 March 1993
3. Name of the Company KRBL Limited
4. Category / Sub-Category of the Company Public Limited Company /Indian Non-Government Company
5. Address of the Registered office and contact 5190, Lahori Gate, Delhi-110006
details Tel : (011) 23968328, Fax : (011) 23968327
Email Id- investor@krblindia.com
Website : www.krblrice.com
6. Whether listed company Yes
7. Name, Address and Contact details of Registrar M/s. Alankit Assignments Limited
and Transfer Agent, if any Alankit Heights, 3E/7
Jhandewalan Extension,
New Delhi-110055
Tel: (011)-42541955,59, Fax : (011)- 42541201
Email Id: info@alankit.com
Website : www.alankit.com

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY:

Business activities of the company contributing 10% or more of the total turnover is stated as below:-

S. No. Name and Description of Main NIC Code of the Product % to Total Turnover of the Company
Products
1. Rice 10612 92%

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES: -

S. No. Name and Address of the CIN/GLN/ Holding/ Subsidiary/ % of Shares Applicable
Company License No. Associate Held Section
1. KRBL DMCC Trading License No. DMCC- Subsidiary 100% 2(87)(ii)
Unit No. AG-06-K, AG 30637
Tower, Plot No. JLT-PH1-
I1A, Jumeirah Lake
Towers, Dubai, United
Arab Emirates
2. K B Exports Private Limited CIN: Subsidiary 70% 2(87)(ii)
5190, Lahori Gate, U70200DL1998PTC096113
Delhi-110006

98
 IV. SHAREHOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i) CATEGORY-WISE SHAREHOLDING:
Category of Shareholders No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
(As on 01 April 2018) (As on 31 March 2019) during
Demat Physical Total % of Demat Physical Total % of the year
Directors’ Report

Total Total
Shares Shares
A. SHAREHOLDING PATTERN OF PROMOTER AND PROMOTER GROUP
1. INDIAN
a) Individuals/Hindu Undivided 1,57,51,000 - 1,57,51,000 6.69 1,57,51,000 - 1,57,51,000 6.69 -
Family
b) Central Government/ State - - - - - - - - -
Government(s)
c) Financial Institutions/ Banks - - - - - - - - -
d) Any Other (Trust) 12,26,88,916 - 12,26,88,916 52.12 12,26,88,916 - 12,26,88,916 52.12 -
Sub-total (A) (1): 1,38,439,916 - 1,38,439,916 58.81 1,38,439,916 - 1,38,439,916 58.81 -
2. FOREIGN
a) Individuals (Non-Residents - - - - - - - - -
Individuals/ Foreign Individuals)
b) Government - - - - - - - - -
c) Institutions - - - - - - - - -
d) Foreign Portfolio Investors - - - - - - - - -
e) Any Other (Specify) - - - - - - - - -
Sub-total (A) (2): - - - - - - - - -
TOTAL SHAREHOLDING OF PROMOTER 1,38,439,916 - 1,38,439,916 58.81 1,38,439,916 - 1,38,439,916 58.81 -
AND PROMOTER GROUP (A) = (A)(1)+(A)
(2)
B. SHAREHOLDING PATTERN OF PUBLIC SHAREHOLDERS
1. INSTITUTIONS
a) Mutual Funds 23,090 - 23,090 0.01 19,48,447 - 19,48,447 0.83 0.82
b) Venture Capital Funds - - - - - - - - -
c) Alternate Investment Funds 2,15,931 - 2,15,931 0.09 43,476 - 43,476 0.02 (0.07)
d) Foreign Venture Capital Investors - - - - - - - - -
e) Foreign Portfolio Investor 1,72,43,851 - 1,72,43,851 7.33 1,62,91,459 - 1,62,91,459 6.92 (0.41)
f) Financial Institutions / Banks 39,482 - 39,482 0.02 55,504 - 55,504 0.02 0.00
g) Insurance Companies - - - - - - - - -
h) Provident Funds/Pension Funds - - - - - - - - -
i) Any Other (Specify) - - - - - - - -
Sub-total (B)(1): 1,75,22,354 - 1,75,22,354 7.45 1,83,38,886 - 1,83,38,886 7.79 0.34

99
 Category of Shareholders No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change

100
(As on 01 April 2018) (As on 31 March 2019) during
Demat Physical Total % of Demat Physical Total % of the year
Total Total
Shares Shares
2. CENTRAL GOVERNMENT / STATE 20 - 20 - 64,94,911 - 64,94,911 2.76 2.76
GOVERNMENT(S) / PRESIDENT OF
INDIA
Sub-total (B)(2): 20 - 20 - 64,94,911 - 64,94,911 2.76 2.76
3. NON-INSTITUTIONS
a) Individuals
i) Individual shareholders holding 1,66,26,964 2,57,914 1,68,84,878 7.17 1,67,72,233 1,90,632 1,69,62,865 7.21 0.04
nominal share capital upto ` 2
lacs
ii) Individual shareholders holding 1,81,35,061 - 1,81,35,061 7.70 1,81,35,487 - 1,81,35,487 7.70 -
nominal share capital in excess
of ` 2 lacs
b) NBFC Registered with RBI 23,155 - 23,155 0.01 34,055 - 34,055 0.01 -
c) Employee Trust - - - - - - - - -
d) Overseas Depositary (Holding DRs) - - - - - - - - -
e) Any Other (Specify)
i) Bodies Corporate 22,11,099 5,000 22,16,099 0.94 21,37,738 5,000 21,42,738 0.91 (0.03)
ii) Limited Liability Partnership 9,46,383 - 9,46,383 0.40 63,822 - 63,822 0.03 (0.37)
iii) Clearing Member /Clearing House 65,83,554 - 65,83,554 2.80 1,33,873 - 1,33,873 0.06 (2.74)
iv) Foreign Nationals 89,38,330 - 89,38,330 3.80 89,38,330 - 89,38,330 3.80 -
v) Foreign Body Corporate 2,29,00,000 - 2,29,00,000 9.73 2,29,00,000 - 2,29,00,000 9.73 -
vi) Hindu Undivided Family/ 4,46,846 - 4,46,846 0.19 4,63,556 - 4,63,556 0.20 0.01
Association of Persons
vii) Trust 6,230 - 6,230 - 46,726 - 46,726 0.02 0.02
viii) Investor Education and Protection 41,042 - 41,042 0.02 62,570 - 62,570 0.03 0.01
Fund (IEPF)
ix) Non-Resident Indian-Non 7,67,815 - 7,67,815 0.33 7,11,665 - 7,11,665 0.30 (0.03)
Repatriable
x) Non-Resident Indian- Repatriable 15,38,209 - 15,38,209 0.65 15,20,492 - 15,20,492 0.65 (0.01)
Sub-total (B)(3):- 7,91,64,688 2,62,914 7,94,27,602 33.74 7,19,20,547 1,95,632 7,21,16,179 30.64 (3.10)
TOTAL PUBLIC SHAREHOLDING (B)=(B) 9,66,87,062 2,62,914 9,69,49,976 41.19 9,67,54,344 1,95,632 9,69,49,976 41.19 -
(1)+(B)(2) )+(B)(3)
C. SHAREHOLDING PATTERN OF NON PROMOTER-NON PUBLIC SHAREHOLDER
1. CUSTODIAN/DR HOLDER - - - - - - - - -
Sub-total (C)(1):- - - - - - - - - -
2. EMPLOYEE BENEFIT TRUST (Under - - - - - - - - -
SEBI (Share based Employee
Benefit), Regulations, 2014)
TOTAL NON PROMOTER-NON PUBLIC - - - - - - - - -
SHAREHOLDING (C)=(C)(1)+(C)(2)
GRAND TOTAL (A+B+C) 23,51,26,978 2,62,914 23,53,89,892 100.00 23,51,94,260 1,95,632 23,53,89,892 100.00 -
Annual Report 2018-19
 (ii) SHAREHOLDING OF PROMOTER AND PROMOTER GROUP:
S. Shareholding at the beginning of the year Shareholding at the end of the year % Change
No. (As on 01 April 2018) (As on 31 March 2019) during
No. of % of total %of Shares No. of % of total %of Shares the year
Shares Shares Pledged/ Shares Shares Pledged/
Directors’ Report

of the encumbered to of the encumbered to

company total shares company total shares
Individuals/HUF
1. Ms. Rashi Gupta 100 - - 100 - - -
2. Ms. Neha Gupta 100 - - 100 - - -
3. Ms. Priyanka Mittal 100 - - 100 - - -
4. Mr. Ayush Gupta 100 - - 100 - - -
5. Mr. Akshay Gupta 100 - - 100 - - -
6. Mr. Anil Kumar Mittal 35,99,900 1.53 - 35,99,900 1.53 - -
Karta of Mr. Anil Kumar Mittal (HUF)
7. Mr. Kunal Gupta 100 - - 100 - - -
8. Mr. Ashish Mittal 100 - - 100 - - -
9. Mr. Arun Kumar Gupta 48,49,900 2.06 - 48,49,900 2.06 - -
Karta of Mr. Arun Kumar Gupta (HUF)
10. Ms. Anulika Gupta 100 - - 100 - - -
11. Ms. Binita Gupta 100 - - 100 - - -
12. Ms. Preeti Mittal 100 - - 100 - - -
13. Mr. Anoop Kumar Gupta 72,99,900 3.10 - 72,99,900 3.10 - -
Karta of Mr. Anoop Kumar Gupta (HUF)
14. Mr. Anil Kumar Mittal 100 - - 100 - - -
15. Mr. Anoop Kumar Gupta 100 - - 100 - - -
16. Mr. Arun Kumar Gupta 100 - - 100 - - -
17. M/s. Anil Mittal Family Trust 4,25,45,864 18.07 - 4,25,45,864 18.07 - -
18. M/s. Arun Kumar Gupta Family Trust 4,12,93,714 17.54 - 4,12,93,714 17.54 - -
19. M/s. Anoop Kumar Gupta Family Trust 3,88,49,338 16.50 - 3,88,49,338 16.50 - -
Total Shareholding of Promoters 13,84,39,916 58.81 - 13,84,39,916 58.81 - -

iii) CHANGE IN PROMOTERS’ SHAREHOLDING:

Particulars Shareholding at the beginning of the year Cumulative Shareholding during the year
No. of shares % of total shares of the No. of shares % of total shares of the
company company
At the beginning of the year 13,84,39,916 58.81 13,84,39,916 58.81
Changes during the year, if any - - - -
At the End of the year 13,84,39,916 58.81 13,84,39,916 58.81

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 Annual Report 2018-19

(iv) SHAREHOLDING PATTERN OF TOP TEN SHAREHOLDERS (OTHER THAN DIRECTORS, PROMOTERS AND HOLDERS OF GDRs
AND ADRs):
S. Shareholder’s Name Shareholding at the beginning Cumulative Shareholding
No. of the year during the year
No. of % of total Shares No. of % of total Shares
Shares of the Company Shares of the company
1. Reliance Commodities
DMCC
At the beginning of the 2,29,00,000 9.73 2,29,00,000 9.73
year
Sale(-)/Purchase (+) As on No. of Shares - - - -
during the year benpos date
Nil Nil
At the end of Financial 2,29,00,000 9.73
Year
2. Mr. Anil Kumar Goel
At the beginning of the 93,41,845 3.97 93,41,845 3.97
year
Sale(-)/Purchase (+) As on No. of Shares
during the year benpos date
06.04.2018 371 93,42,216 3.97
27.04.2018 759 93,42,975 3.97
29.06.2018 1,87,025 95,30,000 4.05
06.07.2018 20,000 95,50,000 4.06
24.08.2018 341 95,50,341 4.06
21.09.2018 1,659 95,52,000 4.06
28.09.2018 38,000 95,90,000 4.07
05.10.2018 28,092 96,18,092 4.09
12.10.2018 12,908 96,31,000 4.09
19.10.2018 2,000 96,33,000 4.09
26.10.2018 51,015 96,84,015 4.11
02.11.2018 26,085 97,10,100 4.11
09.11.2018 4,900 97,15,000 4.13
30.11.2018 11,000 97,26,000 4.13
07.12.2018 898 97,26,898 4.13
14.12.2018 102 97,27,000 4.13
28.12.2018 1,000 97,28,000 4.13
08.02.2019 (2,083) 97,25,917 4.13
15.02.2019 (29,917) 96,96,000 4.12
22.02.2019 1,000 96,97,000 4.12
29.03.2019 10,000 97,07,000 4.12
At the end of Financial 97,07,000 4.12
Year
3. Joint Director of
Enforcement, Central
Region*
At the beginning of the - - - -
year
Sale(-)/Purchase (+) As on No. of Shares
during the year benpos date
14.12.2018 64,94,891 64,94,891 2.76
At the end of Financial 64,94,891 2.76
Year

102
Directors’ Report

S. Shareholder’s Name Shareholding at the beginning Cumulative Shareholding

No. of the year during the year
No. of % of total Shares No. of % of total
Shares of the Company Shares Shares of the
company
4. Kotak Mahindra
International Limited
At the beginning of the 61,99,270 2.63 61,99,270 2.63
year
Sale(-)/Purchase (+) As on No. of Shares
during the year benpos date
01.03.2019 (38,121) 61,61,149 2.62
At the end of Financial 6,16,1149 2.62
Year
5. Mr. Omar Ali Obaid
Balsaraf
At the beginning of the 42,50,000 1.81 42,50,000 1.81
year
Sale(-)/Purchase (+) As on No. of Shares
during the year benpos date
Nil Nil
At the end of Financial 42,50,000 1.81
Year
6. Mr. Som Nath Aggarwal
At the beginning of the 36,55,438 1.55 36,55,438 1.55
year
Sale(-)/Purchase (+) As on No. of Shares
during the year benpos date
Nil Nil
At the end of Financial 36,55,438 1.55
Year
7 Mr. Abdullah Ali
Balsharaf
At the beginning of the 35,88,330 1.52 35,88,330 1.52
year
Sale(-)/Purchase (+) As on No. of Shares
during the year benpos date
Nil Nil
At the end of Financial 35,88,330 1.52
Year
8. Ms. Seema Goel
At the beginning of the 27,99,000 1.19 27,99,000 1.19
year
Sale(-)/Purchase (+) As on No. of Shares
during the year benpos date
Nil Nil

At the end of Financial 27,99,000 1.19

Year

103
 Annual Report 2018-19

S. Shareholder’s Name Shareholding at the beginning Cumulative Shareholding

No. of the year during the year
No. of % of total Shares No. of % of total
Shares of the Company Shares Shares of the
company
9. Reliance Capital
Trustee Company
Limited A/c Reliance
Growth Fund
At the beginning of the - - - -
year
Sale(-)/Purchase (+) As on No. of Shares
during the year benpos date
25.05.2018 5,18,097 5,18,097 0.22
01.06.2018 1,14,538 6,32,635 0.27
15.06.2018 4,18,021 10,50,656 0.45
22.06.2018 2,70,565 13,21,221 0.56
06.07.2018 1,00,000 14,21,221 0.60
20.07.2018 99,950 15,21,171 0.65
14.09.2018 9,037 15,30,208 0.65
28.09.2018 18,523 15,48,731 0.66
05.10.2018 89,866 16,38,597 0.70
12.10.2018 1,00,918 17,39,515 0.74
26.10.2018 1,13,779 18,53,294 0.79
At the end of Financial 18,53,294 0.79
Year
10. Vanguard Emerging
Markets Stock Index
Fund, A Series of
Vanguard International
Equity Index Fund
At the beginning of the 14,74,543 0.63 14,74,543 0.63
year
Sale(-)/Purchase (+) As on No. of Shares
during the year benpos date
04.05.2018 (3,140) 14,71,403 0.63
11.05.2018 (2,983) 14,68,420 0.62
01.06.2018 (2,355) 14,66,065 0.62
22.06.2018 (7,052) 14,59,013 0.62
29.06.2018 (11,352) 14,47,661 0.61
06.07.2018 (4,644) 14,43,017 0.61
13.07.2018 (7,396) 14,35,621 0.61
01.02.2019 13,456 14,49,077 0.62
08.02.2019 26,414 14,75,491 0.63
15.02.2019 16,506 14,91,997 0.63
29.03.2019 5,313 14,97,310 0.64
At the end of Financial 14,97,310 0.64
Year

*. Not in the list of Top 10 shareholders as on 31 March 2018. The same has been reflected above since the shareholder was one of
the Top 10 shareholders as on 31 March 2019.

The above details are given as on 31 March 2019. The Company is listed and 99.92% shareholding of the Company is in dematerialized
form. Hence, it is not feasible to track movement of shares on daily basis. The aforesaid holdings by top ten shareholders are due
to market operations. Further, Company has not allotted/transferred or issued any bonus or sweat equity shares during the year.

104
Directors’ Report

(v) SHAREHOLDING OF DIRECTORS AND KEY MANAGERIAL PERSONNEL (IN INDIVIDUAL CAPACITY):
S. Shareholder’s Name Shareholding at the Change in Shareholding during Shareholding at the end
No. beginning of the year the year of the year
No. of % of total Date of Change % of total No. of % of total
Shares Shares of the and No. of Shares of the Shares Shares of the
Company Shares Company Company
Directors
1. Mr. Anil Kumar Mittal 100 0.00 - - 100 -
2. Mr. Arun Kumar Gupta 100 0.00 - - 100 -
3. Mr. Anoop Kumar Gupta 100 0.00 - - 100 -
4. Ms. Priyanka Mittal 100 0.00 - - 100 -
5. Mr. Ashok Chand* - - - - - -
6. Mr. Ashwani Dua - - - - - -
7. Mr. Devendra Kumar Agarwal - - - - - -
8. Mr. Shyam Arora - - - - - -
9. Mr. Vinod Ahuja - - - - - -
10. Mr. Alok Sabharwal - - - - - -
Key Managerial Personnel
11. Mr. Rakesh Mehrotra - - - - - -
12. Mr. Raman Sapra - - - - - -

V. INDEBTEDNESS
INDEBTEDNESS OF THE COMPANY INCLUDING INTEREST OUTSTANDING/ACCRUED BUT NOT DUE FOR PAYMENT:

 (Amount in ` Lacs)
Particulars Secured Loans Unsecured Loans Deposits Total
excluding Indebtedness
deposits
Indebtedness at the beginning of the financial year
(01 April 2018)
i) Principal Amount 1,04,655 19,871 - 1,24,525
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 164 - - 164
Total (i+ii+iii) 1,04,818 19,871 - 1,24,689
Change in Indebtedness during the financial year
Addition 73,051 20,000 - 93,051
Reduction (58,101) (15,727) - (73,828)
Exchange Difference (455) - - (455)
Net Change 14,495 4,273 - 18,769
Indebtedness at the end of the financial year (31
March 2019)
i) Principal Amount 1,18,674 24,144 - 1,42,819
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 639 - - 639
Total (i+ii+iii) 1,19,313 24,144 - 1,43,458

105
 Annual Report 2018-19

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. REMUNERATION TO MANAGING DIRECTOR AND WHOLE-TIME DIRECTORS:
 (Amount in ` Lacs)
S. Particulars of Remuneration Name of Managing Directors and Whole-time Directors Total
No. Mr. Anil Mr. Arun Mr. Anoop Mr. Ashok Ms. Priyanka Amount
Kumar Mittal Kumar Gupta Kumar Gupta Chand * Mittal
1. Gross salary
(a) Salary as per provisions 108.24 108.24 108.24 10.00 56.03 390.75
contained in section 17(1)
of the Income-tax Act,
1961
(b) Value of perquisites u/s 0.40 0.40 0.40 - 0.40 1.60
17(2) Income-tax Act, 1961
(c) Profits in lieu of salary - - - - - -
under section 17(3)
Income- tax Act, 1961
2. Stock option - - - - - -
3. Sweat Equity - - - - - -
4. Commission - - - - - -
-as % of profit
-Other, specify
5. Other, please specify - - - - - -
Total (A) 108.64 108.64 108.64 10.00 56.43 392.35
Overall Ceiling as per the Act 10% of Net profit for all Executive Directors - Managing and Whole-time Directors i.e.
` 7371 Lacs
* Resigned w.e.f. 23 July 2018.

B. REMUNERATION TO OTHER DIRECTORS:

 (Amount in `Lacs)
S. Particulars of Name of Directors Total
No. Remuneration Mr. Ashwani Mr. Devendra Mr. Alok Mr. Shyam Mr. Vinod Amount
Dua Kumar Agarwal Sabharwal Arora Ahuja
1. Independent Directors
• Fee for attending board 0.25 0.85 0.85 0.85 0.85 3.65
meetings - - - - - -
• Committee meetings - - - - - -
• Commission - - - - - -
• Others
Total(1) 0.25 0.85 0.85 0.85 0.85 3.65
2. Other Non-Executive None
Directors
• Fee for attending board
meetings N.A.
• Committee meetings
• Commission
• Others
Total (2) - - - - - -
Total (B)=(1+2) 0.25 0.85 0.85 0.85 0.85 3.65*
Overall Ceiling as per the Act 1% of Net Profits of the Company for all Non-Executive Directors i.e. ` 737 Lacs
* The Above is the sitting fees and the same is excluding GST.

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Directors’ Report

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MANAGING DIRECTOR AND WHOLE-TIME DIRECTORS:
 (Amount in ` Lacs)
S. No. Particulars of Remuneration Key Managerial Personnel
Mr. Rakesh Mehrotra, Mr. Raman Sapra, Total
CFO CS
1. Gross salary
a) Salary as per provisions contained in section 17(1) of 79 14 93
the Income-tax Act, 1961
b) Value of perquisites u/s 17(2) Income-tax Act, 1961 - - -
c) Profits in lieu of salary under section 17(3) Income-tax - - -
Act, 1961
2. Stock option - - -
3. Sweat Equity - - -
4. Commission - - -
-as % of profit - - -
-Other, specify - - -
5. Other, please specify - - -
Total (C) 79 14 93

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Section of the Brief Description Details of Penalty Authority [RD / Appeal made,
Companies Act / Punishment/ NCLT/ Court] if any (give
Compounding fees Details)
imposed
A. COMPANY
Penalty
Punishment None
Compounding
B. DIRECTORS
Penalty
Punishment None
Compounding
C. OTHER OFFICERS IN DEFAULT
Penalty
Punishment None
Compounding

 For and on behalf of the Board of Directors

 Anil Kumar Mittal

Place: Noida, Uttar Pradesh Chairman & Managing Director
Date: 01 August 2019 DIN-00030100

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 Annual Report 2018-19

Annexure-5

Form No. MR-3

SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2019
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To, Direct Investment (FDI), Overseas Direct Investment (ODI)

and External Commercial Borrowings (ECB); (No FDI,
The Members, ODI and ECB was taken by the company during the Audit
M/s. KRBL Limited Period)
5190, Lahori Gate,
Delhi -110 006 V.  he following Regulations and Guidelines prescribed under
T
the Securities and Exchange Board of India Act, 1992 (‘SEBI
We have conducted the secretarial audit of the compliance of Act’):-
applicable statutory provisions and the adherence to good
corporate practices by KRBL Limited (hereinafter called the a) The Securities and Exchange Board of India (Substantial
company). Secretarial Audit was conducted in a manner that Acquisition of Shares and Takeovers) Regulations,
provided us a reasonable basis for evaluating the corporate 2011;
conducts/statutory compliances and expressing our opinion
thereon. b)  he Securities and Exchange Board of India (Prohibition
T
of Insider Trading) Regulations, 2015;
Based on our verification of the Company’s books, papers, minute
books, forms and returns filed and other records maintained by c) The Securities and Exchange Board of India (Issue of
the company and also the information provided by the Company, Capital and Disclosure Requirements) Regulations,
its officers, agents and authorized representatives during the 2018; (Not applicable to the Company during the Audit
conduct of secretarial audit, We hereby report that in our opinion, Period);
the company has, during the audit period covering the financial
year ended on 31 March 2019 (Audit Period) complied with the d) 
The Securities and Exchange Board of India (Share
statutory provisions listed hereunder and also that the Company Based Employee Benefits) Regulations, 2014 (Not
has proper Board-processes and compliance-mechanism in applicable to the Company during the Audit Period)
place to the extent, in the manner and subject to the reporting
made hereinafter along with Annexure 1 attached to this report:-: e) 
The Securities and Exchange Board of India (Issue
and Listing of Debt Securities) Regulations, 2008; (Not
We have examined the books, papers, minute books, forms and applicable to the Company during the Audit Period) ;
returns filed and other records maintained by the Company for
the financial year ended on 31 March 2019 according to the f) The Securities and Exchange Board of India (Registrars
provisions of: to an Issue and Share Transfer Agents) Regulations,
1993 regarding the Companies Act and dealing with
I. 
The Companies Act, 2013 (the Act) and the rules made client; (Not applicable as the Company is not registered
thereunder; as Registrar to an issue and Share Transfer Agent
during the Audit Period) ;
II. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and
the rules made thereunder; g) The Securities and Exchange Board of India (Delisting of
Equity Shares) Regulations, 2009; and (Not applicable
III. T
 he Depositories Act, 1996 and the Regulations and Bye- to the Company during the Audit Period) ; and
laws framed thereunder;
h)  he Securities and Exchange Board of India (Buyback
T
IV. Foreign Exchange Management Act, 1999 and the rules of Securities) Regulations, 2018; (Not applicable to the
and regulations made thereunder to the extent of Foreign Company during the Audit Period)

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Directors’ Report

VI. 
OTHER LAWS SPECIFICALLY APPLICABLE TO THE Based on the information received and records maintained, we
COMPANY AS IDENTIFIED BY THE MANAGEMENT further report that:
1. The Board of Directors of the Company is duly constituted
1) Foods Safety & Standards Act, 2006 & Foods Safety &
with proper balance of Executive, Non-Executive, woman
Standards (Licensing & Registration of Food Business),
and Independent Directors. The changes in the composition
Regulations, 2011;
of the Board of Directors that took place during the period
under review were carried out in compliance with the
2)  he Uttar Pradesh Krishi Utpadan Mandi Adhiniyam,
T
provisions of the Act.
1964 and rules made thereunder;
2.  dequate notice of at least seven days was given to all
A
3) Legal Metrology Act, 2009 and Rules & Regulations
directors to schedule the Board Meetings along with agenda
made there under;
and detailed notes on agenda and a system exists for
seeking and obtaining further information and clarifications
4)  he Punjab Agricultural Produce Market Act, 1961 and
T
on the agenda items before the meeting and for meaningful
rules made thereunder;
participation at the meeting in compliance of the Act.
5)  lectricity Act, 2003 and the respective State
E
3.  ajority decision is carried through and recorded in the
M
Government Policy/ Guidelines for the Wind and Solar
minutes of the Meetings. Further as informed, no dissent
Power Projects.
was given by any director in respect of resolutions passed
in the board and committee meetings.
We have also examined compliance with the applicable clauses
of the following:
Based on the compliance mechanism established by the
company and on the basis of the Compliance Certificate (s)
a)  ecretarial Standards issued by The Institute of Company
S
issued by General Manager-Gautam Budh Nagar Plant Mr. Manoj
Secretaries of India;
Saxena, Chief Operating Officer-Dhuri Plant Mr. Ravinder Kumar
Sharma, Vice President-Sonepat Plant Mr. Puneet Bindlesh, Chief
b) S
 ecurities and Exchange Board of India (Listing Obligations
Financial Officer Mr. Rakesh Mehrotra and Company Secretary &
and Disclosure Requirements) Regulations, 2015.
Compliance Officer Mr. Raman Sapra of the Company and taken
on record by the Board of Directors at their meeting(s).
During the period under review the Company has complied with
the provisions of the Act, Rules, Regulations, and Guidelines to
We further report that there are adequate systems and processes
the extent applicable, Standards, etc. mentioned above subject
in the company commensurate with the size and operations of
to following:
the company to monitor and ensure compliance with applicable
laws, rules, regulations and guidelines.
a) As per provision of section 135 of the Companies Act, 2013,
the eligible amount required to be spent on Corporate Social
We further report that during the audit period the company has
Responsibility (CSR) by the Company is `1098 lacs during
not incurred any specific event / action that can have major
the financial year 2018-19, however as per information
bearing on the company’s affairs in pursuance of above referred
provided, the Company has spent `17 lacs towards CSR
laws, rules, regulations; guidelines, standards etc.
during the said financial year.
 For DMK Associates
b) I t is observed that certain statutory requirements of general
 Company Secretaries
laws applicable on the company’s units located at Alipur,
Haryana have not been complied with, however as per  (Deepak Kukreja)
information provided, it was informed that only sorting /  FCS, LL.B, ACIS(UK)
grading / packing of rice activity are done at the said unit & Place: New Delhi Partner
the unit has no production capacity. Date: 01 August 2019 FCS No. 4140, C.P. No. 8265

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 Annual Report 2018-19

APPENDIX-1 TO THE SECRETARIAL AUDIT REPORT

To,

The Members,
M/s. KRBL Limited
5190, Lahori Gate
Delhi -110006

Sub: Our Secretarial Audit for the Financial Year ended 31 March 2019 of even date is to be read along with this letter.

1. Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to express an
opinion on these secretarial records based on our Audit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness
of the contents of the secretarial records. We believe that the processes and practices, we followed provide a reasonable basis
to our opinion.

3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.

4.  here ever required, we have obtained the Management representation about the compliance of laws, rules, and regulations
W
and happening of events etc.

5. The Compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of
the management. Our examination was limited to the verification of the procedures on test basis.

6.  he Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness
T
with which the management has conducted the affairs of the Company.

7. As per the information provided by the Company, there are certain disputes / cases filed by or against the Company, which are
currently lying pending with the various Courts/authorities. Also the Company has received demand notices under section
153A/143(3) of the Income-tax Act, 1961, with respect to assessment years 2010-11 to 2016-17, amounting to ` 75,744 lacs
and interest thereon ` 51,176 lacs. Vide writ petition filed, the Company has obtained an order from Hon’ble High Court of Delhi
that no coercive action shall be taken against the Company. The management of the Company has contested this demand at
CIT (Appeals), New Delhi and the said appeal is currently lying pending.

 For DMK Associates

 Company Secretaries

 (Deepak Kukreja)
 FCS, LL.B, ACIS(UK)
Place: New Delhi Partner
Date: 01 August 2019 FCS No. 4140, C.P. No. 8265

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Directors’ Report

Annexure-6

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES

[Pursuant to Section 135 of the Companies Act, 2013 read with
Companies (Corporate Social Responsibility Policy) Rules, 2014]

1. Company’s policy on CSR — An Overview: 6. Required CSR Expenditure (Two Percent of the amount
 very organization has the right to exist in a society. With the
E as in item 5 above): ` 1098 Lacs.
right, there comes a duty to give back the society a portion
of what it receives from it. As a corporate citizen we receive 7. Reason for not spending the prescribed 2% amount:
various benefits out of society and it is our coextensive  uring the year the Company undertook various CSR
D
responsibility to pay back in return to the society. Projects and had a meetings with various CSR consultants
of the repute to have the CSR Budget of the Company fully
KRBL strongly believe that creation and maximization of utilized.
value to stakeholders is paramount, and it generates profit
in long term. The Company is committed to improving the  t KRBL we believe that we are a company built by farmers.
A
quality of life of the workforce and their families as well Since inception we remain committed to create value for
as of the local community and society at large. With the our farmer community. We continue our association with
Companies Act, 2013 mandating the Corporate to contribute farmers beyond business by assisting them with different
for social development and welfare, KRBL would fulfil this knowledge-based technical knowhow on best agricultural
mandate and supplement the government’s efforts. practices and facilitating them in sourcing quality inputs.
With the sincere believe that farming community forms
 RBL strongly believe that the Company plays a very
K the backbone of the business and in order to promote their
significant role in improving the quality of the society within education the Company has plans to set up the World Class
which it operates and the Company can flourish only if it Grain Milling and Skill Development Centre for the farming
operates in a society that is healthy, orderly, just and which community. This centre envisages working in an integrated
grants freedom and scope to individuals and their lawful manner for the farmer wellbeing. Under that Centre
enterprises. multiple interventions related to farming, employment and
entrepreneurship may be carried out. Technical training and
2. Our CSR Vision: expert sessions on different agriculture and allied sector
Endeavour to serve the society and achieve excellence. practices including water management, land levelling,
disposal management, better farming practices with the
3. Our CSR Mission: target beneficiaries may be conducted.
 trive to improve our image in the eyes of all the stakeholders
S
by ensuing wellbeing of community around our operation. In order to implement this CSR project the Company plans
to meet CSR consultants of repute to setup Grain Milling
4. Composition of the CSR Committee: and Skill Development Centre for the farmers and their
Name of Committee Designation Category families. The CSR Committee of KRBL Limited had an initial
Members discussion with LabourNet Services India Private Limited
and requested them to submit the Detailed Project Report
Mr. Anil Kumar Mittal Chairman Executive-Chairman
for this project. The company is proposing to finalize this
& Managing Director
project in the financial year 2019-20.
Mr. Ashwani Dua Member Independent Non-
Executive-Director  onsidering the overall status of CSR Projects, as on date
C
Mr. Anoop Kumar Member Executive-Joint the company has CSR Projects in hand/in process which
Gupta Managing Director inter-alia includes the Akshaya Patra kitchen project, the
Ms. Priyanka Mittal Member Executive-Whole- Rural Development Project, the project for setting up a World
Time Director Class Grain Milling and Skill Development Centre.

5. Average Net Profit of the Company for last three During the year, the Company was unable to contribute
Financial Years: ` 54891 Lacs. ` 2,00,00,000 (Rupees Two Crore Only) in the project Setting

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 Annual Report 2018-19

up Centralized Rice & Roti-Based Kitchen in Ghaziabad, Uttar activities has been less than the limits prescribed under
Pradesh due to the various hurdles faced by the Akshaya Companies Act, 2013.
Patra Foundation.
 uring the year, the CSR Committee of KRBL Limited met
D
 he Company’s CSR initiatives usually involve setting of
T three times to discuss the CSR Initiatives. For the year 2019-
various projects/programs at a medium/small scale to learn 20 the Company has identified CSR projects/programmes
from on-ground realities, getting feedback from community wherein it can deploy the CSR expenditure amount and going
and then putting an enhanced sustainable model to ensure forward the Company’s endeavour will be to spend on CSR
maximum benefit to the community. The Company believes activities in accordance with the prescribed limits.
in following a planned model for CSR activities which are
sustainable over long-term and has a direct impact on the 8. Details of CSR spent during the financial year:
life of the beneficiaries of such programs.
a) Amount spent during the year: ` 17 Lacs
 ince it took time to identify the projects that serve and
S b) Amount unspent, if any: ` 1,081 Lacs;
match the needs of the society at large, the company could c) Manner in which the amount spent during the financial
not to spend whole budgeted allocable amount towards CSR year is detailed below:
Activities due to which the expenditure incurred on the CSR

 (Amount in ` Lacs)
A. CSR PROJECTS IDENTIFIED IN THE YEAR 2018-19 AND SUCCESSFULLY COMPLETED
1 2 3 4 5 6 7 8
S. CSR Project or Sector in Location Amount Amount spent on the Cumulative Amount
No. Activity which the where outlay project or programmes expenditure spent: Direct
Project is project (budget) upto the or through
covered was project or Direct Overheads reporting implementing
undertaken programme expenditure period agency
State (Local wise
Area/
District)
1 Project for Promoting Sangrur, 0.30 0.30 - 0.30 Direct
Sponsoring Education Punjab
Scholarship for including
providing Education Special
to the Students* Education
2. Eradicating Hunger Eradicating Sangrur, 2.00 2.00 - 2.00 Direct
Hunger and Punjab
Poverty
TOTAL (A) 2.30 2.30 - 2.30

B. CSR PROJECTS IDENTIFIED IN THE YEAR 2018-19 AND IN PROCESS

1 Setting up of Eradicating Gautam 400.00 - - 200.00 Implementing
Centralized Kitchen Hunger, Buddha through
in Ghaziabad Uttar Poverty and Nagar, Uttar Akshaya Patra
Pradesh** Malnutrition Pradesh Foundation-
Non-Profit
Organisation
(NPO)
2. Village Rural Sonepat, 100.00 14.86 - 14.86 Direct
Development Development Haryana
Activity Project
TOTAL (B) 500.00 14.86 - 214.86
Total expenditure on CSR initiatives upto the reporting 502.00 17.16 - 217.16
period total (A+B)

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Directors’ Report

* This is a continuous project and will also be continued in the next year.

**KRBL in line with its CSR strategy to support social impact initiatives in the area of nutrition and education had committed support for
setting up of a centralised kitchen for mid-day meal program for school children in Ghaziabad. This project was conceived and being
executed in a PPP model. Due to various hurdles faced by the Akshaya Patra Foundation the execution of the project was delayed. This
inadvertent delay had led to non-utilization of CSR funds disbursed till date. We are hopeful of progress during 2019-20 and completing
the project at the earliest.

9. Responsibility Statement of the CSR Committee for the implementation and monitoring of CSR policy in compliance
with CSR objectives and Policy of the Company.

 he CSR Committee confirms that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and the
T
policy of the Company.

 For and on behalf of the Board of Directors

 Anil Kumar Mittal

Place: Noida, Uttar Pradesh  Chairman & Managing Director
Date: 01 August 2019 DIN-00030100

113
 Annual Report 2018-19

Annexure-7

BUSINESS RESPONSIBILITY REPORT Section A: General Information about the Company

1. Corporate Identity L01111DL1993PLC052845
INTRODUCTION
Number (CIN) of the
Company
The National Voluntary Guidelines which are a major part of
Business Responsibility Reporting were released by the Ministry 2. Name of the company KRBL Limited
of Corporate Affairs in December 2009. They were drafted together 3. Registered Address 5190, Lahori Gate, Delhi – 110006
after significant inputs from diverse stakeholders groups across 4. Website www.krblrice.com
the country were put together. Business responsibility report 5. E-mail ID investor@krblindia.com
showcases the basic requirements for businesses to function 6. Financial year reported 2018-19
responsibly, thereby ensuring inclusive, as well as wholesome
7. Sector(s) that the Agri Division- Group: 106 & Group:
economic growth.
Company is engaged 011
in (industrial activity
Enterprises are at this time and age is accountable to not just
code-wise) Group: 106
their shareholders and investors, but also to the larger society,
Rice and Other By-products
which also forms out to be an important stakeholder. Adoption
(Class: 1061, Sub-Class: 10612 -
of responsible business practices in the interest of the society
Rice Milling)
and the environment is as important as a company’s operational
Quinoa
and economic performance. This is all the more relevant for listed
(Class: 1061, Sub-Class: 10614
entities considering the fact that they have accessed funds from
- Grain milling other than wheat,
the public, have an element of public interest involved, and are
rice and dal)
obligated to make exhaustive continuous disclosures on a regular
Seed
basis.
Class: 1061, Sub-Class: 10619 -
Other grain milling and processing)
Ministry of Corporate Affairs, Government of India, in July 2011,
Glucose
came out with the ‘National Voluntary Guidelines on Social,
(Class: 1062, Sub-Class: 10623 -
Environmental and Economic Responsibilities of Business’.
Manufacture of glucose, glucose
These guidelines contain comprehensive principles to be
syrup, maltose etc.)
adopted by companies as part of their business practices and
a structured business responsibility reporting format requiring
Group: 011
certain specified disclosures, demonstrating the steps taken by
Chia Seed and Flax Seed
companies to implement the said principles. SEBI had introduced
(Class: 0111, Sub-Class: 01119-
requirements with respect to Business Responsibility Reporting
Other Oil Seeds)
as on 13 August 2012.
Energy Division- Group: 351
SEBI vide circular dated 06 February 2017, has mandated the
Solar Power Plant
requirement of submission of Business Responsibility Report
(Class: 3510, Sub-Class: 35105 -
(‘BRR’) for top 500 listed entities under Regulation 34(2)(f) of SEBI
Electric power generation using
Listing Regulations. The key principles which are required to be
solar energy)
reported by the entities pertain to areas such as environment,
Wind Power Plant
governance, stakeholder’s relationships, etc.
(Class: 3510, Sub-Class: 35106 -
Electric power generation using
Fulfilment of environmental, social and governance responsibilities
other non-conventional sources)
is part of KRBL’s business culture. KRBL Limited is fortunate to be
among the top 500 listed entities and finds itself within the ambit 8. List three key KRBL is India’s Largest Rice
of SEBI Listing Regulations, which mandate the inclusion of the products/services producer, with a 130 year old
Business Responsibility Report (BRR) as part of the Annual Report that the company heritage, having national as well
for the top 500 listed entities based on market capitalization. In manufactures/ as international presence.
compliance with SEBI Listing Regulations, the KRBL’s business provides. 1) Rice- India Gate, Unity, Nur
responsibility report describes the initiatives taken by the company Jahan
from an environmental, social and governance perspective, in the 2) Solar Power Plant
format as specified by the BRR and NVG. 3) Wind Power Plant

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Directors’ Report

9. Number of locations Agri division: Section C: Other Details

where business Manufacturing Capacities: 1. Does the company have any Subsidiary Company/
activities are Gautam Budh Nagar, Uttar Pradesh Companies?
undertaken by the Dhuri, Punjab The Company has two subsidiaries viz., KRBL DMCC, Dubai,
company. UAE and K B Exports Private Limited, India and one step
Other capacities (grading, sorting down subsidiary viz. KRBL LLC, USA.
and packaging):
Sonipat, Haryana 2. Do the Subsidiary Company/Companies participate in the
Alipur, Delhi BR Initiatives of the parent company? If yes, then indicate
the number of such subsidiary company(s)?
Energy Division: No.
Wind Division
Maharashtra (Dhule, Sangli), 3 Do any other entity / entities (e.g. Supplier, distributor etc.)
Rajasthan (Jodhpur, Jaisalmer), that the Company does business with, participate in the BR
Tamil Nadu (Tirupur, Tirunelveli), initiatives of the Company? If yes indicate the percentage of
Karnataka (Raichur & Koppal, such entities? (Less than 30%, 30 – 60% and More than 60%)
Bellary), No, however, KRBL works with all its farmers towards ensuring
Andhra Pradesh (Kaddappa, that they participate in sustainable agricultural practices-
Anantapuram), by providing them with training on the latest agricultural
Madhya Pradesh (Agar-Malwa, practices, and supplying high quality seeds to ensure less
Mandsaur), resource consumption and maximum rice production.
Gujarat (Devbhoomi Dwarka)
Section D: BR Information
Solar Division ‐ 1. Details of Director responsible for Business Responsibility
Madhya Pradesh (Rajgarh, Agar- a) Details of the Director and Business Responsibility
Malwa, Sehore) Head responsible for implementation of the Business
Responsibility policy/policies
Biomass - Dhuri, Gautam Budh • Name Mr. Anil Kumar Mittal
Nagar • DIN 00030100
• Designation Chairman & Managing Director
Corporate office-Noida-Uttar • Telephone number 0120-4060300
Pradesh • E-mail Id investor@krblindia.com

Registered Office-Lahori Gate, 2.Principle-wise (as per NVGs) BR Policy/Policies:

Delhi The National Voluntary Guidelines on Social, Environmental
10. Markets served by the KRBL has a strong distributor and Economic Responsibilities of Business (NVGs) released
company Local/State/ network spread across India. by the Ministry of Corporate Affairs has adopted nine areas
National/ International KRBL exports to 82 countries out of Business Responsibility.
of the 156 countries and leads the Principle 1: Businesses should conduct and govern
basmati rice consuming market in themselves with Ethics, Transparency and Accountability.
the branded segment. Principle 2: Businesses should provide goods and services
that are safe and contribute to sustainability throughout
Section B: Financial Details of the Company their life cycle.
1. Paid Up Equity Share Capital (`): ` 2,354 Lacs Principle 3: Businesses should promote the wellbeing of all
employees.
2. Total Turnover (`): ` 4,11,957 Lacs Principle 4: Businesses should respect the interests of, and
be responsive to the needs of all stakeholders, especially
3. Total Profit after Taxes (`): ` 50,327 Lacs those who are disadvantage vulnerable, and marginalized.
Principle 5: Businesses should respect and promote human
4. Total Spending on Corporate Social Responsibility (CSR) as rights.
percentage of Profit after Tax (%) Principle 6: Business should respect, protect, and make
 The company spent a total of `17 Lacs on CSR activities during efforts to restore the environment.
the financial year under review, representing 0.03% of average Principle 7: Businesses, when engaged in influencing public
net profit of the company in the previous three financial years. and regulatory policy, should do so in a responsible manner.
Principle 8: Businesses should support inclusive growth and
5. List of activities in which the expenditure in 4 above has been equitable development.
incurred. Principle 9: Businesses should engage with and provide
Please refer board report Section “Annual Report on Corporate value to their customers and consumers in a responsible
Social Responsibility (CSR) Activities”. manner.

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 Annual Report 2018-19

a. If answer against any principle, is ‘No’, please explain why: (Tick up to 2 options):
S. No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
1 The company has not understood the principles
2 The company is not at a stage where it finds
itself in a position to formulate and implement
the policies on specified principles
3 The company does not have financial or NA
manpower resources available for the task
4 It is planned to be done in the next 6 months
5 It is planned to be done in the next year
6 Any other reason (please specify)

3. Governance related to BR During this year, we have not received any significant complaint
a) Indicate the frequency with which the Board of related to unethical practices across all our operations.
Directors, Committee of the Board or CEO to assess
the BR performance of the Company. Within 3 months, Principle 2: Businesses should provide goods and services that
3-6 months, Annually, More than 1 year. are safe and contribute to sustainability throughout their life cycle
KRBL assesses the business performance every 6 1. List up to 3 products or services whose design has incorporated
months. social or environmental concerns, risks, and/or opportunities.
1) All rice brands- India Gate, Unity, Nur Jahan etc.
b) Does the Company publish a BR or a Sustainability 2) Solar Power Plant
Report? What is the hyperlink for viewing this report? 3) Wind Power Plant
How frequently it is published?
The Business Responsibility Report is published 2. For each product, provide the following details:
annually. The same is forming part of Directors’ Report (i) 
Reduction during sourcing/production/ distribution
in Annual Report 2018-19 and is available on company achieved since the previous year throughout the value
website http://www.krblrice.com/investorrelation.html chain?
under FY 2018-19.
Division Resources Reduction
Section E: Principle Wise Performance Rice Energy Savings 6,24,960 kwh
Carbon Reduction 5,11,367 CO2
Principle 1: Businesses should conduct and govern themselves
with Ethics, Transparency and Accountability
(ii) Reduction during usage by consumers (energy, water) has
been achieved since the previous year?
1. Does the policy relating to ethics, bribery and corruption Not Applicable.
cover only the company? Yes/ No. Does it extend to the
Group/Joint Ventures/ Suppliers/Contractors/NGOs / 3. Does the company have procedures in place for sustainable
Others? sourcing (including transportation)? If yes, what percentage of
KRBL’s policies on ethics, bribery and corruption- i.e. its code your inputs was sourced sustainably? Provide details thereof,
of conduct covers not only its employees, but also includes in about 50 words or so.
other people associated with it- contractors/suppliers. KRBL have a policy for sustainable sourcing. KRBL is mostly
KRBL’s code of conduct or “Vigil Mechanism (Whistle Blower involved in rice processing, and its major suppliers are farmers.
Policy)” constantly promotes ethical behaviour in all its KRBL ensures that farmers follow best agricultural practices to
business activities in accordance with the best international ensure reduction in resource consumption in the agricultural
governance practices through its directors, employees, phase. Through modern agricultural techniques reduction in
business associates and other stakeholders, KRBL has energy and water is achieved and utilization of materials like
established a system to report unethical behaviour, fertilizer and pesticides is also reduced. KRBL ensures that
malpractices, fraud and other incidents of misconduct. KRBL farmers maintain good soil conditions throughout agricultural
has a policy in place in which all the directors, employees processes.
and business associates have the ability to directly access
the Chairman of Audit Committee, who then work towards 4 Has the company taken any steps to procure goods
resolving the issues. KRBL is putting in a mechanism in and services from local and small producers, including
place to develop a supply chain policy to ensure that best communities surrounding their place of work? If yes, what
practices are followed throughout its supply chain. steps have been taken to improve their capacity and capability
of local and small vendors?
2. How many stakeholder complaints have been received in the
past financial year and what percentage was satisfactorily KRBL sources rice only from local farmers in the basmati rice
resolved by the management? If so, provide details thereof, growing regions around the places where it operates. In order
in about 50 words or so? to ensure that all the farmers that it works along with gain good

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Directors’ Report

quality harvest, KRBL provides them with quality seeds that  RBL has not received any complaints on any labour issues
K
are a result of extensive research and development, it provides including child labor, forced labour, involuntary labour and
them with adequate training on agricultural techniques to sexual harassment during the reporting period.
maximize produce- optimal pesticide and fertilizer usage, best
agricultural equipment to use, etc. They are also paid right 8. What percentage of the under mentioned employees were
prices for their agricultural produce. KRBL ensures that the given safety and skill up-gradation training in the last year?
farmers that it works along with are a part of its CSR activities KRBL provides training to all employees for enhancement
too, and it has put various projects into place to improve their of performance and skill development. In the year
livelihood. 2018-2019, training sessions of 7-8 hours/month were
conducted for employees. Different types of training programs
5. Does the company have mechanism to recycle products and were conducted- ISO/SQF/BRC, Personal Hygiene, Quality
waste? If yes, what is the percentage of recycling waste and Parameter, Stock rotation, fire safety, first Aid, Machine
products? operation, Regular affairs, site security, maintenance related
Yes, KRBL has a mechanism in place to recycle waste. KRBL to food safety, pest control, rice grain identification, industrial
ensures that none of its operational by-products go to waste. relation, problem solving etc.
KRBL uses the state-of-the-art processing technologies
within its divisions to ensure that a minimal amount of waste Principle 4: Businesses should respect the interests of, and be
is generated within all its facilities. The main by-products responsive to the needs of all stakeholders, especially those who
generated in KRBL’s facilities are Rice Bran and Paddy Husk. are disadvantage vulnerable, and marginalized.
Rice bran can be used to make edible oil, and paddy husk is
used in the manufacture of rice husk boards, silica gel and 1. Has the company mapped its internal and external
manufacture of furfural. Soluble rice bran is also used as cattle stakeholders? Yes/No
feed. KRBL uses the rice husk that’s generated in its facilities Yes, KRBL has mapped its internal and external stakeholders.
to produce non-conventional power, to meet along with its
power requirements. Any excess energy generated is sold to Internal Stakeholders:
the Punjab State Electricity Board. All of KRBL’s by-products • Management
are recycled. Within its energy division, the cotton waste that is • Employees
generated and the oil waste are given to recycling vendors. • Farmers

Principle 3: Businesses should promote the wellbeing of all External Stakeholders:

employees • Customers
• Partners
1. Please indicate the total number of employees • Suppliers
We have 2202 as on Employees as on 31 March 2019. • Vendors
• Retailers
2. Please indicate the total number of employees hired on • Government authorities/regulators
temporary/ contractual/casual basis. • Local communities
We have 700 Contractual Employees as on 31 March 2019.
2. Out of the above, has the company identified the disadvantaged,
3. Please indicate the number of permanent woman employees. vulnerable and marginalized stakeholders?
We have 65 permanent woman employees as on 31 March Yes
2019.
3. Are there any special initiatives taken by the company to
4. Please indicate the number of permanent employees with engage with the disadvantaged, vulnerable, and marginalized
disability. stakeholders? If so, provide details thereof, in about 50 words
Nil or so. Also, if Yes, whether any environmental compliance
report is filed?
5. Do you have an employee association that is recognized by Yes, the Company has undertaken special initiatives like funding
management? education of children studying in govt. schools, interacting
No unions within the company. with farmers to consult them on various agricultural aspects,
Rural Development projects in the form of Construction of
6. What percentage of the permanent employees are a member Roads, Construction of sewage lines, Toilet facilities etc.
of this recognized employee association?
N.A. Principle 5: Businesses should respect and promote human rights
1. Does the policy of the company on human rights cover only
7. Please indicate the Number of complaints relating to child the company or extend to the Group/Joint Ventures/Suppliers/
labour, forced labour, involuntary labour, sexual harassment Contractors/NGOs/Others?
in the last financial year and pending, as on the end of the KRBL’s human rights policy extends across all its operations.
financial year. It covers all its employees, suppliers, farmers and contractors

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 Annual Report 2018-19

associated with it. KRBL is in process of further extending its 4. Does the company have any project related to Clean
human rights policy across different stakeholder groups. Development Mechanism? If so, provide details thereof, in
about 50 words or so. Also, if Yes, whether any environmental
2. How many stakeholder complaints have been received in compliance report is filed?
the past financial year and what percent was satisfactorily Yes, KRBL has a project in relation to Clean Development
resolved by the management? Mechanism for its biomass generation facility.
We have not received any complain related to human rights
With a vision to reduce energy consumption and GHG impact,
violation during the reporting period.
KRBL implemented rice husk based cogeneration plants
in Dhuri and Ghaziabad. These cogeneration plants have
Principle 6: Business should respect, protect, and make efforts to
reduced the energy usage in Dhuri as well as Ghaziabad by
restore the environment
reducing the amount of diesel and grid electricity that would
otherwise have been consumed. The biomass powered
1. Does the policy related to Principle 6 cover only the company
plants also displace possible GHG emissions from use of DG.
or extends to the Group/Joint Ventures/Suppliers/Contractors/
Through the biomass powered plants, KRBL’s requirement of
NGOs/others.
thermal energy is being met.
The Company has Environment protection policy which
aims to ensure that environmental considerations are Baseline emissions Emissions Energy displaced
taken into account in all our operations in order to reduce (tons CO2) (tons per GWh) (GWh)
environmental footprint and protect the environment at 16,934 800 21.168
different levels. The policy extends to employees, service
partners, vendors and farmers. 5. Has the company undertaken any other initiatives on – clean
technology, energy efficiency, renewable energy, etc. Y/N. If
2. Does the company have strategies/ initiatives to address yes, please give hyperlink for web page etc.
global environmental issues such as climate change, global KRBL’s rice division has a biomass power generation unit to
warming, etc? Y/N. If yes, please give hyperlink for webpage meet along with its energy requirements, thus reducing its
etc. dependency on grid electricity and DG.
KRBL is actively involved in addressing issues in relation to
environment. In order to reduce energy consumption within  RBL is committed to continuously reduce energy consumption
K
its rice division, KRBL has undertaken various initiatives- at its various units. List of initiatives taken in this regard are
the major one being setting up a biomass energy generation mention in “Annexure 2” of Directors’ Report.
facility that uses rice husk (byproduct generated at KRBL KRBL’s energy division is completely focused on production of
facility) as fuel. solar and wind energy. Focusing on clean energy production,
KRBL is working extensively towards clean energy portfolio
 RBL is committed to continuously reduce energy
K having 146.94 MW in 2018-2019.
consumption at its various units. List of initiatives taken
in this regard are mention in “Annexure 2” of Directors’ 6. Are the Emissions/Waste generated by the company within the
Report. permissible limits given by CPCB/SPCB for the financial year
being reported?
Moreover, KRBL recycles waste water within its facilities. Yes, KRBL’s emission and generated waste are within the
permissible limits given by CPCB/SPCB.
KRBL’s energy division was started to reduce dependency on
fossil fuels, with wind and solar energy assets. Further details 7. Number of show cause/ legal notices received from CPCB/
can be viewed on the hyperlink http://www. krblrice.com/ SPCB which are pending (i.e. not resolved to satisfaction) as
ourstrengths.html on end of Financial Year.
Nil
3. Does the company identify and assess potential environmental
risks? Y/N Principle 7: Businesses, when engaged in influencing public and
Yes, KRBL has identified and assessed potential environmental regulatory policy, should do so in a responsible manner
risks in relation to its operations. The key risks are
1) Climate change risks 1. Is the company a member of any trade and chamber or
2) Water availability risks association? If Yes, Name only those major ones that the
3) Agricultural risks business deals with:
4) Raw material risk Yes, the Company has been associated with India Basmati
Farmers from last many decades. Even in the face of severe
The Company has environment protection policy which competition, KRBL continues to receive the support from its
identified the environment risks and take steps to reduce network of farmers, distributors, retailers, stockists, suppliers
negative environment impact on the business. and trading partners.

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Directors’ Report

2. Have you advocated/lobbied through above associations for 4. What is the company’s direct contribution to community
the advancement or improvement of public good? Yes/No; development projects- Amount in INR and the details of the
if yes specify the broad areas ( drop box: Governance and projects undertaken?
Administration, Economic Reforms, Inclusive Development The Company has spent ` 17 Lacs as part of its CSR initiatives.
Policies, Energy security, Water, Food Security, Sustainable Details of CSR initiatives taken by company are given in
Business Principles, Others) “Annexure 6” of Directors’ Report.
As a part of India Basmati Farmers, KRBL is associated with
various farmers with whom it works to improve basmati rice 5. Have you taken steps to ensure that this community
agricultural process at different levels, by providing them with development initiative is successfully adopted by the
high quality seeds, providing them with training to ensure that
community? Please explain in 50 words, or so.
sustainable agricultural practices are followed, that reduce
Yes, KRBL frequently monitors its initiatives and projects
resource consumption- water, energy, pesticide, fertilizers, and
to ensure that it’s successfully adopted by the community.
at the same time, increase the rice that is produced.
It also conducts regular feedback surveys to ensure the
Principle 8: Businesses should support inclusive growth and successful implementation of its projects. KRBL’s CSR
equitable development policy ensures effective implementation of various CSR
programs by monitoring them on a constant basis.
1. Does the company have specified programmes/initiatives/
projects in pursuit of the policy related to Principle 8? If yes Principle 9: Businesses should engage with and provide value to
details thereof. their customers and consumers in a responsible manner
KRBL has a CSR Committee that is responsible for the
development of the company’s CSR activities and to monitor 1. What percentage of customer complaints/consumer cases are
and review various CSR initiatives as specified under pending as on the end of financial year.
Companies Act, 2013 relative to environmental protection as No customer complaints/consumer cases are pending as on
well as community involvement and development. At KRBL, the end of financial year.
CSR projects and programs are undertaken after identifying
the communities that require development. 2. Does the company display product information on the product
label, over and above what is mandated as per local laws? Yes/
 RBL has undertaken initiatives for supporting inclusive
K No/N.A./Remarks (additional information)
growth and equitable development through its CSR activities. Yes, product information details are always displayed on the
Details of CSR initiatives taken by company are given in label over and above what is mandated as per local laws.
“Annexure 6” of Directors’ Report. Being a rice processing company, product safety is of extreme
importance to KRBL.
2. Are the programmes/projects undertaken through in-house
team/own foundation/external NGO/government structures/
3. Is there any case filed by any stakeholder against the company
any other organization?
KRBL has a dedicated in-house team which undertakes regarding unfair trade practices, irresponsible advertising
CSR activities and initiatives. Further the company is also and/or anti-competitive behavior during the last five years
doing CSR Project for setting up of Centralized Kitchen in and pending as on end of financial year. If so, provide details
Ghaziabad Uttar Pradesh through Akshaya Patra Foundation thereof, in about 50 words or so.
a Non-Profit Organisation (NPO). No

3. Have you done any impact assessment of the initiative? 4. Did the company carry out any consumer survey/ consumer
Yes, the Company assess the impact of CSR Projects and satisfaction trends?
Programs undertaken at its CSR committee meetings. No

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 Annual Report 2018-19

Annexure-8

Form No. AOC-2

(Pursuant to clause (h) of sub-section (3) of section 134 of the Companies Act, 2013 read with Rule 8(2) of the Companies
(Accounts) Rules, 2014)

Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-
section (1) of section 188 of the Companies Act, 2013 including certain arm’s length transactions under third proviso thereto

1. Details of contracts or arrangements or transactions not at arm’s length basis

–None; during the reporting period, all transactions were at arm’s length basis.
(a) Name(s) of the related party and nature of relationship: N.A.
(b) nature of contracts/ arrangements/ transactions: N.A.
(c) Duration of the contracts/ arrangements/ transactions: N.A.
(d) Salient terms of the contracts or arrangements or transactions including the value, if any: N.A.
(e) Justification for entering into such contracts or arrangements or transactions: N.A.
(f) Date(s) of approval by the Board: N.A.
(g) Amount paid as advances, if any: N.A.
(h) Date on which the special resolution was passed in general meeting as required under first proviso to section 188: N.A.

2. Details of material contracts or arrangement or transactions at arm’s length basis:

None; during the reporting period, there was no material* contract or arrangement.


(*As defined under SEBI Listing Regulations and adopted by the Board of Directors in the Policy on Related Party Transactions
of the Company, “Material Related Party Transaction” means a transaction with a related party if the transaction/ transactions
to be entered into individually or taken together with previous transactions during a Financial Year, exceeds 10% of the annual
consolidated turnover of the company as per the last audited financial statements of the company.)
(a) Name(s) of the related party and nature of relationship: N.A.
(b) Nature of contracts/ arrangements/ transactions: N.A.
(c) Duration of the contracts/ arrangements/ transactions: N.A.
(d) Salient terms of the contracts or arrangements or transactions including the value, if any: N.A.
(e) Date(s) of approval by the Board, if any: N.A.
(f) Amount paid as advances, if any: N.A.

 For and on behalf of the Board of Directors

 Anil Kumar Mittal

Place: Noida, Uttar Pradesh  Chairman & Managing Director
Date: 01 August 2019 DIN-00030100

120
Report on Corporate Governance

REPORT ON
CORPORATE
GOVERNANCE

121
 Annual Report 2018-19

REPORT ON CORPORATE GOVERNANCE

“Good governance is treating development as a mass long term financial returns in a manner consistent with
movement in order to see that fruits of development reach the applicable legal requirements and ethical considerations.
poor and the downtrodden.” The Board is responsible for identifying and taking
reasonable actions to help and assure that the Company
 Hon’ble P.M. Narendra Modi is managed in a way designed to achieve this result.

KRBL Limited (‘KRBL’ or ‘the Company’) believe that good The Company is compliant with the mandatory
corporate governance is all about ensuring that companies requirements of Securities and Exchange Board of India
are managed as efficiently as possible in the interests of the (Listing Obligations and Disclosure Requirements)
stakeholders. Efficient corporate governance requires a clear Regulations, 2015 (hereinafter referred to as the “SEBI
understanding of the respective roles and responsibilities of Listing Regulations”) formulated by the Securities and
the Board and of senior management and their relationships Exchange Board of India.
with others in the corporate structure. The relationship of the
Board and management shall be characterized by sincerity, 2. BOARD OF DIRECTORS
their relationship with employees shall be characterized by
fairness, their relationship with the communities in which A. SIZE AND COMPOSITION OF BOARD
they operate shall be characterized by good citizenship, and The present policy of KRBL regarding size and composition
their relationship with government shall be characterized by a of the Board is to have an optimum combination of
commitment to compliance. Executive and Non-Executive Directors along with
Woman Director which clearly demarcate the functions of
1. 
COMPANY’S PHILOSOPHY ON CODE OF governance and management.
GOVERNANCE
In KRBL, Corporate Governance philosophy stems from As on 31 March 2019, the Board comprises of 9 (Nine)
our belief that corporate governance is an integral element members, 5 (five) of which are Independent Non- Executive
in improving efficiency and growth as well as enhancing Directors constituting 55.56% of the Board’s strength and
investor confidence level. The Board of Directors has the remaining 4 (Four) are Executive Directors including 1
important role of overseeing management performance on (One) Woman Director. Out of 4 (Four) Executive Directors,
behalf of Stakeholders. Stakeholders necessarily have little 1 (One) is Chairman & Managing Director and 2 (Two)
voice in the day to day management of corporate operations, are Joint Managing Directors and 1 (One) is Whole Time
but have the right to elect representatives (Directors) to look Director. During the year the composition of the Board
out for their interests and to receive the information they is in conformity with Regulation 17 of the SEBI Listing
need to make investment and voting decisions. Regulations as well as the Companies Act, 2013 read with
the rules issued thereunder.
Over the last few years, the Board of Directors of your
Company has from time to time developed corporate As per Regulation 17(1)(b) of the SEBI Listing Regulations,
governance practices to enable the Directors to effectively where the listed entity does not have a regular
and efficiently discharge their responsibilities individually Non-Executive Chairperson, at least half of the Board of
and collectively to the shareholders of the Company in the Directors shall comprise of Independent Directors. The
areas of; - fiduciary duties - oversight of the Management Chairperson of KRBL Board is an executive director and
- evaluation of the Management performance-support a promoter as well. Accordingly, at least half of the Board
and guidance in shaping company policies and business of KRBL should comprise of Independent Non- Executive
strategies. Directors.

KRBL’s Corporate Governance has been a high priority Further, at present there are 5 (five) Independent Non-
both in letter as well as in spirit. The Company’s Board Executive directors on the Board of KRBL Limited which
of Directors represents the Stakeholders interest in is in compliance with the provisions of Composition of
perpetuating a successful business and optimizing Board as per SEBI Listing Regulations.

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Report on Corporate Governance

B.ROTATION/REAPPOINTMENT OF DIRECTORS All Independent Directors adhere to the criteria defined

Retirement by rotation and subsequent re-appointment under Regulation 16(1)(b) of SEBI Listing Regulations
Pursuant to the provisions of Section 149(13) of the read with the provisions of Section 152, 149 and other
Companies Act, 2013 and Articles of Association of the applicable provisions of the Companies Act, 2013.
Company all directors except Independent Directors are
liable to retire by rotation. Accordingly, Ms. Priyanka Mittal Re-appointment of Executive Directors for a period of 5
(DIN 00030479), Whole Time Director of the Company, (five) years
being the longest in the office amongst the directors liable The existing tenure of Mr. Anil Kumar Mittal (DIN:
to retire by rotation, retire from the Board by rotation this 00030100) as Chairman & Managing Director is going
year and being eligible, has offered her candidature for to expire on 02 December 2019. Considering the
re-appointment. This shall not constitute a break in her recommendation of Nomination and Remuneration
office as the Whole Time Director of the Company. Committee of the Company, the Board of Directors of
the Company in its meeting held on 01 August 2019, has
Re-appointment of Independent Non-Executive Directors recommended for further approval of shareholders to re-
for a second term of 5 (five) consecutive years appoint Mr. Anil Kumar Mittal as Chairman & Managing
The term of office of Mr. Vinod Ahuja, Mr. Shyam Arora, Director of the company, for a further period of five years
Mr. Ashwani Dua and Mr. Devendra Kumar Agarwal, w.e.f. 02 December 2019 to 01 December 2024. Mr. Anil
Independent Non-Executive Directors of the Company, Kumar Mittal will continue to hold the position of Chairman
are going to expire in the ensuing AGM of the Company. of the Board till the appointment of any non- executive
The Nomination and Remuneration Committee and the director as a Chairman of the Board in compliance with
Board of Directors at their respective meetings held on 01 the provisions of Regulation 17(1B) of the SEBI Listing
August 2019 has recommended their re-appointments as Regulations.
Independent Non-Executive Directors of the Company for
a second term of 5 (five) consecutive years, subject to the The existing tenures of Mr. Arun Kumar Gupta
approval of the members by way of special resolution in (DIN: 00030127) and Mr. Anoop Kumar Gupta (DIN:
the ensuing AGM of the Company. 00030160) both Joint Managing Directors, are going
to expire on 02 December 2019. Considering the
Pursuant to the provisions of Section 149(13) of the recommendation of Nomination and Remuneration
Companies Act, 2013 and Articles of Association of the Committee of the Company, the Board of Directors of
Company, all Directors except Independent Directors are the Company in its meeting held on 01 August 2019, has
liable to retire by rotation. The Independent Directors of recommended for further approval of shareholders to re-
the Company will hold office for 5 (Five) consecutive years appoint both Mr. Arun Kumar Gupta and Mr. Anoop Kumar
from the conclusion of ensuing AGM of the Company Gupta as Joint Managing Directors of the company for
(except Mr. Alok Sabharwal who will continue to hold office a further period of five years w.e.f. 02 December 2019 to
for 5 (Five) consecutive years w.e.f. 11 August 2016). 01 December 2024.

All Independent Directors of the Company have given All the Executive Directors of the Company are entrusted
declarations that they meet the criteria of independence with the ultimate responsibility of the management,
as laid down under Section 149(6) of the Act and general affairs, direction and performance of the
Regulation 16(1)(b) of the SEBI Listing Regulations. In the Company and have been vested with the requisite powers,
opinion of the Board, the Independent Directors, fulfil the authorities and duties.
conditions of independence specified in Section 149(6)
of the Act and Regulation 16(1)(b) of the SEBI Listing C. DIRECTORS ATTENDANCE RECORD AND THEIR OTHER
Regulations and they all independent of the management. DIRECTORSHIP(S) AND COMMITTEE MEMBERSHIP(S)
The Independent Directors have also confirmed that they As mandated by Regulation 26 of the SEBI Listing
have complied with the Company’s Code of Business Regulations, none of the Director is a member of more
Conduct & Ethics for the Board of Directors, Senior than 10 (Ten) Board level Committees or Chairman of more
Management Personnel and Other Employees. than 5 (Five) Committees across all listed companies in
which he/she is a Director. Directors’ attendance at the
All Independent Directors are drawn from amongst Board Meetings during the financial year and the last
eminent professionals with expertise in Business/ AGM and also their Directorships and Memberships in
Finance/Law/Public Enterprises and other allied field. other committees is given below:

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 Annual Report 2018-19

Composition of the Board, Attendance Record, Directorships and Committee Membership for the Financial Year 2018-19:
Brief Information about Directors Attendance record during Financial Year Directorship/Membership
2018-19 /Chairmanship as on 31 March 2019
Name of the Directors Number of Board Attendance at Number of Number of Committee
Directors Identification Meeting held and the last AGM Directorships in Positions held in all
Number attended all Companies* Companies**
(DIN) Held Attended as on 31 March as on 31 March 2019
2019 Chairman Member
Executive Directors
Mr. Anil Kumar Mittal 00030100 4 4 Yes 14 1 1
Mr. Arun Kumar 00030127 4 4 Yes 14 - -
Gupta
Mr. Anoop Kumar 00030160 4 4 Yes 14 - 2
Gupta
Mr. Ashok Chand*** 00030318 1 1 N.A. - - -
Ms. Priyanka Mittal 00030479 4 1 No 3 - 1
Independent Non-Executive Directors
Mr. Ashwani Dua 01097653 4 1 Yes 5 2 4
Mr. Devendra Kumar 06754542 4 4 No 1 1 1
Agarwal
Mr. Shyam Arora 00742924 4 4 Yes 2 - 3
Mr. Vinod Ahuja 00030390 4 4 Yes 15 - 3
Mr. Alok Sabharwal 03342276 4 4 Yes 1 - -

*This includes Directorships in all Companies, including KRBL Limited, (Listed, Unlisted Public and Private Limited Companies)
incorporated in India.
** For the purpose of considering the limit of the committees on which a directors can serve, all public limited companies, whether
listed or not, including KRBL Limited is considered. Further in addition to the Audit Committee and Stakeholders Relationship
Committee as prescribed under explanation to Regulation 26(1)(b) of the SEBI Listing Regulations, the Nomination and
Remuneration Committee and CSR Committee is also taken into consideration.
*** Mr. Ashok Chand resigned as Whole Time Director of the Company w.e.f. 23 July 2018.

D LIMIT ON THE NUMBER OF DIRECTORSHIPS does not hold position as an Independent Director in
Pursuant to the provisions of Section 165 of the more than more than 7 (Seven) Listed Companies and
Companies Act, 2013, no person shall hold the office as in case he/she is serving as a Whole Time/Managing
a director, including any directorship in more than twenty Director in any Listed Company, does not hold position
five companies at the same time, provided that the as an Independent Director in more than 3 (Three) Listed
maximum number of Public Companies in which a person Companies.
can be appointed as a director shall not exceed ten.
Accordingly, all directors are in compliance with the
In compliance with Regulation 25 of the SEBI Listing above mentioned provisions of Companies Act, 2013 and
Regulations, the Independent Directors on the Board of SEBI Listing Regulations.
the Company does not serve as an Independent Directors
in more than 7 (Seven) Listed Companies and in case E. MAXIMUM TENURE OF INDEPENDENT DIRECTORS
he/she is serving as a Whole Time Director in any Listed In accordance with the provisions of Section 149(11) of the
Company, does not hold position as an Independent Companies Act, 2013, the current tenure of Independent
Director in more than 3 (Three) Listed Companies. Directors of the Company has been fixed for a period of 5
(Five) consecutive years from the conclusion of AGM held
Also as required under Regulation 17A of the amended on 09 September 2014 (except Mr. Alok Sabharwal whose
SEBI Listing Regulations, 2015, the Board members of tenure has been fixed for a period of 5 (Five) Years commence
the Company does not serve as a director in more than from 11 August 2016) upto the conclusion of the ensuing
8 (eight) listed entities and in case he/she is serving AGM of the Company. Considering the recommendation of
as Independent Director on the Board of the Company, Nomination and Remuneration Committee and the Board of

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Report on Corporate Governance

Directors of KRBL Limited at their respective meetings on I. 

FAMILIARIZATION PROGRAMME FOR INDEPENDENT
01 August 2019 has recommended the re-appointments of DIRECTORS
Independent Non-Executive Directors of the Company for In compliance with the provisions of Regulation 25 of
a second term of 5 (five) consecutive years, subject to the the SEBI Listing Regulations, all Independent Directors
approval of the members by way of special resolution in the are familiarized about the company, through various
ensuing AGM of the Company. programs from time to time, including the following:
• Nature of the industry in which the company
F. FORMAL LETTER OF APPOINTMENT TO INDEPENDENT operates.
DIRECTORS • Business model of the Company.
a. In accordance with the provisions of SEBI Listing • Roles, rights and responsibilities of Independent
Regulations read with Schedule IV of the Companies Directors.
Act, 2013, the Company has issued formal letters of • Any other relevant information.
appointment to all the Independent Directors.
b. The terms and conditions of Appointment of The policy on the familiarization programs for Independent
Independent Directors has been disseminated Directors has been uploaded on the Company’s website
on the Company’s website at the web link http:// at the web link http://www.krblrice.com/Familarization-
w w w. k r b l r i c e . c o m / Te r m s - & - C o n d i t i o n s - o f - Programs-for-Independent-Directors.pdf
Appointment-of-Independent-Directors.pdf
J. 
BOARD MEMBERSHIP CRITERIA AND LIST OF CORE
G. 
PERFORMANCE EVALUATION OF INDEPENDENT SKILLS/EXPERTISE/ COMPETENCIES IDENTIFIED IN THE
DIRECTORS CONTEXT OF THE BUSINESS
The Nomination and Remuneration Committee, in its The Board of Directors are collectively responsible for
meeting held on 08 February 2019, has laid down the selection of a Member on the Board. The Nomination
criteria for performance evaluation of Board of the
and Remuneration Committee of the Company follows
Company, its Committees and the individual Board
defined criteria for identifying, screening, recruiting and
members, including Independent Directors.
recommending candidates for election as a Director on
the Board. The criteria for appointment to the Board
The performance evaluation of Independent Directors
include:
was done by the entire Board of Directors excluding the
• Composition of the Board, which is commensurate
directors being evaluated.
with the size of the Company, its portfolio,
geographical spread and its status as a listed
H. SEPARATE MEETING OF THE INDEPENDENT DIRECTORS
Company.
During the year, a separate Meeting of the Independent
Directors of the Company was held on 23 February 2019, • Desired age and diversity on the Board.
at M-31 A, Greater Kailash Part-II, New Delhi-110048, •  Size of the Board with optimal balance of skills
where in inter-alia following items as enumerated and experience and balance of Executive and Non-
under Schedule IV of the Companies Act, 2013, read Executive Directors consistent with the requirements
with Regulation 25 of the SEBI Listing Regulations were of law.
discussed: • Professional qualifications, expertise and experience
• Review of Performance of Non-Independent in specific area of relevance to the Company.
Directors and Board as a whole. • Balance of skills and expertise in view of the
objectives and activities of the Company.
• Review of Performance of the Chairman of the • Avoidance of any present or potential conflict of
Company after taking into consideration the views interest.
of Executive and Non-Executive Directors. • Availability of time and other commitments for
proper performance of duties.
• Assessment of the quality, quantity and timeliness •  Personal characteristics being in line with the
of flow of information between the Company, Company’s values, such as integrity, honesty,
Management and the Board that is necessary for transparency, pioneering mindset.
the Board to effectively and reasonably perform
their duties. In terms of requirement of SEBI Listing Regulations, the
Board has identified the following core skills/expertise/
Mr. Vinod Ahuja was appointed as the chairman to lead competencies of the Directors in the context of the Company’s
the meeting of the Independent Directors. business for effective functioning as given below:

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 Annual Report 2018-19

Skills and its Mr. Anil Mr. Arun Mr. Anoop Ms. Mr. Mr. Mr. Mr. Mr. Alok
description Kumar Kumar Kumar Priyanka Vinod Ashwani Shyam Devendra Sabharwal
Mittal Gupta Gupta Mittal Ahuja Dua Arora Kumar
Agarwal
Leadership experience √ √ √ √ √ √ √
of running large
enterprise*
Experience of crafting √ √ √ √ √ √ √ √
Business Strategies**
Finance and √ √ √ √
Accounting
Experience***
Experience of large √ √ √ √ √ √ √ √ √
Companies and
understanding of the
changing regulatory
landscape****

* Leadership experience of running large enterprise - Experience in leading well-governed large organisations, with an
understanding of organisational systems and processes complex business and regulatory environment, strategic planning and
risk management, understanding of emerging local and global trends and management of accountability and performance.
** Experience of crafting Business Strategies - Experience in developing long-term strategies to grow consumer / Rice business,
consistently, profitably, competitively and in a sustainable manner in diverse business environments and changing economic
conditions.
*** Finance and Accounting Experience - Leadership experience in handling financial management of a large organisation along
with an understanding of accounting and financial statements.
**** Experience of large Companies and understanding of the changing regulatory landscape - Experience of having served in
large public companies in diverse industries to provide Board oversight to all dimensions of business and Board accountability,
high governance standards with an understanding of changing regulatory framework.

K. NUMBER OF SHARES AND CONVERTIBLE INSTRUMENTS - The Board of Directors and senior management
HELD BY NON- EXECUTIVE DIRECTORS shall conduct themselves so as to meet the
Non-Executive Directors neither holds any Equity Shares expectations of operational transparency to
nor hold any convertible instruments of the company. stakeholders while at the same time maintaining
confidentiality of information in order to foster a
L. ROLES AND RESPONSIBILITIES OF THE BOARD culture of good decision-making.
The primary role of the Board is that of trusteeship
to protect and enhance shareholders value through • Key functions of the Board
strategic direction to the company. As trustee, the Board - The Board reviews and guides Corporate
of Directors has fiduciary responsibility to ensure that the Strategy, Major Plans of Action, Risk Policy,
company has clear goals aligned to shareholders value Annual Budgets and Business Plans;
and its growth. The Board exercises its duties with care, Setting Performance Objectives; Monitoring
skill and diligence and exercises independent judgment. Implementation and Corporate Performance;
The Board sets strategic goals and seeks accountability and Overseeing Major Capital Expenditures,
for their fulfillment. The Board also directs and exercises Acquisitions and Divestments.
appropriate control to ensure that the Company is
managed in a manner that fulfills stakeholders aspirations - 
Board monitors the effectiveness of the
and societal expectations. Company’s governance practices and making
changes as needed.
• Disclosure of Information
- Members of Board of Directors and key - Selects, Compensates, Monitors and when
managerial personnel shall disclose to the necessary, replaces key executives and
Board of Directors whether they, directly, overseeing succession planning.
indirectly or on behalf of third parties, have a
material interest in any transaction or matter - 
Ensures a transparent board nomination
directly affecting the company. process with the diversity of thought,

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Report on Corporate Governance

experience, knowledge, perspective and - The Board applies high ethical standards.
gender in the Board. It takes into account the interests of
stakeholders.
- Monitors and manages potential conflicts of
interest of management, board members and - The Board is able to exercise objective
shareholders, including misuse of corporate independent judgement on Corporate Affairs.
assets and abuse in related party transactions.
- Board considers assigning a sufficient
- Ensures the integrity of the Company’s number of Non-Executive Board Members
accounting and financial reporting systems, capable of exercising Independent Judgement
including the Independent Audit, and that to tasks where there is a potential for conflict
appropriate systems of control are in place, of interest.
in particular, systems for Risk Management,
Financial and Operational Control, and - The Board ensures that, while rightly
Compliance with the law and relevant encouraging positive thinking, these do not
standards. result in over-optimism that either leads
to significant risks not being recognised or
- 
Oversees the process of disclosure and exposes the company to excessive risk.
communications.
- The Board has ability to ‘Step Back’ to assist
- Monitors and reviews Board Evaluation executive management by challenging the
Framework. assumptions underlying: Strategy, Strategic
Initiatives (such as acquisitions), Risk
- Aligned key managerial personnel and Appetite, Exposures and the Key areas of the
remuneration of Board of Directors with the Company’s focus.
longer term interests of the company and its
shareholders. - Board members should be able to commit
themselves effectively to their responsibilities.
- Company has well established committees
of the Board of Directors, and their mandate, - In order to fulfil their responsibilities, board
composition and working procedures have members have access to accurate, relevant
been well defined and disclosed by the Board and timely information.
of Directors.
- The Board and Senior Management facilitate
• Other responsibilities the Independent Directors to perform their
- The Board provides the strategic guidance to role effectively as a Board member and also a
the company, ensure effective monitoring of member of a committee.
the management and should be accountable
to the company and the shareholders. • Role of Independent Directors
Independent Directors have emerged as the
- The Board sets corporate culture and the cornerstones of the worldwide Corporate
values by which executives throughout a Governance movement. Their increased presence
group will behave. in the boardroom has been hailed as an effective
deterrent to fraud and mismanagement, inefficient
- Board members acts on a fully informed basis, use of resources, inequality and unaccountability of
in good faith, with Due Diligence and Care, and decisions and as a harbinger for striking the right
in the best interest of the Company and the balance between individual, economic and social
shareholders. interests.

- The Board encourages continuing directors Independent Directors plays a key role in the
training to ensure that the Board members are decision-making process of the Board. The
kept up to date. Independent Directors are committed to act in what
they believe to be in the best interest of the Company
- 
Where Board decisions affect different and its Shareholders. The Independent Directors
shareholder groups differently, the Board are professionals, with expertise and experience in
treats all shareholders fairly. general corporate management, Public Policy, Finance,

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 Annual Report 2018-19

Financial Services and Other allied fields. This wide of all laws, rules and regulations. At the Board Meeting,
knowledge of their respective fields of expertise and members have full freedom to express their opinion and
best-in-class boardroom practices helps foster varied, decisions are taken after detailed deliberations. Members
unbiased, Independent and experienced perspective. of the senior management team are invited to attend the
The company benefits immensely from their inputs in Board Meetings as and when required, which provides
achieving its strategic direction. additional inputs to the items being discussed by the
Board.
M. INTER-SE RELATIONSHIP AMONGST DIRECTORS
Mr. Anil Kumar Mittal, Chairman & Managing Director, Mr. C. DETAILS OF BOARD MEETINGS HELD AND ATTENDED BY
Arun Kumar Gupta and Mr. Anoop Kumar Gupta, both Joint THE DIRECTORS DURING THE FINANCIAL YEAR 2018-19
Managing Directors, all three are brothers and Ms. Priyanka
Mittal, Whole Time Director is the daughter of Mr. Anil Kumar S. Date of Board Board Number of % of
Mittal, Chairman & Managing Director of the Company. No. Meetings Strength Directors attendance
Present
3. BOARD MEETINGS AND PROCEDURES 1. Thursday, 10 10 9 90.00
May 2018
A. BOARD MEETINGS
2. Tuesday, 24 9 7 78.00
Company’s Corporate Governance Policy requires the
July 2018
Board to meet at least four times in a year. The maximum
3. Monday, 29 9 8 89.00
gap between two board meetings should not be more
October 2018
than 120 (One hundred and twenty) days as prescribed
under Regulation 17 of the SEBI Listing Regulations. 4. Friday, 08 9 7 78.00
Additional board meetings may be convened to address February
the specific needs of the Company. In case of business 2019
exigencies or matters of urgency, the board may also
In terms of Regulation 17 of the SEBI Listing Regulations
approve resolution by circulation as permitted by the
the gap between any two meetings did not exceed 120
Companies Act, 2013.
(One hundred and twenty) days.
B. BOARD PROCEDURE
D. SHAREHOLDING OF DIRECTORS
Board Meetings are governed by a structured agenda. The
The Shareholding of Directors (Holding in individual
Agenda is prepared in consultation with the Chairman of
capacity) as on 31 March 2019 are given below:
the Board and all other Board Members. The agenda for
the meetings of the board together with the appropriate Name Number of Shares Held
supporting documents are circulated well in advance Mr. Anil Kumar Mittal 100
to all the Board members. Detailed presentations are Mr. Arun Kumar Gupta 100
also made to the Board covering operations, Business Mr. Anoop Kumar Gupta 100
Performance, Finance, Sales, Marketing, Global and Ms. Priyanka Mittal 100
Domestic Business Environment and related details. All
necessary information including but not limited to those The Independent Non- Executive Directors are not holding
as mentioned in Part-A Schedule II of the SEBI Listing any shares in the Company as on 31 March 2019.
Regulations are placed before the Board to enable it to
discharge its responsibility of strategic supervision of the 4. COMMITTEES OF THE BOARD
Company. The Board also reviews periodical compliances KRBL has 6 (six) Board level Committees:

COMMITTEES OF THE BOARD OF DIRECTORS

Audit Nomination Stakeholders Corporate Risk Borrowing

Committee and Relationship Social Management and
Remuneration Committee Responsibility Committee Investment
Committee Committee Committee

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Report on Corporate Governance

DETAILS OF ROLE AND COMPOSITION OF THESE COMMITTEES, The Audit Committee of KRBL has powers, which includes
INCLUDING THE NUMBER OF MEETINGS HELD DURING THE the following:
FINANCIAL YEAR AND THE RELATED ATTENDANCE ARE • To investigate any activity within its terms of
PROVIDED BELOW: reference.
• To seek information from any employee.
A. AUDIT COMMITTEE • To obtain outside legal or other professional advice.
I. Composition of the Committee •  To secure attendance of outsiders with relevant
As on 31 March 2019, the Audit Committee of KRBL expertise, if it considers necessary.
comprises of following members: • The Audit Committee may call for the comments
Name Designation Category of the auditors about internal control systems,
the scope of audit, including the observations of
Mr. Devendra Kumar Chairman Independent Non-
the auditors and review of financial statement
Agarwal Executive
before their submission to the Board and may also
Mr. Ashwani Dua Member Independent Non-
discuss any related issues with the internal and
Executive
statutory auditors and the management of the
Mr. Vinod Ahuja Member Independent Non- company.
Executive • The Audit Committee shall have authority to
Mr. Shyam Arora Member Independent Non- investigate into any matter in relation to the items
Executive specified above or referred to it by the Board and for
Mr. Anoop Kumar Member Executive & Joint this purpose shall have power to obtain professional
Gupta* Managing Director advice from external sources and have full access
* Appointed w.e.f. 24 July 2018. to information contained in the records of the
company.

All the members of the Committee have good knowledge The Role of the Audit Committee of KRBL Limited includes
of Finance, Accounts and Business Management. the following:
The Chairman of the Committee, Mr. Devendra Kumar • The recommendation for appointment, remuneration
Agarwal, has considerable accounting and related and terms of appointment of auditors of the
Financial Expertise. The Statutory Auditors, the Internal company.
Auditors and the Cost Auditors of the Company attend • Review and monitor the auditor’s independence and
the meetings of the Committee on the invitation of the performance, and effectiveness of audit process.
Chairman. • Examination of the financial statement and the
auditors’ report thereon.
The composition of the Audit Committee is in compliance • Approval or any subsequent modification of
with the requirements of Section 177 of the Companies transactions of the company with related parties.
Act, 2013, read with Regulation 18 of SEBI Listing • Scrutiny of Inter-Corporate Loans and
Regulations. Investments.
• Valuation of undertakings or assets of the Company,
The primary objective of the Audit Committee is to monitor wherever it is necessary.
and provide an effective supervision of the Management’s • Evaluation of Internal Financial Controls and Risk
financial reporting process, to ensure accurate and timely Management Systems.
disclosures, with the highest levels of transparency, • Monitoring the end use of funds raised through
integrity and quality of financial reporting. public offer and related matters.
• Oversight of the Company’s Financial Reporting
The audit committee oversees the work carried out in Process and the disclosure of its Financial
the financial reporting process by the management, the Information to ensure that the financial statement is
internal auditors and the independent auditors notes the correct, sufficient and credible.
process and safeguards employed by each of them. • Recommending to the Board, the appointment,
re-appointment and if required, the replacement or
Mr. Raman Sapra, Company Secretary, acts as Secretary removal of the Statutory Auditors and the fixation
to the Audit Committee. of audit fees.
• Approval of payment to Statutory Auditors for any
II. Terms of Reference other services rendered by the Statutory Auditors.
The roles, powers and functions of the Audit Committee • Reviewing, with the management, the Annual
of KRBL Limited are in accordance with the provisions Financial Statements before submission to the
of Section 177 of the Companies Act, 2013, read with board for approval, with particular reference to:
Regulation 18 and PART-C of Schedule II of the SEBI - Matters required being included in the
Listing Regulations. Directors’ Responsibility Statement to be

129
 Annual Report 2018-19

included in the Board’s Report in terms of Shareholders (in case of Non-payment of declared
Section 134 (5) of the Companies Act, 2013. dividends) and creditors.
- Changes, if any, in accounting policies and • To review the functioning of the Vigil Mechanism/
practices and reasons for the same. Whistle Blower, in case the same is existing.
- Major accounting entries involving estimates • Approval of appointment of CFO (i.e., the
based on the exercise of judgment by whole-time Finance Director or any other person
management. heading the finance function or discharging
- Significant adjustments made in the Financial that function) after assessing the qualifications,
Statements arising out of Audit Findings. experience and background, etc. of the candidate.
- Compliance with Listing and Other Legal • Carrying out any other function as is mentioned in
requirements relating to Financial Statements. the Terms of Reference of the Audit Committee.
- Disclosure of any Related Party Transactions. • Reviewing the utilization of loans and/ or advances
- Qualifications in the draft Audit Report. from/investment by the holding company in the
• Reviewing, with the management, the quarterly subsidiary in case if exceeds ` 100 Crore or 10%
financial statements before submission to the board of the asset size of the subsidiary, whichever is
for approval. lower.
• Reviewing, with the management, the statement of
uses/ application of funds raised through an issue The Audit Committee of KRBL Limited reviews the
(public issue, rights issue, preferential issue, etc.), following information:
the statement of funds utilized for purposes other • Management discussion and analysis of financial
than those stated in the offer document/prospectus/ condition and result of operation;
notice and the report submitted by the monitoring • Statement of significant related party transaction
agency monitoring the utilization of proceeds of (as defined by the audit committee) submitted by
a public or rights issue, and making appropriate management;
recommendations to the Board to take up steps in • Management letter/letter of internal control
this matter. weaknesses issued by the statutory auditor;
• Reviewing, with the management, performance of •  Internal audit reports relating to internal control
statutory and Internal Auditors, adequacy of the weakness; and
Internal Control Systems. • The appointment, removal and term of remuneration
• Approval or any subsequent modification of of the internal auditor shall be subject to review by
transactions of the listed entity with related parties; audit committee.
• Valuation of undertakings or assets of the listed
entity, wherever it is necessary; III. Meetings and Attendance
• Evaluation of internal financial controls and risk During the financial year 2018-19, 4 (four) meetings of
management systems; Audit Committee were held. Details of Audit Committee
• Reviewing the adequacy of Internal Audit function, Meetings held and attended by members during the
if any, including the structure of the Internal Audit financial year 2018-19 are as follows:
department, staffing and seniority of the official
heading the department, reporting structure S. Date of Committee Number of % of
coverage and frequency of Internal Audit. No. Committee Strength Members attendance
• Discussion with Internal Auditors any significant Meetings Present
findings and follow up there on. 1. Thursday, 4 3 75.00
• Reviewing the findings of any Internal Investigations 10 May
by the Internal Auditors into matters where there is 2018
suspected fraud or irregularity or a failure of Internal 2. Tuesday, 24 5 4 80.00
Control Systems of a material nature and reporting July 2018
the matter to the board.
3. Monday, 5 5 100.00
• Discussion with Statutory Auditors before the audit
29 October
commences, about the nature and scope of audit as
2018
well as post-audit discussion to ascertain any area
of concern. 4. Friday, 08 5 4 80.00
• To look into the reasons for substantial defaults in February
the payment to the Depositors, Debenture Holders, 2019

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Report on Corporate Governance

The attendance details of the Audit Committee members 

The Role of the Nomination and Remuneration Committee
are as follows: of KRBL includes the following:
S. Name Position Meetings Meetings % of • Formulate the criteria for determining qualifications,
No. held Held attended attendance positive attributes and independence of a director
1. Mr. Chairman 4 4 100.00 and recommend to the Board a policy, relating to
Devendra the remuneration for the directors, key managerial
Kumar personnel, Senior Management Personnel and other
Agarwal employees of KRBL;
2. Mr. Member 4 1 25.00 • Formulate the criteria for evaluation of performance
Ashwani of Independent Directors and the Board of Directors;
Dua • Devising a policy on diversity of Board of Directors;
3. Mr. Member 4 4 100.00 • Identify persons who are qualified to become
Shyam directors and who may be appointed in senior
Arora management in accordance with the criteria laid
4. Mr. Vinod Member 4 4 100.00 down, and recommend to the Board of Directors
Ahuja their appointment and removal; and
5. Mr. Member 3 3 100.00 • Determining whether to extend or continue the term
Anoop of appointment of the independent director, on the
Kumar basis of the report of performance evaluation of
Gupta Independent Directors.
• Recommend/Approve to the board, all remuneration,
* Mr. Anoop Kumar Gupta, Joint Managing Director of the
in whatever form, payable to key managerial
Company, was inducted to the Audit Committee w.e.f. 24
personnel and Senior Management.
July 2018.
The Nomination and Remuneration Committee of KRBL
B. NOMINATION AND REMUNERATION COMMITTEE
have the following Duties and Responsibilities:
I. Composition of the Committee • To identify the persons who are qualified to become
As on 31 March 2019, the Nomination and Remuneration directors and who may be appointed in senior
Committee of KRBL comprises of following members: management in accordance with the criteria laid
down, and recommend to the Board of Directors
Name Designation Category
their appointment and removal.
Mr. Ashwani Dua Chairman Independent Non-
•  To formulate the criteria for determining
Executive
qualifications, positive attributes and independence
Mr. Shyam Arora Member Independent Non-
of a director and recommend to the Board a policy
Executive
relating to the remuneration of Directors, key
Mr. Vinod Ahuja Member Independent Non-
managerial personnel and other employees of KRBL.
Executive
•  To formulate the criteria for evaluation of
The primary objective of the Nomination and Remuneration Independent Director and the Board.
Committee is to screen and to review individuals who are •  To evaluate the performance of the members of
qualified to serve as Key Managerial Personnel/Executive the Board and provide necessary report to the
Directors, Non-Executive Directors and Independent Directors Board for further evaluation of the Board and to
and to recommend to board for the their appointment/change determining whether to extend or continue the term
in remuneration from time to time. Also Nomination and of appointment of the independent director, on the
Remuneration Committee’s primary role is to identify persons basis of the report of performance evaluation of
who may be appointed in senior management and to change Independent Directors.
their remuneration from time to time. • To approve/recommend to the Board on
Remuneration payable to the Directors and Key
Mr. Raman Sapra, Company Secretary, acts as Secretary Managerial Personnel and Senior Management.
to the Nomination and Remuneration Committee. • To provide to Key Managerial Personnel and Senior
Management reward linked directly to their effort,
II. Terms of Reference performance, dedication and achievement relating
The role of the Nomination and Remuneration Committee to the Company’s operations.
of KRBL also covers such functions and scope as • To retain, motivate and promote talent and to ensure
prescribed under Section 178 of the Companies Act, 2013 long term sustainability of talented managerial
read with allied Rules framed thereunder and Regulation persons and create competitive advantage.
19 and Part-D of Schedule II of the SEBI Listing • To develop a succession plan for the Board and to
Regulations. regularly review the plan.

131
 Annual Report 2018-19

• To assist the Board in fulfilling responsibilities. The remuneration paid to Directors is recommended
• To implement and monitor policies and processes by the Nomination and Remuneration Committee and
regarding principles of corporate governance. approved by the Board of Directors in the Board Meeting,
• To ensure that the level and composition of subject to the approval of the shareholders and such
remuneration is reasonable and sufficient to attract, other authorities, if any, as the case may be and the
retain and motivate Directors of the quality required remuneration paid to Senior Management and KMPs other
to run the Company successfully. than Directors is approved/recommended by Nomination
• To ensure that relationship of remuneration to and Remuneration Committee to the Board of directors of
performance is clear and meets appropriate the Company.
performance benchmarks.
• To ensure that remuneration to Directors, Key The Non-Executive Directors will be paid with the sitting
Managerial Personnel and Senior Management fee, subject to the approval of Board of Directors/
involves a balance between fixed and incentive including any sub-committee thereof, upto the limit as
pay reflecting short and long term performance specified under the Companies Act, 2013 read with SEBI
objectives appropriate to the working of the Listing Regulations.
Company and its goals.
The Nomination and Remuneration policy is available on the
Iii. Meetings and Attendance Company’s website at the web link http://www.krblrice.com/
During the financial year 2018-19, 3 (Three) meetings policy-guidelines/nomination-renumeration-policy.pdf
of Nomination and Remuneration Committee were held.
Details of Nomination and Remuneration Committee V. Remuneration of Directors
Meetings held and attended by members during the
financial year 2018-19 are as follows: i. Remuneration to Non- Executive Directors
S. Date of Committee Number of % of The Non-Executive Directors are being paid with the
No. Committee Strength Members attendance sitting fees for attending Board Meetings. The Company
Meetings Present has paid ` 25000/- per Board Meeting as sitting fee and
1. Thursday, 10 3 2 66.67 actual reimbursement of out of pocket expenses incurred
May 2018 by the Non-Executive Directors for attending Board
2. Tuesday, 24 3 2 66.67 Meetings.
July 2018
3. Friday, 08 3 2 66.67 The Company has also taken a Directors & Officers
February liability insurance policy.
2019
Details of Sitting Fees paid to the Independent
The attendance details of the Nomination and Non- Executive Directors during the Financial Year
Remuneration Committee members are as follows: 2018-19 are as follows:
 (Amount in ` Lacs)
S. Name Position Meetings Meetings % of
No. held Held attended attendance Name of the Sitting Fees Paid No. of shares
1. Mr. Chairman 3 - 0.00 Directors FY 2018-19* held as on 31
Ashwani Board Committee March 2019
Dua Meeting Meeting
2. Mr. Member 3 3 100.00 Mr. Ashwani 0.25 - Nil
Shyam Dua
Arora Mr. Devendra 0.85 - Nil
3. Mr. Member 3 3 100.00 Kumar
Vinod Agarwal
Ahuja Dr. Alok 0.85 - Nil
Sabharwal
In the absence of Mr. Ashwani Dua, Mr. Vinod Ahuja was Mr. Shyam 0.85 - Nil
appointed as the Chairman of the Meeting. Arora
Mr. Vinod 0.85 - Nil
IV. Remuneration Policy Ahuja
The Remuneration policy of the Company is to lay down a * The same is excluding GST.
framework in relation to remuneration of Directors, KMP,
Senior Management Personnel and other Employees ii Remuneration to Executive Directors
and directed towards rewarding performance, based on The remuneration of the Executive Directors is
review of achievements on periodic basis. recommended by the Nomination and Remuneration

132
Report on Corporate Governance

Committee based on criteria such as industry benchmarks, Regulation 20 and Part-D of Schedule II of SEBI Listing
the Company’s performance, responsibilities shouldered, Regulations read with Section 178 of the Companies Act,
performance/track record of the director etc. and is 2013, and allied rules as may be notified from time to
approved by the Board of Directors. time.

The Company pays remuneration by way of salary, The Stakeholders Relationship Committee of KRBL
perquisites and allowances to its Executive Directors Limited is responsible for the Duties and functions which
within the limits prescribed under the Companies Act, includes the following:
2013 and approved by the shareholders. • To approve or deal with applications for Transfer,
Transmission, Transposition and Mutation of Share
Details of Remuneration on account of salary and Certificates including duplicate, split, sub-division
perquisites paid to the Executive Directors during the or consolidation of certificates and to deal with all
Financial Year 2018-19 are as follows: related matters.
(` in Lacs) • Resolving the grievances of the security holders
Name & Designation Salaries Perquisites Total of the listed entity including complaints related to
of Director transfer/transmission of shares, non-receipt of
Mr. Anil Kumar Mittal 108 0.40 109 annual report, non-receipt of declared dividends,
Chairman & issue of new/duplicate certificates, general
Managing Director meetings etc.
Mr. Arun Kumar 108 0.40 109 • Review of measures taken for effective exercise of
Gupta voting rights by shareholders.
Executive & Joint •  Review of adherence to the service standards
Managing Director adopted by the listed entity in respect of various
Mr. Anoop Kumar 108 0.40 109 services being rendered by the Registrar & Share
Gupta Transfer Agent.
Executive & Joint • Review of the various measures and initiatives taken
Managing Director by the listed entity for reducing the quantum of
Ms. Priyanka Mittal 56 0.40 56 unclaimed dividends and ensuring timely receipt of
Executive & Whole dividend warrants/annual reports/statutory notices
Time Director by the shareholders of the company.
Mr. Ashok Chand# 10 - 10
III. Meetings and Attendance
Whole Time Director
During the financial year 2018-19, 4 (four) meetings of
#
Resigned w.e.f. 23 July 2018. Stakeholders Relationship Committee were held. Details
of Stakeholders Relationship Committee Meetings held
C. STAKEHOLDERS RELATIONSHIP COMMITTEE and attended by members during the financial year
2018-19 are as follows:
I. Composition of the Committee
As on 31 March 2019, the Stakeholders Relationship
S. Date of Committee Number of % of
Committee of KRBL comprises of following members:
No. Committee Strength Members attendance
Name Designation Category Meetings Present
Mr. Ashwani Dua Chairman Independent Non- 1. Thursday, 10 3 2 66.67
Executive May 2018
Mr. Shyam Arora Member Independent Non-
2. Tuesday, 24 3 2 66.67
Executive
July 2018
Mr. Vinod Ahuja Member Independent Non-
Executive 3. Monday, 29 3 3 100.00
October 2018
Mr. Raman Sapra, Company Secretary, acts as Secretary 4. Friday, 08 3 2 66.67
to the Stakeholders Relationship Committee. February
2019
II. Terms of Reference
 The terms of reference and the ambit of powers of The attendance details of the Stakeholders Relationship
Stakeholders Relationship Committee are as per Committee members are as follows:

133
 Annual Report 2018-19

S. Name Position Meetings Meetings % of specified in Schedule VII to the Companies Act, 2013
No. held Held attended attendance and to recommend the amount of expenditure to be
1. Mr. Chairman 4 1 25.00 incurred on such activities and to monitor the Corporate
Ashwani Social Responsibility Policy of the company from time to
Dua time.
2. Mr. Member 4 4 100.00
I. Composition of the Committee
Shyam
As on 31 March 2019, the CSR Committee of KRBL
Arora
comprises of following 4 (Four) Members out of
3. Mr. Member 4 4 100.00
which 3 (Three) are Executive Directors and 1 (one)
Vinod
is Independent Non-Executive Director:
Ahuja
Name Designation Category
IV. INVESTORS GRIEVANCE REDRESSAL Mr. Anil Kumar Chairman Executive & Chairman
Pursuant to the Regulation 13 of SEBI Listing Mittal & Managing Director
Regulations, KRBL has duly filed with the recognized Mr. Anoop Member Executive & Joint
stock exchange(s) on a quarterly basis, within twenty one Kumar Gupta Managing Director
days from the end of each quarter, a statement giving the
Mr. Ashwani Member Independent Non-
number of investor complaints pending at the beginning Dua Executive Director
of the quarter, those received during the quarter, disposed
Ms. Priyanka Member Executive & Whole-
off during the quarter and those remaining unresolved at
Mittal Time Director
the end of the quarter.
Mr. Raman Sapra, Company Secretary, acts as Secretary
No complaints were pending at the beginning of the
to the CSR Committee.
year and one complaints were received by the company
during the year which is resolved within specified II. Terms of Reference
time. No complaints were outstanding as on 31 March The Terms of Reference of CSR Committee includes
2019. No requests for Transfer/Transmission and for the duties and functions of the CSR Committee
Dematerialization were pending for approval as on 31 of KRBL Limited are as per Section 135 of the
March 2019. The Registrar and Share Transfer Agents Companies Act, 2013, read with the Companies
(RTA), M/s. Alankit Assignments Limited dealt with all (Corporate Social Responsibility Policy) Rules, 2014.
grievances of the Shareholders and Investors received
directly through SEBI, Stock Exchanges, Ministry of 
The CSR Committee of KRBL Limited is responsible for
Corporate Affairs, Registrar of Companies, etc. The the functions which includes the following:
Company maintains continuous interaction with the • Formulate and recommend to the Board, a CSR
RTA and takes proactive steps and actions for resolving Policy which shall indicate the activities to be under
complaints/queries of the shareholders/Investors taken by the company as specified in Schedule VII of
and also takes initiatives for solving critical issues. the Companies Act, 2013.
Shareholders are requested to furnish/update their • To recommend the amount of expenditure to be
telephone numbers and/or e-mail addresses to facilitate incurred on the activities referred in the CSR policy.
prompt action. The Company has designated the e-mail • Monitor CSR Policy of the company from time to
id: investor@krblindia.com exclusively for the purpose time.
of registering complaints by investors electronically. •  Prepare transparent monitoring mechanism
All other investors information are available on the for ensuring implementation of the projects,
Company’s website at the web link http://www.krblrice. programmes, activities proposed to be undertaken
com/fy-2012/corporate-governance-and-other/krbl- by the Company.
investors-information.pdf
The duties of the CSR Committee of KRBL includes the
D. 
CORPORATE SOCIAL RESPONSIBILITY (CSR) following:
COMMITTEE • Consider and formulate the Company’s value and
In accordance with provisions of Section 135 of strategy as regards to CSR.
the Companies Act, 2013, read with the Companies • Develop and review the CSR policies relating
(Corporate Social Responsibility Policy) Rules, 2014, to workplace quality, environmental protection,
the Company has a well established Corporate Social operating practices and community involvement.
Responsibility (CSR) Committee at the Board Level along • Identify CSR issues, and related risks and
with the CSR Monitoring Committee and Unit CSR Teams opportunities that are relevant to the Company’s
under the CSR Committee, to formulate and recommend operations, and incorporate the issues or factors
the CSR activities to be undertaken by the Company as into the Company’s existing risk management.

134
Report on Corporate Governance

• Monitor and oversee the implementation of the E. RISK MANAGEMENT COMMITTEE

Company’s CSR policies and practices to ensure Pursuant to the provisions of Regulation 21(5) of the
compliance with the applicable legal and regulatory amended SEBI Listing Regulations, applicable w.e.f.
requirements. 01 April 2019, which requires Top 500 Listed Companies
• Evaluate and enhance the Company’s CSR on the basis of Market Capitalization to constitute a Risk
performance and make recommendation to the Management Committee. The Board of Directors of the
Board for improvement. Company has already constituted a Risk Management
• Review and endorse the Company’s Annual CSR Committee in February 2015 to frame, implement, and
Report for Board’s approval for public disclosure. monitor the risk management plan for the Company
• Contribute towards better society and a Cleaner and ensuring its effectiveness. The purpose of this
Environment. committee shall be to assist the Board in fulfilling its
• Obtain the views of the CSR Monitoring Committee corporate governance oversight responsibilities with
and the Unit CSR Teams in developing annual regards to the identification, evaluation and mitigation of
activity plans, budgets, ensure effective execution operational, strategic and external environmental risks.
of the approved annual plans etc. The committee has overall responsibility for monitoring
• Prepare Transparent monitoring mechanism for and approving the risk policies and associated practices
of the company. The Company is having a duly approved
ensuring implementation of the projects, programs,
risk management policy.
activities proposed to be undertaken by KRBL.
I. Composition of the Committee
The company has formulated the CSR Policy in line
As on 31 March 2019, the Risk Management Committee
with Schedule VII of the Companies Act, 2013, which
of KRBL comprises of following 3 (Three) Members out of
is available on the website of the Company at the web which 2 (Two) are Executive Directors and 1 (one) is Chief
link http://www.krblrice.com/policy-guidelines/policy- Financial Officer:
corporate-social-responsibility.pdf
S. Name Designation Category
III. Meeting and Attendance No.
During the financial year 2018-19, 3 (Three) meetings 1. Mr. Arun Kumar Chairman Executive & Joint
of Corporate Social Responsibility Committee were Gupta Managing Director
held. Details of Corporate Social Responsibility 2. Mr. Anoop Member Executive & Joint
Committee Meetings held and attended by members Kumar Gupta Managing Director
during the financial year 2018-19 are as follows: 3. Mr. Rakesh Member Chief Financial
S. Date of Committee Number of % of Mehrotra Officer
No. Committee Strength Members attendance
Meetings Present * Mr. Ashok Chand, whole time director who was also a
member of the committee has resigned from the Board
1. Tuesday, 24 July 4 2 50.00
and other services w.e.f. 23 July 2018.
2018
2. Monday, 29 4 3 75.00
Mr. Raman Sapra, Company Secretary, acts as Secretary
October 2018
to the Risk Management Committee.
3. Friday, 08 4 2 50.00
February 2019
I. Terms of References
The role of the Risk Management Committee of
 he attendance details of the Corporate Social Responsibility
T
KRBL Limited is to identify the risks impacting
Committee members are as follows:
Company’s business and formulate and administer
S. Name Position Meetings Meetings % of Policies/ Strategies aimed at risk minimization and
No. held held attended attendance risk mitigation as part of risk management.
1. Mr. Anil Chairman 3 3 100.00
Kumar The Risk Management Committee of KRBL Limited
Mittal is responsible for the Duties and functions which
2. Mr. Member 3 3 100.00 includes the following:
Anoop • The Risk Management Committee shall review
Kumar and approve the Risk Management Policy
Gupta and associated frameworks, processes and
3. Mr. Member 3 1 50.00 practices of the Company.
Ashwani • The Risk Management Committee shall ensure
Dua that the Company is taking the appropriate
4. Ms. Member 3 0 0.00 measures to achieve prudent balance between
Priyanka risk and reward in both ongoing and new
Mittal business activities.

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 Annual Report 2018-19

• The Risk Management Committee shall S. Name Designation Category

evaluate significant risk exposures of the No.
Company and assess management’s actions
1. Mr. Anil Chairman Executive &
to mitigate the exposures in a timely manner.
Kumar Mittal Chairman &
• The Risk Management Committee may form
Managing Director
and delegate authority to sub-committees
2. Mr. Arun Member Executive & Joint
when appropriate.
Kumar Gupta Managing Director
• The Risk Management Committee shall
have access to any internal information 3. Mr. Anoop Member Executive & Joint
necessary to fulfill its oversight role. The Kumar Gupta Managing Director
risk management committee shall also have 4. Mr. Rakesh Member Chief Financial
authority to obtain advice and assistance Mehrotra Officer
from internal or External Legal, accounting or
other advisors. Mr. Raman Sapra, Company Secretary, acts as Secretary
to the Borrowing and Investment Committee.
III. Meeting and Attendance II. Terms of References
 During the Financial Year 2018-19, one Meeting of  The Borrowing and Investment Committee of KRBL
the Risk Management committee was held. Meeting Limited is responsible for the duties and functions which
and Attendance details of Risk Management includes the following:
Committee meeting are as follows: • To approve all investment proposals, related
S. Date of Committee Number of % of attendance borrowings and execution of instruments in relation
No. Committee Strength Members thereto.
Meetings Present • To approve any significant disposition of any
investment that would have strategic implication for
1. Friday, 08 3 3 100
February an asset or class of asset when deemed appropriate.
2019 • To identify and assessment of risks associated
with while taking the decisions of investments and
 he attendance details of the Risk Management Committee
T borrowings and introduce the measures to mitigate
members are as follows: such risks.
• The committee shall ensure that the Company is
S. Name Position Meetings Meetings % of
taking appropriate measures to achieve prudent
No. held held attended attendance
balance between investments and borrowings.
1. Mr. Arun Chairman 1 1 100.00 • The committee may form and delegate authority
Kumar to sub-committees when deem appropriate. The
Gupta committee shall make regular reports to the Board.
2. Mr. Member 1 1 100.00 • The committee shall have access to any internal
Anoop information necessary to fulfill its oversight role.
Kumar • The committee shall also have authority to obtain
Gupta advice and assistance from internal or external
3. Mr. Member 1 1 100.00 legal, accounting or other advisors.
Rakesh
Mehrotra III. Meeting and Attendance
During the Financial Year 2018-19, 2 (Two) Meeting of the
F. BORROWING AND INVESTMENT COMMITTEE Borrowing and Investment Committee were held. Meeting
The Board of Directors of the Company in its meeting held in and Attendance details of Borrowing and Investment
September 2016, constituted a non-mandatory committee Committee meeting are as follows:
namely “Borrowing and Investment Committee”, to S. Date of Committee Number of % of
formulate the timely and effective decisions related to No. Committee Strength Members attendance
availing of borrowings and investments made by the Meetings Present
Company from time to time. 1. Saturday, 30 June 4 4 100.00
2018
I. Composition of the Committee 2. Monday, 29 4 4 100.00
As on 31 March 2019, the Borrowing and Investment October 2018
Committee of KRBL comprises of following 4 (Four)
Members out of which 3 (Three) are Executive Directors The attendance details of the Borrowing and Investment
and 1 (one) is Chief Financial Officer: Committee members are as follows:

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Report on Corporate Governance

S. Name Position Meetings Meetings % of Year Time, Day, Date and Summary of Special
No. held Held attended attendance Location Resolutions passed
1. Mr. Anil Chairman 2 2 100.00 in the AGM
Kumar 24th AGM- 11.00 A.M. - No special
Mittal 2017 Tuesday Resolution was
2. Mr. Arun Member 2 2 100.00 26 September 2017 passed in AGM.
Kumar Sri Sathya Sai
Gupta International Centre,
3. Mr. Member 2 2 100.00 Pragati Vihar, Lodhi Road,
Anoop New Delhi-110 003
Kumar 23rd AGM- 11.00 A.M. - Consider and
Gupta 2016 Thursday approve issue
4. Mr. Member 2 2 100.00 08 September 2016 of Redeemable
Rakesh Sri Sathya Sai Non-convertible
Mehrotra International Centre, Debentures
Pragati Vihar, Lodhi Road, on private
5. SUBSIDIARY COMPANIES – MONITORING FRAMEWORK New Delhi-110 003 placement basis.
KRBL does not have any material subsidiary as defined
under Regulation 16(1)(c) of the SEBI Listing Regulations B. 
SPECIAL RESOLUTION PASSED THROUGH POSTAL
read with amended SEBI Listing Regulations. Material BALLOT DURING THE FINANCIAL YEAR 2018-19
Subsidiary means a Subsidiary Company whose income or During the Financial Year 2018-19, no Special Resolution
net worth (i.e. paid-up capital and free reserves) exceeds was passed through postal ballot. Also, no Special
20% (10% w.e.f. 01 April 2019) of the consolidated income Resolution is proposed to be conducted through postal
or net worth respectively, of the listed holding Company ballot.
and its subsidiaries in the immediately preceding
accounting year. 7. DISCLOSURES

The Company’s Audit Committee reviews the A. MANAGEMENT DISCUSSION AND ANALYSIS
Consolidated Financial Statements of the Company as A detailed section on ‘Management Discussion and
well as the Financial Statements of the subsidiaries, Analysis’ forms part of this report.
including the investments made by the subsidiaries. The
minutes of the Board Meetings, along with a report of the B. 
MATERIALLY SIGNIFICANT RELATED PARTY
significant transactions and arrangements of the unlisted TRANSACTIONS
subsidiaries of the Company are periodically placed The Company has disclosed the related party transactions
before the Board of Directors of the Company. as per Indian Accounting Standard Ind AS 24 in Note 40 to
the Standalone Financial Statements forming part of this
The Company has formulated a policy for determining report. These are not having any potential conflict with
its Material Subsidiaries and the same is available on the interest of the Company.
the website of the Company at the weblink: http://www.
krblrice.com/policy-guidelines/Policy-For-Determining- Further, there were no transactions with related parties
Material-Subsidiaries.pdf which qualify as material related party transactions under
SEBI Listing Regulations.
6. GENERAL BODY MEETINGS
The Company has also formulated a Policy on Related
A GENERAL BODY MEETING HELD DURING LAST 3 YEARS Party Transactions in accordance with the provisions
Year Time, Day, Date and Summary of Special of the Companies Act, 2013 read with Regulation 23 of
Location Resolutions passed the SEBI Listing Regulations. The same is also available
in the AGM on the Company’s website at the web link http://www.
25th AGM- 11.00 A.M. - No Special krblrice.com/policy-guidelines/Policy-on-Related-
2018 Monday Resolution was Party-Transactions.pdf
20 August 2018 passed in AGM.
Sri Sathya Sai C. 
DISCLOSURE OF ACCOUNTING TREATMENT IN
International Centre, PREPARATION OF FINANCIAL STATEMENTS
Pragati Vihar, Lodhi Road, The Company has complied with the Indian Accounting
New Delhi-110 003 Standards (Ind As) as laid down by the Institute of
Chartered Accountants of India (ICAI) and notified by the
Ministry of Corporate Affairs in preparation of its financial

137
 Annual Report 2018-19

statements. The Basis of preparation, measurement and J. CORPORATE SOCIAL RESPONSIBILITY

significant accounting policies may be referred in Note The detailed Annual Report on Corporate Social
No. 2 to the financial statements of the Company. Responsibility is disclosed as Annexure-6 in the Directors’
Report Section of the Annual Report.
D. STATUTORY COMPLIANCE, PENALTIES AND STRICTURES
Your Company has complied with all applicable provisions K. PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
of the SEBI Listing Regulations and all other applicable The Company is committed to provide a protective
regulations and guidelines issued by SEBI and Stock environment at workplace for all its employees’ man
Exchanges. Consequently, there has been no instance and women to ensure that every employee is treated
of non-compliance with stock exchanges or SEBI with dignity and respect. As mandated under The
Regulations. Also no penalties or strictures were imposed Sexual Harassment of Women at Workplace (Prevention,
by any Stock Exchange or SEBI or any other statutory Prohibition and Redressal) Act, 2013, the Company
authorities for any violation related to the capital market has also formulated policy for prevention of sexual
during the last 3 (three) years. harassment at the workplace. The Policy is available on
the Company’s website at the weblink http://www.krblrice.
E. 
PROCEEDS FROM PUBLIC ISSUES, RIGHT ISSUES, com/policy-guidelines/SEXUAL%20HARASSMENT%20
PREFERENTIAL ISSUES, ETC. POLICY.pdf
During the year, your Company has not raised any
proceeds from public issue, rights issue, preferential A statement giving details of Sexual Harassment
issues, etc. and hence, there are no unutilized issue Complaints is as below:
proceeds. S. Particulars No. of
No. Complaints
F. VIGIL MECHANISM POLICY 1. No. of complaints received during Nil
The Company promoted ethical behavior in all its business the financial year
activities and in line with the best international governance
2. No. of complaints disposed of Nil
practices, KRBL has established a system through which during the financial year
Directors, employees, business associates may report
3. No. of complaints pending as on Nil
unethical behavior, malpractices, wrongful conduct, fraud,
end of the financial year
violation of Company’s code of conduct without fear of
reprisal. The Company has a Vigil Mechanism (Whistle L. CEO/ CFO CERTIFICATION
Blower Policy) under which all Directors, Employees The CEO and CFO certification on the Financial Statements
and other Business Associates have direct access to is attached and forming part of this Report.
the Chairman of the Audit Committee. The Policy has
been disclosed on the website of the company at the 8. MEANS OF COMMUNICATION
weblink http://www.krblrice.com/policy-guidelines/Vigil-
Mechanism-(Whistle-Blower%20Policy).pdf FINANCIAL RESULTS AND ANNUAL REPORTS ETC.
The Quarterly Unaudited Financial Results and the
G. PECUNIARY RELATIONSHIP OR TRANSACTIONS WITH Annual Audited Financial Results as approved and taken
NON-EXECUTIVE DIRECTORS on record by the Board of Directors of the Company are
There is no pecuniary relationship or transactions with published during the year under review in Leading National
Non-Executive Directors except payment of sitting fee to Newspapers, i.e. Economic Times, Business Standard,
Non- Executive Directors. Financial Express, Jansatta, Nav Bharat Times etc. and
are also sent immediately to all the Stock Exchanges
H. 
DISCLOSURE REGARDING APPOINTMENT AND wherein the equity shares of the Company are listed.
RE-APPOINTMENT OF DIRECTORS
Disclosure regarding Directors appointed/re-appointed The Quarterly and Annual Financial Statements, the
is given under the head Directors. Further, the relevant Annual Report of the Company and other information
details also forming part of Notice calling AGM of the can also be retrieved by Investors from the website of
Company. the Company www.krblrice.com, under the link investor
relations.
I. RISK MANAGEMENT
As required under Regulation 21 of the SEBI Listing INVESTOR RELEASES/ PRESENTATIONS
Regulations, the Company has a review procedure to Official press releases, presentations made to the media,
apprise the Board of Directors of the Company on the analysts, investors, conference call transcripts and all
key risk assessment areas and to suggest risk mitigation other information which is mandatorily required to be
mechanism. placed on the website as per SEBI Listing Regulations

138
Report on Corporate Governance

may be retrieved by Investors from the website of the Declaration as required under Regulation 26(3) of SEBI
Company www.krblrice.com under the head investor (Listing Obligations and Disclosure Requirements)
relations. Regulations, 2015

9. GENERAL SHAREHOLDER’S INFORMATION All Directors, Senior Management and every employee of
the Company have affirmed compliance with the KRBL
i. ANNUAL GENERAL MEETING Code of Business Conduct and Ethics for the Financial
Day, Date & Time : Friday, 13 September 2019, 11.00 Year ended 31 March 2019.
A.M.
Venue : Sri Sathya Sai International  Anil Kumar Mittal
Centre, Pragati Vihar, Lodhi Road, Noida, Uttar Pradesh Chairman & Managing Director
New Delhi-110003 01 August 2019 DIN: 00030100
Financial : The Financial year of the
11. 
CODE OF CONDUCT FOR PREVENTION OF INSIDER
Calendar Company start from 1st April
TRADING AND CODE OF PRACTICE AND PROCEDURE FOR
each year and ends on 31st
FAIR DISCLOSURE OF UNPUBLISHED PRICE SENSITIVE
March of the following year.
INFORMATION
ii. FINANCIAL REPORTING In accordance with the provisions of SEBI (Prohibition of
Insider Trading) Regulations, 2015, KRBL Limited is having
Financial Year 01st April to 31st March the Code of Conduct to Regulate, Monitor and Report
For the Financial Year 2018-19 results were announced Trading by Insiders. The Company has also adopted and
on: revised its Code in accordance with SEBI (Prohibition
1st Quarter ended 30 June 24 July 2018 of Insider Trading) (Amendment) Regulations, 2018
2018 and SEBI (Prohibition of Insider Trading) (Amendment)
2nd Quarter and Half Year 29 October 2018 Regulations, 2019.
ended 30 September 2018
Further pursuant to Regulation 8 of the SEBI (Prohibition
3rd Quarter ended 31 08 February 2019 of Insider Trading) Regulations, 2015, read with
December 2018 SEBI (Prohibition of Insider Trading) (Amendment)
4th Quarter and Year ended 15 May 2019 Regulations, 2018 and SEBI (Prohibition of Insider
31 March 2019 Trading) (Amendment) Regulations, 2019, the Company
has also adopted a Code of Practices and Procedure
For the Financial Year 2019-20, result are likely to be
for Fair Disclosure of Unpublished Price Sensitive
announced on: (Tentative and subject to change)
Information in adherence to the principles set out in
1st Quarter ended 30 June By First week of August
Schedule A to the said Regulations. The said Code is
2019 2019
available on the website of the Company at the web link
2nd Quarter and Half Year By Last week of October h t t p : / / w w w. k r b l r i c e . c o m / c o d e s / C o d e - o f - F a i r -
ended 30 September 2019 2019 Disclosure.pdf
3rd Quarter ended 31 By Last week of January
December 2019 2020 12. DATE OF BOOK CLOSURE
4th Quarter and Year ended 31 By First week of May The dates of Book Closure shall be from Friday, 30 August
March 2020 2020 2019 to Friday, 13 September 2019 (both days inclusive).

10. CODE OF CONDUCT 13. DIVIDEND PAYMENT DATE

The Company has adopted a Code of Business Conduct The Board of Directors in its meeting held on 15 May
and Ethics for Board of Directors, Senior Management 2019 had recommended the final Dividend of ` 2.50
Personnel and Other Employees. The code of Business (250%) per equity shares of ` 1/- each aggregating to
Conduct and Ethics for Board of Directors, Senior ` 5,885 Lacs (Excluding Dividend Distribution Tax) for the
Management Personnel and Other Employees is available financial year 2018-19. The final dividend shall be paid
on the website at the weblink http://www.krblrice.com/ to those shareholders whose names will be provided by
codes/Code-of-Business-Conduct-and-Ethics.pdf the depositories after the close of business hours on
29 August 2019, being record date fixed for the purpose.
The Company has also obtained affirmation for adherence The Final Dividend as recommended by the Board of
to the Code. The declaration from the Chairman & Directors and approve by the shareholders in the ensuing
Managing Director to the effect forms a part of this report. AGM will be paid on or before 12 October 2019.

139
 Annual Report 2018-19

14. REGISTRAR AND SHARE TRANSFER AGENT National Securities Central Depository Services
The Company has appointed M/s. Alankit Assignments Depository Limited (India) Limited (CDSL)
Limited, having its office at Alankit Heights, 3E/7, (NSDL)
Jhandewalan Extension, New Delhi-110055 as its Trade World, 4th Floor, Unit No. A-2501, Marathon
Registrar and Transfer Agent (RTA) for electronic mode Kamala Mills Compound Futurex, Mafatlal Mills
of Transfer of Share of both the depositories i.e. National Senapati Bapat Marg, Compound, N.M. Joshi
Securities Depository Limited (NSDL) and Central Lower Parel Marg, Lower Parel (E)
Depository Services (India) Limited (CDSL) as well as Mumbai-400013 Mumbai- 400013
physical transfer of shares. Telephone: 1800-222- Telephone: 1800-225-
990, 022-24994200 533, 022-2305-8640
The Company’s shares are traded in the Stock Exchanges E-mail: investor@nsdl. E-mail: info@cdslindia.com
compulsorily in demat mode. Pursuant to the provisions co.in Website: www.cdslindia.com
of Regulation 40 of SEBI Listing Regulations, physical Website: www.nsdl.co.in
shares sent for transfer are duly transferred, if they are
complete in all respects; or if company has any objection 16. SHARE TRANSFER SYSTEM
are returned back such share, as the case may be, within All share transfer and other communications regarding
15 days of receipt of the documents. Share transfers in share certificates, change of address, dividends etc.
physical form can be lodged with Alankit Assignments should be addressed to Registrar and Share Transfer Agent
Limited, Registrar & Transfer Agents (RTA) at the above of the Company. The Committee has delegated authority
mentioned address. for approving transmission of shares and other related
matters to the Stakeholders Relationship Committee
The Stakeholders Relationship Committee reviews the of the Company. A summary of all transmissions etc.
Share transfers approved by the RTA, Company Secretary so approved by officers of the Company is placed in
or Manager-Corporate Affairs, who have been delegated subsequent meeting of the Stakeholders Relationship
with requisite authority. All requests for Dematerialization Committee of the Company. All share transmissions
of shares are processed and confirmed to the depositories, are completed within statutory time limit from the date
NSDL and CDSL, within 15 days. The Members of receipt, provided the documents meet the stipulated
holding shares in electronic mode should address all requirement of statutory provisions in all respects. The
their correspondence to their respective Depository Company obtains from a Company Secretary in whole
Participants (DP) regarding change of address, change of time practice the half yearly certificate of compliance for
bank mandates and nomination. share transfer/transmission formalities as required under
Regulation 40(9) of SEBI Listing Regulations and files a
15. DEMATERIALIZATION OF SHARES AND LIQUIDITY copy of the same with the Stock Exchanges.
Pursuant to the provisions of Regulation 31 of SEBI
Listing Regulations, the Company’s shares are required 17. LISTING ON STOCK EXCHANGES
to be traded compulsorily in the Dematerialized form The Company’s shares are listed and actively traded on
and are available for trading under both the depository the below mentioned Stock Exchanges:
systems in India – NSDL and CDSL. The International
Securities Identification Number (ISIN) allotted to the I. NATIONAL STOCK EXCHANGE OF INDIA LIMITED (NSE)
Company’s Equity Shares under the depository system Exchange Plaza” C-1, Block G,
is INE001B01026. The Annual Custodial Fees for the Bandra-Kurla Complex,
Financial Year 2018-19 has been paid to both the Bandra (East), Mumbai – 400 051
depositories. Website: www.nseindia.com
Symbol: KRBL, Series: Eq.
During the year under review 61,282 shares of the
Company covered in 21 requests were converted into II. BSE LIMITED (BSE)
Dematerialized form and 6,000 shares of the Company, Floor 25, Phiroze Jeejeebhoy Towers,
which were in physical form, were transferred to the Dalal Street,
demat account of IEPF Authority. As on 31 March 2019, Mumbai – 400 001
235,194,260 shares of the company constituting 99.92% Website: www.bseindia.com
of the Paid-up share capital are in Dematerialized form. Stock Code: 530813

For guidance on depository services, shareholders may Your Company has paid the listing fees to NSE and BSE
write to the Company or to the respective depositories: for the Financial Year 2018-19.

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Report on Corporate Governance

18. DISTRIBUTION OF SHAREHOLDING AS ON 31 MARCH 2019

Number of Shares held (` 1 each) Folios Shares of ` 1/- Fully Paid up
Numbers % Numbers %
1 – 50 12,621 37.3% 2,48,882 0.1%
51 – 100 4,050 12.0% 3,54,040 0.2%
101 – 500 10,571 31.3% 32,79,716 1.4%
501 – 1000 3,556 10.5% 26,44,450 1.1%
1001 – 5000 2,323 6.9% 48,46,295 2.1%
5001 – 10000 292 0.9% 21,28,226 0.9%
10001 – 50000 259 0.8% 50,76,073 2.2%
50001 – 100000 39 0.1% 29,17,635 1.2%
100001 & Above 54 0.2% 21,38,94,575 90.8%
Total 33,765 100% 23,53,89,892 100%

19. SHARES HELD IN PHYSICAL AND DEMATERIALIZED FORM AS ON 31 MARCH 2019 (IN %)

0.09
Shares held in Physical and Demat form

22.29

CDSL

PHYSICAL

NSDL

77.62

20. CATEGORY OF SHAREHOLDING AS ON 31 MARCH 2019

Category Number of %
Shares held
Promoter & Promoter Group 13,84,39,916 58.81%
Banks, FIs, Insurance Companies, Venture Capital Fund, Provident Fund, Mutual Fund, 20,81,482 0.88%
Alternate Investment Fund & NBFC’s
Qualified Foreign Investor, Foreign Portfolio Investor & Foreign Venture Capital Investor 1,62,91,459 6.92%
Foreign Nationals, Clearing Members, Trust, Employee Trust, NRIs, LLPs, Foreign Body 3,43,14,908 14.58%
Corporate
Body Corporate 21,42,738 0.91%
Investor Education and Protection Fund (IEPF) 62,570 0.03%
Public and Others 4,20,56,819 17.87%
Total 23,53,89,892 100.00%

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 Annual Report 2018-19

Category of Shareholders (%)

70
60 58.81

50
50
40
30
17.87
20 14.58
6.92
10
0.88 0.91 0.03
0

IEPF
& Promoter

Bank, Fl, Mutual

Promoters

Public & Others

Group

QFI/Foreign
Portfolio
Fund, Alternate

Investor

Foreign
National,
Clearing

Body Corporate
21. TOP TEN SHAREHOLDERS (OTHER THAN PROMOTERS) AS ON 31 MARCH 2019
S. No. Name Number of Shares
1. Reliance Commodities DMCC 2,29,00,000
2. Anil Kumar Goel 97,07,000
3. Joint Director of Enforcement, Central Region 64,94,891
4. Kotak Mahindra (International) Limited 61,61,149
5. Omar Ali Obaid Balsaraf 42,50,000
6. Som Nath Aggarwal 36,55,438
7. Abdullah Ali Balsharaf 35,88,330
8. Seema Goel 27,99,000
9. Reliance Capital Trustee Company Limited A/C Reliance Growth Fund 18,53,294
10. Vanguard Emerging Markets Stock Index Fund, A Series of Vanguard International Equity 14,97,310
Index Funds

22. MARKET PRICE DATA

Monthly High and Low quotes and volume of shares traded on BSE Limited (BSE) and National Stock Exchange of India
Limited (NSE):
Month National Stock Exchange of India Limited BSE Limited
High Low Number of Turnover (` in High Low Number of Turnover
(`) (`) Shares Traded Lacs) (`) (`) Shares Traded (` in Lacs)
April, 2018 473 430 29,86,353 13,431 471 430 1,87,219 834
May, 2018 565 430 75,91,369 37,845 564 433 5,46,049 2,728
June, 2018 556 298 185,40,714 71,708 558 296 16,92,670 6,402
July, 2018 359 303 75,34,969 24,907 359 303 7,30,035 2,394
August, 2018 404 336 34,87,232 13,051 412 335 3,28,563 1,225
September, 2018 398 325 20,83,122 7,733 399 327 1,76,206 649
October, 2018 365 308 50,44,764 17,076 365 306 3,50,286 1,184
November, 2018 355 288 19,33,713 6,415 354 288 1,59,830 524
December, 2018 322 278 12,34,718 3,632 319 277 7,64,919 2,181
January, 2019 386 279 85,61,437 29,265 387 279 9,14,907 3,170
February, 2019 378 297 43,29,468 14,686 378 299 3,98,976 1,364
March, 2019 390 330 21,82,306 7,871 391 332 2,03,367 739

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Report on Corporate Governance

23. STOCK PERFORMANCE IN COMPARISON TO BROAD-BASED INDICES:

12000 600
537 11681 11624

11357 500
11500

448 384
400
337 10930 352
11000 10877 10863 334
346 346 344
327 336 300
10831 10793
10739 10736 10714 299
10500 282

200
10387

10000
100

9500 0
Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19

NSE PRICE KRBL

38645 38673
39000 600

38000
534 500
37607
37000 449
36227 36194 36257 353 400
36068
36000 384
338
345 330 346 334 35867 338
300
35000 35423 298
35160 35322 282
200
34000 34442

100
33000

32000 0
Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19

BSE PRICE KRBL

24. OUTSTANDING ADRs/GDRs/WARRANTS OR ANY CONVERTIBLE INSTRUMENTS AND LIKELY IMPACT ON EQUITY
The Company had allotted 3,428,594 nos. of underlying equity shares of ` 10/- each at a premium of `145.08 aggregating to
` 5,316.94 Lacs pursuant to the offer of 1,714,297 Global Depository Receipts (GDRs) made by the Company on 24 February
2006 to Foreign Investors, in accordance with the provisions of Section 81 and 81(1A) of the Companies Act, 1956 and Issue
of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipts Mechanism) Scheme, 1993, on
preferential basis.

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 Annual Report 2018-19

The Company’s Global Depository Receipts (GDRs) were listed 27. DETAILS OF DEMAT / UNCLAIMED SUSPENSE ACCOUNT
on the Luxembourg Stock Exchange (Code: US4826571030), The Company does not have any shares in the demat
at de la Bourse de Luxembourg, 11, av de la Porter – Neuve, suspense account or unclaimed suspense account.
L-2227 Luxembourg. As all GDRs were converted into Equity
Shares, so company delisted its GDRs from Luxembourg 28. FOREIGN EXCHANGE RISK AND HEDGING ACTIVITIES
Stock Exchange w.e.f. 07 July 2010. However, listing of the During the year 2018-19, the Company had managed the
underlying equity shares are continued on the BSE Limited foreign exchange risk and hedged it to the extent considered
and National Stock Exchange of India Limited. necessary. The Company enters into forward contracts for
hedging foreign exchange exposures against exports and
25. RECONCILIATION OF SHARE CAPITAL AUDIT imports. The details of financial risk management under the
Mr. Deepak Kukreja Proprietor, Deepak Kukreja & Associates, head financial instruments are disclosed in Note No. 38 to the
FCS Number 4140, CP Number 8265, Practicing Company Standalone Financial Statements forming part of this Annual
Secretaries, carries out the Reconciliation of Share Capital report.
Audit as mandated by SEBI, and reports on the Reconciliation
of Total Issued and Listed Capital with that of total share 29. 
CERTIFICATE PURSUANT TO THE REGULATION 34 AND
capital admitted / held in Dematerialized form with NSDL and SCHEDULE V (C)(10)(I) OF SEBI LISTING REGULATIONS
CDSL and those held in physical form. This audit is carried READ WITH SECTION 164 OF COMPANIES ACT, 2013
out on quarterly basis and the report thereof is submitted REGARDING QUALIFICATION/DISQUALIFICATION TO ACT
to the Stock Exchanges, where the Company’s shares are AS DIRECTOR
listed and is also placed before the Stakeholders Relationship The Company has received obtained the certificate from
Committee and Board of Directors of the Company. Mr. Deepak Kukreja, Partner, DMK Associates, FCS Number
4140, CP Number 8265, Practicing Company Secretaries, that
26. UNPAID DIVIDEND none of the Directors on the Board of the Company has been
Pursuant to the provisions of Section 124 read with Section debarred or disqualified from being appointed or continuing
125 of the Companies Act, 2013, (previously Section 205C as directors of companies by the Securities and Exchange
of the Companies Act, 1956), the Company is required to Board of India, Ministry of Corporate Affairs or any such
transfer the Dividend unpaid for a period of 7 (seven) years statutory authority.
from the due date to the Investor Education and Protection
Fund (IEPF) set up by the Central Government. Accordingly, 30. 
CERTIFICATE PURSUANT TO THE REGULATIONS 17 TO
the unclaimed Final Dividend for the year ended 2010-11 27 AND CLAUSES (B) TO (I) OF REGULATION 46(2) AND
have been transferred and necessary Statement in Form PARAGRAPHS C AND D OF SCHEDULE V OF SEBI LISTING
IEPF-1 pursuant to rule 5(4) of the Investor Education and REGULATIONS
Protection Fund Authority (Accounting, Audit, Transfer and The Company has received the certificate from Mr. Deepak
Refund) Rules, 2016 has been filed. Kukreja, Partner, DMK Associates, FCS Number 4140, CP
Number 8265, Practicing Company Secretaries, confirming
The time frame for transfer of Unclaimed Dividends, compliance with the conditions of Corporate Governance as
which are lying in the Unclaimed Dividends Accounts of stipulated under Regulations 17 to 27 and clauses (b) to (i)
the company, to Investor Education and Protection Fund of Regulation 46(2) and paragraphs C and D of Schedule V
(IEPF) is as below: of the SEBI Listing Regulations. The same is attached and
forming part of this Report.
Date of Declaration Dividend for Due Date of
of Dividend the year transfer to IEPF 31. AUDITORS’ REMUNERATION
25 September 2012 2011-12 01 November 2019 The Company has appointed M/s. Walker Chandiok & Co
23 September 2013 2012-13 30 October 2020 LLP, Chartered Accountants (Firm Registration No.001076N/
09 September 2014 2013-14 16 October 2021 N500013) as the Statutory Auditors. The particulars of
28 September 2015 2014-15 05 November 2022 payment to Statutory Auditors’ by the Company during the
financial year 2018-19 are as below:
10 March 2016 2015-16 16 April 2023
(Interim) Particulars Amount
26 September 2017 2016-17 02 November 2024 (` in Lacs)
20 August 2018 2017-18 26 September 2025 Statutory audit (including fees for 36
limited reviews)
Attention is drawn that the Unclaimed Final Dividend for the Other matters -
Financial Year 2011-12 will be due for transfer to IEPF later Out of pocket expenses 1
this year. Communication has been sent by the Company
Total 37
to the concerned shareholders advising them to lodge their
claim with respect to unclaimed Dividend. Once unclaimed  ote: Auditor remuneration for the year ended 31 March 2019
N
Dividend is transferred to IEPF, no claims will lie in respect doesn’t includes the remuneration paid by Company to the
thereof with the company. erstwhile auditors.

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Report on Corporate Governance

32. RATINGS ADDRESS FOR CORRESPONDENCE

During the financial year 2018-19 the Company has received CORPORATE OFFICE:
various ratings, which are as follows: C-32, 5th & 6th Floor,
• ICRA: In August 2018, “ICRA” has reviewed and Sector 62, Noida-201301,
reaffirmed [ICRA] AA Stable (pronounced as ICRA double Gautam Budh Nagar,
A Stable) rating for Fund Based Working Capital Limits Uttar Pradesh
and Term Loans Limits and [ICRA] A1+ (pronounced Phone: 0120-4060300
as ICRA A One Plus) for Non-Fund Based Facilities of Fax: 0120-4060398
KRBL Limited.
• ICRA: In August 2018, “ICRA” has also reviewed and PLANT LOCATIONS
reaffirmed [ICRA] A1+ (pronounced as ICRA A One Plus) • 9th Milestone, Post-Dujana, Bulandshahr Road, Dist.
rating for Commercial Paper (CP) programme of KRBL Gautambudh Nagar, Uttar Pradesh-203207.
Limited. • Village Bhasaur, (Dhuri), Distt. Sangrur,
• CARE: In September 2018, “CARE” has given the Punjab-148024.
[CARE] A1+ (pronounced as CARE A one plus) rating for • Village Akbarpur Barota, Distt. Sonipat,
Commercial Paper (CP) of KRBL Limited. Haryana-131104
• 29/15-29/16, Village Jindpur, G. T. Karnal Road, Alipur,
During the year there are no revisions in all the above credit
Delhi-110036.
ratings obtained by the company.
• Plot Number 258-260, Extended Lal Dora, Alipur,
Delhi-110036.
33. NON-MANDATORY REQUIREMENTS
In addition to the mandatory requirements, the Company has
36. 
ADDRESS OF REDRESSAL AGENCIES TO LODGE THE
also adopted the following non-mandatory requirements as
GRIEVANCES
per Regulation 27(1) of SEBI Listing Regulations:
i) Shareholders’ Rights
MINISTRY OF CORPORATE AFFAIRS
The Company has a policy of announcement of the
‘A’ Wing, Shastri Bhawan, Rajendra Prasad Road, New
audited/unaudited, quarterly/half yearly/annual
Delhi – 110 001
financial results.
Tel.: (011) 2338 4660, 2338 4659
In the next few days from the announcement of the Website: www.mca.gov.in
audited/unaudited, quarterly/half yearly/annual
financial results, the company generally organizes SEBI
webcast live investor conference calls and the Plot No.C4-A, ‘G’ Block, Bandra-Kurla Complex,
media interactions with the management, where the Bandra (East),Mumbai – 400051, Maharashtra
management responds to the various queries. Tel : +91-22-26449000 / 40459000
Fax : +91-22-26449019-22 / 40459019-22
ii) Reporting of Internal Auditor
Tel : +91-22-26449950 / 40459950
The Internal Auditors directly reports to the Audit
Toll Free Investor Helpline: 1800 22 7575
Committee.
E-mail : sebi@sebi.gov.in
Website: www.sebi.gov.in
34. COMPLIANCE OFFICER
Raman Sapra
SEBI COMPLAINTS REDRESS SYSTEM (SCORES)
Company Secretary
The investors’ complaints are also being processed through
5190, Lahori Gate, Delhi-110 006
the centralized web base complaint redressal system of SEBI.
Phone: (011) 23968328
The salient features of SCORES are availability of centralized
E-mail: investor@krblindia.com
database of the complaints, uploading online action taken
CIN: L0111DL1993PLC052845
reports by the Company.
35. REGISTERED OFFICE & ADDRESS FOR CORRESPONDENCE Through SCORES the investors can view online, the action
REGISTERED OFFICE taken and current status of the complaints. SEBI vide its
5190, Lahori Gate, Circular dated 26 March 2018 have streamlined the process
Delhi-110 006 of filing investor grievances in the SCORES in order to ensure
Phone: (011) 23968328 speedy and effective resolution of complaints filed therein.
Fax: (011) 23968327 The said Circular can be accessed on the website of SEBI
E-mail: investor@krblindia.com at the weblink https://www.sebi.gov.in/legal/circulars/mar-
Website: http://www.krblrice.com 2018/investor-grievance-redress-mechanism-new-policy-
CIN: L01111DL1993PLC052845 measures_38481.html

145
 Annual Report 2018-19

STOCK EXCHANGES Central Depository Services (India) Limited (CDSL)

National Stock Exchange of India Ltd. Unit No. A-2501, Marathon Futurex, Mafatlal Mills Compound,
Exchange Plaza, C-1, Block G, N.M. Joshi Marg, Lower Parel (E) Mumbai Mumbai City MH
Bandra Kurla Complex, 400013 IN
Bandra (East), Telephone: 1800-225-533, 022-2305-8640
Mumbai – 400 051 E-mail: info@cdslindia.com
Tel No: (022) 26598100 - 8114 Website: www.cdslindia.com
Fax No: (022) 26598120
Website: www.nseindia.com REGISTRAR & SHARE TRANSFER AGENT
M/s. Alankit Assignments Limited
BSE Limited Alankit Heights, 3E/7,
Phiroze Jeejeebhoy Towers, 25th Floor, Jhandewalan Extension,
Dalal Street New Delhi-110055
Mumbai – 400001 TEL: (011)-42541955,59, Fax : (011)-23552001
Phones : 91-22-22721233/4, Email id- info@alankit.com
91-22-66545695 (Hunting) Website : www.alankit.com
Fax : 91-22-22721919
Email: corp.comm@bseindia.com For and on behalf of the Board of Directors
Website: www.bseindia.com
 Anil Kumar Mittal
DEPOSITORIES Place: Noida, Uttar Pradesh Chairman & Managing Director
National Securities Depository Limited (NSDL) Date:01 August 2019 DIN-00030100
Trade World, 4th Floor
Kamala Mills Compound
Senapati Bapat Marg, Lower Parel
Mumbai – 400013
Telephone: 1800-222-990, 022-24994200
E-mail: investor@nsdl.co.in
Website: www.nsdl.co.in

146
Report on Corporate Governance

PRACTICING COMPANY SECRETARIES’ CERTIFICATE ON

CORPORATE GOVERNANCE

To
The Members
M/s. KRBL Limited
5190, Lahori Gate,
Delhi- 110006

We have examined the compliance of the conditions of Corporate Governance by KRBL Limited (‘the Company’) for the year
ended on 31 March 2019, as stipulated under Regulations 17 to 27, clauses (b) to (i) of sub regulation (2) of Regulation 46 and
paragraph C and D of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (“SEBI Listing Regulations”).

The compliance of the conditions of Corporate Governance is the responsibility of the management of the Company. Our
examination was limited to the review of procedures and implementation thereof, as adopted by the Company for ensuring
compliance with conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements
of the Company.

In our opinion and to the best of our information and according to the explanations given to us, and the representations made
by the Management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the
SEBI Listing Regulations for the year ended on 31 March 2019.

We further state that such compliance is neither an assurance as to the future viability of the Company nor of the efficiency or
effectiveness with which the management has conducted the affairs of the Company.

 For DMK Associates

 Company Secretaries

 Deepak Kukreja
Place: New Delhi  FCS, LL.B, ACIS(UK)
Date: 01 August 2019  Partner
 FCS No. 4140, C.P. No. 8265

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 Annual Report 2018-19

CEO’S AND CFO CERTIFICATION

We, Anil Kumar Mittal, Chairman & Managing Director and Rakesh Mehrotra, Chief Financial Officer, responsible for finance function certify
that:

1. We have reviewed financial statements and the cash flow statement for the year ended on 31 March 2019 and that to the best of our
knowledge and belief:

(a) These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be
misleading.

(b) These statements together present a true and fair view of the listed entity’s affairs and are in compliance with existing accounting
standards, applicable laws and regulations.

2. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year ended on 31 March
2019 which are fraudulent, illegal or violative of the Company’s code of conduct.

3. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the
effectiveness of internal control systems of the listed entity pertaining to financial reporting and we have disclosed to the auditors
and the audit committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps
we have taken or propose to take to rectify these deficiencies.

4. The Company’s other certifying officers and we have disclosed, based on our recent evaluation, wherever applicable, to the Company’s
Auditors and through them to the Audit Committee of the Company’s Board of Directors:

i. significant changes in internal control over financial reporting during the year 2018-19.

ii. significant changes in accounting policies during the year 2018-19 and that the same have been disclosed in the notes to the
financial statements; and

iii. Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an
employee having a significant role in the Company’s internal control system over financial reporting.

Place: Noida, Uttar Pradesh Anil Kumar Mittal Rakesh Mehrotra

Date: 15 May 2019 Chairman & Managing Director Chief Financial Officer

148
Standalone Financials

STANDALONE
FINANCIALS
CONTENTS
Auditor’s Report .........................................................................150
Standalone Balance Sheet ........................................................160
Standalone Statement of Profit and Loss..................................161
Standalone Cash Flow Statement .............................................162
Standalone Statement of Changes in Equity.............................164
Notes forming part of the Financial Statements.......................165

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 Annual Report 2018-19

INDEPENDENT AUDITOR’S REPORT ON STANDALONE

FINANCIAL STATEMENTS

To the Members of KRBL Limited Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the Audit
Report on the Audit of the Standalone Financial of the Financial Statements section of our report. We are
Statements independent of the Company in accordance with the Code
of Ethics issued by the Institute of Chartered Accountants
Opinion of India (‘ICAI’) together with the ethical requirements
1. We have audited the accompanying standalone financial that are relevant to our audit of the financial statements
statements of KRBL Limited (‘the Company’), which comprise under the provisions of the Act and the rules thereunder,
the Balance Sheet as at 31 March 2019, the Statement of and we have fulfilled our other ethical responsibilities
Profit and Loss (including Other Comprehensive Income), the in accordance with these requirements and the Code
Cash Flow Statement and the Statement of Changes in Equity of Ethics. We believe that the audit evidence we have
for the year then ended, and a summary of the significant obtained is sufficient and appropriate to provide a basis
accounting policies and other explanatory information. for our opinion.

2. In our opinion and to the best of our information and Emphasis of Matter
according to the explanations given to us, the aforesaid 4. We draw attention to Note 41 to the standalone financial
financial statements give the information required by the statement, whereby the Company has received an income
Companies Act, 2013 (‘Act’) in the manner so required and tax demand, which is being contested by the Company. Our
give a true and fair view in conformity with the accounting opinion is not modified in respect of this matter.
principles generally accepted in India including Indian
Accounting Standards (‘Ind AS’) specified under section Key Audit Matter
133 of the Act, of the state of affairs (financial position) of 5. Key audit matters are those matters that, in our professional
the Company as at 31 March 2019, and its profit (financial judgment, were of most significance in our audit of the
performance including other comprehensive income), its standalone financial statements of the current period. These
cash flows and the changes in equity for the year ended on matters were addressed in the context of our audit of the
that date. financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these
Basis for Opinion matters.
3. We conducted our audit in accordance with the Standards
on Auditing specified under section 143(10) of the Act.

6. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key audit matter How our audit addressed the key audit matter
Revenue recognition – Sale of Goods Our audit work included, but was not limited to, the following procedures:
Refer Note 2 in the Summary of significant accounting
• Obtained an understanding of the process of each revenue stream,
policies and other explanatory information
particularly of sale of rice and other food products;
The Company recognised an amount of ` 411,957 lacs • Evaluated the design and implementation and tested the operating
revenue for the year ended 31 March 2019, as disclosed effectiveness of controls over revenue recognition including around
in Note 22 to the standalone financial statements. quantity sold, pricing and accounting of revenue transactions;
• Performed substantive analytical procedures on revenue which
Revenue for the Company majorly comprises of revenue
included ratio analysis, product mix analysis, region wise analysis, etc.;
from sale of manufactured goods (rice) and by products.

150
Standalone Financials

INDEPENDENT AUDITOR’S REPORT ON STANDALONE

FINANCIAL STATEMENTS

Key audit matter How our audit addressed the key audit matter
The Company has adopted the new revenue accounting • Evaluated the terms and conditions of the contracts, including
standard Ind AS 115, Revenue from Contracts with incoterms, with customers to ensure that the revenue recognition
Customers, from the current year, which required criteria are assessed by the management in accordance with the
management to re-assess the revenue recognition accounting standards;
accounting policy by making key judgements such as
• On a sample basis, tested revenue transactions recorded during the
identification of distinct performance obligations in
year, and revenue transactions recorded in the period before and after
contracts with customers, determination of transaction
year-end with supporting documents, such as invoices, agreements
price including assessment of variable consideration
with customers, proof of deliveries, and subsequent collection of
elements, and selection of appropriate methods to
payment;
allocate the transaction price to the performance
obligations in accordance with the new accounting • Performed other substantive audit procedures including obtaining
standard, which was considered to be a complex debtor confirmations on a sample basis and reconciling revenue
exercise in the current year. recorded during the year with statutory returns;
• Tested manual journal entries for recording revenue, credit notes,
Further, in accordance with Standards on Auditing, there
claims etc., which were material or irregular in nature with supporting
is a presumed fraud risk relating to revenue recognition.
documents and evaluated business rationale thereof;
Accordingly, occurrence and existence of revenue
is a key focus area on account of the multiplicity of • Evaluated disclosures made in the standalone financial statement
Company’s products, multiple channels for sales, for revenue recognition from sale of goods for appropriateness in
various categories of customers and the volume of the accordance with the accounting standards.
sales made to them.

Due to the above factors, we have identified testing of

revenue recognition as a key audit matter.
Inventory existence and valuation Our audit work included, but was not limited to the following procedures:

Refer Note 2 in the Summary of significant accounting Existence:

policies and other explanatory information. • Obtained understanding the management’s process of inventory
management and inventory physical verification performed at year-
Inventory of the Company consists primarily of variety end;
of rice, paddy and their by-products, manufactured
• Evaluated the design effectiveness of controls over inventory
during the process of conversion of paddy into rice.
management process/ inventory physical verification and tested key
controls for their operating effectiveness;
The Company held inventories amounting to ` 312,885
lacs as at 31 March 2019. The inventory primarily • Observed physical count carried out by the management at locations
comprises of Paddy as raw material and finished goods selected based on materiality and risk factors;
in the form of rice and by-products. Inventory holding is
• During the above said observation, noted whether the instructions given
generally significant considering the finished goods are
by senior management to stock count teams were followed, including
aged for 18-24 months and also due to seasonality of
ensuring proper segregation of stock, use of calibration scales/charts,
the purchase of paddy. Such inventory is stored in plants,
separate identification of goods received after year end, identification
warehouses and silos. High volume of inventory makes
of damaged inventory, if any, etc.;
physical verification of inventory, an extensive procedure
for the management, at the year end.

151
 Annual Report 2018-19

INDEPENDENT AUDITOR’S REPORT ON STANDALONE

FINANCIAL STATEMENTS

Key audit matter How our audit addressed the key audit matter
The valuation of finished rice and by product is a • Recounted inventory, on sample basis, to match with inventory records
comprehensive exercise and is carried out manually and results of management conducted count;
considering the determination of:
• Reviewed reconciliation of differences, if any, between management
physical count and inventory records, and tested the necessary adjustment
• Allocable overhead;
made in the inventory records by the management;
• Consideration of net realizable value of by products
• For the inventory lying with the third party, obtained the confirmation
such as husk, bran etc; and
that the management obtained from the third parties and for the
• Consideration of NRV of the different variety of inventory lying at foreign ports (in the course of sale), tested the
finished products subsequent clearance and original bill of lading for the said export.
Accordingly, existence and valuation of the inventory,
Valuation:
which is significant with respect to the total assets held
• Obtained the understanding of management process of inventory
by the Company, is considered to be one of the areas
valuation;
which required significant auditor attention owing to
the complexity and judgements involved in the process • Evaluated design effectiveness of controls over inventory valuation
of physical count and valuation. process and tested key controls for their operating effectiveness;
• Tested inputs into the valuation process from source documents/
general ledger accounts;
• Tested reconciliation of opening inventory, purchase/ production, sales
and year-end inventory to validate the amount of yield during the year
and to identify any abnormal production loss;
• Compared key estimates, including those involved in computation
of overhead absorption, to prior years and enquired reasons for any
significant variations,
• Checked net realisable value of by-products from actual sale proceeds
near/ subsequent to the year-end;
• Tested arithmetical accuracy of valuation calculations; and
• Evaluated appropriateness of disclosure of inventory year-end balance
in the financial statements.
Initial Audit Engagement - Opening Balances Our audit work included, but was not limited to, the following procedures:
• Prepared a detailed transition plan, including ensuring compliance with
We have been appointed as the statutory auditors of independence requirements, prior to the start of the audit;
Company for year ended 31 March 2019.
• Inspected management’s process and control documentation to assist
us in obtaining and understanding of the Company’s financial reporting
Standard on Auditing 510, Initial Audit Engagements
and business processes, including control environment;
– Opening Balances, in conducting an initial audit
engagement, several considerations are involved which • Obtained and read management reports, policies, instructions as
are generally not associated with recurring audits. well as planning and governing documents, minutes of the board of
The audit transition, including the audit of the opening directors, audit committee and other committees of the board, internal
balances requires additional planning activities and audit reports;
considerations necessary to establish an appropriate
audit plan and strategy. This includes:

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Standalone Financials

INDEPENDENT AUDITOR’S REPORT ON STANDALONE

FINANCIAL STATEMENTS

Key audit matter How our audit addressed the key audit matter
• Gaining an initial understanding of the Company and • Held discussions with the management at various levels of the Company
its business including its control environment and and heads of the Business and Finance functions, to understand their
information systems, sufficient to make an audit roles in the business and company’s financial reporting process;
assessment and develop the audit strategy and plan.
• Obtained an understanding of and evaluated appropriateness and
• Obtaining sufficient appropriate audit evidence consistency of the accounting policies used in the preparation of the
regarding the opening balances including the financial statements of the Company for the financial year ended 31
selection and application of accounting policies. March 2018, particularly in respect of inventory, property, plant and
equipment, trade receivables, etc;
• Communicating with the predecessor auditors, as
required and permitted under applicable professional • Read previous year financial statements to identify material opening
regulations. balances. Obtained underlying accounting schedules prepared by the
management and scanned for unusual items.
The aforesaid activities required involvement of • Traced the account balances from the trial balance for the previous
considerable audit efforts, and accordingly, audit of the financial year to the audited financial statements, and traced the
opening balances was identified as a key audit matter balance sheet account balances to the opening trial balance of the
for the current year audit. current year.
• On a sample basis, tested the opening balances for financial line items
including property, plant and equipment, bank balances, borrowings,
share capital, and other current assets and liabilities, as considered
necessary.

Information other than the Financial Statements and Auditor’s Responsibilities of Management and Those Charged with
Report thereon Governance for the Standalone Financial Statements
7. The Company’s Board of Directors is responsible for the 8. The Company’s Board of Directors is responsible for the
other information. The other information comprises the matters stated in section 134(5) of the Act with respect to
information included in the Annual Report, but does not the preparation of these standalone financial statements
include the financial statements and our auditor’s report that give a true and fair view of the state of affairs (financial
thereon. The Annual Report is expected to be made available position), profit or loss (financial performance including
to us after the date of this auditor’s report. other comprehensive income), changes in equity and cash
flows of the Company in accordance with the accounting
Our opinion on the financial statements does not cover principles generally accepted in India, including the Ind AS
the other information and we will not express any form of specified under section 133 of the Act. This responsibility
assurance conclusion thereon. also includes maintenance of adequate accounting
records in accordance with the provisions of the Act
In connection with our audit of the financial statements, for safeguarding of the assets of the Company and for
our responsibility is to read the other information identified preventing and detecting frauds and other irregularities;
above when it becomes available and, in doing so, consider selection and application of appropriate accounting
whether the other information is materially inconsistent with policies; making judgments and estimates that are
the financial statements or our knowledge obtained in the reasonable and prudent; and design, implementation and
audit or otherwise appears to be materially misstated. maintenance of adequate internal financial controls, that
were operating effectively for ensuring the accuracy and
When we read the Annual Report, if we conclude that there completeness of the accounting records, relevant to the
is a material misstatement therein, we are required to preparation and presentation of the financial statements
communicate the matter to those charged with governance. that give a true and fair view and are free from material
We have nothing to report in this regard. misstatement, whether due to fraud or error.

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INDEPENDENT AUDITOR’S REPORT ON STANDALONE

FINANCIAL STATEMENTS

9. In preparing the financial statements, management is exists related to events or conditions that may cast
responsible for assessing the Company’s ability to continue significant doubt on the Company’s ability to continue as
as a going concern, disclosing, as applicable, matters related a going concern. If we conclude that a material uncertainty
to going concern and using the going concern basis of exists, we are required to draw attention in our auditor’s
accounting unless management either intends to liquidate report to the related disclosures in the financial statements
the Company or to cease operations, or has no realistic or, if such disclosures are inadequate, to modify our
alternative but to do so. opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However,
10. Those Board of Directors are also responsible for overseeing future events or conditions may cause the Company to
the Company’s financial reporting process. cease to continue as a going concern.
• Evaluate the overall presentation, structure and content
Auditor’s Responsibilities for the Audit of the Financial
of the financial statements, including the disclosures, and
Statements
whether the financial statements represent the underlying
11. Our objectives are to obtain reasonable assurance about
transactions and events in a manner that achieves fair
whether the financial statements as a whole are free from
presentation.
material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable
13. 
We communicate with those charged with governance
assurance is a high level of assurance, but is not a guarantee
regarding, among other matters, the planned scope and
that an audit conducted in accordance with Standards on
timing of the audit and significant audit findings, including
Auditing will always detect a material misstatement when it
any significant deficiencies in internal control that we identify
exists. Misstatements can arise from fraud or error and are
during our audit.
considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of
14. 
We also provide those charged with governance with a
users taken on the basis of these financial statements.
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
12. As part of an audit in accordance with Standards on Auditing,
with them all relationships and other matters that may
we exercise professional judgment and maintain professional
reasonably be thought to bear on our independence, and
skepticism throughout the audit. We also:
where applicable, related safeguards.
• Identify and assess the risks of material misstatement
of the financial statements, whether due to fraud or error,
15. 
From the matters communicated with those charged with
design and perform audit procedures responsive to those
governance, we determine those matters that were of most
risks, and obtain audit evidence that is sufficient and
significance in the audit of the financial statements of the
appropriate to provide a basis for our opinion. The risk
current period and are therefore the key audit matters. We
of not detecting a material misstatement resulting from
describe these matters in our auditor’s report unless law or
fraud is higher than for one resulting from error, as fraud
regulation precludes public disclosure about the matter or when,
may involve collusion, forgery, intentional omissions,
in extremely rare circumstances, we determine that a matter
misrepresentations, or the override of internal control.
should not be communicated in our report because the adverse
• Obtain an understanding of internal control relevant to the consequences of doing so would reasonably be expected to
audit in order to design audit procedures that are appropriate outweigh the public interest benefits of such communication.
in the circumstances. Under section 143(3)(i) of the Act, we
are also responsible for expressing our opinion on whether Other Matter
the company has adequate internal financial controls system 16. The financial statements of the Company for the year ended
in place and the operating effectiveness of such controls. 31 March 18 were audited by the predecessor auditor, S S A Y
and Associates, Chartered Accountants, who have expressed
• Evaluate the appropriateness of accounting policies used
an unmodified opinion on those financial statements vide
and the reasonableness of accounting estimates and
their audit report dated 10 May 2018.
related disclosures made by management.
• Conclude on the appropriateness of management’s use of Report on Other Legal and Regulatory Requirements
the going concern basis of accounting and, based on the 17. As required by section 197(16) of the Act, we report that
audit evidence obtained, whether a material uncertainty the Company has paid remuneration to its directors during

154
Standalone Financials

INDEPENDENT AUDITOR’S REPORT ON STANDALONE

FINANCIAL STATEMENTS

the year in accordance with the provisions of and limits laid g) with respect to the other matters to be included in
down under section 197 read with Schedule V to the Act. the Auditor’s Report in accordance with rule 11 of the
Companies (Audit and Auditors) Rules, 2014 (as amended),
18. As required by the Companies (Auditor’s Report) Order, 2016 in our opinion and to the best of our information and
(‘the Order’) issued by the Central Government of India in according to the explanations given to us:
terms of section 143(11) of the Act, we give in the Annexure
A a statement on the matters specified in paragraphs 3 and 4 i. the Company, as detailed in Note 41 to the standalone
of the Order. financial statements, has disclosed the impact of
pending litigations on its financial position as at
19. Further to our comments in Annexure A, as required by 31 March 2019;
section 143(3) of the Act, we report that:
a) we have sought and obtained all the information and ii. the Company did not have any long-term contracts
explanations which to the best of our knowledge and including derivative contracts for which there were any
belief were necessary for the purpose of our audit; material foreseeable losses as at 31 March 2019;

b) in our opinion, proper books of account as required by law iii. there has been no delay in transferring amounts,
have been kept by the Company so far as it appears from required to be transferred, to the Investor Education
our examination of those books; and Protection Fund by the Company during the year
ended 31 March 2019; and
c) the standalone financial statements dealt with by this
report are in agreement with the books of account; iv. the disclosure requirements relating to holdings as well
as dealings in specified bank notes were applicable for
d) in our opinion, the aforesaid standalone financial the period from 8 November 2016 to 30 December 2016,
statements comply with Ind AS specified under section which are not relevant to these standalone financial
133 of the Act; statements. Hence, reporting under this clause is not
applicable.
e) on the basis of the written representations received from
the directors and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2019 For Walker Chandiok & Co LLP
from being appointed as a director in terms of section Chartered Accountants
164(2) of the Act; Firm’s Registration No.: 001076N/N500013

f) we have also audited the internal financial controls

over financial reporting (IFCoFR) of the Company as  Rohit Arora
on 31 March 2019 in conjunction with our audit of the Partner
standalone financial statements of the Company for  Membership No.: 504774
the year ended on that date and our report dated 15
May 2019 as per Annexure B expressed an unmodified Place: Noida
opinion; and Date: 15 May 2019

155
Standalone Financials

Annexure A to the Independent Auditor’s Report of even date

to the members of KRBL Limited, on the Standalone Financial
Statements for the year ended 31 March 2019
Name of the statute Nature of dues Amount Amount paid Period to which the Forum where dispute is
(₹ in lacs) under Protest amount relates pending
(₹ in lacs)
Punjab value Added Value Added Tax 3,199 - F.Y 2009-2010 Hon’ble Punjab and Haryana
Tax Act, 2005 High Court Chandigarh
Punjab value Added Value Added Tax 1,708 641 F.Y 2005-2007 and Vat Tribunal,
Tax Act, 2005 F.Y 2010-2014 Chandigarh.
Central Excise Act, Excise Duty 684 25 F.Y 2014-2017 Deputy Excise and Taxation
1944 Commissioner, Patiala
Central sale tax Act, Sale Tax 39 39 F.Y 2014–2016 Deputy Commissioner of
1956 Sales Tax (Appeal), Mumbai
Central sale tax Act, Sale Tax 2 1 F.Y 2017–2018 Deputy Commissioner of
1956 Sales Tax, Greater Noida
Central sale tax Act, Sale Tax 2 2 F.Y 2013–2014 Additional Commissioner
1956 Grade-2 (Appeal), Noida
Income-tax Act, 1961 Income-tax 126,920 7,500 F.Y 2009–2016 Commissioner of Income-tax
(Appeal), New Delhi

(viii) The Company has not defaulted in repayment of loans or applicable, and the requisite details have been disclosed in the
borrowings to any bank or financial institution during the financial statements etc., as required by the applicable Ind AS.
year. The Company has no loans or borrowings payable to
government and did not have any outstanding debentures (xiv) During the year, the Company has not made any preferential
during the year. allotment or private placement of shares or fully or partly
convertible debentures.
(ix) In our opinion, the Company has applied moneys raised
by way of the term loans for the purposes for which these (xv) In our opinion, the Company has not entered into any non-
were raised. The Company did not raise moneys by way cash transactions with the directors or persons connected
of initial public offer or further public offer (including debt with them covered under Section 192 of the Act.
instruments).
(xvi) The Company is not required to be registered under Section
(x) No fraud by the Company or on the Company by its officers 45-IA of the Reserve Bank of India Act, 1934.
or employees has been noticed or reported during the period
covered by our audit.
For Walker Chandiok & Co LLP
(xi) Managerial remuneration has been paid by the Company in Chartered Accountants
accordance with the requisite approvals mandated by the Firm’s Registration No.: 001076N/N500013
provisions of Section 197 of the Act read with Schedule V to
the Act.
 Rohit Arora
(xii) In our opinion, the Company is not a Nidhi Company. Accord- Partner
ingly, provisions of clause 3(xii) of the Order are not applicable.  Membership No.: 504774

(xiii) In our opinion all transactions with the related parties are Place: Noida
in compliance with Sections 177 and 188 of Act, where Date: 15 May 2019

157
 Annual Report 2018-19

Annexure A to the Independent Auditor’s Report of even date

to the members of KRBL Limited, on the Standalone Financial
Statements for the year ended 31 March 2019
Annexure B 4. Our audit involves performing procedures to obtain audit
evidence about the adequacy of the IFCoFR and their
Independent Auditor’s Report on the Internal Financial Controls operating effectiveness. Our audit of IFCoFR includes
under Clause (i) of Sub-section 3 of Section 143 of the obtaining an understanding of IFCoFR, assessing the risk
Companies Act, 2013 (‘the Act’) that a material weakness exists, and testing and evaluating
1. In conjunction with our audit of the Standalone financial the design and operating effectiveness of internal control
statements of KRBL Limited (‘the Company’) as at and for based on the assessed risk. The procedures selected
the year ended 31 March 2019, we have audited the internal depend on the auditor’s judgement, including the
financial controls over financial reporting (‘IFCoFR’) of the assessment of the risks of material misstatement of the
Company as at that date. Standalone financial statements, whether due to fraud or
error.
Management’s Responsibility for Internal Financial Controls
2. The Company’s Board of Directors is responsible for 5. We believe that the audit evidence we have obtained is
establishing and maintaining internal financial controls sufficient and appropriate to provide a basis for our audit
based on the internal control over financial reporting opinion on the Company’s IFCoFR.
criteria established by the Company considering the
essential components of internal control stated in the Meaning of Internal Financial Controls over Financial Reporting
Guidance Note on Audit of Internal Financial Controls 6. A company’s IFCoFR is a process designed to provide
over Financial Reporting issued by the Institute of reasonable assurance regarding the reliability of financial
Chartered Accountants of India. These responsibilities reporting and the preparation of Standalone financial
include the design, implementation and maintenance of statements for external purposes in accordance with
adequate internal financial controls that were operating generally accepted accounting principles. A company’s
effectively for ensuring the orderly and efficient conduct IFCoFR include those policies and procedures that (1)
of the Company’s business, including adherence to pertain to the maintenance of records that, in reasonable
the Company’s policies, the safeguarding of its assets, detail, accurately and fairly reflect the transactions and
the prevention and detection of frauds and errors, the dispositions of the assets of the company; (2) provide
accuracy and completeness of the accounting records, reasonable assurance that transactions are recorded as
and the timely preparation of reliable financial information, necessary to permit preparation of Standalone financial
as required under the Act. statements in accordance with generally accepted
accounting principles, and that receipts and expenditures
Auditor’s Responsibility of the company are being made only in accordance
3. Our responsibility is to express an opinion on the with authorisations of management and directors of
Company’s IFCoFR based on our audit. We conducted our the company; and (3) provide reasonable assurance
audit in accordance with the Standards on Auditing issued regarding prevention or timely detection of unauthorised
by the Institute of Chartered Accountants of India (‘ICAI’) acquisition, use, or disposition of the company’s assets
and deemed to be prescribed under Section 143(10) of the that could have a material effect on the Standalone
Act, to the extent applicable to an audit of IFCoFR, and the financial statements.
Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting (‘the Guidance Note’) issued by the Inherent Limitations of Internal Financial Controls over
ICAI. Those Standards and the Guidance Note require that Financial Reporting
we comply with ethical requirements and plan and perform 7. Because of the inherent limitations of IFCoFR, including
the audit to obtain reasonable assurance about whether the possibility of collusion or improper management
adequate IFCoFR were established and maintained and if override of controls, material misstatements due to
such controls operated effectively in all material respects. error or fraud may occur and not be detected. Also,

158
Standalone Financials

Annexure A to the Independent Auditor’s Report of even date

to the members of KRBL Limited, on the Standalone Financial
Statements for the year ended 31 March 2019
projections of any evaluation of the IFCoFR to future Controls over Financial Reporting issued by the Institute
periods are subject to the risk that the IFCoFR may of Chartered Accountants of India.
become inadequate because of changes in conditions,
or that the degree of compliance with the policies or
procedures may deteriorate. For Walker Chandiok & Co LLP
Chartered Accountants
Opinion Firm’s Registration No.: 001076N/N500013
8. In our opinion, the Company has, in all material respects,
adequate internal financial controls over financial
 Rohit Arora
reporting and such controls were operating effectively
Partner
as at 31 March 2019, based on the internal control over  Membership No.: 504774
financial reporting criteria established by the Company
considering the essential components of internal control Place: Noida
stated in the Guidance Note on Audit of Internal Financial Date: 15 May 2019

159
 Annual Report 2018-19

Standalone Balance sheet

as at 31 March 2019
(All amounts stated in ` lacs, unless otherwise stated)
As at As at
Particulars Note
31 March 2019 31 March 2018
ASSETS
Non-current assets
Property, plant and equipment 3(a) 92,856 96,574
Capital work in progress 3(a) 59 225
Investment property 3(c) - 411
Intangible assets 3(b) 101 111
Financial assets
- Investments 4 427 427
- Loans 5 316 289
- Other financial assets 6 6 109
Other non-current assets 7 11,699 3,547
Sub total non-current assets 1,05,464 1,01,693
Current assets
Inventories 8 3,12,885 2,46,161
Financial assets
- Investments 4 765 899
- Trade receivables 9 39,729 24,670
- Cash and cash equivalents 10 366 3,869
- Other bank balances 11 91 3,030
- Loans 5 35 25
- Other financial assets 6 1,016 1,350
Other current assets 12 2,313 3,162
Sub total current assets 3,57,200 2,83,166
TOTAL ASSETS 4,62,664 3,84,859
EQUITY AND LIABILITIES
Equity
Equity share capital 13 2,354 2,354
Other equity 14 2,69,391 2,25,576
Sub total equity 2,71,745 2,27,930
Liabilities
Non current liabilities
Financial liabilities
- Borrowings 15 3,324 5,195
Provisions 16 565 512
Deferred tax liabilities (net) 17 14,673 13,202
Sub total non-current liabilities 18,562 18,909
Current liabilities
Financial liabilities
- Borrowings 18 1,38,151 1,16,414
- Trade payables 19
- Total outstanding dues of micro and small enterprises 688 -
- Total outstanding dues of creditors other than micro and small enterprises 21,729 11,128
- Other financial liabilities 20 8,591 8,254
Other current liabilities 21 2,602 1,245
Provisions 16 287 228
Current tax liabilities (net) 309 751
Sub total current liabilities 1,72,357 1,38,020
TOTAL EQUITY AND LIABILITIES 4,62,664 3,84,859
The accompanying notes form an integral part of these standalone financials statements 1 - 48
This is the Standalone Balance Sheet referred to in our report of even date.

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of KRBL Limited
Chartered Accountants
Firm's Registration No.: 001076N/N500013

Rohit Arora Anil Kumar Mittal Anoop Kumar Gupta

Partner Chairman and Managing Director Joint Managing Director
Membership No. 504774 DIN-00030100 DIN-00030160

Raman Sapra Rakesh Mehrotra

Place : Noida Company Secretary Chief Financial Officer
Date : 15 May 2019 Membership No. F9233 Membership No. 84366

160
Standalone Financials

Standalone Statement of Profit and Loss

for the year ended 31 March 2019
(All amounts stated in ` lacs, unless otherwise stated)
For the year ended For the year ended
Particulars Note
31 March 2019 31 March 2018
Income
Revenue from operations 22 4,11,957 3,24,644
Other income 23 1,490 4,034
Total income 4,13,447 3,28,678
Expenses
Cost of materials consumed 24 3,16,761 2,25,454
Purchase of stock-in-trade 25 1,165 1,221
Changes in inventories of finished goods and stock-in-trade 26 (28,623) (9,863)
Excise duty - 83
Employee benefits expenses 27 7,419 6,702
Finance cost 28 6,756 6,893
Depreciation and amortisation expenses 29 6,438 6,768
Other expenses 30 30,207 23,185
Total expenses 3,40,123 2,60,443
Profit before tax 73,324 68,235
Tax expense 33
Current tax 23,016 20,232
Deferred tax 1,471 1,824
MAT credit entitlement (1,490) -
Total tax expense 22,997 22,056
Profit for the year 50,327 46,179
Other comprehensive income:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans 6 24
Tax on above (2) (7)
Other comprehensive income for the year 4 17
Total comprehensive income for the year 50,331 46,196
Earnings per share (face value of ₹ 1 each) 31
- Basic (in ₹) 21.38 19.62
- Diluted (in ₹) 21.38 19.62

The accompanying notes form an integral part of these standalone financials statements 1 - 48

This is the Standalone Statement of Profit and Loss referred to in our report of even date.

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of KRBL Limited
Chartered Accountants
Firm's Registration No.: 001076N/N500013

Rohit Arora Anil Kumar Mittal Anoop Kumar Gupta

Partner Chairman and Managing Director Joint Managing Director
Membership No. 504774 DIN-00030100 DIN-00030160

Raman Sapra Rakesh Mehrotra

Place : Noida Company Secretary Chief Financial Officer
Date : 15 May 2019 Membership No. F9233 Membership No. 84366

161
 Annual Report 2018-19

Standalone Cash flow Statement

for the year ended 31 March 2019
(All amounts stated in ` lacs, unless otherwise stated)
For the year ended For the year ended
Particulars
31 March 2019 31 March 2018
A Cash flow from operating activities
Profit before tax 73,324 68,235
Adjustment for :
Depreciation and amortisation expenses 6,438 6,768
(Profit)/loss on sale of property, plant and equipment (135) 4
Net unrealised foreign exchange (gain)/loss (240) 515
(Profit)/loss on sale of investment (289) 23
Balance credit impaired 1,083 -
Liabilities/provisions no longer required written back (134) -
Finance costs 6,756 6,893
Interest income (655) (1,032)
Dividend income (30) (2,605)
MTM (profit) on derivatives - (11)
Operating profit before working capital changes 86,118 78,790
Adjustments for working capital changes :
(Increase)/decrease in financial and other assets (7,006) 2,285
(Increase) in inventories (66,724) (44,297)
(Increase) in trade receivables (16,365) (1,208)
Increase/(decrease) in trade payables 11,554 (15,399)
Increase in liabilities and provisions 2,914 2,378
Cash generated from operations 10,491 22,549
Income tax paid (net) (21,965) (18,967)
Net cash (used in)/flow from operating activities (A) (11,474) 3,582
B Cash flow from investing activities
Purchase of property, plant and equipment and intangible assets1 (2,248) (3,835)
Sale of property, plant and equipment 119 191
Sale proceeds from investments 58,072 31,590
Purchase of investments (57,649) (31,500)
Movement from deposits (net) 3,031 (2,512)
Interest received 665 1,012
Dividend income 30 2,605
Net cash flow from/(used in) investing activities (B) 2,020 (2,449)
C Cash flow from financing activities
(Repayment) of non current borrowings (3,443) (4,456)
Movement in current borrowings (net) 22,191 19,275
Finance cost paid (6,281) (6,920)
Dividend paid (5,414) (4,946)
Dividend distribution tax paid (1,102) (483)
Net cash flow from financing activities (C) 5,951 2,470

162
Standalone Financials

Standalone Cash flow Statement

for the year ended 31 March 2019
(All amounts stated in ` lacs, unless otherwise stated)
For the year ended For the year ended
Particulars
31 March 2019 31 March 2018
D Net (decrease)/increase in cash and cash equivalents during the year (A+B+C) (3,503) 3,603
Cash and cash equivalents-opening balance 3,869 266
Cash and cash equivalents at the year end 366 3,869
E Cash and cash equivalents (refer note 10)
Cash in hand 129 134
Balances with banks 237 3,735
366 3,869

Notes
1. Net of movement in capital work-in-progress and capital advances.
2. The above cash flow statement has been prepared under the ‘indirect method’ as set out in Ind AS 7, ‘Statement of cash flows’.

This is the Standalone Cash Flow Statement referred to in our report of even date.

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of KRBL Limited
Chartered Accountants
Firm's Registration No.: 001076N/N500013

Rohit Arora Anil Kumar Mittal Anoop Kumar Gupta

Partner Chairman and Managing Director Joint Managing Director
Membership No. 504774 DIN-00030100 DIN-00030160

Raman Sapra Rakesh Mehrotra

Place : Noida Company Secretary Chief Financial Officer
Date : 15 May 2019 Membership No. F9233 Membership No. 84366

163
 Annual Report 2018-19

Standalone Statement of Changes in Equity

for the year ended 31 March 2019
A. Equity share capital (refer note 13) (All amounts stated in ` lacs, unless otherwise stated)
Equity shares of `1 each, fully paid up Number of shares Amount
As at 1 April 2017 23,53,89,892 2,354
Movement during the year - -
As at 31 March 2018 23,53,89,892 2,354
Movement during the year - -
As at 31 March 2019 23,53,89,892 2,354

B. Other equity (refer note 14)

Particulars Reserve and surplus
Retained General Securities Capital Capital Total
earnings reserve premium reserve redemption
reserve
Balance as at 1 April 2017 1,43,942 31,050 9,655 82 77 1,84,806
Profit for the year 46,179 - - - - 46,179
Other comprehensive income for the year:-
Remeasurement of defined benefit 17 - - - - 17
obligations (net of tax)
Total comprehensive income as at 31 1,90,138 31,050 9,655 82 77 2,31,002
March 2018
Transaction with owners
Dividends paid (refer note 44) (4,943) (4,943)
Dividend distribution tax paid (483) - - - - (483)
Transferred to general reserve1 (6,000) - - - - (6,000)
Transferred from profit and loss account1 - 6,000 - - - 6,000
Balance as at 31 March 2018 1,78,712 37,050 9,655 82 77 2,25,576
Balance as at 01 April 2018 1,78,712 37,050 9,655 82 77 2,25,576
Profit for the year 50,327 - - - - 50,327
Other comprehensive income for the year:-
Remeasurement of defined benefit 4 - - - - 4
obligations (net of tax)
Total comprehensive income as at 31 2,29,043 37,050 9,655 82 77 2,75,907
March 2019
Transaction with owners
Dividends paid (refer note 44) (5,414) - - - - (5,414)
Dividend distribution tax paid (1,102) - - - - (1,102)
Transferred to general reserve1 (7,000) - - - - (7,000)
Transferred from profit and loss account1 - 7,000 - - - 7,000
Balance as at 31 March 2019 2,15,527 44,050 9,655 82 77 2,69,391
1.
The Company has voluntarily transferred amount of ` 7,000 lacs (31 March 2018 ` 6,000 lacs) from retained earning to general reserve.
The accompanying notes form an integral part of these standalone financials statements 1 - 48

This is the Standalone Statement of Changes in Equity referred to in our report of even date.

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of KRBL Limited
Chartered Accountants
Firm's Registration No.: 001076N/N500013

Rohit Arora Anil Kumar Mittal Anoop Kumar Gupta

Partner Chairman and Managing Director Joint Managing Director
Membership No. 504774 DIN-00030100 DIN-00030160

Raman Sapra Rakesh Mehrotra

Place : Noida Company Secretary Chief Financial Officer
Date : 15 May 2019 Membership No. F9233 Membership No. 84366

164
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

1. Company information (iv) Summary of significant accounting policies

KRBL Limited (‘Company’) is a limited Company domiciled  The financial statements have been prepared using
in India and was incorporated on 30 March 1993. The the significant accounting policies and measurement
registered office of the Company is located at 5190, Lahori bases summarized below. These were used throughout
gate, Delhi 110006. The shares of the Company are listed in all periods presented in the financial statements.
India on the Bombay Stock Exchange and the National Stock
Exchange. a. Current versus non-current classification
The Company presents assets and liabilities in
The Company is world’s leading basmati rice producer and the balance sheet based on current / non-current
has fully integrated operations in every aspect of basmati classification.
value chain, right from seed development, contact farming,
procurement of paddy, storage, processing, packaging, An asset/liability is treated as current when it is:
branding and marketing. Among the many brands owned • Expected to be realised or intended to be sold
by the Company “India Gate” is the flagship brand both in or consumed or settled in normal operating
domestic and international markets. cycle;
• Expected to be realised/settled within twelve
2. Basis of preparation, measurement and significant months after the reporting period, or
accounting policies •  Cash or cash equivalent unless restricted
from being exchanged or used to settle a
(i) General information liability for at least twelve months after the
These standalone financial statements have been reporting period
prepared in accordance with the Indian Accounting • There is no unconditional right to defer the
Standards (hereinafter referred to as the ‘Ind AS’) as settlement of the liability for at least twelve
notified by Ministry of Corporate Affairs pursuant to months after the reporting period.
section 133 of the Companies Act, 2013 read with Rule 3
of the Companies (Indian Accounting Standards) Rules, All other assets and liabilities are classified as
2015 (as amended). The Company has uniformly applied non-current. Deferred tax assets and liabilities
the accounting policies during the periods presented. are classified as non-current assets and liabilities
respectively.
The financial statements for the year ended 31 March
2019 were authorized and approved for issue by the b. Property, plant and equipment
Board of Directors on 15 May 2019. 
Recognition, measurement and subsequent
expenditure
(ii) Basis of accounting Property, plant and equipment are measured
The financial statements have been prepared on at cost, less accumulated depreciation and
going concern basis in accordance with accounting impairment losses, if any. Freehold land is stated
principles generally accepted in India. Further, the at original cost of acquisition.
financial statements have been prepared on historical
cost basis except for certain financial assets and Cost of an item of property, plant and equipment
financial liabilities which are measured at fair values includes acquisition / installation inclusive
as explained in relevant accounting policies. Fair of freight, duties, and taxes and all incidental
valuations related to financial assets and financial expenses. Subsequent costs are included in
liabilities are categorized into level 1, level 2 and level the asset’s carrying amount or recognised as
3 based on the degree to which the inputs to the fair a separate asset, as appropriate, only when it is
value measurements are observable. probable that future economic benefits associated
with the item will flow to the Company and the cost
(iii) Functional and presentation currency of the item can be measured reliably. The carrying
These financial statements are presented in Indian amount of any component accounted for as a
rupees (`) which is also the Company’s functional separate asset is derecognized when replaced.
currency. All amounts have been rounded-off to All other repairs and maintenance are generally
the nearest lac as per the requirements of Part II of charged to the statement of profit and loss during
Schedule III of the Act, unless otherwise indicated. the reporting period in which they are incurred.

165
 Annual Report 2018-19

NOTES FORMING PART OF THE FINANCIAL STATEMENT

In respect of major projects involving construction, only when it is probable that future economic
related preoperational expenses form part of the benefits associated with the expenditure will
value of assets capitalized. Expenses capitalized flow to the Company and the cost of the item
also include applicable borrowing costs. can be measured reliably. All other repairs and
maintenance costs are expensed when incurred.
Property, plant and equipment which are not ready When part of an investment property is replaced,
for intended use as on the date of Balance Sheet the carrying amount of the replaced part is
are disclosed as “Capital work-in-progress”. derecognized.

Depreciation Depreciation
Depreciation on property, plant and equipment has Investment properties are depreciated using
been provided on straight line method, in terms of the straight-line method over the useful lives as
useful life of the assets as prescribed in Schedule mentioned in Part C of Schedule II of the Act.
II to the Companies Act, 2013. Depreciation on
additions (disposals) is provided on a pro-rata Reclassification to/from investment property
basis i.e. from (up to) the date on which the asset When the use of a property changes from owner-
is capitalised/ disposed off. occupied to investment property, the property is
reclassified as investment property at its carrying
Depreciation method and useful lives are reviewed cost (including accumulated depreciation) on the
annually. If the useful life of an asset is estimated date of reclassification and vice-a-versa.
to be significantly different from previous
estimates, the depreciation period is changed d. Intangible assets
accordingly. If there has been a significant change Recognition and measurement
in the expected pattern of economic benefits from Intangible assets acquired separately are
the asset, the depreciation method is changed to measured on initial recognition at cost. Following
reflect the changed pattern. initial recognition, intangible assets are carried
at cost less accumulated amortization and
De-recognition accumulated impairment loss, if any.
The carrying amount of an item of property, plant
and equipment is derecognized on disposal or Amortisation
when no future economic benefits are expected Computer software, patent, trademark and design
from its use or disposal. The gain or loss arising and goodwill are recognized as intangible assets
from the de recognition of an item of property, and amortized on straight line method over a
plant and equipment is measured as the difference period of 10 years except one software which is
between the net disposal proceeds and the depreciated in 6 years on straight line method
carrying amount of the item and is recognized in based upon life of servers where it is installed.
the statement of profit and loss when the item is
derecognized. De-recognition
The carrying amount of an intangible asset is
c. Investment property derecognized on disposal or when no future
Recognition and measurement economic benefits are expected from its use or
Property held to earn rentals or / and for disposal. The gain or loss arising from the de
capital appreciation or both but not for sale recognition of an intangible asset is measured as
in the ordinary course of business, or for the difference between the net disposal proceeds
use in the production or supply of goods and the carrying amount of the intangible asset
or services or for administrative purposes, and is recognized in the statement of profit and
are categorized as investment property. loss when the asset is derecognized.
Investment property is measured at its cost,
including related transaction costs and where e. Investment in subsidiaries
applicable borrowing costs less depreciation Investment in equity instruments of subsidiaries
and impairment, if any. Subsequent expenditure are measured at cost as per Ind AS 27 ‘Separate
is capitalized to the asset’s carrying amount Financial Statements’.

166
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

f. Inventory • Determining the transaction price

Raw materials, stores and spares and packing • Allocating the transaction price to the
materials performance obligations
Raw materials, stores and spares and packing • Recognising revenue when/as performance
materials are valued at lower of cost and net obligation(s) are satisfied.
realizable value. However, these items are
considered to be realizable at cost if the finished Revenue is recognised to the extent that it is
products, in which they will be used, are expected probable that the economic benefits will flow
to be sold at or above cost. The cost is calculated to the Company and the revenue can be reliably
on weighted average cost method and it comprises measured, regardless of when the payment is
all costs incurred in bringing the inventories to being made.
their present location and condition and includes,
where applicable, appropriate overheads based In the comparative period presented in financial
on normal level of activity. Obsolete, slow moving statements, revenue was measured at the fair
and defective inventories are identified at the time value of the consideration received or receivable.
of physical verification and wherever necessary a Revenue from the sale of goods was recognised
provision is made. when the significant risks and rewards of
ownership had been transferred to the customer,
Finished goods and by products recovery of the consideration was probable, there
Finished goods are valued at lower of cost and net was no continuing management involvement with
realisable value. Cost of inventories of finished the goods and the amount of revenue could be
goods includes cost of raw materials, direct and measured reliably.
indirect overheads which are incurred to bring the
inventories to their present location and condition. The Company derives revenue primarily from two
segments - Agri and Energy. Agri segment of the
By-products are valued at net realizable value. Company principally generate revenue from sale of
goods (rice and by products) and Energy segment
Net realisable value is the estimated selling generates revenue by generating power units and
price in the ordinary course of business, less the selling it to governments under the agreements
estimated costs of completion and the estimated (for more detailed information about reportable
costs necessary to make the sale. segments, refer note 39).

g. Revenue Sale of goods (rice and by products)

Effective 1 April 2018, the Company has applied Ind Revenue from sale of goods is recognised when
AS 115: Revenue from Contracts with Customers control of the products being sold is transferred to
which establishes a comprehensive framework the customers and when there are no longer any
for determining whether, how much and when unfulfilled obligations.
revenue is to be recognised. Ind AS 115 replaces
Ind AS 18 Revenue. The impact of the adoption of 
Revenue is measured at fair value of the
the standard on the financial statements of the consideration received or receivable, after
Company is insignificant. deduction of any trade discounts, volume rebates
and any taxes or duties collected on behalf of the
Revenue is measured based on the consideration government such as goods and services tax, etc.
specified in a contract with a customer and Accumulated experience is used to estimate the
excludes amounts collected on behalf of third provision for such discounts and rebates. Revenue
parties, if any. The Company recognizes revenue is only recognised to the extent that it is highly
when it transfers control over a product or service probable a significant reversal will not occur.
to a customer.
Revenue from electricity generation
To determine whether to recognize revenue, the Sale of energy is accounted for on basis of energy
Company follows a 5-step process: supplied. Sale of Certified Emission Reduction
• Identifying the contract with a customer (CER) is recognized as income on delivery of
• Identifying the performance obligations CERs to the customer. Sale of Renewable Energy

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Certificate (REC) is recognized as income on sale Other long-term employee benefits

of REC on the IEX/PXIL. Other long-term employee benefits are recognised
as an expense in the statement of profit and
Dividend income loss as and when they accrue. The Company
Dividend is recognised when the Company’s right determines the liability using the Projected Unit
to receive the payment is established, which is Credit Method, with actuarial valuations carried
generally when shareholders approve the dividend. out as at the balance sheet date. Actuarial gains
and losses in respect of such benefits are charged
Interest income to the statement of profit and loss.
Interest income is recognized using the time
proportion method based on the rates implicit in i. Research and development
the transaction. Revenue expenditure on research and development
is charged to the statement of profit and loss in
h. Employee benefits the year in which it is incurred. Capital expenditure
Short term employee benefits on research and development is included under
All employee benefits payable wholly within property, plant and equipment and/or intangible
twelve months of receiving employee services assets, as the case may be.
are classified as short-term employee benefits.
These benefits include salaries and wages, bonus, j. Financial instruments
allowances and ex-gratia. The undiscounted A financial instrument is any contract that gives
amount of short-term employee benefits to be paid rise to a financial asset of one entity and a financial
in exchange for employee services is recognised liability or equity instrument of another entity.
as an expense as the related service is rendered
by employees. Further, the liabilities are presented a) Financial assets
as provisions for employee benefits under other
Classification
current liabilities in the balance sheet.
The Company classifies financial assets as
subsequently measured at amortised cost,
Defined contribution plan
fair value through other comprehensive
The Company makes payments made to defined
income or fair value through profit or loss on
contribution plans such as provident fund and
the basis of its business model for managing
employees’ state insurance. The Company has no
the financial assets and the contractual cash
further payment obligations once the contributions
flows characteristics of the financial asset.
have been paid. The contributions are accounted
for as defined contribution plans and the
contributions are recognised as employee benefit Initial recognition and measurement
expense when they are due. Prepaid contributions All financial assets are recognised initially at
are recognised as an asset to the extent that a fair value plus, in the case of financial assets
cash refund or a reduction in the future payments not recorded at fair value through profit or
is available. loss, transaction costs that are attributable
to the acquisition of the financial asset.
Defined benefit plan
The liability recognised in the balance sheet Subsequent measurement
in respect of gratuity is the present value of the For purposes of subsequent measurement
defined benefit obligation as at the balance sheet financial assets are classified in below
date less the fair value of plan assets. The defined categories:
benefit obligation is calculated at the balance
sheet date on the basis of actuarial valuation by Financial assets carried at amortised cost
an independent actuary using projected unit credit A financial asset is subsequently measured at
method. Actuarial gains and losses arising from amortised cost if it is held within a business
experience adjustments and changes in actuarial model whose objective is to hold the asset in
assumptions are recorded in the Statement of order to collect contractual cash flows and
Other Comprehensive Income in the year in which the contractual terms of the financial asset
such gains or losses arise. give rise on specified dates to cash flows that

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Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

are solely payments of principal and interest and other payables, loans and borrowings
on the principal amount outstanding. including bank overdrafts, and derivative
financial instruments.
Financial assets at fair value through other
comprehensive income Subsequent measurement
A financial asset is subsequently measured The measurement of financial liabilities
at fair value through other comprehensive depends on their classification, as described
income if it is held within a business below:
model whose objective is achieved by both
collecting contractual cash flows and selling Financial liabilities at amortised cost
financial assets and the contractual terms After initial recognition, interest-bearing
of the financial asset give rise on specified loans and borrowings are subsequently
dates to cash flows that are solely payments measured at amortised cost using the
of principal and interest on the principal Effective Interest Rate (EIR) method. Gains
amount outstanding. and losses are recognised in profit or loss
when the liabilities are de recognised as well
Financial assets at fair value through profit or as through the EIR amortisation process.
loss
A financial asset which is not classified in any Amortised cost is calculated by taking
of the above categories are subsequently fair into account any discount or premium on
valued through profit or loss. acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation
De-recognition is included as finance costs in the statement
A financial asset is primarily de recognised of profit and loss.
when the rights to receive cash flows from
the asset have expired or the Company has Financial liabilities at fair value through profit
transferred its rights to receive cash flows or loss
from the asset. Financial liabilities at fair value through profit
or loss include financial liabilities held for
Impairment of financial assets trading and financial liabilities designated
The Company assesses impairment based upon initial recognition as at fair value
on expected credit losses (ECL) model for through profit or loss. Financial liabilities
measurement and recognition of impairment are classified as held for trading if they are
loss, the calculation of which is based on incurred for the purpose of repurchasing in
historical data, on the financial assets that the near term. This category also includes
are trade receivables or contract revenue derivative financial instruments entered into
receivables. by the Company that are not designated as
hedging instruments in hedge relationships
b) Financial liabilities as defined by Ind AS 109. Separated
Classification embedded derivatives are also classified as
The Company classifies all financial liabilities held for trading unless they are designated
as subsequently measured at amortised as effective hedging instruments. Gains
cost, except for financial liabilities at fair or losses on liabilities held for trading are
value through profit or loss. Such liabilities, recognised in the statement of profit and
including derivatives that are liabilities, shall loss.
be subsequently measured at fair value.
De-recognition
Initial recognition and measurement A financial liability is derecognised when the
All financial liabilities are recognised obligation under the liability is discharged or
initially at fair value and, in the case of cancelled or expires. When an existing financial
loans and borrowings and payables, net of liability is replaced by another from the same
directly attributable transaction costs. The lender on substantially different terms, or the
Company’s financial liabilities include trade terms of an existing liability are substantially

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NOTES FORMING PART OF THE FINANCIAL STATEMENT

modified, such an exchange or modification For assets and liabilities that are recognised
is treated as the derecognition of the original in the balance sheet on a recurring basis, the
liability and the recognition of a new liability. The Company determines whether transfers have
difference in the respective carrying amounts is occurred between levels in the hierarchy by
recognised in the statement of profit and loss. re-assessing categorization (based on the
lowest level input that is significant to the fair
c) Offsetting of financial instruments
value measurement as a whole) at the end of
Financial assets and financial liabilities each reporting period.
are offset and the net amount is reported
in the balance sheet if there is a currently For the purpose of fair value disclosures, the
enforceable legal right to offset the Company has determined classes of assets
recognised amounts and there is an intention and liabilities on the basis of the nature,
to settle on a net basis, to realize the assets characteristics and risks of the asset or
and settle the liabilities simultaneously. liability and the level of the fair value hierarchy
as explained above.
d) Derivative financial instruments
The Company uses derivative financial k. Leases
instruments, such as forward currency Company as a lessee
contracts, interest rate swaps and full currency The determination of whether an arrangement is
swaps, to hedge its foreign currency risks and (or contains) a lease is based on the substance
interest rate risks, respectively. Such derivative of the arrangement at the inception of the
financial instruments are initially recognised transaction. The arrangement is, or contains, a
at fair value on the date on which a derivative lease if fulfilment of the arrangement is dependent
contract is entered into and are subsequently on the use of a specific asset or assets and the
remeasured at fair value. Derivatives are arrangement conveys a right to use the asset or
carried as financial assets when the fair value assets, even if that right is not explicitly specified
is positive and as financial liabilities when the
in an arrangement.
fair value is negative.
A lease is classified at the inception date as a
Any gains or losses arising from changes in
finance lease or an operating lease. A lease that
the fair value of derivatives are taken directly
transfers substantially all the risks and rewards
to statement of profit and loss.
incidental to ownership to the Company is
classified as a finance lease.
e) Fair value measurement
The Company measures financial instruments
Operating lease payments are recognised as an
such as derivatives and certain investments,
expense in the statement of profit and loss on a
at fair value at each balance sheet date.
straight-line basis over the lease term however,
rent expenses shall not be straight-lined, if
All assets and liabilities for which fair value
escalation in rentals is in line with expected
is measured or disclosed in the financial
inflationary cost.
statements are categorized within the fair
value hierarchy, described as follows, based
Company as a lessor
on the lowest level input that is significant to
Lease income from operating leases where the
the fair value measurement as a whole:
Company is a lessor is recognised in income on
• Level 1: Quoted (unadjusted) market
a straight-line basis over the lease term except
prices in active markets for identical
assets or liabilities. where scheduled increase in rent compensate the
• Level 2: Valuation techniques for which lessor for expected inflationary costs.
the lowest level input that is significant to
the fair value measurement is directly or l. Foreign currency transactions
indirectly observable. Initial recognition
• Level 3: Valuation techniques for which the On initial recognition, transactions in foreign
lowest level input that is significant to the currencies entered into by the Company are recorded
fair value measurement is unobservable. in the functional currency (i.e. Indian Rupees), by

170
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

applying to the foreign currency amount, the spot of assets and liabilities and their carrying amounts
exchange rate between the functional currency and for financial reporting purposes at the reporting
the foreign currency at the date of the transaction. date.
Exchange differences arising on foreign exchange
transactions settled during the year are recognised 
Deferred tax assets are recognised for all
in the statement of profit and loss. deductible temporary differences, the carry
forward of unused tax credits and any unused tax
Measurement of foreign currency items at losses. Deferred tax assets are recognised to the
reporting date extent that it is probable that taxable profit will be
Foreign currency monetary items of the Company available against which the deductible temporary
are translated at the closing exchange rates. Non- differences, and the carry forward of unused tax
monetary items that are measured at historical credits and unused tax losses can be utilised.
cost in a foreign currency, are translated using
the exchange rate at the date of the transaction. Deferred tax assets and liabilities are measured
Non-monetary items that are measured at fair at the tax rates that are expected to apply to the
value in a foreign currency, are translated using period when the asset is realized or the liability
the exchange rates at the date when the fair value is settled, based on tax rates (and tax laws) that
is measured. Exchange differences arising out of have been enacted or substantively enacted at
these translations are recognised in the statement the balance sheet date. Tax relating to items
of profit and loss. recognized directly in equity/other comprehensive
income is recognised in respective head and not in
m. Income tax the statement of profit & loss.
Tax expense is the aggregate amount included in
the determination of profit or loss for the period in The carrying amount of deferred tax assets
respect of current tax and deferred tax. is reviewed at each balance sheet date and is
adjusted to the extent that it is no longer probable
Current tax that sufficient taxable profit will be available to
Current tax is measured at the amount expected allow all or part of the asset to be recovered.
to be paid/ recovered to/from the taxation
authorities. The tax rates and tax laws used to Deferred tax assets and deferred tax liabilities are
compute the amount are those that are enacted or offset if a legally enforceable right exists to set off
substantively enacted, at the reporting date. current tax assets against current tax liabilities
and the deferred taxes relate to the same taxable
Current income tax relating to items recognised entity and the same taxation authority.
directly in equity/other comprehensive income
is recognised under the respective head and not Minimum alternate tax (‘MAT’) credit entitlement
in the statement of profit and loss. Management is recognised as an asset only when and to the
periodically evaluates positions taken in the extent there is convincing evidence that normal
tax returns with respect to situations in which income tax will be paid during the specified period.
applicable tax regulations are subject to In the year in which MAT credit becomes eligible
interpretation and establishes provisions where to be recognised as an asset, the said asset is
appropriate. created by way of a credit to the statement of profit
and loss and shown as MAT credit entitlement.
Current tax assets are offset against current This is reviewed at each balance sheet date and
tax liabilities if, and only if, a legally enforceable writes down the carrying amount of MAT credit
right exists to set off the recognised amounts entitlement to the extent it is not reasonably
and there is an intention either to settle on a net certain that normal income tax will be paid during
basis, or to realise the asset and settle the liability the specified period.
simultaneously.
n. 
Provision, contingent assets and contingent
Deferred tax liability
Deferred tax is provided using the liability method The Company creates a provision when there is
on temporary differences between the tax bases a present obligation as a result of past event that

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NOTES FORMING PART OF THE FINANCIAL STATEMENT

probably requires an outflow of resources and make decisions about resources to be allocated to
a reliable estimate can be made of the amount the segment and assess its performance and for
of obligation can be made at the reporting date. which discrete financial information is available.
These estimates are reviewed at each reporting
date and adjusted to reflect the current best Allocation of common costs
estimates. Common allocable costs are allocated to each
segment accordingly to the relative contribution of
A disclosure of contingent liability is made each segment to the total common costs.
when there is a possible obligation or a present
obligation that will probably not require outflow Unallocated items
of resources or where a reliable estimate of the Revenues and expenses, which relate to the
obligation cannot be made. Company as a whole and are not allocable
to segments on a reasonable basis, have
Contingent assets are neither recognized nor been included under “Unallocated corporate
disclosed. expenses”. Assets and liabilities, which relate to
the Company as a whole and are not allocable
o. Government grants to segments on reasonable basis, are shown
Grants from the government are recognised when as unallocated corporate assets and liabilities
there is reasonable assurance that the grant will respectively.
be received and the Company will comply with
all attached conditions. Grant received from Segment accounting policies
government towards fixed assets acquired/ The Company prepares its segment information
constructed by the Company is deducted out of in conformity with the accounting policies
gross value of the asset acquired/ constructed adopted for preparing and presenting the financial
and depreciation is charged accordingly. statements of the Company as a whole.

p. Cash and cash equivalents r. Borrowing cost

Cash comprises cash in hand and at bank. Cash General and specific borrowing costs directly
and cash equivalents are short-term (highly liquid), attributed to the acquisition, construction or
that are readily convertible into cash and which production of a qualifying asset are capitalised
are subject to an insignificant risk of changes in upto the period of time that is required to complete
value. and prepare the asset for its intended use or sale.
Qualifying major assets are assets that necessarily
q. Segment reporting take a substantial period of time to get ready for
their intended use or sale.
According to Ind AS 108 ‘Operating Segment’,
identification of operating segments is based on
All other borrowing costs are expensed in the
Chief Operating Decision Maker (‘CODM’) approach
period in which they occur or accrue. Borrowing
for making decisions about allocating resources
costs consist of interest and other costs that an
to the segment and assessing its performance.
entity incurs in connection with the borrowing of
funds.
Identification of segments
An operating segment is a component of the
s. Earnings per share
Company that engages in business activities from
which it earns revenues and incurs expenses, Basic earnings per share is calculated by dividing
including revenues and expenses that relate to the net profit for the year attributable to equity
transactions with any of the Company’s other shareholders by the weighted average number
components. of equity shares outstanding during the year.
Diluted earnings per share is computed using the
Results of the operating segments are reviewed weighted average number of equity and dilutive
regularly by the management team (Chairman, equity equivalent shares outstanding during
Joint Managing Directors and Chief Financial the year end, except where the results would be
Officer) which has been identified as the CODM, to anti-dilutive

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Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

t. Dividend to share holders discount rate, future salary increases, mortality rates
Dividend to equity shareholders is recognised as a and future pension increases. Due to the complexities
liability and deducted from shareholders’ equity, in involved in the valuation and its long-term nature, a
the period in which the dividends are approved by defined benefit obligation is highly sensitive to changes
the equity shareholders in the general meeting. in these assumptions. All assumptions are reviewed at
each reporting date.
(v) Significant management judgements in applying
accounting policies and estimation uncertainty Fair value measurements
When the fair values of financial assets and financial
The preparation of the Company’s financial statements
liabilities recorded in the balance sheet cannot be
requires management to make judgements, estimates
measured based on quoted prices in active markets,
and assumptions that affect the reported amounts of
their fair value is measured using valuation techniques
revenues, expenses, assets and liabilities including
including the DCF model. The inputs to these models
contingent liability and the related disclosures.
are taken from observable markets where possible,
but where this is not feasible, a degree of judgment
Significant judgements
is required in establishing fair values. Judgements
include considerations of inputs such as liquidity risk,
Recognition of deferred tax assets
credit risk and volatility. Changes in assumptions about
The extent to which deferred tax assets can be
these factors could affect the reported fair value of
recognized is based on an assessment of the probability
financial instruments.
of the Company’s future taxable income against which
the deferred tax assets can be utilized.
Inventories
Management estimates the net realisable values of
Evaluation of indicators for impairment of assets
inventories, taking into account the most reliable
The evaluation of applicability of indicators of
evidence available at each reporting date. The future
impairment of assets requires assessment of several
realisation of these inventories may be affected by
external and internal factors which could result in
future market-driven changes that may reduce future
deterioration of recoverable amount of the assets
selling prices.
Provisions
(vi) Recent accounting pronouncements
At each balance sheet date basis the management
judgment, changes in facts and legal aspects, the Ind AS 116 – Leases
Company assesses the requirement of provisions On 30 March 2019, Ministry of Corporate Affairs
against the outstanding contingent liabilities. However, (‘MCA’) has clarified that Ind AS 116 is effective for
the actual future outcome may be different from this annual periods beginning on or after 1 April 2019 and
judgement. it replaces Ind AS 17 Leases, including appendices
thereto. Ind AS 116 sets out the principles for the
Significant estimates recognition, measurement, presentation and disclosure
of leases and requires lessees to account for all leases
Useful lives of depreciable/amortisable assets under a single on-balance sheet model similar to the
Management reviews its estimate of the useful lives accounting for finance leases under Ind AS 17. The
of depreciable/amortisable assets at each reporting standard includes two recognition exemptions for
date, based on the expected utility of the assets. lessees - leases of ‘low-value’ assets and short-term
Uncertainties in these estimates relate to technical leases (i.e., leases with a lease term of 12 months or
and economic obsolescence that may change the less). At the commencement date of a lease, a lessee
utilisation of assets. will recognise a liability to make lease payments (i.e.,
the lease liability) and an asset representing the right
Defined benefit obligation (DBO) to use the underlying asset during the lease term (i.e.,
The cost of the defined benefit plan and other post- the right-of-use asset). Lessees will be required to
employment benefits and the present value of such separately recognise the interest expense on the lease
obligation are determined using actuarial valuations. liability and the depreciation expense on the right-of-
An actuarial valuation involves making various use asset. The Company is evaluating the requirements
assumptions that may differ from actual developments of the amendment and its effect on the financial
in the future. These include the determination of the statements.

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NOTES FORMING PART OF THE FINANCIAL STATEMENT

Amendment to Ind AS 12, Income taxes to re-measure the net defined benefit liability (asset).
On 30 March 2019, Ministry of Corporate Affairs The effective date of amendment is 1 April 2019.
(“MCA”) has notified Appendix C to Ind-AS 12 Income The Company is evaluating the requirements of the
taxes – “Uncertainty over Income Tax Treatments”. amendments and its effect on the financial statements.
The amendment to Ind AS 12 requires the entities to
consider recognition and measurement requirements Amendment to Ind AS 23, Borrowing costs
when there is uncertainty over income tax treatments. On 30 March 2019, Ministry of Corporate Affairs
In such a circumstance, an entity shall recognise and (“MCA”) issued an amendment to Ind-AS 23 “Borrowing
measure its current or deferred tax asset or liability Costs” clarifies that if any specific borrowing remains
accordingly. The effective date of amendment is 1 outstanding after the related asset is ready for its
April 2019. Further, there has been amendments in intended use or sale, that borrowing becomes part of the
relevant paragraphs in Ind-AS 12 “Income Taxes” funds that an entity borrows generally when calculating
which clarifies that an entity shall recognize the income the capitalization rate on general borrowings. This
tax consequences of dividends in profit or loss, other amendment is effective for annual periods beginning
comprehensive income or equity according to where on or after 1 April 2019. The Company is evaluating the
the entity originally recognized those past transactions requirements of the amendments and their impact on
or events in accordance with Ind-AS 109. The Company the financial statements.
is evaluating the requirements of the amendments and
its effect on the financial statements. Amendment to Ind AS 109, Financial instruments
On 30 March 2019, Ministry of Corporate Affairs
Amendment to Ind AS 19, Employee benefits (“MCA”) issued an amendment to Ind-AS 109 in respect
On 30 March 2019, Ministry of Corporate Affairs (“MCA”) of prepayment features with negative compensation,
has issued an amendment to Ind AS 19 which requires which amends the existing requirements in Ind-AS
the entities to determine current service cost using 109 regarding termination rights in order to allow
actuarial assumptions and net interest using discount measurement at amortized cost (or, depending
rate determined at the start of the annual reporting on the business model, at fair value through other
period. However, if an entity re-measures the net comprehensive income) even in the case of negative
defined benefit liability (asset) as per the requirement compensation payments. This amendment is effective
of the standard, it shall determine current service for annual periods beginning on or after 1 April 2019.
cost and net interest for the remainder of the annual The Company is evaluating the requirements of
reporting period after the plan amendment, curtailment the amendments and their impact on the financial
or settlement using the actuarial assumptions used statements.

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Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
3a Property, plant and equipment
Particulars Freehold Buildings Plant and Furniture Office Total Capital
land machinery and equipment Vehicles work in
fixtures progress
Gross carrying amount
Balance as at 1 April 2017 5,921 17,776 1,18,639 1,792 411 3,302 1,47,841 171
Additions 355 1,760 1,422 27 44 164 3,772 206
Disposals/capitalised - - (169) - (1) (101) (271) (152)
Balance as at 31 March 6,276 19,536 1,19,892 1,819 454 3,365 1,51,342 225
2018
Additions - 413 1,860 32 20 92 2,417 45
Transfer (refer note C - 520 - - - - 520 -
below)
Disposals/capitalised (71) (295) (23) (1) (215) (605) (211)
Balance as at 31 March 6,276 20,398 1,21,457 1,828 473 3,242 1,53,674 59
2019
Accumulated depreciation
Balance as at 1 April 2017 - 3,358 42,137 791 224 1,612 48,122 -
Additions - 722 5,515 130 53 302 6,722 -
Disposals - - (8) - (1) (67) (76) -
Balance as at 31 March - 4,080 47,644 921 276 1,847 54,768 -
2018
Additions - 748 5,178 129 57 287 6,399 -
Transfer (refer note - 119 - - - - 119
C below)
Disposals (refer note G - (11) (252) (19) (0) (185) (467) -
below)
Balance as at 31 March - 4,936 52,570 1,031 332 1,950 60,817 -
2019
Net carrying amount
Balance as at 31 March 6,276 15,456 72,248 898 178 1,518 96,574 225
2018
Balance as at 31 March 6,276 15,462 68,887 797 141 1,293 92,856 59
2019

Notes:
A Contractual obligations
Refer note 41C for disclosure of contractual commitments for the acquisition of property, plant and equipment.
B Property, plant and equipment pledged as security
Refer note 15 and 18 for information on property, plant and equipment pledged as security by the Company.
C Refer note 3(c), for the amount of gross carrying amount and accumulated depreciation transferred to ‘building’ from
‘investment property’. The depreciation for the period for which building has been utilised as warehouse in the current
year is ` 9 lacs.
D Out of the total land parcels amounting to ` 6,276 lacs as mentioned in above note, 52 land parcels amounting to ` 761
lacs are registered in the name of Mr Anil Kumar Mittal, Mr Arun Kumar Gupta and Mr Anoop Kumar Gupta (“KMPs”) and
their relative namely, Mr Ashish Mittal, though the payment had been made by the Company. The Company has physical
possession of such land parcels vide Memorandum of Understandings (MOUs) entered into by the Company with each
of the above KMPs and their relative. Subsequent to 31 March 2019, the Company has executed the General Power of
Attorney (pending registration), will and other documents with the KMPs and their relative in favour of the Company.
E Buildings amounting to ` 153 lacs are pending registration in the name of the Company.
F Capital work-in-progress mainly comprise of plant and machinery which are under installation at the premises of the
Company.
G Rounded off to zero

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NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
3b Intangible assets
Particulars Patents, Computer Total
trademark and software
design
Gross carrying amount
Balance as at 1 April 2017 22 247 269
Additions - 22 22
Disposals - - -
Balance as at 31 March 2018 22 269 291
Additions - 20 20
Disposals - - -
Balance as at 31 March 2019 22 289 311
Accumulated amortisation
Balance as at 1 April 2017 16 136 152
Additions 2 26 28
Disposals - - -
Balance as at 31 March 2018 18 162 180
Additions - 30 30
Disposals - - -
Balance as at 31 March 2019 18 192 210
Net carrying amount
Balance as at 31 March 2018 4 107 111
Balance as at 31 March 2019 4 97 101

3c Investment property
Particulars As at As at
31 March 2019 31 March 2018
Gross carrying amount
Opening gross carrying amount 520 520
Additions - -
Transfer (refer note A below) (520) -
Balance at the end of the year - 520
Accumulated depreciation
Opening accumulated depreciation 110 92
Additions 9 18
Transfer (refer note A below) (119) -
Balance at the end of the year - 110
Net carrying at the end of the year - 411

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Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
Notes:
A The Company had given a warehouse in Kandla, Gujarat on cancellable operating lease. During the year, the Company started
operating the said property as a warehouse for the purpose of its business. Consequently, such investment property has been
reclassified as building in note 3(a) ‘property, plant and equipment’.

B Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Amount recognized in statement of profit and loss for investment property
Rental income derived from investment property 5 31
Direct operating expenses (including repairs and maintenance) generating rental 3 33
income
Profit / (loss) arising from investment property before depreciation 2 (2)
Less: Depreciation 9 18
Loss arising from investment property (7) (20)
Fair value of investment property - 491

C Fair value of investment property

The fair valuation is based on current prices in the active market for similar properties. The main input used are quantum, area,
location, demand, restrictive entry to the complex, age of building and trend of fair market rent in Gandhi Dham, Gujarat area.

The valuation is based on valuations performed by an accredited independent valuer. Fair valuation is base on replacement cost
method. The fair valuation measurement is categorised in level 2 fair value hierarchy.

4 Investments
A. Non-current
Particulars As at As at
31 March 2019 31 March 2018
Unquoted equity instruments - at cost, fully paid-up
Investment in subsidiaries
KRBL DMCC 217 217
[1,800 equity shares of AED 1,000 each, (31 March 2018 - 1,800 equity shares)]
K B Exports Private Limited 210 210
[2,100,000 equity shares of ` 10 each, (31 March 2018 - 2,100,000 equity shares)]
427 427

Aggregate amount of unquoted investments 427 427

Aggregate amount of impairment in the value of investments - -

177
 Annual Report 2018-19

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
B. Current
Particulars As at As at
31 March 2019 31 March 2018
Investment carried at fair value through profit or loss
Investments in equity instruments - quoted, fully paid-up
NHPC Limited 219 245
[882,712 equity shares of ` 10 each, (31 March 2018 - 882,712 equity shares)]
Coal India Limited 181 217
[76,437 equity shares of ` 10 each, (31 March 2018 - 76,437 equity shares)]
Power Grid Corporation of India Limited 213 208
[107,667 equity shares of ` 10 each, (31 March 2018 - 107,667 equity shares)]
Shipping Corporation of India Limited 92 155
[242,265 equity shares of ` 10 each, (31 March 2018 - 242,265 equity shares)]
MOIL Limited 60 74
[37,846 equity shares of ` 10 each, (31 March 2018 - 37,846 equity shares)]
765 899
Aggregate amount of quoted investments at cost 957 957
Aggregate amount of quoted investments at market value 765 899
Aggregate amount of impairment in the value of investments 192 58

5 Loans
A. Non-current
Particulars As at As at
31 March 2019 31 March 2018
(Unsecured, considered good unless otherwise stated)
Security deposits1 309 289
Loan to employees 7 -
316 289
Notes
1. Deposit given to the Company in which director of Company is a director or a 223 201
member: KRBL Infrastructure Limited

B. Current
Particulars As at As at
31 March 2019 31 March 2018
(Unsecured- considered good unless otherwise stated)
Loan to employees 35 25
35 25
No loans are due from firms or private companies in which any director is partner,
director or a member.

178
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
6 Other financial assets
A. Non-current
Particulars As at As at
31 March 2019 31 March 2018
(Unsecured- considered good unless otherwise stated)
Fixed deposits1 6 109
6 109
1.
Liened as security issued to the various government authorities of ` 6 lacs [(31 March 2018 ` 5 lacs), and remaining amount
is liened with banks against term loans taken by the Company].

B. Current
Particulars As at As at
31 March 2019 31 March 2018
(Unsecured- considered good unless otherwise stated)
Income receivable 1,016 1,348
Derivative instrument - 2
1,016 1,350

7 Other non-current assets

Particulars As at As at
31 March 2019 31 March 2018
(Unsecured- considered good unless otherwise stated)
Capital advance 174 175
Balance with statutory authorities (including taxes/duty paid under protest) 10,326 2,093
Pre-payments1 1,199 1,279
11,699 3,547
1.
Pre-payments comprises of prepaid lease rentals and prepaid expense.

8 Inventories
Particulars As at As at
31 March 2019 31 March 2018
Raw materials 1,33,799 95,536
Packing material and consumables 7,041 6,916
Finished goods1 1,69,599 1,40,808
Stock-in-trade 793 1,413
Stores and Spares 1,653 1,488
3,12,885 2,46,161

Notes:
1. Includes goods in transit of ` 8,417 lacs (31 March 2018 ` 9,424 lacs).
2. Refer note 24, 25 and 26 for consumption of inventory recorded by the Company during the year.
3. T
 he Company has recorded few class of finished goods at the net realisable value (NRV), as their realisable value is lower
than the cost of production. The total NRV adjustments made in the value of such products ` 5,341 lacs (31 March 2018:
` 2,362 lacs). This was recognized as an expense during the year and included in ‘changes in inventories of finished goods
and stock-in-trade’ in the Statement of Profit and Loss.

179
 Annual Report 2018-19

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
9 Trade receivables
Particulars As at As at
31 March 2019 31 March 2018
Unsecured, considered good 39,729 24,670
Trade receivables which have significant increase in Credit Risk - -
Less: Loss allowance - -
39,729 24,670

Notes:
Debt due from directors/firm in which the directors are interested is ` nil (31 March 2018 ` 2 lacs).

10 Cash and cash equivalents1

Particulars As at As at
31 March 2019 31 March 2018
Balance with banks in current accounts 237 3,735
Cash in hand
- in Indian currency 129 134
366 3,869
1.
There is no restriction in repatriation of cash and cash equivalents, except amount of ` 50 lacs (31 March 2018 ` 50 lacs) which
is held with the Income tax department.

11 Other bank balances

Particulars As at As at
31 March 2019 31 March 2018
Unclaimed dividends- earmarked balances with banks 42 43
Deposits with original maturity more than 3 months and less than 12 months1 49 2,987
91 3,030
1.
The deposits of ` 49 lacs (31 March 2018 ` 2,987 lacs) are restricted as they are held as margin money deposits against the
facilities extended to the Company by bank.

12 Other current assets

Particulars As at As at
31 March 2019 31 March 2018
(Unsecured- considered good unless otherwise stated)
Balance with statutory authorities 76 689
Advances to suppliers 1,011 1,248
Pre-payments1 1,190 1,078
Other receivables 36 147
2,313 3,162
1.
Pre-payments comprises of prepaid lease rentals and prepaid expense.

180
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
13 Equity share capital
Particulars As at As at
31 March 2019 31 March 2018
Authorised
300,000,000 (31 March 2018 - 300,000,000) equity shares of ` 1 each 3,000 3,000
3,000 3,000
Issued and subscribed1
236,244,892 (31 March 2018 - 236,244,892) equity shares of ` 1 each 2,362 2,362
2,362 2,362
Fully paid-up1
235,389,892 (31 March 2018 - 235,389,892) equity shares of ` 1 each 2,354 2,354
2,354 2,354
1.
Difference between the issued & subscribed and paid up share capital represents the shares forfeited by the Company in the
preceding previous years.

a) Reconciliation of shares outstanding at the beginning and at the end of the reporting period
Particulars As at 31 March 2019 As at 31 March 2018
No. of shares Amount No. of shares Amount
Equity shares at the beginning of the year 23,53,89,892 2,354 23,53,89,892 2,354
Changes during the year - - - -
Equity shares at the end of the year 23,53,89,892 2,354 23,53,89,892 2,354

b) Terms/ rights attached to ordinary equity shares

 he Company has only one class of equity shares having a face value of ` 1 per share. Each holder of equity shares is entitled to
T
have one vote per share. The Company declares dividend in indian rupees and pays in INR to resident shareholders and in USD
to the foreign shareholders under FDI category.

The board of directors of the Company in their meeting held on 15 May 2019 had recommended a final dividend @ 250 % i.e.
`2.50 per equity share of face value of ` 1/- each for the year ended 31 March 2019 (31 March 2018 - ` 2.30 per share). The
same shall be paid subject to the approval of shareholders in the ensuing annual general meeting of the Company.

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.

c) Details of shareholders holding more than 5% shares in the Company

Particulars As at 31 March 2019 As at 31 March 2018
No. of shares % of holding No. of shares % of holding
held held
1. Anil mittal family trust 4,25,45,864 18.07% 4,25,45,864 18.07%
2. Arun kumar gupta family trust 4,12,93,714 17.54% 4,12,93,714 17.54%
3. Anoop kumar gupta family trust 3,88,49,338 16.50% 3,88,49,338 16.50%
4. Reliance commodities DMCC 2,29,00,000 9.73% 2,29,00,000 9.73%

d) Shares reserved for issue under option

The Company has not reserved any shares for issuance under options.

181
 Annual Report 2018-19

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
e) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the
period of five years immediately preceding the reporting date

During the buy-back period i.e. 4 March 2013 to 11 February 2014, the Company had bought back and extinguished 7,722,048
equity shares at an average price of ` 23.58 per share, utilising a sum of ` 1,821 lacs excluding transaction cost.

No bonus shares were issued by the Company during the last five years immediately preceding the reporting date.

14 Other equity
Particulars As at As at
31 March 2019 31 March 2018
(i)  Retained earnings 2,15,527 1,78,712
(ii) General reserve 44,050 37,050
(iii) 
Securities Premium 9,655 9,655
(iv) Capital reserve 82 82
(v)  Capital redemption reserve 77 77
2,69,391 2,25,576

Notes: Nature and purpose of reserve

(i) Retained earnings
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other
distributions paid to shareholders.

(ii) General reserve
The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant to
the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act,
2013. Also the Company has earlier forfeited the partly paid equity shares with the requisite approvals. The amount originally
received against forfeited shares is also included in the general reserve.

(iii) Securities premium
The amount received in excess of face value of the equity shares is recognised in securities premium

(iv) Capital reserve

During amalgamation, the excess of net assets taken, over the cost of consideration paid is treated as capital reserve.

(v) Capital redemption reserve

The Company has recognised capital redemption reserve on buyback of equity shares from its retained earnings. The amount
in capital redemption reserve is equal to nominal amount of the equity shares bought back.

15 Borrowings
Particulars As at As at
31 March 2019 31 March 2018
Non-current
Secured term loan from banks (refer note below)
Rupee loans 4,668 6,750
Foreign currency loans - 1,361
4,668 8,111
Less: Current maturities of non-current borrowings (refer note 20) 1,344 2,916
3,324 5,195

182
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
A. Details of security of non-current borrowings
The Company has created hypothecation in favour of SBICAP Trustee Company Limited (acting as Security Trustee) and created
mortgage on its movable and immovable properties located at various locations for an amount of ` 18,405 lacs (31 March 2018
- ` 17,715 lacs) in the form of term loan facilities taken from all banks mentioned below in note B.

First pari-passu charge on all movable and immovable properties of the Company and second pari-passu charge on all current
assets including but not limited to stock of raw materials, semi-finished and finished goods, consumable stores and spares,
bills receivables and book debts and all other movable of whatsoever nature and where ever arising, both present and future of
the Company.

B. Details of repayment of the non-current borrowings

Particulars As at As at
31 March 2019 31 March 2018
a. 
Rupee term loan from State Bank of India of ` 9,400 lacs, interest to be paid on 4,668 6,024
monthly basis at prevailing MCLR +0.25% per annum (31 March 2018 - prevailing
MCLR +0.25% per annum) and Repayable in 28 quarterly instalments of ` 336 lacs
each, starting from December 2015 .
b. 
Rupee term loan from Kotak Mahindra Bank Limited of ` 763 lacs, interest to be paid - 599
on monthly basis @ 6 months MCLR + 0.95% per annum and was repayable in 8
quarterly instalments of ` 95.27 lacs each, starting from June 2017. The Company
has repaid the entire loan during the year.
c. 
Foreign currency term loan from ICICI Bank Limited of USD 125.1 lacs equivalent - 1,361
of ` 7,747 lacs interest to be paid on monthly basis at 6 months MCLR + 1.20% per
annum and was repayable in 20 equal quarterly instalments from December 2013
onwards. The Company has repaid the entire loan during the year.
d. 
Rupee term loan from ICICI Bank Limited of ` 400 lacs interest to be paid on - 127
monthly basis at 6 months MCLR + 1.20% per annum and was repayable in 20 equal
quarterly instalment of ` 29.06 lacs starting from December 2013. The Company
has repaid the entire loan during the year.
4,668 8,111

16 Provisions
Particulars As at As at
31 March 2019 31 March 2018
A. Non-current provision for employee benefits
Provision for compensated absences (refer note 34) 565 512
565 512

B. Current provision for employee benefits

Provision for gratuity (refer note 34B) 120 150
Provision for compensated absences (refer note 34C) 167 78
287 228

183
 Annual Report 2018-19

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
17 Deferred tax liabilities (net)
Particulars As at As at
31 March 2019 31 March 2018
Deferred tax liabilities
Property, plant and equipment and intangible assets 14,987 14,421
Others - 8
14,987 14,429
Deferred tax assets
Provision for employee benefit expenses (256) (193)
Others (58) (1,034)
(314) (1,227)
14,673 13,202

Note:
Refer note 33B for the movement in deferred tax

18 Borrowings
Particulars As at As at
31 March 2019 31 March 2018
Current
Secured
Working capital facilities from bank
- Rupee loan (refer note (i) and (ii) below) 91,435 25,587
- Foreign loan (refer note (iii) below) 22,572 70,957
1,14,007 96,544
Unsecured
Loan from bank (refer note (iv) below) 20,000 15,000
Loans from related parties (refer note (v) below) 4,144 4,870
24,144 19,870
1,38,151 1,16,414

A. Details of security of current borrowings

The Company has created hypothecation in favour of SBICAP Trustee Company Limited (acting as Security Trustee) and created
mortgage on its movable and immovable properties located at various locations for an amount of ` 175,400 lacs (31 March 2018
- ` 174,400 lacs) in the form of loan and other facilities taken from all banks mentioned below in note B.

First pari-passu charge on entire current assets including but not limited to stock of raw materials, semi-finished and finished
goods, consumable stores and spares, bills receivables and book debts and all other movable of whatsoever nature and where
ever arising, both present and future of the Company and second pari-passu charge on entire movable and immovable properties
of the Company.

Further, Mr Anil Kumar Mittal, Mr Arun Kumar Gupta, Mr Anoop Kumar Gupta and Mr. Ashish Mittal (to the extent of the properties
mortgaged by him) has given their personal guarantees in favour of working capital lenders.

184
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
B. Details of repayment of the current borrowings
Particulars As at As at
31 March 2019 31 March 2018
Secured:
(i) Cash credit facilities from banks
 The Company has obtained credit facilities from consortium banks. The facilities 44,435 13,087
carries interest at MCLR along with spread of respective banks.
(ii) Short-term working capital loan from banks
 The Company has obtained short-term working capital loan from consortium 47,000 12,500
banks. The facilities carries interest at MCLR along with spread of respective
banks except facility from CoÖperatieve Rabobank U.A. which as per MIBOR along
with spread.
(iii) PCFC - foreign loan
 The Company has obtained Packing credit facility from consortium banks and is 22,572 70,957
repayable after the stipulated period. The facilities carries interest at LIBOR along
with spread of respective banks.
Unsecured:
(iv) Demand loans from banks - rupee loan
 The Company has obtained short-term working capital loan from HDFC Bank, one 20,000 15,000
of consortium bank, and is payable after the stipulated period. The facilities carries
interest at MCLR along with spread.
(v) Loans from related parties
 The Company has obtained loans from directors which are interest free and 4,144 4,870
repayable on demand.

C. Unutilised facility at the year end

Particulars As at As at
31 March 2019 31 March 2018
Unutilised facility at the year end 43,493 60,956

19 Trade payables
Particulars As at As at
31 March 2019 31 March 2018
Total outstanding due to micro and small enterprises 688 -
Total outstanding due of creditors other than micro and small enterprises 8,908 6,988
Acceptances 12,821 4,140
22,417 11,128

185
 Annual Report 2018-19

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
Note
A. Detail of dues of Micro and Small Enterprises as defined MSMED Act, 2006, to the extent the Company has received intimation
from the ‘Supplier’ regarding their status under the Act.
Particulars As at As at
31 March 2019 31 March 2018
(i)  the principal amount and the interest due thereon (to be shown separately) 688 -
remaining unpaid to any supplier as at the end of accounting year - Principal
amount remaining unpaid1, and Interest accrued and remaining unpaid
(ii) the amount of interest paid by the buyer under MSMED Act, 2006 along with the - -
amounts of the payment made to the supplier beyond the appointed day during
each accounting year;
(iii) 
the amount of interest due and payable for the period (where the principal has - -
been paid but interest under the MSMED Act, 2006 not paid);
(iv) The amount of interest accrued and remaining unpaid at the end of accounting - -
year; and
(v) The amount of further interest due and payable even in the succeeding year, until - -
such date when the interest dues as above are actually paid to the small enterprise,
for the purpose of disallowance as a deductible expenditure under section 23.
688 -
1.
 ccording to the records of the Company, there are no overdue principal amount/interest payable for delayed payment to such
A
vendors at the balance sheet date. The amount payable to Micro and Small enterprises doesn’t include any amount due for
period more than the stipulated time prescribed under the MSMED Act, 2006.

20 Other financial liabilities

Particulars As at As at
31 March 2019 31 March 2018
Current maturities of non-current borrowings (refer note 15) 1,344 2,916
Interest accrued but not due on borrowings 639 164
Employees related payables 847 741
Security deposits 38 180
Expenses payable 5,680 4,210
Unclaimed dividend1 43 43
8,591 8,254

1.
Not due for deposit to Investor Education and Protection Fund

21 Other current liabilities

Particulars As at As at
31 March 2019 31 March 2018
Advance from customers 1,941 590
Statutory dues payable 661 655
2,602 1,245

186
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
22 Revenue from operations
Particulars For the year For the year
ended ended
31 March 2019 31 March 2018
Revenue from sale of finished goods
Export 1,84,351 1,30,281
Domestic 2,12,204 1,79,477
Revenue from sale of stock in trade
Domestic 2,009 1,958
Sale of electricity
Export 72 -
Domestic 12,788 12,371
Other operating revenue
Scrap sales 533 557
4,11,957 3,24,644

Note:
Refer note 32, for disaggregation of revenue from operations and other disclosures

23 Other income

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Interest income 655 1,032
Rental income 17 31
Dividend income 30 2,605
Net gain on redemption and fair valuation of investments through profit and loss 289 -
Profit on sale of property, plant and equipment 135 -
Liabilities/provisions no longer required written back 134 -
Other non operating income 230 366
1,490 4,034

24 Cost of materials consumed

Particulars For the year For the year
ended ended
31 March 2019 31 March 2018
Paddy 1,95,852 1,47,196
Rice 1,02,106 62,506
Packing and other consumables 18,351 15,752
Amount of stock-in-trade used as raw material for production (refer note 26C) 452 -
3,16,761 2,25,454

187
 Annual Report 2018-19

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
25 Purchase of stock-in-trade
Particulars For the year For the year
ended ended
31 March 2019 31 March 2018
Seeds 1,165 1,221
1,165 1,221

26 Changes in inventories of finished goods and stock-in-trade

Particulars For the year For the year
ended ended
31 March 2019 31 March 2018
A. Opening stock
 Finished goods 1,40,808 1,30,779
 Stock-in-trade 1,413 1,579
1,42,221 1,32,358
B. Closing stock
 Finished goods 1,69,599 1,40,808
 Stock-in-trade 793 1,413
1,70,392 1,42,221
C. Amount of stock-in-trade used as raw material (refer note 24) (452) -
(28,623) (9,863)

27 Employee benefits expense

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Salaries wages and bonus 6,698 5,963
Contribution to provident and other funds (refer note 34) 449 433
Gratuity and compensated absences (refer note 34) 126 174
Staff welfare expenses 146 132
7,419 6,702

28 Finance cost
Particulars For the year For the year
ended ended
31 March 2019 31 March 2018
Interest expense on term loans 566 919
Interest expense on others 5,102 4,029
Net loss on foreign currency transactions and translation 883 1,828
Other borrowing cost 205 117
6,756 6,893

188
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
29 Depreciation and amortisation expenses
Particulars For the year For the year
ended ended
31 March 2019 31 March 2018
Depreciation on property, plant and equipment 6,399 6,722
Depreciation on investment property 9 18
Amortisation on intangible assets 30 28
6,438 6,768

30 Other expenses
Particulars For the year For the year
ended ended
31 March 2019 31 March 2018
Power and fuel 1,771 962
Consumption of stores and spares 995 1,247
Repairs and maintenance
Plant and machinery 2,438 1,938
Buildings 360 267
Others 83 83
Fumigation 469 493
Freight inward 1,564 1,582
Travelling and conveyance 419 355
Communication expense 90 83
Rent 1,124 1,184
Legal and professional expense (refer note A) 473 404
Fees, rates and taxes 1,076 984
Vehicle running and maintenance 216 211
Insurance 320 256
Printing and stationery 102 77
Testing and inspection 420 187
Donation and charity 26 22
Clearing, forwarding and freight charges 9,162 6,134
Sales and business promotion 322 94
Advertisement 4,275 4,087
Meeting and seminar expense 157 249
Commission and brokerage 898 761
Corporate social responsibility expenses (refer note 36) 17 322
Security service charges 313 306
Sub-contractual expense 557 505
Net loss on foreign currency transactions and translation 1,160 -
Balance credit impaired 1,083 -
Other miscellaneous expenses 317 392
30,207 23,185

189
 Annual Report 2018-19

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
A. Auditors’ remuneration (excluding Goods and services tax/service tax)1

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Statutory audit (including fees for limited reviews) 36 21
Other matters - 4
Out of pocket expenses 1 -
37 25

1.
 uditor remuneration for the year ended 31 March 2019 doesn’t includes the remuneration paid by Company to the erstwhile
A
auditors.

31 Earnings per share

Particulars For the year For the year
ended ended
31 March 2019 31 March 2018
Profit attributable to equity shareholders 50,327 46,179
Numbers of weighted average equity share outstanding at the year end for Basic and 23,53,89,892 23,53,89,892
Diluted
Nominal value per share in ` 1.00 1.00
Earnings per share in ` 21.38 19.62

32 Disaggregation of revenue from operations

A. Revenues by Geography

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Rice and other related products
- within India 2,14,213 1,81,435
- other than India 1,84,351 1,30,281
3,98,564 3,11,716
Electricity
- within India 12,788 12,371
- other than India 72 -
12,860 12,371
Sale of scrap
- within India 533 557
533 557

190
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
B. Revenues by offerings

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Sale of goods
- Rice 3,79,112 2,96,694
- Paddy 1,036 509
- Seeds 2,008 1,953
- Quinoa 248 480
- By products
- Husk 2,191 1,502
- Bran products 5,987 3,780
- Furfural oil 1,685 917
- Doil cake 3,772 2,333
- Glucose 332 656
- Others 2,193 2,892
3,98,564 3,11,716
Sale of electricity 12,860 12,371
Sale of scrap 533 557

C. Reconciliation of revenue from sale of products with the contracted price

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Contracted price 4,20,917 3,31,066
Less: Trade discounts, volume rebates, etc 8,960 6,422
Sale of products 4,11,957 3,24,644

D. Contract balances

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
- Contract assets1 1,016 1,348
- Contract liabilities2 1,941 590

Notes
1.
 he contract assets are in form of receivables, which are included in income receivable, primarily relate to the Company rights
T
to consideration for power sold to the customers but not billed at the reporting date. The contract assets are transferred to
receivables when it will be billed subsequently.
2.
The contract liabilities are in form advance received from customer for which the obligation of supply of goods/service is not
completed at the year end.

191
 Annual Report 2018-19

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
E. Movement in contract assets and contract liabilities

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Opening balance of contract liabilities 590 1,256
Addition in balance of contract liabilities for current year 1,941 590
Amount of revenue recognised against opening contract liabilities 590 1,256
Closing balance of contract liabilities 1,941 590
Opening balance of contract assets 1,348 2,641
Addition in balance of contract assets for current year 1,016 1,348
Amount of billing recognised against opening contract assets 1,348 2,641
Closing balance of contract assets 1,016 1,348

F. 
The Company has adopted Ind AS 115 “Revenue from Customers” with effect from 1 April 2018 using a modified retrospective
transition approach permitted under Ind AS 115. The adoption of the standard did not have material impact on the revenue
recognised by the Company.

G.  ost applicability of Goods and Service Tax Act (GST), w.e.f. 01 July 2017, the revenue is disclosed net of GST. Accordingly, the
P
revenue from operations for year ended 31 March 2019 is not comparable with previous year as Excise duties formed part of
revenue from operations and expenses during the previous period upto 30 June 2017.

H. In accordance with requirements of Ind AS 115, the Company has presented excise duty separately.

33 Income tax
A. Reconciliation of effective tax rate

For the year For the year

ended ended
31 March 2019 31 March 2018
Enacted income tax rate applicable to the Company 34.94% 34.61%
Profit before tax 73,324 68,235
Less: Profit of the eligible units exempt under 80IA of the 7,899 6,308
Income-tax Act, 1961
Taxable profit of the Company 65,425 61,927
Expected tax expenses 22,860 21,433
Tax effect of:
Non deductible expenses (net) 57 109
Changes in the tax assumptions for claiming deduction under (27) 1,006
80IA of the Act on eligible projects and others, including creation
of MAT entitlement
Impact due to change in the tax rates 93 -
Impact due to others including amount taxable at the lower tax 14 (492)
rate
Total income tax expense in the Statement of Profit and Loss 22,997 22,056

192
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
B. Movement of temporary differences

Balance as at Recognised in Balance as at

31 March 2018 profit or loss 31 March 2019
during
2018-19
Deferred tax liabilities
Property, plant and equipment and intangible assets 14,421 566 14,987
Others 9 (9) -
Deferred tax assets
Provision for employee benefit expenses (193) (63) (256)
Others (1,035) 977 (58)
13,202 1,471 14,673

Balance as at Recognised in Balance as at

31 March 2017 profit or loss 31 March 2018
during
2017-18
Deferred tax liabilities
Property, plant and equipment and intangible assets 12,839 1,582 14,421
Others 19 (10) 9
Deferred tax assets
Provision for employee benefit expenses (179) (14) (193)
Others (1,301) 266 (1,035)
11,378 1,824 13,202

C. Movement in MAT credit entitlement

For the year For the year

ended ended
31 March 2019 31 March 2018
MAT credit entitlement
Opening - 1,260
Add: MAT credit entitlement 1,490 -
Less: MAT credit availed (1,490) (1,260)
Closing - -

D. The Company doesn’t have any carry forward losses and MAT credit entitlement as at the year end

34 Employee benefit obligations

A. Defined contribution plans

Particulars As at As at
31 March 2019 31 March 2018
Employer's contribution to provident fund 321 312
Employer's contribution to employees state insurance 128 121
449 433

193
 Annual Report 2018-19

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
B. Defined benefit plans
Gratuity
In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, as defined benefit plan. The gratuity
plan provides for a lump sum payment to the employees at the time of separation from the service on completion of vested year
of employment i.e. five years. The liability of gratuity plan is provided based on actuarial valuation as at the end of each financial
year based on which the Company contributes the ascertained liability to Kotak Mahindra Life Insurance Company Limited with
whom the plan assets are maintained.

Policy for recognizing actuarial gains and losses

Actuarial gains and losses of defined benefit plan arising from experience adjustments and effects of changes in actuarial
assumptions are immediately recognized in other comprehensive income. Risks associated with the plan provisions are
actuarial risks. These risk are investment risk, interest rate risk, mortality risk and salary risk.

Interest rate risk

‘The present value of the defined benefit liability is calculated using a discount rate determined by reference to market yields
of high quality corporate bonds. The estimated term of the bonds is consistent with the estimated term of the defined benefit
obligation and it is denominated in INR. A decrease in market yield on high quality corporate bonds will increase the Company’s
defined benefit liability, although it is expected that this would be offset partially by an increase in the fair value of certain of
the plan assets.

Investment risk
Plan assets comprise funds managed by the insurer i.e. Kotak Mahindra Life Insurance Company Limited.

Mortality risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan
participants. A change in mortality rate will have a bearing on the plan’s liability.

Salary risk
The present value of the defined benefit plan liability is calculated with the assumption of salary increase rate of plan participants
in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to
determine the present value of obligation will have a bearing on the plan’s liability.

The following table sets out the funded status and the amount recognised in the Company’s financial statements.

Particulars As at As at
31 March 2019 31 March 2018
a. Amounts to be recognised
Present value of obligation 1,126 1,025
Fair value of plan assets 1,006 875
Net (liability) recognised (120) (150)
Current liability (120) (150)
Non- current liability - -
b. Changes in present value of defined benefit obligation:
Defined Benefit at the beginning of the year 1,025 883
Current Service Cost 114 110
Past Service Cost - 46
Interest cost 81 68
Benefits paid (98) (45)
Remeasurements-actuarial gain/loss -due to change financial assumptions 12 (20)
Remeasurements-actuarial gain/loss -due to experience (8) (17)
Present value of benefit obligation at the end of the year 1,126 1,025

194
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)

Particulars As at As at
31 March 2019 31 March 2018
c. Change in fair value of plan assets
Fair value of plan assets at the beginning of the year 875 656
Expected return on plan assets 69 50
Contributions made 150 227
Benefits paid (98) (45)
Return on plan assets, excluding interest income 10 (13)
Fair value of plan assets at the end of the year 1,006 875
d. Expenses recognized in Statement of profit or loss
Current service cost 114 110
Interest expense 12 18
Past service cost - 46
Expense for the year ended 126 174
e. Recognized in other comprehensive income
Remeasurements-actuarial gain/loss on obligation for the period 4 (37)
Return on plan assets, excluding interest income (10) 13
Net income at the end of the period (6) (24)
f. Actuarial assumptions
Discount rate 7.78% 7.87%
Expected rate of return on plan assets 7.78% 7.87%
Expected rate of increase in compensation levels 6.00% 6.00%
Mortality Rate Indian Assured Indian Assured
Lives Mortality Lives Mortality
(06-08) (06-08)
Attrition / Withdrawal rates 1% 1%
g. Investment details
Insurance Fund 1,006 875
h. T
 he Company expects to contribute ₹ 342 lacs to gratuity fund in the next financial
year.

i. Sensitivity analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary
increase and employee turnover. The sensitivity analysis below, have been determined based on reasonably possible changes
of the assumptions occurring at end of the reporting period, while holding all other assumptions constant. The result of
Sensitivity analysis is given below:
Particulars As at As at
31 March 2019 31 March 2018
Discount rate
1% increase (125) (113)
1% decrease 151 137
Future salary increase
1% increase 143 131
1% decrease (121) (111)
Employee turnover rate
1% increase 28 26
1% decrease (32) (30)

195
 Annual Report 2018-19

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)

j. Maturity profile of defined benefit obligation

Particulars As at As at
31 March 2019 31 March 2018
Within next 12 months 125 150
Between 1-5 years 139 118
Beyond 5 years 3549 3285

C. Other long term benefit plans

Other long term benefit plans represents the compensated absences provided to the employees of the Company
Actuarial valuation has been done with the following assumptions
Particulars As at As at
31 March 2019 31 March 2018
Discount rate 7.78% 7.78%
Expected rate of return on plan assets NA NA
Expected rate of increase in compensation levels 6.00% 6.00%
Mortality Rate Indian Assured Indian Assured
Lives Mortality Lives Mortality
(06-08) (06-08)
Attrition / Withdrawal rates 1% 1%

35 Lease commitments
Assets taken on non-cancellable operating leases

The Company has taken various premises on operating leases. The lease agreements generally have a lock-in-period of 1-22
years and are cancellable at the option of the lessee. During the year, lease payments under operating leases (inclusive of
cancellable leases) amounting to ` 1,124 lacs (31 March 2018 ` 1,184 lacs) have been recognised as an expense in the Statement
of Profit and Loss. The future aggregate minimum lease payments under non-cancellable operating leases are as follows :

Particulars As at As at
31 March 2019 31 March 2018
Within less than one year 954 857
Between one and five years 3,124 1,942
After more than five years 4,226 577
8,304 3,376

Assets given on non-cancellable operating leases

The Company had given a premises on operating leases which was vacated by the tenant during the year. During the year the
Company received rent amounting to ` 5 lacs (31 March 2018 ` 31 lacs).

36 Corporate social responsibility


In accordance with the provisions of section 135 of the Companies Act, 2013, the Board of Directors of the Company had
constituted CSR Committee. The details for CSR activities is as follows.

Particulars For the year For the year

ended 31 March ended 31 March
2019 2018
a) Gross amount required to be spent by the Company during the year 1098 878
b) Amount spent during the year on the following
1. Construction / Acquisition of any asset - -
2. On purpose other than 1 above 17 322

196
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
37 Capital management
The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to its
shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day
needs with a focus on total equity so as to maintain investors, creditors and market confidence.

The Company monitors capital using a ratio of “Net Debt” to “Total Equity”. For this purpose, Net Debt is defined as total
liabilities less cash and cash equivalents. Total equity comprises of equity share capital and other equity.

During the year, no significant changes were made in the objectives, policies or processes relating to the management of the
Company’s capital structure.

The Company’s net debt to total equity ratio is as follows:

Particulars As at As at
31 March 2019 31 March 2018
Non-current borrowings 3,324 5,195
Current borrowings 1,38,151 1,16,414
Current maturities of non-current borrowings 1,344 2,916
Less: Cash and cash equivalents (366) (3,869)
Net debt 1,42,453 1,20,656
Equity share capital 2,354 2,354
Other equity 2,69,391 2,25,576
Total equity 2,71,745 2,27,930
Net debt to total equity ratio 0.52 0.53

38 Financial instruments
The Company’s activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the
Company is exposed to and how the Company manages the risk and the related impact in the financial statements.

Risk Exposure arising from Measurement Management

Credit risk Cash and cash equivalents, trade Ageing analysis Bank deposits, diversification of asset
receivables, financial assets measured at base, credit limits and collateral.
amortised cost
Liquidity risk Borrowings and other liabilities Rolling cash flow Availability of committed credit lines
forecasts and borrowing facilities
Market risk - Recognised financial assets and liabilities Cash flow Forward contract/hedging, if required
foreign exchange not denominated in Indian rupee (INR) forecasting
Market risk - Long-term borrowings at variable rates Sensitivity analysis Negotiation of terms that reflect the
interest rate market factors
Market risk - Investments in equity securities Sensitivity analysis Company presently does not make
security price significant investments in equity
shares, except for entities where it
exercises control or joint control or
significant influence.

A Disclosure in respect of financial risk management

1. 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 investments, cash and cash equivalents, deposits and security deposits.

197
 Annual Report 2018-19

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
Credit risk management:
(i) Trade receivable related credit risk
Concentrations of credit risk with respect to trade receivables are limited, due to the customer base being large
and diverse. All trade receivables are reviewed and assessed for default on routine basis. The Company’s historical
experience of collecting receivables, supported by the level of default, is that credit risk is low and so trade receivables
are considered to be a single class of financial assets. Therefore, there is no credit risk associated with the trade
receivables of the Company at the year end.

However, the Company during the year identified few balances of amounting to ` 1,083 lacs of the trade receivable
which were subject to dispute and will not be realisable and hence, has been credit impaired.

(ii) Other financial assets

The Company maintains exposure in cash and cash equivalents, term deposits with banks, money market liquid mutual
funds with financial institutions and derivative financial instruments. The Company’s maximum exposure to credit risk
as at 31 March 2019 and 31 March 2018 is the carrying value of each class of financial assets.

(iii) Treasury related credit risk

Credit risk from balances with banks is managed by the Company’s treasury department in accordance with the
Company’s policy. The Company actively manages its exposure to credit risk, reducing surplus cash balances wherever
possible through investment in bank deposits. Further, the company ensures it diversifies its treasury related credit
risk by investing in bank deposits in different banks. Limits are set for maximum investment in deposits in each bank.

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit
risk at the reporting date was:
Particulars As at As at
31 March 2019 31 March 2018
Loans 350 314
Investments (other than investment in subsidiaries) 765 899
Trade receivables 39,729 24,670
Other financial assets 1,022 1,459
Total 41,866 27,342

The ageing of trade receivables at the reporting date on due basis are:
Particulars As at As at
31 March 2019 31 March 2018
Not past due 20,775 12,681
Past due 0-30 days 16,802 3,476
Past due 31-120 days 775 4,883
Past due 120 days-one year 1,022 2,936
More than one year 355 694
Total 39,729 24,670

2. Liquidity Risk
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The
Company’s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due
without incurring unacceptable losses.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet
operational needs. Any short term surplus cash generated, over and above the amount required for working capital

198
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and
any excess is invested in interest bearing term deposits and other highly marketable debt investments with appropriate
maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

(i) Maturities of financial liabilities

The table below analyses the Company’s financial liabilities into relevant maturity groupings based on their contractual
maturities for all non-derivative financial liabilities.

The amounts disclosed in the table are the contractual undiscounted cash flows.

As at 31 March 2019
Particulars Carrying On 6 months 6-12 1-2 years 2-5 years
amount demand or less months
Non-current borrowings 4,668 - 672 672 1,344 1,980
Current borrowings 1,34,007 1,34,007 - - - -
Loan from related party 4,144 4,144 - - - -
Trade payables 22,417 - 22,417 - - -
Other financial liabilities 7,247 81 7,166
As at 31 March 2018
Particulars Carrying On 6 months 6-12 1-2 years 2-5 years
amount demand or less months
Long term borrowings 8,111 - 1,458 1,458 1,860 3,335
Working capital borrowings 1,11,544 1,11,544 - - - -
Loan from related party 4,870 4,870 - - - -
Trade payables 11,128 - 11,128 - - -
Other financial liabilities 5,338 224 5,114

(ii) Market risk - foreign exchange 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. The Company’s size and operations result in it being exposed to the following market risks that arise
from its use of financial instruments:
• currency risk;
• price risk; and
• interest rate risk.

3. Currency Risk
The Company operates internationally and consequently the Company is exposed to foreign exchange risk through its
sales in overseas market. The Company evaluates exchange rate exposure arising from foreign currency transactions
and the Company follows policies which includes the use of derivatives like foreign exchange forward contracts to hedge
exposure to foreign currency risk.

The Company has Outstanding Forward contracts as on 31 March 2019 and there is Marked to Market ( MTM) unrealized
gain/(loss) on forward contracts of ` Nil as at 31 March 2019, (31 March 2018 ` (35.57) lacs), which has been accounted
for accordingly in the books of accounts.

(i) Derivative Instruments

Outstanding forward exchange contracts as entered into by the Company for the purpose of hedging its foreign
currency exposures are as under:

199
 Annual Report 2018-19

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)

Foreign currency Cross Sell contract

currency 31 March 2019 31 March 2018
USD Indian Rupee - 9,756
EURO USD - 33,054

Foreign currency exposure recognized by the Company that have not been hedged by a derivative instrument are as
under:
Particulars ₹ in lacs AED in lacs USD in lacs
31 March 31 March 31 March 31 March 31 March 31 March
2019 2018 2019 2018 2019 2018
Financial assets
Trade receivables 7,049 8,091 - - 102 124
Cash and cash equivalents 133 3,443 - - 2 53
Financial liabilities
Trade payables1 23 58 - 3 0 -
Borrowings 22,572 70,957 - 326 1,091
Advance from customers 429 279 1 - 6 4

1. Rounded off to zero.

(ii) Foreign currency risk sensitivity:

A change of 5% in foreign currency would have following impact on profit before tax

Particulars AED USD

5% increase 5% decrease 5% increase 5% decrease
31 March 2019 (` in lac) (1) 1 (791) 791
31 March 2018 (` in lac) (3) 3 (2,985) 2,985

4. Interest 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. As at year end, the Company has following borrowings

Particulars 31 March 2019 31 March 2018

Fixed rate of borrowings 1,04,771 1,07,085
Variable rate borrowings 33,904 12,570

Interest rate sensitivity

A change of 100 bps in interest rates would have following Impact on profit 31 March 2019 31 March 2018
before tax
100 bps increase- decrease in profits 170 64
100 bps decrease- increase in profits 170 64
Sensitivity is calculated based on the assumption that amount outstanding as at reporting dates (after considering
repayments) were utilised for the whole financial year.

5. Price Risk
The Company is mainly exposed to the price risk due to its investment in equity shares. The price risk arises due to
uncertainties about the future market values of these investments.

200
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)

The table below summarises the impact of increases/decreases of the index on the Company’s equity and profit for the
year. The analysis is based on the assumption that the index has increased by 5 % or decreased by 5 % with all other
variables held constant, and that all the Company’s equity instruments moved in line with the index.

Impact on profit before tax 31 March 2019 31 March 2018

Sensex increase by 5% 38 45
Sensex decrease by 5% (38) (45)

B Fair value disclosure

1. Fair value measurement of Financial Instruments
31 March 2019 31 March 2018
FVTPL FVOCI Amortised FVTPL FVOCI Amortised
cost1 cost1
Financial Assets
Investments (other than in 765 - - 899 - -
subsidiary)2
Derivative instruments - - - 2 - -
Loans - - 350 - - 314
Cash and cash equivalents - - 366 - - 3,869
Other bank balances - - 91 - - 3,030
Trade receivables - - 39,729 - - 24,670
Other financial assets - - 1,022 - - 1,457
Total 765 - 41,558 901 - 33,340

Financial liabilities
Borrowings - - 1,42,819 - - 1,24,525
Trade payables - - 22,417 - - 11,128
Other financial liabilities - - 7,247 - - 5,338
Total - - 1,72,483 - - 1,40,991

1. The management assessed that fair values of cash and cash equivalents, other bank balances, trade receivables,
other financial assets, borrowings, trade payables and other financial liabilities approximate their respective
carrying amounts largely due to the short-term maturities of these instruments.

Further, these instruments are valued at level 3 and their fair value are considered to be same as their carrying
value, as there is an immaterial change in the lending rate.

2. Investment in equity instrument in the subsidiary has been accounting at cost in accordance with Ind As 27.
Therefore, the same are not in the scope of Ind As 109 and not disclosed here.

2. Fair value hierarchy

This section explains the judgements and estimates made in determining the fair value of financial instruments that
are (a) recognised and measured at fair value (b) measured at amortised cost and for which fair values are disclosed
in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value,
the Company has classified its financial instruments into the three level prescribed under the accounting standard. An
explanation each level follows underneath the table.

Assets and liabilities measured at amortised cost, for which fair value are disclosed

201
 Annual Report 2018-19

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices, for example listed equity
instruments, traded bonds and mutual funds that have quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques that maximise the use of observable market data and rely as little as possible on entity specific estimates.
If all significant inputs required to fair value an instrument are observable the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3.

There are no transfers among levels 1, 2 and 3 during the year.

The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the
reporting period.

(A) Financial instruments valued at fair value through profit and loss
31 March 2019 31 March 2018
Level 1 Level 2 Level 1 Level 2
Financial Assets
Investments (other than in subsidiary) 765 - 899 -
Derivative instruments - - - 2
Total 765 - 899 2

(B) Financial instruments valued at amortised cost

31 March 2019 31 March 2018
Level 3 Level 3
Financial assets
Loans 350 314
Cash and cash equivalents 366 3,869
Other bank balances 91 3,030
Trade receivables 39,729 24,670
Other financial assets 1,022 1,457
Total 41,558 33,340
Financial liabilities
Borrowings 1,42,819 1,24,525
Trade payables 22,417 11,128
Other financial liabilities 7,247 5,338
Total 1,72,483 1,40,991

3. Derivative financial assets

The Company enters into derivative financial instruments with various counterparties, principally financial institutions
with investment grade credit ratings. Foreign exchange forward contracts are valued using valuation techniques,
which employs the use of market observable inputs. The most frequently applied valuation techniques include forward
pricing models, using present value calculations. The models incorporate various inputs including the credit quality of
counterparties, foreign exchange spot and forward rates etc.

202
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
4. Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include the use of discount cash flows for estimating
fair value of loans to employees, security deposits and borrowings.

The carrying amounts of trade receivables, cash and cash equivalents, consignment debtors, interest accrued, other
receivables, other bank balances, trade payables, employee payables and other current payables are considered to be
the same as fair values, due to their short term nature

The fair value for loans and security deposits were calculated based on cash flow discounted using a current lending
rate. They are classified as level 3 fair value in the fair value hierarchy due to the inclusion of unobservable inputs,
including own credit risk. The fair value of loans to employees and security deposits approximates the carrying amount

The fair value for borrowings was calculated based on cash flow discounted using a current borrowing rate. They are
classified as level 3 fair value in the fair value hierarchy due to the inclusion of unobservable inputs, including own
credit risk. The fair value of borrowings approximates the carrying amount.

39 Segmental Reporting
A Operating segments
Agri - Comprises of agricultural commodities such as rice, Furfural, seed, bran, bran oil, etc.
Energy - Comprises of power generation from wind turbine, husk based power plant and solar power plant.

B Identification of segments
The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of
making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or
loss and is measured consistently with profit or loss in the financial statements, Operating segment have been identified on the
basis of nature of products and other quantitative criteria specified in the Ind AS 108.

C Segment revenue and results
The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure.

D Segment assets and liabilities:

Assets used by the operating segments mainly consist of property, plant and equipment, trade receivables, cash and cash
equivalents and inventories. Segment liabilities include trade payables and other liabilities. Common assets and liabilities which
cannot be allocated to any of the segments are shown as a part of unallocable assets/liabilities.

E Summary of Segmental Information

S. Particulars For the year ended For the year ended
No. 31 March 2019 31 March 2018
1. Segment revenue
(a) Agri 3,99,097 3,12,273
(b) Energy 21,457 19,491
Total segment revenue 4,20,554 3,31,764
Inter segment revenue - Energy (8,597) (7,120)
Net segment revenue 4,11,957 3,24,644

203
 Annual Report 2018-19

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)
S. Particulars For the year ended For the year ended
No. 31 March 2019 31 March 2018
2. Segment results
(a) Agri 71,787 66,129
(b) Energy 8,181 8,562
Total segment results (before finance costs and tax) 79,968 74,691
Less: Finance costs 6,200 6,034
Less: Other unallocable expenditures 444 422
(net of unallocable incomes)
Total profit before tax 73,324 68,235
3. Segment assets
(a) Agri 3,96,608 3,14,644
(b) Energy 66,056 70,215
Total segment assets 4,62,664 3,84,859
4. Segment liabilities
(a) Agri 32,565 18,600
(b) Energy 5,190 7,908
(c) Unallocable 1,53,164 1,30,421
Total segment liabilities 1,90,919 1,56,929
Segment revenue - Geographical information:
(a) Agri
India 2,14,746 1,81,993
Rest of the world 1,84,351 1,30,280
Sub-total (a) 3,99,097 3,12,273
(b) Energy
India 21,385 19,491
Rest of the world 72 -
Sub-total (b) 21,457 19,491
Total (a)+(b) 4,20,554 3,31,764
Inter-segment revenue - Energy (8,597) (7,120)
Total 4,11,957 3,24,644

40 Related party transactions

A Related parties and their relationships
(a) Subsidiaries
K B Exports Private Limited
KRBL DMCC, Dubai
KRBL LLC, USA, a step down subsidiary of KRBL Limited

(b) Key Management Personnel:
Mr. Anil Kumar Mittal Chairman & Managing Director
Mr. Arun Kumar Gupta Joint Managing Director
Mr. Anoop Kumar Gupta Joint Managing Director
Ms. Priyanka Mittal Whole Time Director
Mr. Ashok Chand* Whole Time Director
*Resigned w.e.f 23 July 2018.

204
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(c) KMP’s as per the provisions of the Companies Act, 2013

Mr. Rakesh Mehrotra Chief Financial Officer
Mr. Raman Sapra Company Secretary

(d) Independent Non-Executive Directors:
Mr. Vinod Ahuja
Mr. Ashwani Dua
Mr. Shyam Arora
Mr. Devendra Kumar Agarwal
Mr. Alok Sabharwal

(e) Employee benefit plans where there in significant influence:
KRBL Limited Employees Group Gratuity Trust

(f) Relatives of Key Management Personnel:*

Mrs. Preeti Mittal Wife of Mr. Anil Kumar Mittal
Mrs. Anulika Gupta Wife of Mr. Arun Kumar Gupta
Mrs. Binita Gupta Wife of Mr. Anoop Kumar Gupta
Mrs. Neha Singh Daughter of Mr. Arun Kumar Gupta
Mrs. Rashi Gupta Daughter of Mr. Anoop Kumar Gupta
Mr. Ashish Mittal Son of Mr. Anil Kumar Mittal
Mr. Kunal Gupta Son of Mr. Arun Kumar Gupta
Mr. Akshay Gupta Son of Mr. Anoop Kumar Gupta
Mr. Ayush Gupta Son of Mr. Anoop Kumar Gupta
Lt. Tara Devi Mother of Mr. Anil Kumar Mittal, Mr. Arun Kumar Gupta and Mr. Anoop
Kumar Gupta

(g) Enterprises over which key management personnel are able to exercise significant influence:*
KRBL Infrastructure Limited
Khushi Ram Behari Lal
Adwet Warehousing Private Limited
KRBL Foods Limited

(h) Trust/HUF’s over which key management personnel are able to exercise significant influence:*
Anil Mittal Family Trust
Anoop Kumar Gupta Family Trust
Arun Kumar Gupta Family Trust
Anil Kumar Mittal HUF
Arun Kumar Gupta HUF
Anoop Kumar Gupta HUF

* This includes only those parties with whom company had related party transactions.

205
 Annual Report 2018-19

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)

B Transactions and balances with related parties

Particulars Enterprises/Trusts/HUF Subsidiary Key Managerial Other Related
over which significant Companies Personnels (KMPs) Parties
influence is exercised by
KMPs
31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March
2019 2018 2019 2018 2019 2018 2019 2018
I. T
 ransactions entered
during the year
i Purchase of goods1
Khushi Ram Behari Lal 2 3 - - - - - -
ii Sale of goods1
Khushi Ram Behari Lal 781 742 - - - - - -
KRBL LLC - - - 51 - - - -
iii Arrangement Fees Paid
KRBL LLC - - 71 46 - - - -
KRBL DMCC - - 49 12 - - - -
iv Rent paid1
Mr. Anil Kumar Mittal - - - - 2 1 - -
Mr. Arun Kumar Gupta - - - - 6 5 - -
Mr. Anoop Kumar Gupta - - - - 6 5 - -
Mr. Ashok Chand - - - - - 1
KRBL Infrastructure 199 196 - - - - - -
Limited
KRBL Foods Limited 651 552 - - - - - -
Adwet Warehousing 25 - - - - - - -
Private Limited
Mrs. Anulika Gupta - - - - - - 12 12
Mrs. Binita Gupta - - - - - - 2 2
Mrs. Preeti Mittal - - - - - - 2 2
Mr. Ashish Mittal - - - - - - 13 13
Lt. Tara Devi - - - - - - - 4
Anoop Kumar Gupta HUF 10 10 - - - - - -
v Expense incurred (on
behalf of company by
others)/by company for
others
Khushi Ram behari lal 2 0 - - - - - -
KRBL LLC - - (4) - - - - -
KRBL DMCC - - (447) (46) - - - -
vi Remuneration on
account of salary and
perquisites2
Mr. Anil Kumar Mittal - - - - 109 98 - -
Mr. Arun Kumar Gupta - - - - 109 98 - -
Mr. Anoop Kumar Gupta - - - - 109 98 - -
Ms. Priyanka Mittal - - - - 56 56 - -
Mr. Ashok Chand - - - - 10 27 - -
Mr. Raman Sapra - - - - 14 13 - -

206
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)

Particulars Enterprises/Trusts/HUF Subsidiary Key Managerial Other Related

over which significant Companies Personnels (KMPs) Parties
influence is exercised by
KMPs
31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March
2019 2018 2019 2018 2019 2018 2019 2018
Mr. Rakesh Mehrotra - - - - 79 75 - -
Mr. Ashish Mittal - - - - - - 22 18
Mr. Kunal Gupta - - - - - - 22 18
Mr. Akshay Gupta - - - - - - 22 18
Mr. Ayush Gupta - - - - - - 22 18
vii Electricity charges paid
KRBL Infrastructure 78 83 - - - - - -
Limited
viii Repair and Maintenance
paid
KRBL Infrastructure 13 11 - - - - - -
Limited
ix Sitting fees paid3
Mr. Vinod Ahuja - - - - - - 1 0
Mr. Ashwani Dua - - - - - - 0 0
Mr. Shyam Arora - - - - - - 1 0
Mr. Devendra Kumar - - - - - - 1 0
Agarwal
Mr. Alok Sabharwal - - - - - - 1 0
x Dividend paid
Anil Mittal Family Trust 979 893 - - - - - -
Arun Kumar Gupta 950 867 - - - - - -
Family Trust
Anoop Kumar Gupta 894 816 - - - - - -
Family Trust
Anil Kumar Mittal HUF 83 76 - - - - - -
Arun Kumar Gupta HUF 112 102 - - - - - -
Anoop Kumar Gupta 168 153 - - - - - -
HUF
Mr. Anil Kumar Mittal3 - - - - 0 0 - -
Mr. Arun Kumar Gupta3 - - - - 0 0 - -
Mr. Anoop Kumar Gupta3 - - - - 0 0 - -
Ms. Priyanka Mittal3 - - - - 0 0 - -
Mr. Ashish Mittal3 - - - - - - 0 0
Mr. Kunal Gupta3 - - - - - - 0 0
Mr. Akshay Gupta3 - - - - - - 0 0
Mr. Ayush Gupta3 - - - - - - 0 0
Mrs. Binta Gupta3 - - - - - - 0 0
Mrs. Anulika Gupta3 - - - - - - 0 0
Mrs. Neha Singh3 - - - - - - 0 0
Mrs. Rashi Gupta3 - - - - - - 0 0
Mrs. Preeti Mittal3 - - - - - - 0 0

207
 Annual Report 2018-19

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)

Particulars Enterprises/Trusts/HUF Subsidiary Key Managerial Other Related

over which significant Companies Personnels (KMPs) Parties
influence is exercised by
KMPs
31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March
2019 2018 2019 2018 2019 2018 2019 2018
xi Dividend received
KRBL DMCC - - - 2,570 - - - -
xii Interest paid
Khushi Ram Behari Lal 34 23 - - - - - -
xiii Advances given
Mr. Raman Sapra3 - - - - 0 - - -
Mr. Rakesh Mehrotra - - - - 1 - - -
xiv Advances adjusted
against salary
Mr. Raman Sapra3 - - - - 0 - - -
Mr. Rakesh Mehrotra3 - - - - 0 - - -
xv Borrowings- Unsecured
loans availed
Mr. Anil Kumar Mittal - - - - 1,792 717 - -
Mr. Arun Kumar Gupta - - - - 2,423 1,319 - -
Mr. Anoop Kumar Gupta - - - - 3,721 1,008 - -
Ms. Priyanka Mittal - - - - 436 - - -
xvi Borrowings-Unsecured
loans repaid
Mr. Anil Kumar Mittal - - - - 2,243 1,014 - -
Mr. Arun Kumar Gupta - - - - 2,195 1,324 - -
Mr. Anoop Kumar Gupta - - - - 4,258 1,367 - -
Ms. Priyanka Mittal - - - - 402 - - -
xvii Discount allowed on sale
of goods
Khushi Ram Behari Lal 49 51 - - - - - -
xviii Advance received
against supply of goods
Khushi Ram Behari Lal 2,568 815 - - - - - -
xix Advance received
against supply of goods
returned back
Khushi Ram Behari Lal 645 - - - - - - -
II Balances outstanding at
the year end
i Unsecured borrowings-
Current
Mr. Anil Kumar Mittal - - - - 342 793 - -
Mr. Arun Kumar Gupta - - - - 1,266 1,038 - -
Mr. Anoop Kumar Gupta - - - - 2,502 3,039 - -
Ms. Priyanka Mittal - - - - 34 - - -
ii Advance received from
customers
Khushi Ram Behari Lal 1,418 195 - - - - - -

208
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)

Particulars Enterprises/Trusts/HUF Subsidiary Key Managerial Other Related

over which significant Companies Personnels (KMPs) Parties
influence is exercised by
KMPs
31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March
2019 2018 2019 2018 2019 2018 2019 2018
iii Receivable (payable)
KRBL Infrastructure - (39) - - - - - -
Limited
KRBL Foods Limited - (5) - - - - - -
KRBL LLC - - (16) 2 - - - -
KRBL DMCC - - (79) (58) - - - -
iv Receivable on account of
Security deposit/Prepaid
Lease
KRBL Infrastructure 971 971 - - - - - -
Limited
v Employee related
payables
Mr. Anil Kumar Mittal - - - - 2 13 - -
Mr. Arun Kumar Gupta - - - - 2 10 - -
Mr. Anoop Kumar Gupta - - - - 2 11 - -
Ms. Priyanka Mittal - - - - 2 1 - -
Mr. Ashok Chand - - - - - 1 - -
Mr. Raman Sapra - - - - 1 1 - -
Mr. Rakesh Mehrotra - - - - 3 2 - -
Mr. Ashish Mittal - - - - - - 1 3
Mr. Kunal Gupta - - - - - - 1 5
Mr. Akshay Gupta - - - - - - 1 4
Mr. Ayush Gupta - - - - - - 1 4
vi Other balances
outstanding at the end of
the year, net (payable)/
receivable
Mr. Arun Kumar Gupta3 - - - - (0) (0) - -
Mr. Anoop Kumar Gupta3 - - - - (0) (0) - -
Ms. Priyanka Mittal - - - - 1 - - -
Mr. Rakesh Mehrotra - - - - 1 (0) - -
Mr. Ashish Mittal3 - - - - - - (0) -
Mr. Ayush Gupta3 - - - - - - (0) (2)
1.
Transactions are inclusive of Goods and Services tax
2.
As gratuity and compensated absences are computed for all the employees in aggregate, the amount relating to relatives of KMPs
cannot be individually identified.
3.
Amounts are below rounding off thresholds adopted by the Company.
4.
Personal guarantee has been given by Mr. Anil Kumar Mittal, Mr. Anoop Kumar Gupta and Mr. Arun Kumar Gupta in respect of
working capital consortium loan taken by the Company, as at the year ended 31 March 2019, the outstanding amount of loan
is ` 114,007 lacs (31 March 2018 ` 96,544 las) and Mr. Ashish Mittal (relative of key managerial personnel) to the extent of the
immovable properties as specified in consortium agreement.
5.
All related party transactions are at arms length price and in the ordinary course of business.
6.
Refer note 3(D) for transactions related to Property, Plant and Equipment with KMP and their relatives

209
 Annual Report 2018-19

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)

41 Contingent liabilities and commitments

A Contingent liabilities
(i) Claims against the Company not acknowledged as debts* As at As at
31 March 2019 31 March 2018
Income tax matters1 1,26,920 -
Indirect taxes2 7,501 2300
Other matters 613 132
1,35,034 2,432
1.
 he Company has received demand notices under section 153A/143(3) of the Income-tax Act, 1961, with respect
T
to assessment years 2010-11 to 2016-17, amounting to ` 75,744 lacs and interest thereon ` 51,176 lacs. Vide writ
petition filed, the Company has obtained an order from Hon’ble High Court of Delhi, that no coercive action shall be
taken against the Company. The management of the Company has contested this demand at CIT (Appeals), New Delhi.
Further, the Company is required to pay ` 25,384 lacs under protest for contesting such demand. Till 31 March 2019, the
Company has paid ` 7,500 lacs under protest and thereafter, required to pay monthly instalments of ` 1,200 lacs as agreed with
the income tax department. The management, based on legal assessment, is confident that it has a favourable case and that
the demand shall be deleted at the appellate stage. The auditors of the Company have invited attention to the aforementioned
issue in their audit report for the quarter and year ended 31 March 2019.
2.
Indirect taxes includes the matters related to mandi fee levied under the Agricultural Produce Market Committee Act, 2003.
*. T
 he Company on the basis of the legal opinion is of the firm belief that the above demands are not tenable and highly unlikely
to be retained by higher authorities and is accordingly not carrying any provision in its books in respect of such demands.
The amounts disclosed are based on the orders/ notices received from the authorities.

B The Hon’ble Supreme Court (“”SC””) has, in a recent decision (‘SC decision’), ruled that various allowances like conveyance
allowance, special allowance, education allowance, medical allowance etc., paid uniformly and universally by an employer to its
employees would form part of basic wages for computing the provident fund (‘PF’ or ‘the fund’) contribution and thereby, has
laid down principles to exclude (or include) a particular allowance or payments from ‘basic wage’ for the purpose of computing
PF contribution. The Company pays special allowance, conveyance allowance and others allowances to its employees as
a part of its their compensation structure, which are not included in the basic wages for the purpose of computing the PF.
As the above said ruling has not prescribed any clarification w.r.t to its application, the Company is in the process of evaluating
the impact on the provident fund contributions. Pending clarification and evaluation of impact of above said, no provision for
employee contribution has been recognised in the financial statements for the year ended 31 March 2019

C Commitments
Estimated amount of contracts remaining to be executed, to the extent not provided for:
Particulars As at As at
31 March 2019 31 March 2018
Property, plant and equipment (net of advances) 1,320 605

42 Transfer pricing
As per the international transfer pricing norms introduced in India with effect from April 01, 2001 and the domestic transfer pricing
norms introduced with effect from April 01, 2012, the Company is required to use certain specified methods in computing arm’s
length price of international and national transactions between the associated enterprises and maintain prescribed information
and documents relating to such transactions. The appropriate method to be adopted will depend on the nature of transactions/
class of transactions, class of associated persons, functions performed and other factors, which have been prescribed. The
Company is in the process of conducting a transfer pricing study for the current financial year. However, in the opinion of the
Management the same would not have a material impact on these financial statements. Accordingly, these financial statements
do not include any adjustments for the transfer pricing implications, if any.

43 Research and development expenditure

Research and development expenditure incurred during the year ended 31 March 2019 and 31 March 2018 is as follows

210
Standalone Financials

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Capital expenditure - -
Revenue expenditure 523 480

44 Dividends
Particulars For the year For the year
ended ended
31 March 2019 31 March 2018
A Dividend declared and paid during the year
Final dividend declared and paid for the year ended 31 March 2018 ` 2.30 per 5,414 4,943
share
(For the year ended 31 March 2017 : ` 2.10 per share)
Dividend distribution tax on final dividend 1,102 483
B Proposed dividends on equity shares not recognised as liability
Proposed dividends for the year ended 31 March 2019 ` 2.50 per share 5,885 5,414
(For the year ended 31 March 2018 : ` 2.30 per share)
Dividend distribution tax on proposed dividend 1,210 1,102
C Remittance in foreign currency on account of dividend
Number of non-resident shareholders to whom dividend is remitted 5 5
Number of equity shares held by them 3,90,00,000 3,90,00,000
Amount of dividend paid 897 819
Year to which the dividend relates 2017-18 2016-17

45 Assets pledged as security

Particulars As at As at
31 March 2019 31 March 2018
Non-current assets
First charge
Property, plant and equipments including capital work in progress 92,915 96,799
Intangible assets 101 111
Total non-current assets pledged as security 93,016 96,910
Current assets
First charge
Pari-passu
Inventories 3,12,885 2,46,161
Financial assets (current and non-current) 42,752 34,668
Other assets (current and non-current) 14,012 6,710
Total current assets pledged as security 3,69,649 2,87,539
Total assets pledged as security 4,62,665 3,84,449

46 Reconciliation of liabilities arising from financing activities:

Particulars For the year For the year
ended ended
31 March 2019 31 March 2018
Non-current borrowings
Opening balance 8,111 12,502
Proceeds - -
Repayment 3,443 4,456
Net loss on foreign currency transactions and translation - 65

211
 Annual Report 2018-19

NOTES FORMING PART OF THE FINANCIAL STATEMENT

(All amounts stated in ` lacs, unless otherwise stated)

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Closing balance 4,668 8,111
Current borrowings
Opening balance 1,16,414 96,505
Movement (net) 22,192 19,275
Net (gain)/loss on foreign currency transactions and translation (455) 634
Closing balance 1,38,151 1,16,414
Finance cost
Accrued but not due as at 1 April 164 191
Expenses incurred 6,756 6,893
Expenses paid 6,281 6,920
Accrued but not due as at 31 March 639 164

47 During the previous year, the officers of the directorate of enforcement, ministry of finance, government of India visited under
section 17 of the PMLA 2002, the premises of the Company in an ongoing investigation of some matters pertaining to Mr.
Gautam Khaitan, solicitor and the erstwhile independent director of the Company from 30 July 2007 to 18 April 2013 and in the
course of which statements of some directors/officers of the Company were recorded by them. Nothing incriminating in the
affairs of the Company has been alleged by them so far as on this date.

48 During the year ended 31 March 2019, the Company reclassified/regrouped certain previous year’s amount i.e. 31 March 2018.
Considering the nature of these reclassification/regrouping, the Company does not intend to present opening balance sheet of
previous year reported. Refer below the reclassified/regrouped amount in the previous year amount-
Reclassification of financial information of previous year ended 31 March 2018 Amount
Reclassification from current year information in Reclassification to in previous year information in
previous year current year
Trade payables Advance to suppliers 1,110
Trade receivables Advances from customers 258
Provisions – non-current, compensated absences Provisions – current, compensated absences 79
Provisions - current Other financial liabilities-employee related payables 718
Employee benefit expenses Other expenses 800
Other income Other expenses 27
Prepayments Other non-current assets - Prepayments 1,280
Prepayments Other current assets – Prepayments 1,077

This is the Summary of the standalone significant accounting policies and other explanatory information referred to in our report
of even date.

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of KRBL Limited
Chartered Accountants
Firm's Registration No.: 001076N/N500013

Rohit Arora Anil Kumar Mittal Anoop Kumar Gupta

Partner Chairman and Managing Director Joint Managing Director
Membership No. 504774 DIN-00030100 DIN-00030160

Raman Sapra Rakesh Mehrotra

Place : Noida Company Secretary Chief Financial Officer
Date : 15 May 2019 Membership No. F9233 Membership No. 84366

212
Consolidated Financials

CONSOLIDATED
FINANCIALS
CONTENTS
Consolidated Auditor’s Report ......................................................214
Consolidated Balance Sheet .........................................................222
Consolidated Statement of Profit and Loss...................................223
Consolidated Cash Flow Statement ..............................................224
Consolidated Statement of Changes in Equity..............................226
Notes forming part of the Consolidated Financial Statements...227

213
 Annual Report 2018-19

INDEPENDENT AUDITOR’S REPORT ON CONSOLIDATED

FINANCIAL STATEMENTS

To the Members of KRBL Limited on Auditing specified under section 143(10) of the Act.
Our responsibilities under those standards are further
Report on the Audit of the Consolidated Financial described in the Auditor’s Responsibilities for the Audit of the
Statements Consolidated Financial Statements section of our report. We
are independent of the Company in accordance with the Code
Opinion of Ethics issued by the Institute of Chartered Accountants of
1. We have audited the accompanying consolidated financial India (‘ICAI’) together with the ethical requirements that are
statements of KRBL Limited (‘the Company’) (‘the Holding relevant to our audit of the consolidated financial statements
Company’) and its subsidiaries (the Holding Company under the provisions of the Act and the rules thereunder,
and its subsidiaries together referred to as ‘the Group’), and we have fulfilled our other ethical responsibilities in
which comprise the Consolidated Balance Sheet as at 31 accordance with these requirements and the Code of Ethics.
March 2019, the Consolidated Statement of Profit and Loss We believe that the audit evidence we have obtained and
(including Other Comprehensive Income), the Consolidated the audit evidence obtained by the other auditors in terms
Cash Flow Statement and the consolidated Statement of of their reports referred to in paragraph 16 and 17 of the
Changes in Equity for the year then ended, and a summary Other Matters section below, is sufficient and appropriate to
of the consolidated significant accounting policies and other provide a basis for our opinion.
explanatory information.
Emphasis of Matter
2. In our opinion and to the best of our information and according 4. We draw attention to Note 41 to the consolidated financial
to the explanations given to us and based on the consideration statement, whereby the Holding Company has received an
of the reports of the other auditors on separate financial income tax demand, which is being contested by the Holding
statements and on the other financial information of the Company. Our opinion is not modified in respect of this matter.
subsidiaries, the aforesaid consolidated financial statements
give the information required by the Companies Act, 2013 Key Audit Matter
(‘Act’) in the manner so required and give a true and fair 5. Key audit matters are those matters that, in our professional
view in conformity with the accounting principles generally judgment and based on the consideration of the reports of
accepted in India including Indian Accounting Standards (‘Ind the other auditors on separate financial statements and on
AS’) specified under section 133 of the Act, of the consolidated the other financial information of the subsidiaries, were of
state of affairs (consolidated financial position) of the Group most significance in our audit of the consolidated financial
as at 31 March 2019, and its consolidated profit (consolidated statements of the current period. These matters were
financial performance including other comprehensive income), addressed in the context of our audit of the consolidated
its consolidated cash flows and the consolidated changes in financial statements as a whole, and in forming our opinion
equity for the year ended on that date. thereon, and we do not provide a separate opinion on these
matters.
Basis for Opinion
3. We conducted our audit in accordance with the Standards

6 We have determined the matters described below to be the key audit matters to be communicated in our report.
Key audit matter How our audit addressed the key audit matter
Revenue recognition – Sale of Goods Our audit work included, but was not limited to, the following procedures:
Refer Note 2 in the Summary of significant
• Obtained an understanding of the process of each revenue stream, particularly
accounting policies and other explanatory
of sale of rice and other food products;
information
• Evaluated the design and implementation and tested the operating effectiveness
The Holding Company recognised an amount of of controls over revenue recognition including around quantity sold, pricing and
` 412,049 lacs revenue for the year ended 31 accounting of revenue transactions;
March 2019, as disclosed in Note 22 to the
• Performed substantive analytical procedures on revenue which included ratio
consolidated financial statements.
analysis, product mix analysis, region wise analysis, etc.;
Revenue for the Holding Company majorly
comprises of revenue from sale of
manufactured goods (rice) and by products.

214
Consolidated Financials

INDEPENDENT AUDITOR’S REPORT ON CONSOLIDATED

FINANCIAL STATEMENTS

Key audit matter How our audit addressed the key audit matter
The Holding Company has adopted the new • Evaluated the terms and conditions of the contracts, including incoterms, with
revenue accounting standard Ind AS 115, customers to ensure that the revenue recognition criteria are assessed by the
Revenue from Contracts with Customers, from management in accordance with the accounting standards;
the current year, which required management to
re-assess the revenue recognition accounting • On a sample basis, tested revenue transactions recorded during the year, and
policy by making key judgements such as revenue transactions recorded in the period before and after year-end with
identification of distinct performance obligations supporting documents, such as invoices, agreements with customers, proof of
in contracts with customers, determination deliveries, and subsequent collection of payment;
of transaction price including assessment of
variable consideration elements, and selection of • Performed other substantive audit procedures including obtaining debtor
appropriate methods to allocate the transaction confirmations on a sample basis and reconciling revenue recorded during the
price to the performance obligations in year with statutory returns;
accordance with the new accounting standard,
which was considered to be a complex exercise • Tested manual journal entries for recording revenue, credit notes, claims etc.,
in the current year. which were material or irregular in nature with supporting documents and
evaluated business rationale thereof;
Further, in accordance with Standards on
Auditing, there is a presumed fraud risk • Evaluated disclosures made in the consolidated financial statement for revenue
relating to revenue recognition. Accordingly, recognition from sale of goods for appropriateness in accordance with the
occurrence and existence of revenue is a key accounting standards.
focus area on account of the multiplicity of
Company’s products, multiple channels for
sales, various categories of customers and the
volume of the sales made to them.

Due to the above factors, we have identified

testing of revenue recognition as a key audit
matter.
Inventory existence and valuation Our audit work included, but was not limited to the following procedures:

Refer Note 2 in the Summary of significant Existence:

accounting policies and other explanatory • Obtained understanding the management’s process of inventory management
information. and inventory physical verification performed at year-end;
Inventory of the Holding Company consists • Evaluated the design effectiveness of controls over inventory management
primarily of variety of rice, paddy and their by- process/ inventory physical verification and tested key controls for their
products, manufactured during the process of operating effectiveness;
conversion of paddy into rice.
• Observed physical count carried out by the management at locations selected
The Holding Company held inventories based on materiality and risk factors;
amounting to ` 312,939 lacs as at 31 March
• During the above said observation, noted whether the instructions given by senior
2019. The inventory primarily comprises of
management to stock count teams were followed, including ensuring proper
Paddy as raw material and finished goods in the
segregation of stock, use of calibration scales/charts, separate identification of
form of rice and by-products. Inventory holding
goods received after year end, identification of damaged inventory, if any, etc.;
is generally significant considering the finished
goods are aged for 18-24 months and also due
to seasonality of the purchase of paddy. Such
inventory is stored in plants, warehouses and
silos. High volume of inventory makes physical
verification of inventory, an extensive procedure
for the management, at the year end.

215
 Annual Report 2018-19

INDEPENDENT AUDITOR’S REPORT ON CONSOLIDATED

FINANCIAL STATEMENTS

Key audit matter How our audit addressed the key audit matter
The valuation of finished rice and by product Recounted inventory, on sample basis, to match with inventory records and results
is a comprehensive exercise and is carried out of management conducted count;
manually considering the determination of:
• Reviewed reconciliation of differences, if any, between management physical count
and inventory records, and tested the necessary adjustment made in the inventory
• Allocable overheads;
records by the management;
• Consideration of net realizable value of by
• For the inventory lying with the third party, obtained the confirmation that the
products such as husk, bran etc; and
management obtained from the third parties and for the inventory lying at foreign
• Consideration of NRV of the different variety ports (in the course of sale), tested the subsequent clearance and original bill of
of finished products lading for the said export.
Accordingly, existence and valuation of the
Valuation:
inventory, which is significant with respect
• Obtained the understanding of management process of inventory valuation;
to the total assets held by the Company,
is considered to be one of the areas which • Evaluated design effectiveness of controls over inventory valuation process and
required significant auditor attention owing to tested key controls for their operating effectiveness;
the complexity and judgements involved in the
• Tested inputs into the valuation process from source documents/ general
process of physical count and valuation.
ledger accounts;
• Tested reconciliation of opening inventory, purchase/ production, sales and
year-end inventory to validate the amount of yield during the year and to identify
any abnormal production loss;
• Compared key estimates, including those involved in computation of overhead
absorption, to prior years and enquired reasons for any significant variations,
• Checked net realisable value of by-products from actual sale proceeds near/
subsequent to the year-end;
• Tested arithmetical accuracy of valuation calculations; and
• Evaluated appropriateness of disclosure of inventory year-end balance in the
consolidated financial statements.
Initial Audit Engagement - Opening Balances Our audit work included, but was not limited to, the following procedures:
• Prepared a detailed transition plan, including ensuring compliance with
We have been appointed as the statutory independence requirements, prior to the start of the audit;
auditors of Company for year ended 31 March
• Inspected management’s process and control documentation to assist us in
2019.
obtaining and understanding of the Company’s financial reporting and business
processes, including control environment;
Standard on Auditing 510, Initial Audit
Engagements – Opening Balances, in • Obtained and read management reports, policies, instructions as well as
conducting an initial audit engagement, planning and governing documents, minutes of the board of directors, audit
several considerations are involved which are committee and other committees of the board, internal audit reports;
generally not associated with recurring audits.
The audit transition, including the audit of the
opening balances requires additional planning
activities and considerations necessary
to establish an appropriate audit plan and
strategy. This includes:

216
Consolidated Financials

INDEPENDENT AUDITOR’S REPORT ON CONSOLIDATED

FINANCIAL STATEMENTS

Key audit matter How our audit addressed the key audit matter
• Gaining an initial understanding of the • Held discussions with the management at various levels of the Company and
Company and its business including its heads of the Business and Finance functions to understand their roles in the
control environment and information business and company’s financial reporting process;
systems, sufficient to make an audit • Obtained an understanding of and evaluated appropriateness and consistency
assessment and develop the audit strategy of the accounting policies used in the preparation of the consolidated financial
and plan. statements of the Holding Company for the financial year ended 31 March
• Obtaining sufficient appropriate audit 2018. particularly in respect of inventory, property, plant and equipment, trade
evidence regarding the opening balances receivables, etc;
including the selection and application of • Read previous year consolidated financial statements to identify material
accounting policies. opening balances. Obtained underlying accounting schedules prepared by the
management and scanned for unusual items.
• Communicating with the predecessor
auditors, as required and permitted under • Traced the account balances from the trial balance for the previous financial
applicable professional regulations. year to the audited consolidated financial statements, and traced the balance
sheet account balances to the opening trial balance of the current year.
The aforesaid activities required involvement
• On a sample basis, tested the opening balances for financial line items including
of considerable audit efforts, and accordingly,
property, plant and equipment, bank balances, borrowings, share capital, and
audit of the opening balances was identified as
other current assets and liabilities, as considered necessary.
a key audit matter for the current year audit.

Information other than the Consolidated Financial Statements and or loss (consolidated financial performance including other
Auditor’s Report thereon comprehensive income), consolidated changes in equity and
7. The Holding Company’s Board of Directors is responsible for consolidated cash flows of the Group in accordance with the
the other information. The other information comprises the accounting principles generally accepted in India, including
information included in the Annual Report, but does not include the Ind AS specified under section 133 of the Act. The
the consolidated financial statements and our auditor’s report Holding Company’s Board of Directors is also responsible for
thereon. The Annual Report is expected to be made available to ensuring accuracy of records including financial information
us after the date of this auditor’s report. considered necessary for the preparation of consolidated Ind
AS financial statements. Further, in terms of the provisions of
Our opinion on the consolidated financial statements does not
the Act, the respective Board of Directors /management of the
cover the other information and we will not express any form of
companies included in the Group, covered under the Act are
assurance conclusion thereon.
responsible for maintenance of adequate accounting records
In connection with our audit of the consolidated financial in accordance with the provisions of the Act for safeguarding
statements, our responsibility is to read the other information the assets and for preventing and detecting frauds and
identified above when it becomes available and, in doing other irregularities; selection and application of appropriate
so, consider whether the other information is materially accounting policies; making judgments and estimates that
inconsistent with the consolidated financial statements or our are reasonable and prudent; and design, implementation
knowledge obtained in the audit or otherwise appears to be and maintenance of adequate internal financial controls,
materially misstated. that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to the
When we read the Annual Report, if we conclude that there is a preparation and presentation of the consolidated financial
material misstatement therein, we are required to communicate statements that give a true and fair view and are free from
the matter to those charged with governance. We have nothing material misstatement, whether due to fraud or error. These
to report in this regard. financial statements have been used for the purpose of
preparation of the consolidated financial statements by the
Responsibilities of Management and Those Charged with Directors of the Holding Company, as aforesaid.
Governance for the Consolidated Financial Statements
8. The Holding Company’s Board of Directors is responsible for 9. In preparing the consolidated financial statements, the
the matters stated in section 134(5) of the Act with respect to respective Board of Directors of the companies included in the
the preparation of these consolidated financial statements Group are responsible for assessing the ability of the Group as
that give a true and fair view of the consolidated state of a going concern, disclosing, as applicable, matters related to
affairs (consolidated financial position), consolidated profit going concern and using the going concern basis of accounting

217
 Annual Report 2018-19

INDEPENDENT AUDITOR’S REPORT ON CONSOLIDATED

FINANCIAL STATEMENTS

unless the Board of Directors either intends to liquidate the statements or, if such disclosures are inadequate, to modify
Group or to cease operations, or has no realistic alternative but our opinion. Our conclusions are based on the audit evidence
to do so. obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Group to cease to
10. Those Board of Directors are also responsible for overseeing
continue as a going concern.
the financial reporting process of the companies included in
the Group. • Evaluate the overall presentation, structure and content
of the consolidated financial statements, including the
Auditor’s Responsibilities for the Audit of the Consolidated
disclosures, and whether the consolidated financial
Financial Statements
statements represent the underlying transactions and
11. Our objectives are to obtain reasonable assurance about
events in a manner that achieves fair presentation.
whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud 13. We communicate with those charged with governance
or error, and to issue an auditor’s report that includes our regarding, among other matters, the planned scope and
opinion. Reasonable assurance is a high level of assurance, timing of the audit and significant audit findings, including
but is not a guarantee that an audit conducted in accordance any significant deficiencies in internal control that we identify
with Standards on Auditing will always detect a material during our audit.
misstatement when it exists. Misstatements can arise from
14. 
We also provide those charged with governance with a
fraud or error and are considered material if, individually or in
statement that we have complied with relevant ethical
the aggregate, they could reasonably be expected to influence
requirements regarding independence, and to communicate
the economic decisions of users taken on the basis of these
with them all relationships and other matters that may
consolidated financial statements.
reasonably be thought to bear on our independence, and where
12. As part of an audit in accordance with Standards on Auditing, applicable, related safeguards.
we exercise professional judgment and maintain professional
15. 
From the matters communicated with those charged with
scepticism throughout the audit. We also:
governance, we determine those matters that were of
• Identify and assess the risks of material misstatement of
most significance in the audit of the consolidated financial
the consolidated financial statements, whether due to fraud
statements of the current period and are therefore the key
or error, design and perform audit procedures responsive
audit matters. We describe these matters in our auditor’s
to those risks, and obtain audit evidence that is sufficient
report unless law or regulation precludes public disclosure
and appropriate to provide a basis for our opinion. The
about the matter or when, in extremely rare circumstances, we
risk of not detecting a material misstatement resulting
determine that a matter should not be communicated in our
from fraud is higher than for one resulting from error, as
report because the adverse consequences of doing so would
fraud may involve collusion, forgery, intentional omissions,
reasonably be expected to outweigh the public interest benefits
misrepresentations, or the override of internal control.
of such communication.
• Obtain an understanding of internal control relevant to
Other Matter
the audit in order to design audit procedures that are
16. We did not audit the financial statements of three subsidiaries,
appropriate in the circumstances. Under section 143(3)(i) of
whose financial statements reflects total assets of ` 1,474 lacs
the Act, we are also responsible for expressing our opinion
and net assets of ` 1,442 lacs as at 31 March 2019, total revenues
on whether the Group, covered under the Act have adequate
of ` 458 lacs and net cash inflows amounting to ` 31 lacs for
internal financial controls system in place and the operating
the year ended on that date, as considered in the consolidated
effectiveness of such controls.
financial statements. These financial statements have been
• Evaluate the appropriateness of accounting policies used audited by other auditors whose reports have been furnished
and the reasonableness of accounting estimates and to us by the management and our opinion on the consolidated
related disclosures made by management. financial statements, in so far as it relates to the amounts and
disclosures included in respect of these subsidiaries, and our
• Conclude on the appropriateness of management’s use of
report in terms of sub-section (3) of Section 143 of the Act, in
the going concern basis of accounting and, based on the
so far as it relates to the aforesaid subsidiaries, is based solely
audit evidence obtained, whether a material uncertainty
on the reports of the other auditors.
exists related to events or conditions that may cast
significant doubt on the ability of the Group to continue as Further, of these subsidiaries, two subsidiaries, are located
a going concern. If we conclude that a material uncertainty outside India whose financial statements and other financial
exists, we are required to draw attention in our auditor’s information have been prepared in accordance with accounting
report to the related disclosures in the consolidated financial principles generally accepted in their respective countries

218
Consolidated Financials

INDEPENDENT AUDITOR’S REPORT ON CONSOLIDATED

FINANCIAL STATEMENTS

and which have been audited by other auditors under d) In our opinion, the aforesaid consolidated financial
generally accepted auditing standards applicable in their statements comply with Ind AS specified under section 133
respective countries. The Holding Company’s management of the Act;
has converted the financial statements of such subsidiaries, e) On the basis of the written representations received from
located outside India from accounting principles generally the directors of the Holding Company and taken on record
accepted in their respective countries to accounting principles by the Board of Directors of the Holding Company and
generally accepted in India. We have audited these conversion the reports of the other statutory auditor of its subsidiary
adjustments made by the Holding Company’s management. company, covered under the Act, none of the directors of the
Our opinion, and matters identified and disclosed under Group companies, under the Act, are disqualified as on 31
key audit matters section above, in so far as it relates to the March 2019 from being appointed as a director in terms of
balances and affairs of such subsidiaries, located outside India Section 164(2) of the Act.
is based on the report of other auditors and the conversion
f) With respect to the adequacy of the internal financial
adjustments prepared by the management of the Holding
controls over financial reporting of the Holding Company,
Company and audited by us.
and its subsidiary company covered under the Act, and
Our opinion above on the consolidated financial statements, the operating effectiveness of such controls, refer to our
and our report on other legal and regulatory requirements separate report in ‘, Annexure A; and
below, are not modified in respect of the above matters with g) With respect to the other matters to be included in
respect to our reliance on the work done by and the reports of the Auditor’s Report in accordance with rule 11 of the
the other auditors. Companies (Audit and Auditors) Rules, 2014 (as amended),
17. The consolidated financial statements of the Company for in our opinion and to the best of our information and
the year ended 31 March 19 were audited by the predecessor according to the explanations given to us and based on
auditor, S S A Y & Associates, Chartered Accountants, who the consideration of the report of the other auditors on
have expressed an unmodified opinion on those consolidated separate financial statements and also the other financial
financial statements vide their audit report dated 10 May 2018. information of the subsidiaries:
i. The consolidated financial statements disclose the
Report on Other Legal and Regulatory Requirements impact of pending litigations on the consolidated
18. As required by section 197(16) of the Act, based on our audit financial position of the Group, as detailed in Note 41 to
and on the consideration of the reports of the other auditors, the consolidated financial statements.;
referred to in paragraph 16, on separate financial statements of
ii. The Holding Company and its subsidiary companies, did
the subsidiaries associates and joint ventures, we report that
not have any long-term contracts including derivative
the Holding Company, its subsidiary companies covered under
contracts for which there were any material foreseeable
the Act paid remuneration to their respective directors during
losses as at 31 March 2019;
the year in accordance with the provisions of and limits laid
down under section 197 read with Schedule V to the Act. iii. There has been no delay in transferring amounts,
required to be transferred, to the Investor Education
19. As required by Section 143 (3) of the Act, based on our audit and Protection Fund by the Holding Company, and its
and on the consideration of the reports of the other auditors on subsidiary companies, during the year ended 31 March
separate financial statements and other financial information 2019; and
of the subsidiaries, we report, to the extent applicable, that:
iv. The disclosure requirements relating to holdings as well
a) We have sought and obtained all the information and as dealings in specified bank notes were applicable for
explanations which to the best of our knowledge and belief the period from 8 November 2016 to 30 December 2016,
were necessary for the purpose of our audit of the aforesaid which are not relevant to these Consolidated financial
consolidated financial statements; statements. Hence, reporting under this clause is not
b) In our opinion, proper books of account as required by applicable.
law relating to preparation of the aforesaid consolidated For Walker Chandiok & Co LLP
financial statements have been kept so far as it appears Chartered Accountants
from our examination of those books and the reports of the Firm’s Registration No.: 001076N/N500013
other auditors;
 Rohit Arora
c) The consolidated financial statements dealt with by Partner
this report are in agreement with the relevant books of  Membership No.: 504774
account maintained for the purpose of preparation of the Place: Noida
consolidated financial statements; Date: 15 May 2019

219
 Annual Report 2018-19

INDEPENDENT AUDITOR’S REPORT ON CONSOLIDATED

FINANCIAL STATEMENTS

Annexure A 4. Our audit involves performing procedures to obtain audit

evidence about the adequacy of the IFCoFR and their
Independent Auditor’s Report on the Internal Financial Controls operating effectiveness. Our audit of IFCoFR includes
under Clause (i) of Sub-section 3 of Section 143 of the Companies obtaining an understanding of IFCoFR, assessing the risk
Act, 2013 (‘the Act’) that a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal control
1. In conjunction with our audit of the consolidated financial based on the assessed risk. The procedures selected depend
statements of KRBL Limited (‘the Company’) or (‘the Holding on the auditor’s judgement, including the assessment of the
Company’) and its subsidiaries (the Holding Company and its risks of material misstatement of the financial statements,
subsidiaries together referred to as ‘the Group’), as at and for whether due to fraud or error.
the year ended 31 March 2019, we have audited the internal
financial controls over financial reporting (‘IFCoFR’) of the 5. We believe that the audit evidence we have obtained and
Holding Company, which is a company covered under the the audit evidence obtained by the other auditors in terms
Act, as at that date. of their reports referred to in the Other Matter paragraph
below, is sufficient and appropriate to provide a basis for our
Management’s Responsibility for Internal Financial Controls audit opinion on the IFCoFR of the Holding Company and its
2. The respective Board of Directors of the Holding Company subsidiary companies, as aforesaid.
and its subsidiary companies, , which are companies covered
under the Act, are responsible for establishing and maintaining Meaning of Internal Financial Controls over Financial Reporting
internal financial controls based on the internal control over 6. A company’s IFCoFR is a process designed to provide
financial reporting criteria established by the Company reasonable assurance regarding the reliability of financial
considering the essential components of internal control reporting and the preparation of financial statements for
stated in the Guidance Note on Audit of Internal Financial external purposes in accordance with generally accepted
Controls over Financial Reporting issued by the Institute of accounting principles. A company’s IFCoFR include those
Chartered Accountants of India. These responsibilities include policies and procedures that (1) pertain to the maintenance
the design, implementation and maintenance of adequate of records that, in reasonable detail, accurately and fairly
internal financial controls that were operating effectively for reflect the transactions and dispositions of the assets of the
ensuring the orderly and efficient conduct of the company’s company; (2) provide reasonable assurance that transactions
business, including adherence to the company’s policies, are recorded as necessary to permit preparation of financial
the safeguarding of its assets, the prevention and detection statements in accordance with generally accepted accounting
of frauds and errors, the accuracy and completeness of the principles, and that receipts and expenditures of the company
accounting records, and the timely preparation of reliable are being made only in accordance with authorisations of
financial information, as required under the Act. management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely
Auditor’s Responsibility detection of unauthorised acquisition, use, or disposition of
the company’s assets that could have a material effect on the
3. Our responsibility is to express an opinion on the IFCoFR of
financial statements.
the Holding Company, as aforesaid, based on our audit. We
conducted our audit in accordance with the Standards on
Inherent Limitations of Internal Financial Controls over Financial
Auditing issued by the Institute of Chartered Accountants
Reporting
of India (‘ICAI’) and deemed to be prescribed under Section
143(10) of the Act, to the extent applicable to an audit of IFCoFR, 7. Because of the inherent limitations of IFCoFR, including the
and the Guidance Note on Audit of Internal Financial Controls possibility of collusion or improper management override of
Over Financial Reporting (‘the Guidance Note’) issued by the controls, material misstatements due to error or fraud may
ICAI. Those Standards and the Guidance Note require that we occur and not be detected. Also, projections of any evaluation
comply with ethical requirements and plan and perform the of the IFCoFR to future periods are subject to the risk that
audit to obtain reasonable assurance about whether adequate the IFCoFR may become inadequate because of changes in
IFCoFR were established and maintained and if such controls conditions, or that the degree of compliance with the policies
operated effectively in all material respects. or procedures may deteriorate.

220
Consolidated Financials

INDEPENDENT AUDITOR’S REPORT ON CONSOLIDATED

FINANCIAL STATEMENTS

Opinion other auditors whose reports have been furnished to us by the

management and our report on the adequacy and operating
8. In our opinion and based on the consideration of the reports
effectiveness of the IFCoFR for the Holding Company, and its
of the other auditors on IFCoFR of the subsidiary companies,
subsidiary companies, as aforesaid, under Section 143(3)(i) of
the Holding Company and its subsidiary companies, which are
the Act in so far as it relates to such subsidiary companies, is
companies covered under the Act, have in all material respects,
based solely on the reports of the auditors of such companies.
adequate internal financial controls over financial reporting
Our opinion is not modified in respect of this matter with respect
and such controls were operating effectively as at 31 March
to our reliance on the work done by and on the reports of the
2019, based on the internal control over financial reporting
other auditors.
criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls over Financial Reporting
For Walker Chandiok & Co LLP
issued by the Institute of Chartered Accountants of India.
Chartered Accountants
Firm’s Registration No.: 001076N/N500013
Other Matters
9. We did not audit the IFCoFR in so far as it relates to three
subsidiary companies and, which are companies covered  Rohit Arora
under the Act, whose financial statements reflect total assets of Partner
` 1,474 lacs and net assets of `1,442 lacs as at 31 March 2019,  Membership No.: 504774
total revenues of ` 458 lacs and net cash inflows amounting
to ` 31 lacs for the year ended on that date, as considered in
the consolidated financial statements. The IFCoFR in so far as Place: Noida
it relates to such subsidiary companies have been audited by Date: 15 May 2019

221
 Annual Report 2018-19

Consolidated Balance sheet

as at 31 March 2019
(All amounts stated in ` lacs, unless otherwise stated)
Particulars Note As at As at
31 March 2019 31 March 2018
ASSETS
Non-current assets
Property, plant and equipment 3(a) 93,172 96,896
Capital work in progress 3(a) 59 225
Investment property 3(c) 833 1,171
Goodwill 16 16
Other intangible assets 3(b) 101 111
Financial assets
- Loans 5 321 294
- Other financial assets 6 6 109
Other non-current assets 7 11,699 3,547
Sub total non-current assets 1,06,207 1,02,369
Current assets
Inventories 8 3,12,939 2,46,272
Financial assets
- Investments 4 765 899
- Trade receivables 9 39,729 24,668
- Cash and cash equivalents 10 475 3,942
- Other bank balances 11 102 3,040
- Loans 5 35 25
- Other financial assets 6 1,041 1,350
Other current assets 12 2,321 3,189
Sub total current assets 3,57,407 2,83,385
TOTAL ASSETS 4,63,614 3,85,754
EQUITY AND LIABILITIES
Equity
Equity share capital 13 2,354 2,354
Other equity 14 2,70,316 2,26,436
Equity attributable to shareholders of the Holding Company 2,72,670 2,28,790
Non-controlling interest 88 88
Sub total equity 2,72,758 2,28,878
Liabilities
Non current liabilities
Financial liabilities
- Borrowings 15 3,324 5,195
Provisions 16 565 512
Deferred tax liabilities (net) 17 14,673 13,202
Sub total non-current liabilities 18,562 18,910
Current liabilities
Financial liabilities
- Borrowings 18 1,38,151 1,16,414
- Trade payables 19
- Total outstanding dues of micro and small enterprises 688 -
- Total outstanding dues of creditors other than micro and small enterprises 21,691 11,070
- Other financial liabilities 20 8,566 8,259
Other current liabilities 21 2,602 1,245
Provisions 16 287 228
Current tax liabilities (net) 309 751
Sub total current liabilities 1,72,294 1,37,967
TOTAL EQUITY AND LIABILITIES 4,63,614 3,85,754
The accompanying notes form an integral part of these consolidated financials statements 1 - 49

This is the Consolidated Balance Sheet referred to in our report of even date.

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of KRBL Limited
Chartered Accountants
Firm's Registration No.: 001076N/N500013

Rohit Arora Anil Kumar Mittal Anoop Kumar Gupta

Partner Chairman and Managing Director Joint Managing Director
Membership No. 504774 DIN-00030100 DIN-00030160

Raman Sapra Rakesh Mehrotra

Place : Noida Company Secretary Chief Financial Officer
Date : 15 May 2019 Membership No. F9233 Membership No. 84366

222
Consolidated Financials

Consolidated Statement of Profit and Loss

for the year ended 31 March 2019
(All amounts stated in ` lacs, unless otherwise stated)
Particulars Note For the year ended For the year ended
31 March 2019 31 March 2018
Income
Revenue from operations 22 4,12,049 3,24,652
Other income 23 1,515 1,781
Total income 4,13,564 3,26,433
Expenses
Cost of materials consumed 24 3,16,761 2,25,454
Purchase of stock-in-trade 25 1,165 1,221
Changes in inventories of finished goods and stock-in-trade 26 (28,558) (9,841)
Excise duty - 83
Employee benefits expenses 27 7,702 6,918
Finance costs 28 6,758 6,895
Depreciation and amortisation expenses 29 6,446 6,778
Other expenses 30 29,991 23,424
Total expenses 3,40,265 2,60,932
Profit before tax 73,299 65,501
Tax expense 33
Current tax 23,016 20,233
Deferred tax 1,471 1,824
MAT credit entitlement (1,490) -
Total tax expense 22,997 22,057
Profit for the year 50,302 43,444
Other comprehensive income:
Items that will not be reclassified to profit and loss
Remeasurements of defined benefit plans 6 24
Tax on above (2) (7)
Items that will be reclassified to profit and loss
Foreign currency translation difference 91 23
Other comprehensive income for the year 95 40
Total comprehensive income for the year 50,397 43,484
Profit attributable to:
Owners of the parent 50,302 43,444
Non-controlling interst1 0 0
Other comprehensive income attributable to:
Owners of the parent 95 40
Non-controlling interest - -
Earnings per equity share (face value of ` 1 each) 31
- Basic (in `) 21.37 18.46
- Diluted (in `) 21.37 18.46
1. rounded off to zero
The accompanying notes form an integral part of these consolidated financials statements 1 - 49

This is the Consolidated Statement of Profit and Loss referred to in our report of even date

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of KRBL Limited
Chartered Accountants
Firm's Registration No.: 001076N/N500013

Rohit Arora Anil Kumar Mittal Anoop Kumar Gupta

Partner Chairman and Managing Director Joint Managing Director
Membership No. 504774 DIN-00030100 DIN-00030160

Raman Sapra Rakesh Mehrotra

Place : Noida Company Secretary Chief Financial Officer
Date : 15 May 2019 Membership No. F9233 Membership No. 84366

223
 Annual Report 2018-19

Consolidated Cash flow Statement

for the year ended 31 March 2019
(All amounts stated in ` lacs, unless otherwise stated)
Particulars For the year ended For the year ended
31 March 2019 31 March 2018

A Cash flow from operating activities

Profit before tax 73,299 65,501
Adjustment for :
Depreciation and amortisation expenses 6,446 6,778
(Profit)/Loss on sale of property, plant and equipment (135) 4
Net unrealised foreign exchange (gain)/loss (240) 515
Effect of exchange rate difference on operating cash flows 15 23
(Profit)/Loss on sale of investment (289) 23
Balance credit impaired 1,083 -
Liabilities/provisions no longer required written back (134) -
Finance costs 6,758 6,895
Interest income (656) (1,241)
Dividend income (30) (35)
MTM profit on derivatives - (11)
Operating profit before working capital changes 86,117 78,452
Adjustments for working capital changes :
(Increase)/Decrease in financial and other assets (7,011) 4,250
(Increase) in inventories (66,667) (44,268)
(Increase) in trade receivables (16,367) (1,554)
Increase/(Decrease) in trade payables 11,574 (14,347)
Increase in liabilities and provisions 2,883 2,510
Cash generated from operations 10,529 25,043
Income tax paid (net) (21,965) (18,967)
Net cash (used in)/flow from operating activities (A) (11,436) 6,076
B Cash flow from investing activities
Purchase of property, plant and equipment and intangible assets1 (2,248) (3,902)
Sale of property, plant and equipment 119 191
Sale proceeds from investments 58,072 31,590
Purchase of investments (57,649) (31,500)
Movement from deposits (net) 3,031 (2,502)
Interest received 665 1,220
Dividend income 30 35
Net cash flow from/(used in) investing activities (B) 2,020 (4,868)
C Cash flow from financing activities
(Repayment) of non current borrowings (3,443) (4,456)
Proceeds from/(repayment of) in current borrowings (net) 22,191 19,275
Finance cost (6,283) (6,922)
Dividend paid (5,414) (4,946)
Dividend distribution tax paid (1,102) (483)
Net cash flow from financing activities (C) 5,949 2,468

224
Consolidated Financials

Consolidated Cash flow Statement

for the year ended 31 March 2019
(All amounts stated in ` lacs, unless otherwise stated)
Particulars For the year ended For the year ended
31 March 2019 31 March 2018
D Net (decrease)/increase in cash and cash equivalents (A+B+C) (3,467) 3,676
Cash and cash equivalents-opening balance 3,942 266
Cash and cash equivalents-closing balance 475 3,942
E Cash and cash equivalents
Cash in hand 129 134
Balances with banks 346 3,808
475 3,942

Notes
1. Net of movement in capital work-in-progress and capital advances.
2. The above cash flow statement has been prepared under the ‘indirect method’ as set out in Ind AS 7, ‘Statement of cash flows’.

This is the Consolidated Cash Flow Statement referred to in our report of even date.

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of KRBL Limited
Chartered Accountants
Firm's Registration No.: 001076N/N500013

Rohit Arora Anil Kumar Mittal Anoop Kumar Gupta

Partner Chairman and Managing Director Joint Managing Director
Membership No. 504774 DIN-00030100 DIN-00030160

Raman Sapra Rakesh Mehrotra

Place : Noida Company Secretary Chief Financial Officer
Date : 15 May 2019 Membership No. F9233 Membership No. 84366

225
 Annual Report 2018-19

Consolidated Statement of Changes in Equity

for the year ended 31 March 2019
A. Equity share capital (refer note 13) (All amounts stated in ` lacs, unless otherwise stated)
Equity shares of ₹ 1 each fully paid up Number of shares Amount
As at 1 April 2017 23,53,89,892 2,354
Movement during the year - -
As at 31 March 2018 23,53,89,892 2,354
Movement during the year - -
As at 31 March 2019 23,53,89,892 2,354
B. Other equity (refer note 14)
Particulars Attributable to owners of the Holding Company
Reserve and surplus
Retained Foreign General Securities Capital Capital Total
earnings currency reserve premium reserve redemption
translation reserve
reserve
Balance as at 1 April 2017 1,45,684 1,830 31,050 9,655 82 77 1,88,378
Profit for the year 43,444 - - - - - 43,444
Other comprehensive income for the -
year:-
Remeasurement of defined benefit 17 - - - - 17
obligations (net of tax)
Movement in foreign currency - 23 - - - - 23
translation reserve during the year
Total comprehensive income at the 1,89,145 1,853 31,050 9,655 82 77 2,31,862
year end
Transaction with owners
Dividends paid (refer note 44) (4,943) - - - - - (4,943)
Dividend distribution tax paid (483) - - - - - (483)
Transferred to general reserve1 (6,000) - - - - - (6,000)
Transferred from profit and loss - - 6,000 - - - 6,000
account1
Balance as at 31 March 2018 1,77,718 1,853 37,050 9,655 82 77 2,26,436
Balance as at 01 April 2018 1,77,718 1,853 37,050 9,655 82 77 2,26,436
Profit for the year 50,302 - - - - - 50,302
Other comprehensive income for the -
year:-
Remeasurement of defined benefit 4 - - - - - 4
obligations (net of tax)
Movement in foreign currency - 91 - - - - 91
translation reserve during the year
Total comprehensive income at the 2,28,024 1,944 37,050 9,655 82 77 2,76,833
year end
Transaction with owners
Dividends paid (refer note 44) (5,414) - - - - - (5,414)
Dividend distribution tax paid (1,102) - - - - - (1,102)
Transferred to general reserve1 (7,000) - - - - - (7,000)
Transferred from profit and loss - - 7,000 - - - 7,000
account1
Balance as at 31 March 2019 2,14,508 1,944 44,050 9,655 82 77 2,70,316

. The Company has voluntarily transfer amount of ` 7,000 lacs (31 March 2018 ` 6,000 lacs) from retained earning to general reserve.
1

The accompanying notes form an integral part of these consolidated financials statements 1 - 49
This is the Consolidated Statement of Changes in Equity referred to in our report of even date.

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of KRBL Limited
Chartered Accountants
Firm's Registration No.: 001076N/N500013

Rohit Arora Anil Kumar Mittal Anoop Kumar Gupta

Partner Chairman and Managing Director Joint Managing Director
Membership No. 504774 DIN-00030100 DIN-00030160

Raman Sapra Rakesh Mehrotra

Place : Noida Company Secretary Chief Financial Officer
Date : 15 May 2019 Membership No. F9233 Membership No. 84366

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STATEMENT
1. Group information (ii) Basis of accounting
KRBL Limited (‘the Company’ or ‘the Holding Company’) is The Consolidated financial statements have been
a limited Company domiciled in India and was incorporated prepared on going concern basis in accordance
on 30 March 1993. The registered office of the Company is with accounting principles generally accepted
located at 5190, Lahori gate, Delhi 110006. The shares of the in India. Further, the Consolidated financial
Company are listed in India on the Bombay Stock Exchange statements have been prepared on historical
and the National Stock Exchange. cost basis except for certain financial assets
and financial liabilities which are measured at
The Company is world’s leading basmati rice producer fair values as explained in relevant accounting
and has fully integrated operations in every aspect policies. Fair valuations related to financial assets
of basmati value chain, right from seed development, and financial liabilities are categorized into level 1,
contact farming, procurement of paddy, storage, level 2 and level 3 based on the degree to which
processing, packaging, branding and marketing. Among the inputs to the fair value measurements are
the many brands owned by the Company “India Gate” is observable.
the flagship brand both in domestic and international
markets. (iii) Basis of Consolidation
The consolidated financial statements comprise
These consolidated financial statements relate to KRBL the consolidated financial statements of the
Limited (‘the Holding Company’), its subsidiary companies Company and its subsidiaries as at 31 March 2018.
(‘the Group Companies’) hereinafter referred to as the Control is achieved when the Group is exposed, or
‘Group’ has rights, to variable returns from its involvement
with the investee and has the ability to affect
Description of Group those returns through its power over the investee.
Specifically, the Group controls an investee if and
Name of the Country of Shareholding Shareholding
only if the Group has:
Subsidiaries incorporation as at 31 as at 31
March 2019 March 2018 • Power over the investee (i.e. existing rights
that give it the current ability to direct the
KRBL DMCC, United Arab 100% 100%
relevant activities of the investee)
GroupA Emirates
• Exposure, or rights, to variable returns from
K B Exports India 70% 70% its involvement with the investee, and
Private
• The ability to use its power over the investee
Limited
to affect its returns.
A. KRBL DMCC, Group comprise of a step down wholly
owned subsidiary namely, KRBL LLC, incorporated at Generally, there is a presumption that a majority
United States of America. of voting rights result in control. To support this
presumption and when the Group has less than
2. Basis of preparation, measurement and significant a majority of the voting or similar rights of an
accounting policies investee, the Group considers all relevant facts
and circumstances in assessing whether it has
(i) General information power over an investee, including:
These consolidated financial statements have been • The contractual arrangement with the other
prepared in accordance with the Indian Accounting vote holders of the investee
Standards (hereinafter referred to as the ‘Ind AS’) as •  Rights arising from other contractual
notified by Ministry of Corporate Affairs pursuant to arrangements
section 133 of the Companies Act, 2013 read with Rule • The Group’s voting rights and potential voting
3 of the Companies (Indian Accounting Standards) rights
Rules, 2015 (as amended). The Company has uniformly • The size of the Group’s holding of voting
applied the accounting policies during the periods rights relative to the size and dispersion of
presented. the holdings of the other voting rights holders

The Consolidated financial statements for the year The Group re-assesses whether or not it
ended 31 March 2019 were authorized and approved controls an investee if facts and circumstances
for issue by the Board of Directors on 15 May 2019. indicate that there are changes to one or more

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NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT
of the three elements of control. Consolidation (iii) All resulting exchange differences
of a subsidiary begins when the Group obtains are accumulated in foreign currency
control over the subsidiary and ceases when translation reserve until the disposal of
the Group loses control of the subsidiary. net investment.
Assets, liabilities, income and expenses of a
subsidiary acquired or disposed of during the Non-Controlling interest share in net assets
year are included in the consolidated financial of ‘the Group’ is identified and presented in
statements from the date the Group gains the consolidated balance sheet separate from
control until the date the Group ceases to liabilities and the equity of the Company’s
control the subsidiary. shareholders.

Consolidated financial statements are prepared (iv) Functional and presentation currency
using uniform accounting policies for like These Consolidated financial statements are
transactions and other events in similar presented in Indian rupees (`) which is also the
circumstances. If a member of the Group uses Company’s functional currency. All amounts have
accounting policies other than those adopted been rounded-off to the nearest lac as per the
in the consolidated financial statements for like requirements of Part II of Schedule III of the Act,
transactions and events in similar circumstances, unless otherwise indicated.
appropriate adjustments are made to that Group
member’s Consolidated financial statements in (v) Summary of significant accounting policies
preparing the Consolidated financial statements
The Consolidated financial statements have
to ensure conformity with the Group’s
been prepared using the significant accounting
accounting policies. The Consolidated financial
policies and measurement bases summarized
statements of all entities used for the purpose
below. These were used throughout all periods
of consolidation are drawn up to the same
presented in the Consolidated financial
reporting date as that of the parent company, i.e.,
statements.
year ended on 31 March 2019.
a. Current versus non-current classification
The Consolidated financial statements have been
prepared on the following basis: The Company presents assets and
liabilities in the balance sheet based on
The financial statements of the parent and its current / non-current classification. An
subsidiaries have been combined on a line-by- asset/liability is treated as current when
line basis by adding together the book values it is:
of like items of assets, liabilities, revenues and • Expected to be realised or intended to be
expenses after eliminating intra-group balances / sold or consumed or settled in normal
transactions and resulting profits in full. operating cycle;
• Expected to be realised/settled within
The results and financial position of all the Group twelve months after the reporting period,
Companies are translated into the reporting or
currency as follows: • Cash or cash equivalent unless restricted
from being exchanged or used to settle a
(i) Current Assets and Liabilities for each liability for at least twelve months after
balance sheet presented are translated at the the reporting period
closing rate at the date of that balance sheet; • There is no unconditional right to defer
the settlement of the liability for at
(ii) Income and expenses for each income least twelve months after the reporting
statement are translated at average exchange period.
rates (unless average rate is not reasonable
at the rates prevailing on the transaction All other assets and liabilities are classified
dates, in such case income and expenses as non-current. Deferred tax assets and
are translated at the rate on the dates of the liabilities are classified as non-current assets
transactions); and and liabilities respectively.

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NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT
b. Property, plant and equipment depreciation method is changed to reflect the
changed pattern.
Recognition, measurement and subsequent
expenditure De-recognition
Property, plant and equipment are measured The carrying amount of an item of property,
at cost, less accumulated depreciation and plant and equipment is derecognized on
impairment losses, if any. Freehold land is disposal or when no future economic benefits
stated at original cost of acquisition. are expected from its use or disposal. The
gain or loss arising from the de recognition
Cost of an item of property, plant and of an item of property, plant and equipment
equipment includes acquisition / installation is measured as the difference between the
inclusive of freight, duties, and taxes and all net disposal proceeds and the carrying
incidental expenses. Subsequent costs are amount of the item and is recognized in the
included in the asset’s carrying amount or statement of profit and loss when the item is
recognised as a separate asset, as appropriate, derecognized.
only when it is probable that future economic
benefits associated with the item will flow to c. Investment property
the Company and the cost of the item can be
measured reliably. The carrying amount of Recognition and measurement
any component accounted for as a separate Property held to earn rentals or / and for
asset is derecognized when replaced. All other capital appreciation or both but not for sale
repairs and maintenance are generally charged in the ordinary course of business, or for
to the statement of profit and loss during the use in the production or supply of goods
reporting period in which they are incurred. or services or for administrative purposes,
are categorized as investment property.
In respect of major projects involving Investment property is measured at its
construction, related preoperational expenses cost, including related transaction costs
form part of the value of assets capitalized. and where applicable borrowing costs
Expenses capitalized also include applicable less depreciation and impairment, if any.
borrowing costs. Subsequent expenditure is capitalized to
the asset’s carrying amount only when it
Property, plant and equipment which are is probable that future economic benefits
not ready for intended use as on the date associated with the expenditure will flow
of Balance Sheet are disclosed as “Capital to the Company and the cost of the item
work-in-progress”. can be measured reliably. All other repairs
and maintenance costs are expensed
Depreciation when incurred. When part of an investment
Depreciation on property, plant and property is replaced, the carrying amount of
equipment has been provided on straight the replaced part is derecognized.
line method, in terms of useful life of the
assets as prescribed in Schedule II to the Depreciation
Companies Act, 2013. Depreciation on Investment properties are depreciated using
additions (disposals) is provided on a pro- the straight-line method over the useful lives
rata basis i.e. from (up to) the date on which as mentioned in Part C of Schedule II of the
the asset is capitalised/ disposed off. Act.

Depreciation method and useful lives are Reclassification to/from investment property
reviewed annually. If the useful life of an asset When the use of a property changes from
is estimated to be significantly different from owner-occupied to investment property, the
previous estimates, the depreciation period property is reclassified as investment property
is changed accordingly. If there has been a at its carrying cost (including accumulated
significant change in the expected pattern depreciation) on the date of reclassification
of economic benefits from the asset, the and vice-a- versa.

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STATEMENT
d. Intangible assets Finished goods and by products
Finished goods are valued at lower of cost
Recognition and measurement and net realisable value. Cost of inventories
Intangible assets acquired separately are of finished goods includes cost of raw
measured on initial recognition at cost. materials, direct and indirect overheads
Following initial recognition, intangible which are incurred to bring the inventories to
assets are carried at cost less accumulated their present location and condition.
amortization and accumulated impairment
loss, if any. By-products are valued at net realizable
value.
Amortisation Net realisable value is the estimated selling
Computer software, patent, trademark and price in the ordinary course of business, less
design and goodwill are recognized as the estimated costs of completion and the
intangible assets and amortized on straight estimated costs necessary to make the sale.
line method over a period of 10 years except
one software which is depreciated in 6 years g. Revenue
on straight line method based upon life of Effective 1 April 2018, the Company has
servers where it is installed. applied Ind AS 115: Revenue from Contracts
with Customers which establishes a
De-recognition comprehensive framework for determining
The carrying amount of an intangible asset is whether, how much and when revenue is to
derecognized on disposal or when no future be recognised. Ind AS 115 replaces Ind AS
economic benefits are expected from its use 18 Revenue. The impact of the adoption of
or disposal. The gain or loss arising from the standard on the Consolidated financial
the de recognition of an intangible asset is statements of the Company is insignificant.
measured as the difference between the net
disposal proceeds and the carrying amount Revenue is measured based on the
of the intangible asset and is recognized in consideration specified in a contract with a
the statement of profit and loss when the customer and excludes amounts collected on
asset is derecognized. behalf of third parties, if any. The Company
recognizes revenue when it transfers control
e. Investment in subsidiaries over a product or service to a customer.
Investment in equity instruments of
subsidiaries are measured at cost as per Ind To determine whether to recognize revenue,
AS 27 ‘Separate financial statements ‘. the Company follows a 5-step process:
• Identifying the contract with a customer
f. Inventory • Identifying the performance obligations
• Determining the transaction price
Raw materials, stores and spares and packing •  Allocating the transaction price to the
materials performance obligations
Raw materials, stores and spares and packing •  Recognising revenue when/as
materials are valued at lower of cost and performance obligation(s) are satisfied.
net realizable value. However, these items
are considered to be realizable at cost if the Revenue is recognised to the extent that it
finished products, in which they will be used, is probable that the economic benefits will
are expected to be sold at or above cost. flow to the Company and the revenue can
The cost is calculated on weighted average be reliably measured, regardless of when the
cost method and it comprises all costs payment is being made.
incurred in bringing the inventories to their
present location and condition and includes, In the comparative period presented in
where applicable, appropriate overheads Consolidated financial statements, revenue
based on normal level of activity. Obsolete, was measured at the fair value of the
slow moving and defective inventories are consideration received or receivable. Revenue
identified at the time of physical verification from the sale of goods was recognised when
and wherever necessary a provision is made. the significant risks and rewards of ownership

230
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT
had been transferred to the customer, recovery h. Employee Benefits
of the consideration was probable, there was
Short term employee benefits
no continuing management involvement with
All employee benefits payable wholly within
the goods and the amount of revenue could
twelve months of receiving employee services
be measured reliably.
are classified as short-term employee
benefits. These benefits include salaries and
The Company derives revenue primarily
wages, bonus, allowances and ex-gratia. The
from two segments - Agri and Energy. Agri
undiscounted amount of short-term employee
segment of the Company principally generate
benefits to be paid in exchange for employee
revenue from sale of goods (rice and by
services is recognised as an expense as the
products) and Energy segment generates
related service is rendered by employees.
revenue by generating power units and selling
Further, the liabilities are presented as
it to governments under the agreements (for
provisions for employee benefits under other
more detailed information about reportable
current liabilities in the balance sheet.
segments, refer note 39).
Defined contribution plan
Sale of goods (rice and by products)
The Company makes payments made to
Revenue from sale of goods is recognised
defined contribution plans such as provident
when control of the products being sold
fund and employees’ state insurance. The
is transferred to the customers and
Company has no further payment obligations
when there are no longer any unfulfilled
once the contributions have been paid. The
obligations.
contributions are accounted for as defined
contribution plans and the contributions are
Revenue is measured at fair value of the
recognised as employee benefit expense
consideration received or receivable, after
when they are due. Prepaid contributions
deduction of any trade discounts, volume
are recognised as an asset to the extent that
rebates and any taxes or duties collected
a cash refund or a reduction in the future
on behalf of the government such as
payments is available.
goods and services tax, etc. Accumulated
experience is used to estimate the provision
Defined benefit plan
for such discounts and rebates. Revenue
The liability recognised in the balance sheet in
is only recognised to the extent that it is
respect of gratuity is the present value of the
highly probable a significant reversal will
defined benefit obligation as at the balance
not occur.
sheet date less the fair value of plan assets.
The defined benefit obligation is calculated
Revenue from electricity generation
at the balance sheet date on the basis of
Sale of energy is accounted for on basis of
actuarial valuation by an independent actuary
energy supplied. Sale of Certified Emission
using projected unit credit method. Actuarial
Reduction (CER) is recognized as income
gains and losses arising from experience
on delivery of CERs to the customer. Sale
adjustments and changes in actuarial
of Renewable Energy Certificate (REC) is assumptions are recorded in the Statement
recognized as income on sale of REC on the of Other Comprehensive Income in the year
IEX/PXIL. in which such gains or losses arise.
Dividend income Other long-term employee benefits
Dividend is recognised when the Company’s Other long-term employee benefits are
right to receive the payment is established, recognised as an expense in the statement of
which is generally when shareholders approve profit and loss as and when they accrue. The
the dividend. Company determines the liability using the
Projected Unit Credit Method, with actuarial
Interest income valuations carried out as at the balance sheet
Interest income is recognized using the time date. Actuarial gains and losses in respect of
proportion method based on the rates implicit such benefits are charged to the statement of
in the transaction. profit and loss.

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NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT
i. Research and development Financial assets at fair value through
 Revenue expenditure on research and other comprehensive income
development is charged to the statement A financial asset is subsequently
of profit and loss in the year in which it is measured at fair value through other
incurred. Capital expenditure on research and comprehensive income if it is held
development is included under property, plant within a business model whose
and equipment and/or intangible assets, as objective is achieved by both collecting
the case may be. contractual cash flows and selling
financial assets and the contractual
j. Financial instruments terms of the financial asset give rise
A financial instrument is any contract that on specified dates to cash flows
gives rise to a financial asset of one entity that are solely payments of principal
and a financial liability or equity instrument of and interest on the principal amount
another entity. outstanding.

a) Financial assets Financial assets at fair value through

profit or loss
Classification A financial asset which is not classified
The Company classifies financial in any of the above categories are
assets as subsequently measured at subsequently fair valued through profit
amortised cost, fair value through other or loss.
comprehensive income or fair value
through profit or loss on the basis of De-recognition
its business model for managing the A financial asset is primarily de
financial assets and the contractual cash recognised when the rights to receive
flows characteristics of the financial cash flows from the asset have expired
asset. or the Company has transferred its rights
to receive cash flows from the asset.
Initial recognition and measurement
All financial assets are recognised Impairment of financial assets
initially at fair value plus, in the case of The Company assesses impairment
financial assets not recorded at fair value based on expected credit losses (ECL)
through profit or loss, transaction costs model for measurement and recognition
that are attributable to the acquisition of of impairment loss, the calculation of
the financial asset. which is based on historical data, on the
financial assets that are trade receivables
Subsequent measurement or contract revenue receivables.
For purposes of subsequent
measurement financial assets are b) Financial liabilities
classified in below categories:
Classification
Financial assets carried at amortised The Company classifies all financial
cost liabilities as subsequently measured
A financial asset is subsequently at amortised cost, except for financial
measured at amortised cost if it is liabilities at fair value through profit or
held within a business model whose loss. Such liabilities, including derivatives
objective is to hold the asset in order that are liabilities, shall be subsequently
to collect contractual cash flows and measured at fair value.
the contractual terms of the financial
asset give rise on specified dates to Initial recognition and measurement
cash flows that are solely payments of All financial liabilities are recognised
principal and interest on the principal initially at fair value and, in the case of
amount outstanding. loans and borrowings and payables,

232
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT
net of directly attributable transaction is discharged or cancelled or expires.
costs. The Company’s financial liabilities When an existing financial liability is
include trade and other payables, replaced by another from the same
loans and borrowings including bank lender on substantially different terms,
overdrafts, and derivative financial or the terms of an existing liability
instruments. are substantially modified, such an
exchange or modification is treated as
Subsequent measurement the derecognition of the original liability
The measurement of financial liabilities and the recognition of a new liability.
depends on their classification, as The difference in the respective carrying
described below: amounts is recognised in the statement
of profit and loss.
Financial liabilities at amortised cost
After initial recognition, interest-bearing c) Offsetting of financial instruments
loans and borrowings are subsequently Financial assets and financial liabilities
measured at amortised cost using the are offset and the net amount is reported
Effective Interest Rate (EIR) method. in the balance sheet if there is a currently
Gains and losses are recognised in enforceable legal right to offset the
profit or loss when the liabilities are de recognised amounts and there is an
recognised as well as through the EIR intention to settle on a net basis, to
amortisation process. realize the assets and settle the liabilities
simultaneously.
Amortised cost is calculated by taking
into account any discount or premium d) Derivative financial instruments
on acquisition and fees or costs that The Company uses derivative financial
are an integral part of the EIR. The EIR instruments, such as forward currency
amortisation is included as finance costs contracts, interest rate swaps and full
in the statement of profit and loss. currency swaps, to hedge its foreign
currency risks and interest rate risks,
Financial liabilities at fair value through respectively. Such derivative financial
profit or loss instruments are initially recognised
Financial liabilities at fair value through at fair value on the date on which a
profit or loss include financial liabilities derivative contract is entered into and
held for trading and financial liabilities are subsequently remeasured at fair
designated upon initial recognition value. Derivatives are carried as financial
as at fair value through profit or loss. assets when the fair value is positive and
Financial liabilities are classified as as financial liabilities when the fair value
held for trading if they are incurred is negative.
for the purpose of repurchasing in the
near term. This category also includes Any gains or losses arising from changes
derivative financial instruments entered in the fair value of derivatives are taken
into by the Company that are not directly to statement of profit and loss.
designated as hedging instruments in
hedge relationships as defined by Ind AS e) Fair value measurement
109. Separated embedded derivatives The Company measures financial
are also classified as held for trading instruments such as derivatives and
unless they are designated as effective certain investments, at fair value at each
hedging instruments. Gains or losses on balance sheet date.
liabilities held for trading are recognised
in the statement of profit and loss. All assets and liabilities for which fair
value is measured or disclosed in the
De-recognition Consolidated financial statements
A financial liability is derecognised are categorized within the fair value
when the obligation under the liability hierarchy, described as follows, based on

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STATEMENT
the lowest level input that is significant to Operating lease payments are recognised
the fair value measurement as a whole: as an expense in the statement of profit
and loss on a straight-line basis over
• Level 1: Quoted (unadjusted) market the lease term however, rent expenses
prices in active markets for identical shall not be straight-lined, if escalation
assets or liabilities. in rentals is in line with expected
• Level 2: Valuation techniques inflationary cost.
for which the lowest level input
that is significant to the fair value Company as a lessor
measurement is directly or indirectly Lease income from operating leases
observable. where the Company is a lessor is
• Level 3: Valuation techniques recognised in income on a straight-line
for which the lowest level input basis over the lease term except where
that is significant to the fair value scheduled increase in rent compensate
measurement is unobservable. the lessor for expected inflationary
costs.
For assets and liabilities that are
recognised in the balance sheet on a l. Foreign currency transactions
recurring basis, the Company determines
whether transfers have occurred between Initial recognition
levels in the hierarchy by re-assessing On initial recognition, transactions in foreign
categorization (based on the lowest level currencies entered into by the Company
input that is significant to the fair value are recorded in the functional currency (i.e.
measurement as a whole) at the end of Indian Rupees), by applying to the foreign
each reporting period. currency amount, the spot exchange
rate between the functional currency and
For the purpose of fair value disclosures, the foreign currency at the date of the
the Company has determined classes of transaction. Exchange differences arising
assets and liabilities on the basis of the on foreign exchange transactions settled
nature, characteristics and risks of the during the year are recognised in the
asset or liability and the level of the fair statement of profit and loss.
value hierarchy as explained above.
Measurement of foreign currency items
k. Leases at reporting date
Foreign currency monetary items of the
Company as a lessee Company are translated at the closing

The determination of whether an exchange rates. Non-monetary items
arrangement is (or contains) a lease that are measured at historical cost
is based on the substance of the in a foreign currency, are translated
arrangement at the inception of the using the exchange rate at the date
transaction. The arrangement is, or of the transaction. Non-monetary
contains, a lease if fulfilment of the items that are measured at fair value
arrangement is dependent on the use in a foreign currency, are translated
of a specific asset or assets and the using the exchange rates at the date
arrangement conveys a right to use the when the fair value is measured.
asset or assets, even if that right is not Exchange differences arising out of
explicitly specified in an arrangement. these translations are recognised in the
statement of profit and loss.
A lease is classified at the inception
date as a finance lease or an operating m. Income tax
lease. A lease that transfers substantially  Tax expense is the aggregate amount
all the risks and rewards incidental to included in the determination of profit or
ownership to the Company is classified loss for the period in respect of current
as a finance lease. tax and deferred tax.

234
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT
Current tax equity/other comprehensive income is
Current tax is measured at the amount recognised in respective head and not in
expected to be paid/ recovered to/from the statement of profit & loss.
the taxation authorities. The tax rates and
tax laws used to compute the amount are The carrying amount of deferred tax
those that are enacted or substantively assets is reviewed at each balance sheet
enacted, at the reporting date. date and is adjusted to the extent that
it is no longer probable that sufficient
Current income tax relating to items taxable profit will be available to allow all
recognised directly in equity/other or part of the asset to be recovered.
comprehensive income is recognised
under the respective head and not in the Deferred tax assets and deferred tax
statement of profit and loss. Management liabilities are offset if a legally enforceable
periodically evaluates positions taken in right exists to set off current tax assets
the tax returns with respect to situations against current tax liabilities and the
in which applicable tax regulations are deferred taxes relate to the same taxable
subject to interpretation and establishes entity and the same taxation authority.
provisions where appropriate.
Minimum alternate tax (‘MAT’) credit
Current tax assets are offset against entitlement is recognised as an asset
current tax liabilities if, and only if, a only when and to the extent there is
legally enforceable right exists to set off convincing evidence that normal income
the recognised amounts and there is an tax will be paid during the specified
intention either to settle on a net basis, or period. In the year in which MAT credit
to realise the asset and settle the liability becomes eligible to be recognised as an
simultaneously. asset, the said asset is created by way of
a credit to the statement of profit and loss
Deferred tax and shown as MAT credit entitlement.
Deferred tax is provided using the This is reviewed at each balance sheet
liability method on temporary differences date and writes down the carrying
between the tax bases of assets and amount of MAT credit entitlement to the
liabilities and their carrying amounts extent it is not reasonably certain that
for financial reporting purposes at the normal income tax will be paid during the
reporting date. specified period.

Deferred tax assets are recognised for n. 

Provision, contingent assets and
all deductible temporary differences, contingent liability
the carry forward of unused tax credits  The Company creates a provision
and any unused tax losses. Deferred tax when there is a present obligation as
assets are recognised to the extent that a result of past event that probably
it is probable that taxable profit will be requires an outflow of resources and
available against which the deductible a reliable estimate can be made of the
temporary differences, and the carry amount of obligation can be made at
forward of unused tax credits and unused the reporting date. These estimates
tax losses can be utilised. are reviewed at each reporting date
and adjusted to reflect the current
Deferred tax assets and liabilities are best estimates.
measured at the tax rates that are
expected to apply to the period when A disclosure of contingent liability is
the asset is realized or the liability is made when there is a possible obligation
settled, based on tax rates (and tax laws) or a present obligation that will probably
that have been enacted or substantively not require outflow of resources or where
enacted at the balance sheet date. Tax a reliable estimate of the obligation
relating to items recognized directly in cannot be made.

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NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT
Contingent assets are neither recognized contribution of each segment to the total
nor disclosed. common costs.

o. Government grants Unallocated items

Grants from the government are Revenues and expenses, which relate
recognised when there is reasonable to the Company as a whole and are not
assurance that the grant will be received allocable to segments on a reasonable
and the Company will comply with all basis, have been included under
attached conditions. Grant received “Unallocated corporate expenses”.
from government towards fixed assets Assets and liabilities, which relate to the
acquired/constructed by the Company is Company as a whole and are not allocable
deducted out of gross value of the asset to segments on reasonable basis, are
acquired/ constructed and depreciation shown as unallocated corporate assets
is charged accordingly. and liabilities respectively.

p. Cash and cash equivalents Segment accounting policies

 Cash comprises cash in hand and at The Company prepares its segment
bank. Cash and cash equivalents are information in conformity with
short-term (highly liquid), that are the accounting policies adopted
readily convertible into cash and which for preparing and presenting the
are subject to an insignificant risk of Consolidated financial statements of the
changes in value. Company as a whole.

q. Segment reporting r. Borrowing cost

According to Ind AS 108 ‘Operating General and specific borrowing costs
Segment’, identification of operating directly attributed to the acquisition,
segments is based on Chief Operating construction or production of a qualifying
Decision Maker (‘CODM’) approach asset are capitalised up to the period of
for making decisions about allocating time that is required to complete and
resources to the segment and assessing prepare the asset for its intended use or
its performance. sale. Qualifying major assets are assets
that necessarily take a substantial period
Identification of segments of time to get ready for their intended use
An operating segment is a component of or sale.
the Company that engages in business
activities from which it earns revenues All other borrowing costs are expensed
and incurs expenses, including revenues in the period in which they occur or
and expenses that relate to transactions accrue. Borrowing costs consist of
with any of the Company’s other interest and other costs that an entity
components. incurs in connection with the borrowing
of funds.
Results of the operating segments are
reviewed regularly by the management s. Earnings per share
team (Chairman, Joint Managing Basic earnings per share is calculated
Directors and Chief Financial Officer) by dividing the net profit for the year
which has been identified as the CODM, attributable to equity shareholders by
to make decisions about resources to the weighted average number of equity
be allocated to the segment and assess shares outstanding during the year.
its performance and for which discrete Diluted earnings per share is computed
financial information is available. using the weighted average number of
equity and dilutive equity equivalent
Allocation of common costs shares outstanding during the year end,
Common allocable costs are allocated to except where the results would be anti-
each segment accordingly to the relative dilutive

236
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT
t. Dividend to share holders economic obsolescence that may change the
 Dividend to equity shareholders is utilisation of assets.
recognised as a liability and deducted
from shareholders’ equity, in the period Defined benefit obligation (DBO)
in which the dividends are approved by The cost of the defined benefit plan and other
the equity shareholders in the general post-employment benefits and the present
meeting. value of such obligation are determined using
actuarial valuations. An actuarial valuation
(vi) Significant management judgements in involves making various assumptions that
applying accounting policies and estimation may differ from actual developments in the
uncertainty future. These include the determination of
 The preparation of the Company’s the discount rate, future salary increases,
Consolidated financial statements requires mortality rates and future pension
management to make judgements, estimates increases. Due to the complexities involved
and assumptions that affect the reported in the valuation and its long-term nature, a
amounts of revenues, expenses, assets and defined benefit obligation is highly sensitive
liabilities including contingent liability and the to changes in these assumptions. All
related disclosures. assumptions are reviewed at each reporting
date.
Significant judgements
Fair value measurements
Recognition of deferred tax assets When the fair values of financial assets and
The extent to which deferred tax assets can financial liabilities recorded in the balance
be recognized is based on an assessment sheet cannot be measured based on quoted
of the probability of the Company’s future prices in active markets, their fair value
taxable income against which the deferred is measured using valuation techniques
tax assets can be utilized. including the DCF model. The inputs to
these models are taken from observable
Evaluation of indicators for impairment of markets where possible, but where this is not
assets feasible, a degree of judgment is required in
The evaluation of applicability of indicators establishing fair values. Judgements include
of impairment of assets requires assessment considerations of inputs such as liquidity
of several external and internal factors which risk, credit risk and volatility. Changes in
could result in deterioration of recoverable assumptions about these factors could
amount of the assets affect the reported fair value of financial
instruments.
Provisions
At each balance sheet date basis, the Inventories
management judgment, changes in facts Management estimates the net realisable
and legal aspects, the Company assesses values of inventories, taking into account
the requirement of provisions against the the most reliable evidence available at each
outstanding contingent liabilities. However, reporting date. The future realisation of these
the actual future outcome may be different inventories may be affected by future market-
from this judgement. driven changes that may reduce future selling
prices.
Significant estimates
(vii) Recent accounting pronouncements
Useful lives of depreciable/amortisable
assets Ind AS 116 – Leases
Management reviews its estimate of the On March 30, 2019, Ministry of Corporate
useful lives of depreciable/amortisable Affairs (‘MCA’) has clarified that Ind AS 116
assets at each reporting date, based on the is effective for annual periods beginning on or
expected utility of the assets. Uncertainties after 1 April 2019 and it replaces Ind AS 17
in these estimates relate to technical and Leases, including appendices thereto. Ind AS

237
 Annual Report 2018-19

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT
116 sets out the principles for the recognition, to determine current service cost using
measurement, presentation and disclosure of actuarial assumptions and net interest using
leases and requires lessees to account for all discount rate determined at the start of the
leases under a single on-balance sheet model annual reporting period. However, if an entity
similar to the accounting for finance leases re-measures the net defined benefit liability
under Ind AS 17. The standard includes two (asset) as per the requirement of the standard,
recognition exemptions for lessees - leases it shall determine current service cost and
of ‘low-value’ assets and short-term leases net interest for the remainder of the annual
(i.e., leases with a lease term of 12 months or reporting period after the plan amendment,
less). At the commencement date of a lease, a curtailment or settlement using the actuarial
lessee will recognise a liability to make lease assumptions used to re-measure the net
payments (i.e., the lease liability) and an asset defined benefit liability (asset). The effective
representing the right to use the underlying date of amendment is 1 April 2019. The
asset during the lease term (i.e., the right- Company is evaluating the requirements
of-use asset). Lessees will be required to of the amendments and its effect on the
separately recognise the interest expense Consolidated financial statements.
on the lease liability and the depreciation
expense on the right-of-use asset. The Amendment to Ind AS 23, Borrowing costs
Company is evaluating the requirements On 30 March 2019, Ministry of Corporate
of the amendment and its effect on the Affairs (“MCA”) issued an amendment to Ind-
Consolidated financial statements. AS 23 “Borrowing Costs” clarifies that if any
specific borrowing remains outstanding after
Amendment to Ind AS 12, Income taxes the related asset is ready for its intended
On March 30, 2019, Ministry of Corporate use or sale, that borrowing becomes part of
Affairs (“MCA”) has notified Appendix C to the funds that an entity borrows generally
Ind-AS 12 Income taxes – “Uncertainty over when calculating the capitalization rate on
Income Tax Treatments”. The amendment general borrowings. This amendment is
to Ind AS 12 requires the entities to consider effective for annual periods beginning on or
recognition and measurement requirements after 1 April 2019. The Company is evaluating
when there is uncertainty over income tax the requirements of the amendments and
treatments. In such a circumstance, an entity their impact on the Consolidated financial
shall recognise and measure its current or statements.
deferred tax asset or liability accordingly.
The effective date of amendment is 1 April Amendment to Ind AS 109, Financial
2019. Further, there has been amendments instruments
in relevant paragraphs in Ind-AS 12 “Income On 30 March 2019, Ministry of Corporate
Taxes” which clarifies that an entity shall Affairs (“MCA”) issued an amendment
recognize the income tax consequences to Ind-AS 109 in respect of prepayment
of dividends in profit or loss, other features with negative compensation, which
comprehensive income or equity according to amends the existing requirements in Ind-AS
where the entity originally recognized those 109 regarding termination rights in order to
past transactions or events in accordance allow measurement at amortized cost (or,
with Ind-AS 109. The Company is evaluating depending on the business model, at fair
the requirements of the amendments and value through other comprehensive income)
its effect on the Consolidated financial even in the case of negative compensation
statements. payments. This amendment is effective
for annual periods beginning on or after
Amendment to Ind AS 19, Employee benefits 1 April 2019. The Company is evaluating
On March 30, 2019, Ministry of Corporate the requirements of the amendments and
Affairs (“MCA”) has issued an amendment their impact on the Consolidated financial
to Ind AS 19 which requires the entities statements.

238
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
3a Property, plant and equipment
Particulars Freehold Building Plant and Furniture Office Vehicles Total Capital
land machinery and equipment work in
fixtures progress
Gross carrying amount
Balance as at 1 April 2017 6,206 17,776 1,18,639 1,796 415 3,336 1,48,168 171
Additions 355 1,760 1,422 36 53 165 3,791 206
Disposals/capitalised - - (169) - (1) (101) (271) (152)
Balance as at 31 March 2018 6,561 19,536 1,19,892 1,832 467 3,400 1,51,688 225
Additions - 413 1,860 32 20 92 2,417 44
Transfer (refer note C below) - 520 - - - - 520 -
Disposals/capitalised (71) (295) (23) (1) (215) (605) (211)
Foreign currency translation - - - 1 1 0 2 -
difference (refer note H
below)
Balance as at 31 March 2019 6,561 20,398 1,21,457 1,842 487 3,277 1,54,022 59
Accumulated depreciation
Balance as at 1 April 2017 - 3,358 42,137 795 226 1,620 48,136 -
Additions - 722 5,515 132 55 308 6,732 -
Disposals - - (8) - (1) (67) (76) -
Balance as at 31 March 2018 - 4,080 47,644 927 280 1,861 54,792 -
Additions - 748 5,178 131 58 292 6,407 -
Transfer (refer note C below) - 119 - - - - 119
Disposals (refer note H - (11) (252) (19) (0) (185) (467) -
below)
Foreign currency translation - - - (0) (0) (0) (0) -
difference (refer note H
below)
Balance as at 31 March 2019 - 4,936 52,570 1,038 338 1,968 60,850 -
Net carrying amount
Balance as at 31 March 2018 6,561 15,456 72,248 905 187 1,539 96,896 225
Balance as at 31 March 2019 6,561 15,462 68,887 803 149 1,309 93,172 59

Notes:
A Contractual obligations
Refer note 41 for disclosure of contractual commitments for the acquisition of property, plant and equipment.
B Property, plant and equipment pledged as security
Refer note 15 and 18 for information on property, plant and equipment pledged as security by the Company.
C  efer note 3(c), for the amount of gross carrying amount and accumulated depreciation transferred to ‘building’ from
R
‘investment property’. The depreciation for the period for which building has been utilised as warehouse in the current year
is ` 9 lacs.
D  ut of the total land parcels amounting to ` 6,561 lacs as mentioned in above note, 52 land parcels amounting to ` 761
O
lacs are registered in the name of Mr Anil Kumar Mittal, Mr Arun Kumar Gupta and Mr Anoop Kumar Gupta (“KMPs”) and
their relative namely, Mr Ashish Mittal, though the payment had been made by the Company. The Company has physical
possession of such land parcels vide Memorandum of Understandings (MOUs) entered into by the Company with each
of the above KMPs and their relative. Subsequent to 31 March 2019, the Company has executed the General Power of
Attorney (pending registration), will and other documents with the KMPs and their relative in favour of the Company.
E  ut of the total land parcels, also 26 land parcels amounting to ` 83 lacs of which title deeds are in the name of KB
O
overseas, the erstwhile firm was merged with the Company
F Buildings amounting to ` 153 lacs are pending registration in the name of the Company.
G  apital work-in-progress mainly comprise of plant and machinery which are under installation at the premises of the
C
Company.
H Rounded off to zero

239
 Annual Report 2018-19

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
3b Other intangible assets
Particulars Patents, Computer Total
trademark and software
design
Gross carrying amount
Balance as at 1 April 2017 22 247 269
Additions - 22 22
Disposals - - -
Balance as at 31 March 2018 22 269 291
Additions - 20 20
Disposals - - -
Balance as at 31 March 2019 22 289 311
Accumulated amortisation
Balance as at 1 April 2017 16 136 152
Additions 2 26 28
Disposals - - -
Balance as at 31 March 2018 18 162 180
Additions - 30 30
Disposals - - -
Balance as at 31 March 2019 18 192 210
Net carrying amount
Balance as at 31 March 2018 4 108 111
Balance as at 31 March 2019 4 97 101

3c. Investment property

Particulars As at As at
31 March 2019 31 March 2018
Gross carrying amount
Opening gross carrying amount 1,281 1,281
Additions - -
Transfer (refer note A below) (520) -
Foreign currency translation difference 72 -
Balance at the end of the year 833 1,281
Accumulated depreciation
Opening accumulated depreciation 110 92
Additions 9 18
Transfer (refer note A below) (119) -
Balance at the end of the year - 110
Net carrying amount at the end of the year 833 1,171

Notes:
A The Group has investment property situated at Dubai, United Arab Emirate and a warehouse in Kandla, Gujarat and had given
under the cancellable operating lease. During the year, the Group started operating the kandla property as a warehouse for the
purpose of its business. Consequently, such investment property has been reclassified as building in the schedule of property,
plant and equipment.

240
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)

B Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Amount recognized in statement of profit and loss for investment property
Rental income derived from investment property 30 42
Direct operating expenses (including repairs and maintenance) generating rental 3 33
income
Profit arising from investment property before depreciation 27 9
Less: Depreciation 9 18
Profit/(loss) arising from investment property 18 (9)
Fair value of investment property 833 1,250

C. Fair value of investment property

The fair valuation is based on current prices in the active market for similar properties. The main input used are quantum, area,
location, demand, restrictive entry to the complex, age of building and trend of fair market rent in Gandhi Dham, Gujarat area.

For the property, situated at Gujarat, the valuation is based on valuations performed by an accredited independent valuer. Fair
valuation is base on replacement cost method. The fair valuation measurement is categorised in level 2 fair value hierarchy.
Further, the management estimate the fair value of the property at United Arab Emirates is same as of the carrying value.

4 Investments 
Particulars As at As at
31 March 2019 31 March 2018
Current
Investment carried at fair value through profit or loss
Investments in equity instruments - quoted, fully paid-up
NHPC Limited 219 245
[882,712 equity shares of ` 10 each, (31 March 2018 - 882,712 equity shares)]
Coal India Limited 181 217
[76,437 equity shares of ` 10 each, (31 March 2018 - 76,437 equity shares)]
Power Grid Corporation of India Limited 213 208
[107,667 equity shares of ` 10 each, (31 March 2018 - 107,667 equity shares)]
Shipping Corporation of India Limited 92 155
[242,265 equity shares of ` 10 each, (31 March 2018 - 242,265 equity shares)]
MOIL Limited 60 74
[37,846 equity shares of ` 10 each, (31 March 2018 - 37,846 equity shares)]
765 899
Aggregate amount of quoted investments at cost 957 957
Aggregate amount of quoted investments at market value 765 899
Aggregate amount of impairment in the value of investments 192 58

241
 Annual Report 2018-19

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
5 Loans
A Non-current

Particulars As at As at
31 March 2019 31 March 2018
(Unsecured, considered good unless otherwise stated)
Security deposits1 314 294
Loan to employees 7 -
321 294
Note
Deposit given to the Company in which director of Company is a director or a
1.
223 201
member: KRBL Infrastructure Limited

B Current

Particulars As at As at
31 March 2019 31 March 2018
(Unsecured- considered good unless otherwise stated)
Loan to employees 35 25
35 25

No loans are due from firms or private companies in which any director is partner, director or a member.

6 Other financial assets

A Non-current
Particulars As at As at
31 March 2019 31 March 2018
(Unsecured- considered good unless otherwise stated)
Fixed deposits1 6 109
6 109

1.
 iened as security issued to the various government authorities of ` 6 lacs [(31 March 2018 ` 5 lacs), and remaining amount
L
is liened with banks against term loans taken by the Company].

B Current

Particulars As at As at
31 March 2019 31 March 2018
(Unsecured- considered good unless otherwise stated)
Income receivable 1,041 1,348
Derivative instrument - 2
1,041 1,350

242
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
7 Other non-current assets

Particulars As at As at
31 March 2019 31 March 2018
(Unsecured- considered good unless otherwise stated)
Capital advance 174 175
Balance with statutory authorities (including taxes/duty paid under protest) 10,326 2,093
Pre-payments1 1,199 1,279
11,699 3,547

1.
Pre-payments comprises of prepaid lease rentals and prepaid expense.

8 Inventories

Particulars As at As at
31 March 2019 31 March 2018
Raw materials 1,33,799 95,536
Packing material and consumables 7,041 6,916
Finished goods1 1,69,653 1,40,919
Stock-in-trade 793 1,413
Stores and spares 1,653 1,488
3,12,939 2,46,272
Notes:
1. Includes goods in transit of ` 8,417 lacs (31 March 2018 ` 9,424 lacs).
2. Refer note 24, 25 and 26 for consumption of inventory recorded by the Company during the year.
3. T
 he Company has recorded few class of finished goods at the net realisable value (NRV), as their realisable value is lower than
the cost of production. The total NRV adjustments made in the value of such products ` 5,341 lacs (31 March 2018: ` 2,362
lacs). This was recognized as an expense during the year and included in ‘changes in inventories of finished goods and stock-
in-trade’ in the Statement of Profit and Loss.

9 Trade receivables

Particulars As at As at
31 March 2019 31 March 2018
Unsecured, considered good 39,729 24,668
Trade receivables which have significant increase in Credit Risk - -
Less: Loss allowance - -
39,729 24,668
Notes:
No trade receivables are due from director or other officers of the Company either severally or jointly with any other persons.

10 Cash and cash equivalents1

Particulars As at As at
31 March 2019 31 March 2018
Balance with banks in current accounts 346 3,808
Cash in hand 129 134
475 3,942
Note
1. T
 here is no restriction in repatriation of cash and cash equivalents, except amount of ` 50 lacs (31 March 2018 ` 50 lacs)
which is held with the Income tax department.

243
 Annual Report 2018-19

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
11 Other bank balances

Particulars As at As at
31 March 2019 31 March 2018
Unclaimed dividends- earmarked balances with banks 42 43
Deposits with original maturity more than 3 months and less than 12 months1 60 2,997
102 3,040

1.
The deposits of ` 49 lacs (31 March 2018 ` 2,987 lacs) are restricted as they are held as margin money deposits against the
facilities extended to the Company by banks.

12 Other current assets

Particulars As at As at
31 March 2019 31 March 2018
(Unsecured- considered good unless otherwise stated)
Balance with statutory authorities 81 692
Advances to suppliers 1,011 1,248
Pre-payments1 1,190 1,077
Other receivables 39 172
2,321 3,189

1.
Pre-payments comprise of prepaid lease rentals and prepaid expense.

13 Equity share capital 

Particulars As at As at
31 March 2019 31 March 2018
Authorised
300,000,000 (31 March 2018 - 300,000,000) equity shares of ` 1 each 3,000 3,000
3,000 3,000
Issued and subscribed1
236,244,892 (31 March 2018 - 236,244,892) equity shares of ` 1 each 2,362 2,362
2,362 2,362
Fully paid-up1
235,389,892 (31 March 2018 - 235,389,892) equity shares of ` 1 each 2,354 2,354
2,354 2,354

1.
Difference between the issued and subscribed and paid up share capital represents shares forfeited by the Company.

244
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
a) Reconciliation of shares outstanding at the beginning and at the end of the reporting period

Particulars As at 31 March 2019 As at 31 March 2018

No. of shares Amount No. of shares Amount
Equity shares at the beginning of the year 23,53,89,892 2,354 23,53,89,892 2,354
Changes during the year - - - -
Equity shares at the end of the year 23,53,89,892 2,354 23,53,89,892 2,354

b) Terms/ rights attached to ordinary equity shares

The Company has only one class of equity shares having a face value of ` 1 per share. Each holder of equity shares is entitled to
have one vote per share. The Company declares dividend in indian rupees and pays in INR to resident shareholders and in USD
to the foreign shareholders under FDI category.

The board of directors of the Company in their meeting held on 15 May 2019 had recommended a final dividend @ 250 % i.e
` 2.50 per equity share of face value of ` 1/- each for the year ended 31 March 2019 (31 March 2018 - ` 2.30 per share). the
same shall be paid subject to the approval of shareholders in the ensuing annual general meeting of the Company.

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.

c) Details of shareholders holding more than 5% shares in the Company

Particulars As at 31 March 2019 As at 31 March 2018

No. of shares % of holding No. of shares % of holding
held held
1. Anil mittal family trust 4,25,45,864 18.07% 4,25,45,864 18.07%
2. Arun kumar gupta family trust 4,12,93,714 17.54% 4,12,93,714 17.54%
3. Anoop kumar gupta family trust 3,88,49,338 16.50% 3,88,49,338 16.50%
4. Reliance commodities DMCC 2,29,00,000 9.73% 2,29,00,000 9.73%

d) Shares reserved for issue under option
The Company has not reserved any shares for issuance under options.

e) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the
period of five years immediately preceding the reporting date

During the buy-back period i.e. 4 March 2013 to 11 February 2014, the Company had bought back and extinguished 7,722,048
equity shares at an average price of ` 23.58 per share, utilising a sum of ` 1,821 lacs excluding transaction cost.

No bonus shares were issued by the Company during the last five years immediately preceding the reporting date.

245
 Annual Report 2018-19

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
14 Other equity
Particulars As at As at
31 March 2019 31 March 2018
(i) Retained earnings 2,14,508 1,77,718
(ii) Foreign currency translation reserve 1,944 1,853
(iii) General reserve 44,050 37,050
(iv) Securities premium 9,655 9,655
(v) Capital reserve 82 82
(vi) Capital redemption reserve 77 77
2,70,316 2,26,436

Notes: Nature and purpose of reserve

(i) Retained earnings
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or
other distributions paid to shareholders.

(ii) Foreign currency translation reserve

Exchange differences relating to the translation of the results and net assets of the subsidiaries foreign operations
from their functional currencies to the Company presentation currency (i.e. ` 91 lacs`) are recognised directly in the
other comprehensive income and accumulated in foreign currency translation reserve. Exchange difference previously
accumulated in the foreign currency translation reserve are reclassified to Consolidated Statement of Profit and Loss on
the disposal of the foreign operation.

(iii) General reserve

The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve
pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the
Companies Act, 2013. Also the Company has earlier forfeited the partly paid equity shares with the requisite approvals. The
amount originally received against forfeited shares is also included in the general reserve.

(iv) Securities premium

The amount received in excess of face value of the equity shares is recognised in securities premium.

(v) Capital reserve

During amalgamation, the excess of net assets taken, over the cost of consideration paid is treated as capital reserve.

(vi) Capital redemption reserve

The Company has recognised capital redemption reserve on buyback of equity shares from its retained earnings. The
amount in capital redemption reserve is equal to nominal amount of the equity shares bought back.

246
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
15 Borrowings 

Particulars As at As at
31 March 2019 31 March 2018
Non-current
Secured term loan from banks (refer note below)
Rupee loans 4,668 6,750
Foreign currency loans - 1,361
4,668 8,111
Less: Current maturities of non-current borrowings (refer note 20) 1,344 2,916
3,324 5,195

A Details of security of non-current borrowings

The Company has created hypothecation in favour of SBICAP Trustee Company Limited (acting as Security Trustee) and created
mortgage on its movable and immovable properties located at various locations for an amount of ` 18,405 lacs (31 March 2018
- ` 17,715 lacs) in the form of term loan facilities taken from all banks mentioned below in note B.
First pari-passu charge on all movable and immovable properties of the Company and second pari-passu charge on all current assets
including but not limited to stock of raw materials, semi-finished and finished goods, consumable stores and spares, bills receivables
and book debts and all other movable of whatsoever nature and where ever arising, both present and future of the Company.

B Details of repayment of the non-current borrowings

Particulars As at As at
31 March 2019 31 March 2018
a. Rupee term loan from State Bank of India of ` 9,400 lacs, interest to be paid on 4,668 6024
monthly basis at prevailing MCLR +0.25% per annum (31 March 2018 - prevailing
MCLR +0.25% per annum) and Repayable in 28 quarterly instalments of ` 336 lacs
each, starting from December 2015 .
b. Rupee term loan from Kotak Mahindra Bank Limited of ` 763 lacs, interest to be paid - 599
on monthly basis @ 6 months MCLR + 0.95% per annum and was repayable in 8
quarterly instalments of ` 95.27 lacs each, starting from June 2017. The Company
has repaid the entire loan during the year.
c. Foreign currency term loan from ICICI Bank Limited of USD 125.1 lacs equivalent - 1361
of ` 7,747 lacs interest to be paid on monthly basis at 6 months MCLR + 1.20% per
annum and was repayable in 20 equal quarterly instalments from December 2013
onwards. The Company has repaid the entire loan during the year.
d. Rupee term loan from ICICI Bank Limited of ` 400 lacs interest to be paid on - 127
monthly basis at 6 months MCLR + 1.20% per annum and was repayable in 20 equal
quarterly instalment of ` 29.06 lacs starting from December 2013. The Company
has repaid the entire loan during the year.
4,668 8,111

16 Provisions
A. Non-current provision for employee benefits

Particulars As at As at
31 March 2019 31 March 2018
Provision for compensated absences (refer note 34) 565 512
565 512

247
 Annual Report 2018-19

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
B Current provision for employee benefits 

Particulars As at As at
31 March 2019 31 March 2018
Provision for gratuity (refer note 34B) 120 150
Provision for compensated absences (refer note 34C) 167 78
287 228

17 Deferred tax liabilities (net)

Particulars As at As at
31 March 2019 31 March 2018
Deferred tax liabilities
Property, plant and equipment and intangible assets 14,987 14,421
Others - 9
14,987 14,429
Deferred tax assets
Provision for employee benefit expenses (256) (193)
Others (58) (1,034)
(314) (1,227)
14,673 13,202
Note:
Refer note 33B for the movement in deferred tax

18 Borrowings

Particulars As at As at
31 March 2019 31 March 2018
Current
Secured
Working capital facilities from bank
- Rupee loan (refer note (i) and (ii) below) 91,435 25,587
- Foreign loan (refer note (iii) below) 22,572 70,957
1,14,007 96,544
Unsecured
Loan from bank (refer note (iv) below) 20,000 15,000
Loans from related parties (refer note (v) below) 4,144 4,870
24,144 19,870
1,38,151 1,16,414

A Details of security of current borrowings

The Company has created hypothecation in favour of SBICAP Trustee Company Limited (acting as Security Trustee) and created
mortgage on its movable and immovable properties located at various locations for an amount of ` 175,400 lacs (31 March 2018
- ` 174,400 lacs) in the form of loan and other facilities taken from all banks mentioned below in note B.

First pari-passu charge on entire current assets including but not limited to stock of raw materials, semi-finished and finished
goods, consumable stores and spares, bills receivables and book debts and all other movable of whatsoever nature and where
ever arising, both present and future of the Company and second pari-passu charge on entire movable and immovable properties
of the Company.

Further, Mr Anil Kumar Mittal, Mr Arun Kumar Gupta, Mr Anoop Kumar Gupta and Mr. Ashish Mittal (to the extent of the properties
mortgaged by him) has given their personal guarantees in favour of working capital lenders.

248
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
B Details of repayment of the current borrowings

Particulars As at As at
31 March 2019 31 March 2018
Secured:
(i) Cash credit facilities from banks
 The Company has obtained credit facilities from consortium banks. The facilities 44,435 13,087
carries interest at MCLR along with spread of respective banks.
(ii) Short-term working capital loan from banks
 The Company has obtained short-term working capital loan from consortium 47,000 12,500
banks. The facilities carries interest at MCLR along with spread of respective
banks except facility from CoÖperatieve Rabobank U.A. which as per MIBOR along
with spread.
(iii) PCFC - foreign loan
 The Company has obtained Packing credit facility from consortium banks and is 22,572 70,957
repayable after the stipulated period. The facilities carries interest at LIBOR along
with spread of respective banks.
Unsecured:
(iv) Demand loans from banks - rupee loan
 The Company has obtained short-term working capital loan from HDFC Bank, one 20,000 15,000
of consortium bank, and is payable after the stipulated period. The facilities carries
interest at MCLR along with spread.
(v) Loans from related parties
 The Company has obtained loans from directors which are interest free and 4,144 4,870
repayable on demand.

C Unutilised facility at the year end

Particulars As at As at
31 March 2019 31 March 2018
Unutilised facility at the year end 43,493 60,956

19 Trade payables

Particulars As at As at
31 March 2019 31 March 2018
Total outstanding due to micro and small enterprises 688 -
Total outstanding due of creditors other than micro and small enterprises 8,870 6,930
Acceptances 12,821 4,140
22,379 11,070

249
 Annual Report 2018-19

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
Notes:
A Detail of dues of Micro and Small Enterprises as defined MSMED Act, 2006, to the extent the Group has received intimation from
the ‘Supplier’ regarding their status under the Act.

Particulars As at As at
31 March 2019 31 March 2018
(i) the principal amount and the interest due thereon (to be shown separately) 688 -
remaining unpaid to any supplier as at the end of accounting year: Principal amount
remaining unpaid1, and Interest accrued and remaining unpaid
(ii) the amount of interest paid by the buyer under MSMED Act, 2006 along with the - -
amounts of the payment made to the supplier beyond the appointed day during
each accounting year;
(iii) the amount of interest due and payable for the period (where the principal has been - -
paid but interest under the MSMED Act, 2006 not paid);
(iv) The amount of interest accrued and remaining unpaid at the end of accounting - -
year; and
(v) The amount of further interest due and payable even in the succeeding year, until - -
such date when the interest dues as above are actually paid to the small enterprise,
for the purpose of disallowance as a deductible expenditure under section 23.
688 -
1. 
According to the records of the Company, there are no overdue principal amount/interest payable for delayed payment to such
vendors at the balance sheet date. The amount payable to Micro and Small enterprises doesn’t include any amount due for
period more than the stipulated time prescribed under the MSMED Act, 2006.

20 Other financial liabilities

Particulars As at As at
31 March 2019 31 March 2018
Current maturities of non-current borrowings (refer note 15) 1,344 2,916
Interest accrued but not due on borrowings 639 164
Employees related payables 847 741
Security deposits 39 180
Expenses payable 5,654 4,215
Unclaimed dividend1 43 43
8,566 8,259
1.
Not due for deposit to Investor Education and Protection Fund

21 Other current liabilities

Particulars As at As at
31 March 2019 31 March 2018
Advance from customers 1,941 590
Statutory dues payable 661 655
2,602 1,245

250
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
22 Revenue from operations

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Revenue from sale of finished goods
Export 1,84,443 1,30,289
Domestic 2,12,204 1,79,477
Revenue from sale of stock in trade
Domestic 2,009 1,958
Sale of electricity
Export 72 -
Domestic 12,788 12,371
Other operating revenue
Scrap sales 533 557
4,12,049 3,24,652
Note:
Refer note 32 for disaggregation of revenue from operations and other disclosures

23 Other income

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Interest income 656 1,241
Rental income 42 42
Dividend income 30 35
Net gain on redemption and fair valuation of investments through profit and loss 289 -
Profit on sale of property, plant and equipment 135 -
Liabilities/provisions no longer required written back 134 -
Other non operating income 229 463
1,515 1,781

24 Cost of materials consumed

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Paddy 1,95,852 1,47,196
Rice 1,02,106 62,506
Packing and other consumables 18,351 15,752
Amount of stock-in-trade used as raw material for production (refer note 26C) 452 -
3,16,761 2,25,454

251
 Annual Report 2018-19

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
25 Purchase of stock-in-trade

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Seeds 1,165 1,221
1,165 1,221

26 Changes in inventories of finished goods and stock-in-trade 

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
A. Opening stock
Finished goods 1,40,919 1,30,912
Stock-in-trade 1,413 1,579
1,42,332 1,32,491
B. Closing stock
Finished goods 1,69,653 1,40,919
Stock-in-trade 793 1,413
1,70,446 1,42,332
C. Amount of stock-in-trade used as raw material (refer note 24) (452) -
D. Others 8 -
(28,558) (9,841)

27 Employee benefits expense 

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Salaries wages and bonus 6,981 6,179
Contribution to provident and other funds (refer note 34) 449 433
Gratuity and compensated absences (refer note 34) 126 174
Staff welfare expenses 146 132
7,702 6,918

28 Finance cost 

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Interest expense on term loans 566 919
Interest expense on others 5,103 4,029
Net loss on foreign currency transactions and translation 883 1,828
Other borrowing cost 206 119
6,758 6,895

252
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
29 Depreciation and amortisation expenses

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Depreciation on property, plant and equipment 6,407 6,722
Depreciation on investment property 9 18
Amortisation on intangible assets 30 28
6,446 6,768

30 Other expenses

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Power and fuel 1,771 963
Consumption of stores and spares 995 1,247
Repairs and maintenance
Plant and machinery 2,438 1,938
Buildings 376 284
Others 83 83
Fumigation 469 493
Freight inward 1,564 1,582
Travelling and conveyance 421 359
Communication expense 96 89
Rent 1,124 1,184
Legal and professional expense (refer note A) 490 488
Fees, rates and taxes 1,081 993
Vehicle running and maintenance 216 211
Insurance 339 274
Printing and stationery 103 77
Testing and inspection 420 187
Donation and charity 26 22
Clearing, forwarding and freight charges 9,177 6,159
Sales and business promotion 365 152
Advertisement 4,275 4,138
Meeting and seminar expense 157 249
Commission and brokerage 557 709
Corporate social responsibility expenses (refer note 36) 17 322
Security service charges 313 306
Sub-contractual expense 557 505
Net loss on foreign currency transactions and translation 1,160 -
Balance credit impaired 1,083 -
Other miscellaneous expenses 318 410
29,991 23,424

253
 Annual Report 2018-19

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
A Auditors’ remuneration (excluding Goods and services tax/service tax) 1

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Statutory audit (including fees for limited reviews) 36 21
Other matters - 4
Out of pocket expenses 1 -
37 25
1.
 uditor remuneration for the year ended 31 March 2019 doesn’t includes the remuneration paid by Company to the erstwhile
A
auditor.

31 Earnings per share

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Profit attributable to equity shareholders 50,302 43,444
Numbers of weighted average equity share outstanding at the year end for Basic and 23,53,89,892 23,53,89,892
Diluted
Nominal value per share in ` 1.00 1.00
Earnings per share in ` 21.37 18.46

32 Disaggregation of revenue from operations

A Revenues by Geography

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Rice and other related products
- within India 2,14,213 1,81,435
- other than India 1,84,443 1,30,289
3,98,656 3,11,724
Electricity
- within India 12,788 12,371
- other than India 72 -
12,860 12,371
Scrap
- within India 533 557
533 557

254
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
B Revenues by offerings

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Sale of goods
- Rice 3,79,204 2,96,702
- Paddy 1,036 509
- Seeds 2,008 1,953
- Quinoa 248 480
- By products
- Husk 2,191 1,502
- Bran products 5,987 3,780
- Furfural oil 1,685 917
- Doil cake 3,772 2,333
- Glucose 332 656
- Others 2,193 2,892
3,98,656 3,11,724
Sale of electricity 12,860 12,371
Sale of scrap 533 557

C Reconciliation of revenue from sale of products with the contracted price

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Contracted price 4,21,009 3,31,074
Less: Trade discounts, volume rebates, etc 8,960 6,422
Sale of products 4,12,049 3,24,652

D Contract balances

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
- Contract assets1 1,016 1,348
- Contract liabilities2 1,941 590
Notes
1.
 he contract assets are in form of receivables, which are included in income receivable, primarily relate to the Company rights
T
to consideration for power sold to the customers but not billed at the reporting date. The contract assets are transferred to
receivables when it will be billed subsequently.
2.
 he contract liabilities are in form advance received from customer for which the obligation of supply of goods/service is not
T
completed at the year end.

255
 Annual Report 2018-19

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
E Movement in contract assets and contract liabilities

Particulars For the year For the year

ended ended
31 March 2019 31 March 2018
Opening balance of contract liabilities 590 1,256
Addition in balance of contract liabilities for current year 1,941 590
Amount of revenue recognised against opening contract liabilities 590 1,256
Closing balance of contract liabilities 1,941 590
Opening balance of contract assets 1,348 2,641
Addition in balance of contract assets for current year 1,016 1,348
Amount of billing recognised against opening contract assets 1,348 2,641
Closing balance of contract assets 1,016 1,348

F The Group has adopted Ind AS 115 “Revenue from Customers” with effect from 1 April 2018 using a modified retrospective
transition approach permitted under Ind AS 115. The adoption of the standard did not have material impact on the revenue
recognised by the Group.

G Post applicability of Goods and Service Tax Act (GST), w.e.f. 01 July 2017, the revenue is disclosed net of GST. Accordingly, the
revenue from operations for year ended 31 March 2019 is not comparable with previous year as Excise duties formed part of
revenue from operations and expenses during the previous period upto 30 June 2017.

H In accordance with requirements of Ind AS 115, the Group has presented excise duty separately.

33 Income tax
A Reconciliation of effective tax rate

For the year For the year

ended ended
31 March 2019 31 March 2018
Enacted income tax rate applicable to the Company 34.94% 34.61%
Profit before tax 73,299 65,501
Add: Loss from foreign operation not taxable 25 164
Less: Profit of the eligible units exempt under 80IA of the Income-tax Act, 1961 7,899 6,308
Taxable profit of the Company 65,425 59,357
Expected tax expenses 22,860 20,544
Tax effect of:
Non deductible expenses (net) 57 109
Changes in the tax assumptions for claiming deduction under 80IA of the Act on (27) 1,006
eligible projects and others, including creation of MAT entitlement
Impact due to change in the tax rates 93 -
Impact due to others including amount taxable at the lower tax rate 14 398
Total income tax expense in the Statement of Profit and Loss 22,997 22,057

256
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
B Movement of temporary differences

Balance as at Recognised in Balance as at

31 March 2018 profit or loss 31 March 2019
during
2018-19
Deferred tax liabilities
Property, plant and equipment and intangible assets 14,421 566 14,987
Others 9 (9) -
Deferred tax assets
Provision for employee benefit expenses (193) (63) (256)
Others (1,035) 977 (58)
13,202 1,471 14,673

Balance as at Recognised in Balance as at

31 March 2017 profit or loss 31 March 2018
during
2017-18
Deferred tax liabilities
Property, plant and equipment and intangible assets 12,839 1,582 14,421
Others 19 (10) 9
Deferred tax assets
Provision for employee benefit expenses (179) (14) (193)
Others (1,301) 266 (1,035)
11,378 1,824 13,202

C Movement in MAT credit entitlement

For the year For the year

ended ended
31 March 2019 31 March 2018
MAT credit entitlement
Opening - 1,260
Add: MAT credit entitlement 1,490 -
Less: MAT credit availed (1,490) (1,260)
Closing - -

D The Company doesn’t have any carry forward losses and MAT credit entitlement at the year end

34 Employee benefit obligations

A Defined contribution plans

Particulars As at As at
31 March 2019 31 March 2018
Employer's contribution to provident fund 321 312
Employer's contribution to employees state insurance 128 121
449 433

257
 Annual Report 2018-19

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
B Defined benefit plans
Gratuity
In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, as defined benefit plan. The gratuity
plan provides for a lump sum payment to the employees at the time of separation from the service on completion of vested year
of employment i.e. five years. The liability of gratuity plan is provided based on actuarial valuation as at the end of each financial
year based on which the Company contributes the ascertained liability to Kotak mahindra life insurance company limited with
whom the plan assets are maintained.

Policy for recognizing actuarial gains and losses

Actuarial gains and losses of defined benefit plan arising from experience adjustments and effects of changes in actuarial
assumptions are immediately recognized in other comprehensive income. Risks associated with the plan provisions are
actuarial risk. These risks are investment risk, interest rate risk, mortality risk and salary risk.

Interest rate risk

The present value of the defined benefit liability is calculated using a discount rate determined by reference to market yields
of high quality corporate bonds. The estimated term of the bonds is consistent with the estimated term of the defined benefit
obligation and it is denominated in INR. A decrease in market yield on high quality corporate bonds will increase the Company’s
defined benefit liability, although it is expected that this would be offset partially by an increase in the fair value of certain of the
plan assets.

Investment risk
Plan assets comprise funds managed by the insurer i.e. Kotak mahindra life insurance company limited.

Mortality risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan
participants. A change in mortality rate will have a bearing on the plan’s liability.

Salary risk
The present value of the defined benefit plan liability is calculated with the assumption of salary increase rate of plan participants
in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to
determine the present value of obligation will have a bearing on the plan’s liability.

The following table sets out the funded status and the amount recognised in the Company’s financial statements.


Particulars As at As at
31 March 2019 31 March 2018
a. Amounts to be recognised
Present value of obligation 1,126 1,025
Fair value of plan assets 1,006 875
Net (liability) recognised (120) (150)
Current liability (120) (150)
Non- current liability - -
b. Changes in present value of defined benefit obligation:
Defined Benefit at the beginning of the year 1,025 883

258
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)

Particulars As at As at
31 March 2019 31 March 2018
Current Service Cost 114 110
Past Service Cost - 46
Interest cost 81 68
Benefits paid (98) (45)
Remeasurements-actuarial gain/loss -due to change financial assumptions 12 (20)
Remeasurements-actuarial gain/loss -due to experience (8) (17)
Present value of benefit obligation at the end of the year 1,126 1,025
c Change in fair value of plan assets
Fair value of plan assets at the beginning of the year 875 656
Expected return on plan assets 69 50
Contributions made 150 227
Benefits paid (98) (45)
Return on plan assets, excluding interest income 10 (13)
Fair value of plan assets at the end of the year 1,006 875
d. Expenses recognized in Statement of profit or loss
Current service cost 114 110
Interest expense 12 18
Past service cost - 46
Expense for the year ended 126 174
e. Recognized in other comprehensive income
Remeasurements-actuarial gain/loss on obligation for the period 4 (37)
Return on plan assets, excluding interest income (10) 13
Net income at the end of the period (6) (24)
f. Actuarial assumptions
Discount rate 7.78% 7.87%
Expected rate of return on plan assets 7.78% 7.87%
Expected rate of increase in compensation levels 6.00% 6.00%
Mortality Rate Indian Assured Indian Assured
Lives Mortality Lives Mortality
(06-08) (06-08)
Attrition / Withdrawal rates 1% 1%
g. Investment details
Insurance Fund 1,006 875
h. The Company expects to contribute ₹ 342 lacs to gratuity fund in the next financial
year

i. Sensitivity analysis
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary
increase and employee turnover. The sensitivity analysis below, have been determined based on reasonably possible
changes of the assumptions occurring at end of the reporting period, while holding all other assumptions constant. The
result of Sensitivity analysis is given below:

259
 Annual Report 2018-19

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)

Particulars As at As at
31 March 2019 31 March 2018
Discount rate
1% increase (125) (113)
1% decrease 151 137
Future salary increase
1% increase 143 131
1% decrease (121) (111)
Employee turnover rate
1% increase 28 26
1% decrease (32) (30)

j. Maturity profile of defined benefit obligation

Particulars As at As at
31 March 2019 31 March 2018
Within next 12 months 125 150
Between 1-5 years 139 118
Beyond 5 years 3549 3285

C Other long term benefit plans

Other long term benefit plans represents the compensated absences provided to the employees of the Company.
Actuarial valuation has been done with the following assumptions 
Particulars As at As at
31 March 2019 31 March 2018
Discount rate 7.78% 7.78%
Expected rate of return on plan assets NA NA
Expected rate of increase in compensation levels 6.00% 6.00%
Mortality Rate Indian Assured Indian Assured
Lives Mortality Lives Mortality
(06-08) (06-08)
Attrition / Withdrawal rates 1% 1%
D 
The Group has adopted Indian Accounting Standard (Ind-AS) 19 on ‘Employee Benefits’. These Consolidated financial
statements include the obligations as per requirement of this standard except for the Subsidiary which is incorporated outside
India who have determined the valuation/provision for empolyee benefit as per their respective requirements. In the opinion of
the management, the impact of this deviation is not considered material.

35 Lease commitments
Assets taken on non-cancellable operating leases
The Company has taken various premises on operating leases. The lease agreements generally have a lock-in-period of 1-22
years and are cancellable at the option of the lessee. During the year, lease payments under operating leases (inclusive of
cancellable leases) amounting to ` 1,124 lacs (31 March 2018 ` 1,184 lacs) have been recognised as an expense in the Statement
of Profit and Loss. The future aggregate minimum lease payments under non-cancellable operating leases are as follows :


Particulars As at As at
31 March 2019 31 March 2018
Within less than one year 954 857
Between one and five years 3,124 1,942
After more than five years 4,226 577
8,304 3,376

260
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
Assets given on non-cancellable operating leases
The Group has given a premises on operating leases situated at Dubai, United Arab Emirate and a warehouse in Kandla, Gujarat.
During the year, warehouse was vacated by the tenant and Group has started using for the purpose of its business. During the
year, Group received rent amounting to ` 30 lacs (31 March 2018 ` 42 lacs).

36 Corporate social responsibility

In accordance with the provisions of section 135 of the Companies Act, 2013, the Board of Directors of the Company had
constituted CSR Committee. The details for CSR activities is as follows.

Particulars For the year For the year

ended 31 March ended 31 March
2019 2018
a) Gross amount required to be spent by the Company during the year 1,098 878
b) Amount spent during the year on the following
1. Construction / Acquisition of any asset - -
2. On purpose other than 1 above 17 322

37 Capital management
The Group manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to its
shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day needs
with a focus on total equity so as to maintain investors, creditors and market confidence.

The Group monitors capital using a ratio of “Net Debt” to “Total Equity”. For this purpose, Net Debt is defined as total liabilities
less cash and cash equivalents. Total equity comprises of equity share capital and other equity.

During the year, no significant changes were made in the objectives, policies or processes relating to the management of the
Group capital structure.

The Group net debt to total equity ratio is as follows:

Particulars As at As at
31 March 2019 31 March 2018
Non-current borrowings 3,324 5,195
Current borrowings 1,38,151 1,16,414
Current maturities of non-current borrowings 1,344 2,916
Less: Cash and cash equivalents (475) (3,942)
Net debt 1,42,344 1,20,583
Equity share capital 2,354 2,354
Other equity 2,70,316 2,26,436
Total Equity 2,72,670 2,28,790
Net debt to total equity ratio 0.52 0.53

38 Financial instruments
The Company’s activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the
Company is exposed to and how the Company manages the risk and the related impact in the financial statements.

261
 Annual Report 2018-19

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT
Risk Exposure arising from Measurement Management

Credit risk Cash and cash equivalents, Ageing analysis Bank deposits, diversification of asset base,
trade receivables, financial credit limits and collateral.
assets measured at amortised
cost
Liquidity risk Borrowings and other liabilities Rolling cash flow Availability of committed credit lines and
forecasts borrowing facilities
Market risk - Recognised financial assets Cash flow forecasting Forward contract/hedging, if required
foreign exchange and liabilities not denominated
in Indian rupee (INR)
Market risk - Long-term borrowings at Sensitivity analysis Negotiation of terms that reflect the market
interest rate variable rates factors
Market risk - Investments in equity Sensitivity analysis Company presently does not make significant
security price securities investments in equity shares, except for
entities where it exercises control or joint
control or significant influence.

A Disclosure in respect of financial risk management

1. 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 Group is exposed to credit risk from its operating activities (primarily trade receivables) and
from its financing activities, including investments, cash and cash equivalents, deposits and security deposits.

Credit risk management:

(i) Trade receivable related credit risk
Concentrations of credit risk with respect to trade receivables are limited, due to the customer base being large
and diverse. All trade receivables are reviewed and assessed for default on routine basis. The Company’s historical
experience of collecting receivables, supported by the level of default, is that credit risk is low and so trade receivables
are considered to be a single class of financial assets. Therefore, there is no credit risk associated with the trade
receivables of the Company at the year end.

However, the Company during the year identified few balances of amounting to ` 1,083 lacs of the trade receivable
which were subject to dispute and will not be realisable and hence, has been credit impaired.

(ii) Other financial assets

The Group maintains exposure in cash and cash equivalents, term deposits with banks, money market liquid mutual
funds with financial institutions and derivative financial instruments. The Company’s maximum exposure to credit risk
as at 31 March 2019 and 31 March 2018 is the carrying value of each class of financial assets.

(iii) Treasury related credit risk

Credit risk from balances with banks is managed by the Group treasury department in accordance with the Group
policy. The Group actively manages its exposure to credit risk, reducing surplus cash balances wherever possible
through investment in bank deposits. Further, the Group ensures it diversifies its treasury related credit risk by investing
in bank deposits in different banks. Limits are set for maximum investment in deposits in each bank.

262
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at
the reporting date was:
Particulars As at As at
31 March 2019 31 March 2018
Loans 356 319
Investments 765 899
Trade receivables 39,729 24,668
Other financial assets 1,048 1,459
Total 41,898 27,345

The ageing of trade receivables at the reporting date on due basis are : 
Particulars As at As at
31 March 2019 31 March 2018
Not past due 20,775 12,679
Past due 0-30 days 16,802 3,476
Past due 31-120 days 775 4,883
Past due 120 days-one year 1,022 2,936
More than one year 355 694
Total 39,729 24,668

2. Liquidity Risk
Liquidity risk is the risk that the Group will face in meeting its obligations associated with its financial liabilities. The Group
approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring
unacceptable losses.

The Group regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational
needs. Any short term surplus cash generated, over and above the amount required for working capital management and
other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested
in interest bearing term deposits and other highly marketable debt investments with appropriate maturities to optimise the
cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

(i) Maturities of financial liabilities

The table below analyses the Group financial liabilities into relevant maturity groupings based on their contractual
maturities for all non-derivative financial liabilities.

The amounts disclosed in the table are the contractual undiscounted cash flows.

Particulars As at 31 March 2019

Carrying On 6 months 6-12 1-2 years 2-5 years
amount demand or less months
Non-current borrowings 4,668 - 672 672 1,344 1,980
Current borrowings 1,34,007 1,34,007 - - - -
Loan from related party 4,144 4,144 - - - -
Trade payables 22,379 - 22,379 - - -
Other financial liabilities 7,222 82 7,140

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STATEMENT (All amounts stated in ` lacs, unless otherwise stated)

Particulars As at 31 March 2018

Carrying On 6 months 6-12 1-2 years 2-5 years
amount demand or less months
Long term borrowings 8,111 - 1,458 1,458 1,860 3,336
Working capital borrowings 1,11,544 1,11,544 - - - -
Loan from related party 4,870 4,870 - - - -
Trade payables 11,070 - 11,070 - - -
Other financial liabilities 5,344 224 5,120 - - -

(ii) Market risk - foreign exchange 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. The Group size and operations result in it being exposed to the following market risks that arise from
its use of financial instruments:
• currency risk;
• price risk; and
• interest rate risk.

3. Currency Risk
The Group operates internationally and consequently the Group is exposed to foreign exchange risk through its sales in
overseas market. The Group evaluates exchange rate exposure arising from foreign currency transactions and the Group
follows policies which includes the use of derivatives like foreign exchange forward contracts to hedge exposure to foreign
currency risk.

The Group has Outstanding Forward contracts as on 31 March 2019 and there is Marked to Market ( MTM) unrealized
gain/(loss) on forward contracts of ` Nil as at 31 March 2019, [31 March 2018 ` (35.57) lacs], which has been accounted for
accordingly in the books of accounts.

(i) Derivative Instruments

Outstanding forward exchange contracts as entered into by the Group for the purpose of hedging its foreign currency
exposures are as under:
Foreign currency Cross currency Sell contract
31 March 2019 31 March 2018
USD Indian Rupee - 9,756
EURO USD - 33,054

Foreign currency exposure recognized by the Group that have not been hedged by a derivative instrument are as under:

Particulars ₹ in lacs AED in lacs USD in lacs

31 March 31 March 31 March 31 March 31 March 31 March
2019 2018 2019 2018 2019 2018
Financial assets
Trade receivables 7,049 7,860 - - 102 124
Cash and cash equivalents 242 3,516 4 2 2 53
Financial liabilities
Trade payables1 23 - - - 0 -
Borrowings 22,572 70,957 - 326 1,091
Advance from customers 429 279 1 - 6 4

1. Rounded off to zero.

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STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
(ii) Foreign currency risk sensitivity:
A change of 5% in foreign currency would have following impact on profit before tax

Particulars AED USD
5% increase 5% decrease 5% increase 5% decrease
31 March 2019 (₹ in lacs) 3 (3) (789) 789
31 March 2018 (` in lacs) - - (2,984) 2,984

4. Interest 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.

As at year end, the Group has following borrowings

Particulars 31 March 2019 31 March 2018
Fixed rate of borrowings 1,04,771 1,07,085
Variable rate borrowings 33,904 12,570

Interest rate sensitivity

A change of 100 bps in interest rates would have following Impact on profit before 31 March 2019 31 March 2018
tax
100 bps increase- decrease in profits 170 64
100 bps decrease- increase in profits 170 64

Sensitivity is calculated based on the assumption that amount outstanding as at reporting dates (after considering
repayments) were utilised for the whole financial year.

5. Price Risk
The Group is mainly exposed to the price risk due to its investment in equity shares. The price risk arises due to uncertainties
about the future market values of these investments

The table below summarises the impact of increases/decreases of the index on the Group equity and profit for the year. The
analysis is based on the assumption that the index has increased by 5 % or decreased by 5 % with all other variables held
constant, and that all the Group equity instruments moved in line with the index.

Impact on profit before tax 31 March 2019 31 March 2018
Sensex increase by 5% 38 45
Sensex decrease by 5% (38) (45)

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STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
B Fair value disclosure
1. Fair value measurement of Financial Instruments
31 March 2019 31 March 2018
FVTPL FVOCI Amortised FVTPL FVOCI Amortised
cost1 cost1
Financial Assets
Investments 765 - - 899 - -
Derivative assets - - - 2 - -
Loans - - 356 - - 319
Cash and cash equivalents - - 475 - - 3,942
Other bank balances - - 102 - - 3,040
Trade receivables - - 39,729 - - 24,668
Other financial assets - - 1,048 - - 1,457
Total 765 - 41,710 901 - 33,426

Financial liabilities
Borrowings - - 1,42,819 - - 1,24,525
Trade payables - - 22,379 - - 11,070
Other financial liabilities - - 7,222 - - 5,344
Total - - 1,72,420 - - 1,40,938

1. The management assessed that fair values of cash and cash equivalents, other bank balances, trade receivables,
other financial assets, borrowings, trade payables and other financial liabilities approximate their respective carrying
amounts largely due to the short-term maturities of these instruments.

Further, these instruments are valued at level 3 and their fair value are considered to be same as their carrying value,
as there is an immaterial change in the lending rate.

2. Fair value hierarchy

This section explains the judgements and estimates made in determining the fair value of financial instruments that
are (a) recognised and measured at fair value (b) measured at amortised cost and for which fair values are disclosed
in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value,
the Company has classified its financial instruments into the three level prescribed under the accounting standard. An
explanation each level follows underneath the table.

Assets and liabilities measured at amortised cost, for which fair value are disclosed

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices, for example listed equity
instruments, traded bonds and mutual funds that have quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques that maximise the use of observable market data and rely as little as possible on entity specific estimates.
If all significant inputs required to fair value an instrument are observable the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3.

There are no transfers among levels 1, 2 and 3 during the year.

The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the
reporting period.

266
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NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
(A) Financial instruments valued at fair value through profit and loss
31 March 2019 31 March 2018
Level 1 Level 2 Level 1 Level 2
Financial Assets
Investments 765 - 899 -
Derivative asset - - - 2
765 - 899 2

(B) Financial instruments valued at amortised cost

31 March 2019 31 March 2018
Level 3 Level 3
Loans 356 319
Cash and cash equivalents 475 3,942
Other bank balances 102 3,040
Trade receivables 39,729 24,668
Other financial assets 1,048 1,457
Total 41,710 33,426
Financial liabilities
Borrowings 1,42,819 1,24,525
Trade payables 22,379 11,070
Other financial liabilities 7,222 5,344
Total 1,72,420 1,40,938

3. Derivative financial assets

The Company enters into derivative financial instruments with various counterparties, principally financial institutions with
investment grade credit ratings. Foreign exchange forward contracts are valued using valuation techniques, which employs
the use of market observable inputs. The most frequently applied valuation techniques include forward pricing models,
using present value calculations. The models incorporate various inputs including the credit quality of counterparties,
foreign exchange spot and forward rates etc.

4. Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include the use of discount cash flows for estimating fair
value of loans to employees, security deposits and borrowings.

The carrying amounts of trade receivables, cash and cash equivalents, consignment debtors, interest accrued, other
receivables, other bank balances, trade payables, employee payables and other current payables are considered to be the
same as fair values, due to their short term nature

The fair value for loans and security deposits were calculated based on cash flow discounted using a current lending rate.
They are classified as level 3 fair value in the fair value hierarchy due to the inclusion of unobservable inputs, including own
credit risk. The fair value of loans to employees and security deposits approximates the carrying amount

The fair value for borrowings was calculated based on cash flow discounted using a current borrowing rate. They are
classified as level 3 fair value in the fair value hierarchy due to the inclusion of unobservable inputs, including own credit
risk. The fair value of borrowings approximates the carrying amount.

267
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NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
39 Segmental Reporting
A Operating segments
Agri - Comprises of agricultural commodities such as rice, Furfural, seed, bran, bran oil, etc.
Energy - Comprises of power generation from wind turbine, husk based power plant and solar power plant.

B Identification of segments
The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of
making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or
loss and is measured consistently with profit or loss in the financial statements, Operating segment have been identified on the
basis of nature of products and other quantitative criteria specified in the Ind AS 108.

C Segment revenue and results
The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure

D Segment assets and liabilities:

Assets used by the operating segments mainly consist of property, plant and equipment, trade receivables, cash and cash
equivalents and inventories. Segment liabilities include trade payables and other liabilities. Common assets and liabilities which
cannot be allocated to any of the segments are shown as a part of unallocable assets/liabilities.

E Summary of Segmental Information

Particulars 31 March 2019 31 March 2018
1. Segment revenue
(a) Agri 399,189 312,281
(b) Energy 21,457 19,491
Total segment revenue 420,646 331,772
Inter segment revenue - Energy (8,597) (7,120)
Net segment revenue 412,049 324,652
2. Segment results
(a) Agri 71,763 63,396
(b) Energy 8,181 8,562
Total segment results (before finance costs and tax) 79,944 71,958
Less: Finance costs 6,201 6,036
“Less: Other unallocable expenditures 444 421
(net of unallocable incomes)”
Total profit before tax 73,299 65,501
3. Segment assets
(a) Agri 397,558 315,539
(b) Energy 66,056 70,215
Total segment assets 463,614 385,754
4. Segment liabilities
(a) Agri 32,502 18,547
(b) Energy 5,190 7,908
(c) Unallocable 153,164 130,422
Total segment liabilities 190,856 156,877

268
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)

Particulars 31 March 2019 31 March 2018

Segment revenue - Geographical information:
a) Agri
India 214,746 181,993
Rest of the world 184,443 130,288
Sub-total (a) 399,189 312,281
a) Energy
India 21,385 19,491
Rest of the world 72 -
Sub-total (b) 21,457 19,491
Total (a)+(b) 420,646 331,772
Inter-segment revenue - Energy (8,597) (7,120)
Total 412,049 324,652

40. Related party transactions

A Related parties and their relationships
(a) Key Management Personnel:

Mr. Anil Kumar Mittal Chairman and Managing Director

Mr. Arun Kumar Gupta Joint Managing Director
Mr. Anoop Kumar Gupta Joint Managing Director
Ms. Priyanka Mittal Whole Time Director
Mr. Ashok Chand* Whole Time Director
*Resigned w.e.f 23 July 2018.

(b) KMP’s as per the provisions of the Companies Act, 2013

Mr. Rakesh Mehrotra Chief Financial Officer

Mr. Raman Sapra Company Secretary

(c) Independent Non-Executive Directors:

Mr. Vinod Ahuja
Mr. Ashwani Dua
Mr. Shyam Arora
Mr. Devendra Kumar Agarwal
Mr. Alok Sabharwal

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NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT
(d) Employee benefit plans where there in significant influence:
KRBL Limited Employees Group Gratuity Trust

(e) Relatives of Key Management Personnel:*
Mrs. Preeti Mittal Wife of Mr. Anil Kumar Mittal
Mrs. Anulika Gupta Wife of Mr. Arun Kumar Gupta
Mrs. Binita Gupta Wife of Mr. Anoop Kumar Gupta
Mrs. Neha Singh Daughter of Mr. Arun Kumar Gupta
Mrs. Rashi Gupta Daughter of Mr. Anoop Kumar Gupta
Mr. Ashish Mittal Son of Mr. Anil Kumar Mittal
Mr. Kunal Gupta Son of Mr. Arun Kumar Gupta
Mr. Akshay Gupta Son of Mr. Anoop Kumar Gupta
Mr. Ayush Gupta Son of Mr. Anoop Kumar Gupta
Lt. Tara Devi Mother of Mr. Anil Kumar Mittal, Mr. Arun Kumar Gupta and Mr. Anoop Kumar Gupta

(f) Enterprises over which key management personnel are able to exercise significant influence:*
KRBL Infrastructure Limited
Khushi Ram Behari Lal
Adwet Warehousing Private Limited
KRBL Foods Limited

(g) Trust/HUF’s over which key management personnel are able to exercise significant influence:*
Anil Mittal Family Trust
Anoop Kumar Gupta Family Trust
Arun Kumar Gupta Family Trust
Anil Kumar Mittal HUF
Arun Kumar Gupta HUF
Anoop Kumar Gupta HUF

* This include only those parties with whom Company had related party transactions.

270
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)

B Transactions and balances with related parties

Particulars Enterprises/Trusts/HUF over Key Managerial Other Related Parties

which significant influence is Personnels (KMPs)
exercised by KMPs
31 March 31 March 31 March 31 March 31 March 31 March
2019 2018 2019 2018 2019 2018
I. Transactions entered during the year
i. Purchase of goods1
Khushi Ram Behari Lal 2 3 - - - -
ii. Sale of goods1
Khushi Ram Behari Lal 781 742 - - - -
iii. Rent paid1
Mr. Anil Kumar Mittal - - 2 1 - -
Mr. Arun Kumar Gupta - - 6 5 - -
Mr. Anoop Kumar Gupta - - 6 5 - -
Mr. Ashok Chand - - - 1
KRBL Infrastructure Limited 199 196 - - - -
KRBL Foods Limited 651 552 - - - -

Adwet Warehousing Pvt. Ltd. 25 - - - - -
Mrs. Anulika Gupta - - - - 12 12
Mrs. Binita Gupta - - - - 2 2
Mrs. Preeti Mittal - - - - 2 2
Mr. Ashish Mittal - - - - 13 13
Lt. Tara Devi - - - - - 4
Anoop Kumar Gupta HUF 10 10 - - - -
iv. Expense incurred (on behalf of
Holding Company by others)/by
Holding Company for others
Khushi Ram behari lal 2 0 - - - -
v. Remuneration on account of salary
and perquisites2
Mr. Anil Kumar Mittal - - 109 98 - -
Mr. Arun Kumar Gupta - - 109 98 - -
Mr. Anoop Kumar Gupta - - 109 98 - -
Ms. Priyanka Mittal - - 56 56 - -
Mr. Ashok Chand - - 10 27 - -
Mr. Raman Sapra - - 14 13 - -
Mr. Rakesh Mehrotra - - 79 75 - -
Mr. Ashish Mittal - - - - 22 18
Mr. Kunal Gupta - - - - 22 18
Mr. Akshay Gupta - - - - 22 18
Mr. Ayush Gupta - - - - 22 18

271
 Annual Report 2018-19

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)

Particulars Enterprises/Trusts/HUF over Key Managerial Other Related Parties

which significant influence is Personnels (KMPs)
exercised by KMPs
31 March 31 March 31 March 31 March 31 March 31 March
2019 2018 2019 2018 2019 2018
vi. Electricity charges paid
KRBL Infrastructure Limited 78 83 - - - -
vii. Repair and Maintenance paid
KRBL Infrastructure Limited 13 11 - - - -
viii. Sitting fees paid3
Mr. Vinod Ahuja - - - - 1 0
Mr. Ashwani Dua - - - - 0 0
Mr. Shyam Arora - - - - 1 0
Mr. Devendra Kumar Agarwal - - - - 1 0
Mr. Alok Sabharwal - - - - 1 0
ix. Dividend paid
Anil Mittal Family Trust 979 893 - - - -
Arun Kumar Gupta Family Trust 950 867 - - - -
Anoop Kumar Gupta Family Trust 894 816 - - - -
Anil Kumar Mittal HUF 83 76 - - - -
Arun Kumar Gupta HUF 112 102 - - - -
Anoop Kumar Gupta HUF 168 153 - - - -
Mr. Anil Kumar Mittal3 - - 0 0 - -
Mr. Arun Kumar Gupta3 - - 0 0 - -
Mr. Anoop Kumar Gupta3 - - 0 0 - -
Ms. Priyanka Mittal3 - - 0 0 - -
Mr. Ashish Mittal3 - - - - 0 0
Mr. Kunal Gupta3 - - - - 0 0
Mr. Akshay Gupta3 - - - - 0 0
Mr. Ayush Gupta3 - - - - 0 0
Mrs. Binita Gupta3 - - - - 0 0
Mrs. Anulika Gupta3 - - - - 0 0
Mrs. Neha Singh3 - - - - 0 0
Mrs. Rashi Gupta3 - - - - 0 0
Mrs. Preeti Mittal3 - - - - 0 0
x. Interest paid
Khushi Ram Behari Lal 34 23 - - - -
xi. Advances given
Mr. Raman Sapra3 - - 0 - - -
Mr. Rakesh Mehrotra - - 1 - - -
xii. Advances adjusted against salary
Mr. Raman Sapra3 - - 0 - - -
Mr. Rakesh Mehrotra3 - - 0 - - -

272
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)

Particulars Enterprises/Trusts/HUF over Key Managerial Other Related Parties

which significant influence is Personnels (KMPs)
exercised by KMPs
31 March 31 March 31 March 31 March 31 March 31 March
2019 2018 2019 2018 2019 2018
xiii. Borrowings- Unsecured loans
availed
Mr. Anil Kumar Mittal - - 1,792 717 - -
Mr. Arun Kumar Gupta - - 2,423 1,319 - -
Mr. Anoop Kumar Gupta - - 3,721 1,008 - -
Ms. Priyanka Mittal - - 436 - - -
xiv. Borrowings-Unsecured loans
repaid
Mr. Anil Kumar Mittal - - 2,243 1,014 - -
Mr. Arun Kumar Gupta - - 2,195 1,324 - -
Mr. Anoop Kumar Gupta - - 4,258 1,367 - -
Ms. Priyanka Mittal - - 402 - - -
xv. Discount allowed on sale of
goods
Khushi Ram Behari Lal 49 51 - - - -
xvi. Advance received against supply
of goods
Khushi Ram Behari Lal 2,568 815 - - - -
xvii. Advance received against supply
of goods returned back
Khushi Ram Behari Lal 645 - - - - -
II. Balances outstanding at the year end
i. Unsecured borrowings-Current
Mr. Anil Kumar Mittal - - 342 793 - -
Mr. Arun Kumar Gupta - - 1,266 1,038 - -
Mr. Anoop Kumar Gupta - - 2,502 3,039 - -
Ms. Priyanka Mittal - - 34 - - -
ii. Advance received from
customers
Khushi Ram Behari Lal 1,418 195 - - - -
iii. Receivable (payable)
KRBL Infrastructure Limited - (39) - - - -
KRBL Foods Limited - (5) - - - -
iv. Receivable on account of
Security deposit/Prepaid Lease
KRBL Infrastructure Limited 971 971 - - - -

273
 Annual Report 2018-19

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)

Particulars Enterprises/Trusts/HUF over Key Managerial Other Related Parties

which significant influence is Personnels (KMPs)
exercised by KMPs
31 March 31 March 31 March 31 March 31 March 31 March
2019 2018 2019 2018 2019 2018
v. Employee related payables
Mr. Anil Kumar Mittal - - 2 13 - -
Mr. Arun Kumar Gupta - - 2 10 - -
Mr. Anoop Kumar Gupta - - 2 11 - -
Ms. Priyanka Mittal - - 2 1 - -
Mr. Ashok Chand - - - 1 - -
Mr. Raman Sapra - - 1 1 - -
Mr. Rakesh Mehrotra - - 3 2 - -
Mr. Ashish Mittal - - - - 1 3
Mr. Kunal Gupta - - - - 1 5
Mr. Akshay Gupta - - - - 1 4
Mr. Ayush Gupta - - - - 1 4
vi. Other balances outstanding
at the end of the year, net
(payable)/receivable
Mr. Arun Kumar Gupta3 - - (0) (0) - -
Mr. Anoop Kumar Gupta 3
- - (0) (0) - -
Ms. Priyanka Mittal - - 1 - - -
Mr. Rakesh Mehrotra 3
- - 1 (0) - -
Mr. Ashish Mittal 3
- - - - (0) -
Mr. Ayush Gupta3 - - - - (0) (2)
1.
Transactions are inclusive of Goods and Services tax
2.
As gratuity and compensated absences are computed for all the employees in aggregate, the amount relating to relatives of
KMPs cannot be individually identified.
3.
Amounts are below rounding off thresholds adopted by the Company.
4.
 ersonal guarantee has been given by Mr. Anil Kumar Mittal, Mr. Anoop Kumar Gupta and Mr. Arun Kumar Gupta in respect
P
of working capital consortium loan taken by the Company, as at the year ended 31 March 2019, the outstanding amount of
loan is ` 114,007 lacs (31 March 2018 ` 96,544 las) and Mr. Ashish Mittal (relative of key managerial personnel) to the extent
of the immovable properties as specified in consortium agreement.
5.
All related party transactions are at arms length price and in the ordinary course of business.
6.
Refer note 3(d) for transactions related to Property, Plant and Equipment with KMP and their relatives

274
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
41 Contingent liabilities and commitments
A. Contingent liabilities 

(i) Claims against the Group not acknowledged as debts* As at As at

31 March 2019 31 March 2018
Income tax matters1 126,920 -
Indirect taxes2 7,501 2300
Other matters 613 132
135,034 2,432
1.
 he Company has received demand notices under section 153A/143(3) of the Income-tax Act, 1961, with respect
T
to assessment years 2010-11 to 2016-17, amounting to ` 75,744 lacs and interest thereon ` 51,176 lacs. Vide writ
petition filed, the Company has obtained an order from Hon’ble High Court of Delhi, that no coercive action shall be
taken against the Company. The management of the Company has contested this demand at CIT (Appeals), New Delhi.
Further, the Company is required to pay ` 25,384 lacs under protest for contesting such demand. Till 31 March 2019, the
Company has paid ` 7,500 lacs under protest and thereafter, required to pay monthly instalments of ` 1,200 lacs as agreed
with the income tax department. The management, based on legal assessment, is confident that it has a favourable case
and that the demand shall be deleted at the appellate stage. The auditors of the Company have invited attention to the
aforementioned issue in their audit report for the quarter and year ended 31 March 2019.
2.
Indirect taxes includes the matters related to mandi fee levied under the Agricultural Produce Market Committee Act, 2003.

*. The Company on the basis of the legal opinion is of the firm belief that the above demands are not tenable and highly unlikely
to be retained by higher authorities and is accordingly not carrying any provision in its books in respect of such demands.
The amounts disclosed are based on the orders/ notices received from the authorities.

B. The Hon’ble Supreme Court (“”SC””) has, in a recent decision (‘SC decision’), ruled that various allowances like conveyance
allowance, special allowance, education allowance, medical allowance etc., paid uniformly and universally by an employer to its
employees would form part of basic wages for computing the provident fund (‘PF’ or ‘the fund’) contribution and thereby, has
laid down principles to exclude (or include) a particular allowance or payments from ‘basic wage’ for the purpose of computing
PF contribution. The Company pays special allowance, conveyance allowance and others allowances to its employees as a part
of its their compensation structure, which are not included in the basic wages for the purpose of computing the PF.

As the above said ruling has not prescribed any clarification w.r.t to its application, the Company is in the process of
evaluating the impact on the provident fund contributions. Pending clarification and evaluation of impact of above said,
no provision for employee contribution has been recognised in the financial statements for the year ended 31 March 2019

C. Commitments
Estimated amount of contracts remaining to be executed, to the extent not provided for:

Particulars As at As at
31 March 2019 31 March 2018
Property, plant and equipment (net of advances) 1,320 605

42. Transfer pricing
As per the international transfer pricing norms introduced in India with effect from 1 April 2001 and the domestic transfer pricing
norms introduced with effect from 1 April 2012, the Company is required to use certain specified methods in computing arm’s
length price of international and national transactions between the associated enterprises and maintain prescribed information
and documents relating to such transactions. The appropriate method to be adopted will depend on the nature of transactions/
class of transactions, class of associated persons, functions performed and other factors, which have been prescribed. The
Company is in the process of conducting a transfer pricing study for the current financial year. However, in the opinion of the
Management the same would not have a material impact on these financial statements. Accordingly, these financial statements
do not include any adjustments for the transfer pricing implications, if any.

275
 Annual Report 2018-19

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
43. Research and development expenditure
Research and development expenditure incurred during the year ended 31 March 2019 and 31 March 2018 is as follows:

Particulars For the year ended For the year ended
31 March 2019 31 March 2018
Capital expenditure - -
Revenue expenditure 523 480

44. Dividends
Particulars For the year For the year
ended ended
31 March 2019 31 March 2018
A. Dividend declared and paid during the year
Final dividend declared and paid for the year ended 31 March 2018 ` 2.30 per 5,414 4,943
share (For the year ended 31 March 2017 : ` 2.10 per share)
Dividend distribution tax on final dividend 1,102 483
B. Proposed dividends on equity shares not recognised as liability
Proposed dividends for the year ended 31 March 2019 ` 2.50 per share (For the 5,885 5,414
year ended 31 March 2018 : ` 2.30 per share)
Dividend distribution tax on proposed dividend 1,210 1,102
C. Remittance in foreign currency on account of dividend
Number of non-resident shareholders to whom dividend is remitted 5 5
Number of equity shares held by them 3,90,00,000 3,90,00,000
Amount of dividend paid 897 819
Year to which the dividend relates 2017-18 2016-17

45. Assets pledged as security 

Particulars As at As at
31 March 2019 31 March 2018
Non-current assets
First charge
Property, plant and equipments 92,915 96,799
Intangible assets 101 111
Total non-current assets pledged as security 93,016 96,910
Current assets
First charge
Pari-passu
Inventories 3,12,885 2,46,161
Financial assets (current and non-current) 42,752 34,668
Other assets (current and non-current) 14,012 6,710
Total current assets pledged as security 3,69,649 2,87,539
Total assets pledged as security 4,62,665 3,84,449

276
Consolidated Financials

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
46. Reconciliation of liabilities arising from financing activities:
Particulars For the year For the year
ended ended
31 March 2019 31 March 2018
Non-current borrowings
Opening balance 8,111 12,502
Proceeds - -
Repayment (3,443) (4,456)
Net loss on foreign currency transactions and translation - 65
Closing balance 4,668 8,111
Current borrowings
Opening balance 1,16,414 96,505
Movement (net) 22,191 19,275
Net (gain)/loss on foreign currency transactions and translation (454) 634
Closing balance 1,38,151 1,16,414
Finance cost
Accrued but not due as at 1 April 164 191
Expenses incurred 6,758 6,895
Expenses paid 6,283 6,922
Accrued but not due as at 31 March 639 164

47 
During the previous year, the officers of the directorate of enforcement, ministry of finance, government of India visited
under section 17 of the PMLA 2002, the premises of the Company in an ongoing investigation of some matters pertaining to
Mr. Gautam Khaitan, solicitor and the erstwhile independent director of the Company from 30 July 2007 to 18 April 2013 and in
the course of which statements of some directors/officers of the Company were recorded by them. Nothing incriminating in the
affairs of the Company has been alleged by them so far as on this date.

48 Additional information as required for preparation of consolidated financial statements to Schedule III to the
Act:
31 March 2019
Particulars Holding Company Subsidiaries Companies Consolidation Total
KRBL Limited KRBL DMCC, K B Exports adjustments/
Group Private Limited eliminations
Net assets (i.e. total assets minus
total liabilities)
- as % of consolidated net assets 100% 0% 0% 0% 100%
- Amount 2,71,745 1,142 295 (424) 2,72,758
Share in profit and loss
- as % of consolidated profit and loss 100 (0) 0% 0% 100%
- Amount 50,327 (25) 0 - 50,302
Share in other comprehensive income
- as % of consolidated other 4% 96% 0% 0% 100%
comprehensive income
- Amount 4 91 - - 95
Share in total comprehensive income
- as % of consolidated total 100% 0 0% 0% 100%
comprehensive income
- Amount 50,331 66 0 - 50,397

277
 Annual Report 2018-19

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL

STATEMENT (All amounts stated in ` lacs, unless otherwise stated)
31 March 2018
Particulars Holding Company Subsidiaries Company Consolidation Total
KRBL Limited KRBL DMCC, K B Exports adjustments/
Group Private Limited eliminations
Net assets (i.e. total assets minus
total liabilities)
- as % of consolidated net assets 100% 0% 0% 0% 100%
- Amount 2,27,930 1,077 295 (424) 2,28,878
Share in profit and loss
- as % of consolidated profit and loss 100% 0% 0% 0% 100%
- Amount 43,608 (164) - - 43,444
Share in other comprehensive
income
- as % of consolidated other 100% 0% 0% 0% 100%
comprehensive income
- Amount 17 - - - 17
Share in total comprehensive income
- as % of consolidated total 100% 0% 0% 0% 100%
comprehensive income
- Amount 43,625 (164) - - 43,484

49 
During the year ended 31 March 2019, the Group reclassified/regrouped certain previous year’s amount i.e. 31 March 2018.
Considering the nature of these reclassification/regrouping, the Company does not intend to present opening balance sheet of
previous year reported. Refer below the reclassified/regrouped amount in the previous year amount-

Reclassification of financial information of previous year ended 31 March 2018 Amount
Reclassification from current year information in Reclassification to in previous year information in
previous year current year
Trade payables Advance to suppliers 1,110
Trade receivables Advances from customers 258
Provisions – non-current, compensated absences Provisions – current, compensated absences 79
Provisions - current Other financial liabilities-employee related payables 718
Employee benefit expenses Other expenses 800
Other income Other expenses 27
Prepayments Other non-current assets - Prepayments 1,280
Prepayments Other current assets – Prepayments 1,077

This is the Summary of the consolidated significant accounting policies and other explanatory information referred to in our report in even date

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of KRBL Limited
Chartered Accountants
Firm's Registration No.: 001076N/N500013

Rohit Arora Anil Kumar Mittal Anoop Kumar Gupta

Partner Chairman and Managing Director Joint Managing Director
Membership No. 504774 DIN-00030100 DIN-00030160

Raman Sapra Rakesh Mehrotra

Place : Noida Company Secretary Chief Financial Officer
Date : 15 May 2019 Membership No. F9233 Membership No. 84366

278
NOTES
NOTES
 Annual Report 2018-19

Supreme grains. Supreme health.

Regd Office: 5190, Lahori Gate, Delhi-110006, India

Phone: +91-11-23968328 Fax: +91-11-23968327
E-mail: investor@krblindia.com Website: www.krblrice.com
CIN No.: L01111DL1993PLC052845

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