VRL
VRL
VRL
OUR MISSION
QUALITY POLICY
Company Information..............................................................01
Chairman’s Message...............................................................02
Notice.......................................................................................03
Directors’ Report......................................................................21
Financial Statements.............................................................113
DISCLAIMER
This Annual Report may contain certain forward looking statements about the Company. Although the Company believes
its expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause
actual outcomes and results to be materially different from those predicted. These forward looking statements are subject
to numerous risks and uncertainties that could cause actual results to differ materially from those in such statements, many
of which are beyond the control of the Company including, among other things, changes in general economic conditions,
exchange rate fluctuations, fuel price fluctuations, the impact of business conditions in the Indian market, including those
related to competition, price controls and price reductions, exposure to environmental liability, regulatory requirements
and the like.
COMPANY INFORMATION
BOARD OF DIRECTORS
Dr. Vijay Sankeshwar Anand Sankeshwar K N Umesh
Chairman and Managing Director Managing Director Whole Time Director
L R Bhat Dr. Prabhakar Kore J S Korlahalli
Whole Time Director Independent Director Independent Director
(Upto March 31, 2019)
Mrs. Medha Pawar Mrs. Smrithi Bellad Dr. Anand Pandurangi
Independent Director Independent Director Independent Director
(w.e.f. November 03, 2018)
Gurudas Narekuli
Independent Director
(w.e.f. April 01, 2019)
Sincerely,
RESOLVED FURTHER THAT the aforesaid remuneration shall be construed as minimum remuneration
in the absence of profits/inadequacy of profits, except that the overall remuneration including perquisites
will be restricted to the maximum permissible extent as specified under Schedule V of the Act and that no
Commission will be paid;
RESOLVED FURTHER THAT, as required and in accordance with Regulation 17(6)(e) of the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended,
the aforementioned remuneration payable to Mr. Anand Sankeshwar (DIN: 00217773), who is a Promoter and
Managing Director of the Company, be and is hereby approved;
RESOLVED FURTHER THAT the Board of Directors of the Company be and are hereby authorized to vary,
alter or modify the terms and conditions of his appointment including remuneration, commission and/or
perquisites payable or to be provided (including any monetary value thereof) to him in such manner as may
be agreed to between the Board of Directors and Mr. Anand Sankeshwar;
RESOLVED FURTHER THAT any of the Directors of the Company and/or the Company Secretary be and
are hereby authorised to do all acts, deeds and things including filings and take steps as may be deemed
necessary, proper or expedient to give effect to this Resolution and matters incidental thereto”.
For other details such as the number of meetings of the board attended during the year, remuneration drawn
in respect of above directors, please refer to the Corporate Governance Report which is a part of this Annual
Report.
Attendance Slip
Members attending the Meeting in person or by Proxy are requested to complete the attendance slip and hand
it over at the entrance of the meeting hall.
I hereby record my presence at the 36th Annual General Meeting of the Company at Registered office of the
Company situated at RS No.351/1, Varur, Post: Chabbi, Taluk Hubballi, District Dharwad, Hubballi – 581 207 (18th
KM, NH-4, Bengaluru Road, Varur) on 10th August 2019 at 4.00 pm.
Full Name
Address
Folio No.
DP ID
Client ID
No. of Shares held
I certify that I am the registered shareholder/proxy for the registered shareholder of the Company
............................................................................ ......................................
Full name of the shareholder / proxy (in block letters) Signature of shareholder / Proxy
Note:
1. Electronic copy of the Annual Report for FY 2018-19 and Notice of the Annual General Meeting along with
Attendance Slip and Proxy Form is being sent to all the shareholders whose email address is registered
with the Company/Depositary Participant unless any shareholder has requested for a hard copy of the
same. Shareholders receiving electronic copy and attending the Annual General Meeting can print copy
of this Attendance Slip.
2. Physical copy of the Annual Report for FY 2018-19 and Notice of the Annual General Meeting along with
Attendance Slip and Proxy Form is sent in the permitted mode(s) to all shareholders whose email ids are
not registered with the Company or have requested for a hard copy.
(Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management
and Administration) Rules, 2014)
CIN : L60210KA1983PLC005247
Name of the Company : VRL LOGISTICS LIMITED
Registered Office : RS, No.351/1, Varur Post Chabbi Taluk Hubballi, District Dharwad, Hubballi - 581207 India.
(18th KM, NH- 4, Bengaluru Road, Varur)
Website: www.vrlgroup.in Email: investors@vrllogistics.com
I / We, being the member(s) of _________ Equity Shares of VRL Logistics Limited, hereby appoint
1.Name : ...................................................................................
Address :...................................................................................
E-mail Id :..................................................................................
Signature :................................................................................., or failing him / her
2. Name:....................................................................................
Address: ...................................................................................
E-mail Id: ..................................................................................
Signature:.................................................................................., or failing him / her
3. Name:....................................................................................
Address: ...................................................................................
E-mail Id: ..................................................................................
Signature: .................................................................................
as my / our proxy to attend and vote (on a poll) for me / us and on my / our behalf at the 36th Annual General
Meeting of the Company, to be held on the 10th August 2019 at 4.00 p.m. at the Registered Office of the Company
and at any adjournment thereof, in respect of such resolutions set out in the Notice convening the meeting, as
are indicated below:
Affix Re.1
Revenue
Stamp
here
Signature of Shareholder
Note:
1. The Proxy to be effective should be deposited at the Registered office of the company not less than FORTY
EIGHT HOURS before the commencement of the Meeting.
2. A Proxy need not be a member of the Company.
3. In the case of joint holders, the vote of the senior who tenders a vote, whether in person or by proxy, shall
be accepted to the exclusion of the vote of the other joint holders. Seniority shall be determined by the
order in which the names stand in the Register of Members.
4. The form of Proxy confers authority to demand or join in demanding a poll.
5. The submission by a member of this form of proxy will not preclude such member from attending in person
and voting at the meeting.
6. * In case a member wishes his/her votes to be used differently, he/she should indicate the number of
shares under the columns “For” or “Against” as appropriate.
Note: Route Map to reach the Registered Office of the Company (AGM Venue) is annexed at the end of this
report for convenience of the members.
Your directors are pleased to present the thirty sixth annual report of your Company together with the audited
financial statements for the financial year ended March 31, 2019.
SUMMARY OF FINANCIAL RESULTS (` in lakhs)
Particulars Year Ended Year Ended
March 31, 2019 March 31, 2018
Total Income 2,11,746.82 1,93,655.07
Profit before Finance cost and Depreciation 25,191.92 24,846.44
Finance Costs 1,086.37 1,144.09
Depreciation & Amortization expense 10,058.09 9,763.42
Profit Before Tax 14,047.46 13,938.93
Tax Expense 4,855.85 4,682.51
Net Profit After Tax 9,191.61 9,256.42
Other comprehensive income (288.34) (186.01)
Total Comprehensive income 8,903.27 9,070.41
Basic & diluted Earning per Share (`) 10.17 10.17
No. of complaints filed during the No. of complaints disposed off No. of complaints pending
year during the year
Nil Nil Nil
VII. MEMBERSHIP
a) The Committee shall comprise at least three (3) Directors, all of whom shall be non-executive Directors and at least
half shall be Independent.
b) The Board shall reconstitute the Committee as and when required to comply with the provisions of the Companies
Act, 2013 and other applicable statutory requirements.
c) Minimum two (2) members shall constitute a quorum for the Committee meeting.
d) Membership of the Committee shall be disclosed in the Annual Report.
e) Term of the Committee shall be continued unless terminated by the Board of Directors.
VIII. CHAIRMAN
a) Chairman of the Committee shall be an Independent Director.
b) Chairperson of the Company may be appointed as a member of the Committee but shall not Chair the Committee.
c) In the absence of the Chairman, the members of the Committee present at the meeting shall choose one amongst
them to act as Chairman.
d) Chairman of the Nomination and Remuneration Committee should be present at the Annual General Meeting or
may nominate some other member to answer the shareholders’ queries.
IX. FREQUENCY OF MEETINGS
The meeting of the Committee shall be held at such regular intervals as may be required.
X. COMMITTEE MEMBERS’ INTERESTS
a) A member of the Committee is not entitled to be present when his or her own remuneration is discussed at a
meeting or when his or her performance is being evaluated.
b) The Committee may invite such executives, as it considers appropriate, to be present at the meetings of the
Committee.
XI. VOTING
a) Matters arising for determination at Committee meetings shall be decided by a majority of votes of Members
present and voting and any such decision shall for all purposes be deemed a decision of the Committee.
CRA - 3
COST AUDIT REPORT
We, S. K. Tikare & Co. Cost Accountants, having been appointed as Cost Auditors under Section 148(3)
of the Companies Act, 2013 of VRL LOGISTICS LIMITED having its registered office at 18th KM, Bangalore
Road, NH 4, Varur, Hubballi 581207 (hereinafter referred to as company) have audited the books of Cost
Records maintained under section 148 of the said Act, in compliance with the Cost Auditing Standards
Records in respect of Wind Power Division, Product Group No 2008 for the year 2018-19 (April 2018 to
March 2019) maintained by the company and report,
(i) We have obtained all the information and explanations, which to the best of our knowledge and belief
were necessary for the purpose of this audit;
(ii) In our opinion proper cost records, as per Rule 5 of the Companies (Cost Records and Audit) Amendment
Rules, 2014 have been maintained by the company in respect of the product(s)/ service (s) under
reference.
(iii) In our opinion proper returns adequate for the purpose of Cost Audit have been received from the
branches not visited by us;
(iv) In our opinion and to the best our information, the said books and records give the information required
by the Companies Act,2013 in the manner so required;
(v) In our opinion, the company has adequate system of internal audit of cost records which to our opinion
is commensurate to its nature and size of its business.
(vi) In our opinion, information, statements in the annexure to this cost audit report gives a true and fair view
of the cost of production of product(s)/rendering of services, cost of sales, margin and other information
relating to the product(s)/service(s) under reference.
(vii) Detailed unit-wise and product/service wise cost statements and schedules thereto in respect of the
product/services under reference of the Company duly audited and Certified by us are kept in the
company.
To,
The Members,
VRL Logistics Limited.,
R S 351/1, 17th KM, NH-4, Bangalore Road,
Varur - 581 207, Hubli.
R.Parthasarathi
FCS No.3667
C P No:838
Place : Bangalore
Date : 18-05-2019
Note: - Mr. Karunakara Shetty has resigned from the Committee w.e.f. November 3, 2018 and Mr. Raghottam
Akamanchi was inducted as a member of the Committee.
3. Average Net profit of the Company for last 3 financial years:
The average net profits for the last three financial years computed as stated under Section 135 of the said
act is `13,443.97 Lakhs.
4. Prescribed CSR expenditure (Two per cent. of the amount as in item no.3 above):
As stipulated under the Companies Act, 2013, the prescribed CSR expenditure i.e 2 % of the amount as in
item no.3 above comes to ` 268.88 lakhs.
* As a matter of policy we have decided not to quantify the administrative overheads attributable to these activities. Were
we to consider the same a significant addition to the actual CSR spend would be visible.
The CSR committee of the Board has laid down the policy and has laid down guidelines for undertaking suitable projects
to the Trustees of VRL Foundation. Your Company also participates / contributes directly to projects on merit basis. VRL
Foundation participated in projects relevant to education, sports and healthcare. It has also extended support to several
needy educational institutions for infrastructure development etc. Such defrayal is undertaken after a thorough study
and visit by the Trust officials. The Trust has spent moneys on the basis of projects deemed genuine by it and such
spend has not been done with a view to exhaust the available eligible CSR budget.
In line with our thought process and as guided by the CSR Committee of the Board the unspent amounts would not
be carried forward for spends in future years. The Trust would undertake projects purely on merits and going by this
ideology, there is a chance that there could be a situation that the trust may spend more than the available CSR budget
on projects that it deems are genuine and would affect positively the society at large.
7. Pursuant to the Companies (Corporate Social Responsibility Policy) Rules, 2014, we hereby confirm that the CSR
Committee has implemented and monitored the CSR initiatives in line with CSR Objectives and Policy of the Company.
1. CIN L60210KA1983PLC005247
A. Promoters
(1) Indian
b) Central Govt - - - - - - - - -
c) State Govt(s) - - - - - - - - -
d) Bodies Corp. - - - - - - - - -
e) Banks / FI - - - - - - - - -
f) Any other - - - - - - - - -
(2) Foriegn - - - - - - - - - -
Promotors
Total 61480000 - 61480000 68.05 61480000 - 61480000 68.05 -
shareholding of
Promoter (A)
B. Public
Shareholding
1. Institutions
c) Central Govt - - - - - - - - -
d) State Govt(s) - - - - - - - - -
e) Venture Capital - - - - - - - - -
Funds
f) Insurance - - - - - - - - -
Companies
h) Foreign Venture - - - - - - - - -
Capital Funds
i) Others - - - - - - - - -
(Alternative
Investment Fund)
Sub-total (B)(1):- 21524861 - 21524861 23.83 22892512 - 22892512 25.33 1.51
2. Non-
Institutions
i) Indian - - - - - - - - -
ii) Overseas - - - - - - - - -
iv) Shareholding pattern of Top Ten Shareholders (other than Directors, Promoters and holders of GDRs and ADRs)
Note:-
None of the other Directors or KMPs holds any shares in the Company. As such, their names have not been
included in the above details
}
a) Capital
b) Recurring No specific allocation is made in terms of R & D expenditure. The same is an ongoing
c) Total process and costs incurred on the same are expensed off.
d) Total R & D
The same is an ongoing process. Total and costs incurred on the same are expensed off.
Notes:
• None of the other directors are paid any remuneration other than sitting fees. As such their names are not
included in the above table.
• Considering the industry in which the Company operates, it is pertinent to note that a majority of
the employees of the Company comprise of Drivers, Cleaners, Mechanics and Hamals whose salary
would be as per the industry standard.
• Computation of median as detailed above is arrived at also considering the salary drawn by said drivers,
cleaner, mechanics and hamals.
2. The percentage increase in remuneration of each Director, CFO, CS in the financial year
Note:
Except Executive Directors, none of the other directors are paid any remuneration other then sitting fees
and reimbursement of expenses for attending Board and Committee meetings. The details of sitting fees
paid are given in the report on Corporate Governance which forms part of this Annual Report.
3. The percentage increase in the median remuneration of employees in the financial year
The increase in the median remuneration was to the extent of 8.09%. This represents normal increase in
the remuneration paid to employees, especially drivers and hamals.
4. The number of permanent employees on the rolls of the Company
There were 19030 employees as on March 31, 2019.
5. Average percentile increase already made in the salaries of employees other than the Managerial
personnel in the last financial year and its comparison with the percentile increase in the managerial
remuneration and justification thereof and point out if there are any exceptional circumstances for
increase in the managerial remuneration.
The percentile increase in the remuneration of the Managerial Personnel is performance based. Considering
the broad base of 19000+ employees, the percentile increase in the remuneration of other employees
works out to a significant quantum. We confirm that there are no exceptional circumstances for increase in
the managerial remuneration.
b. Employed for a part of the year and were in receipt of remuneration of not less than `8.50 Lakhs
per month - Nil
c. Top 10 employees in terms of remuneration
Notes:
1. Remuneration shown above includes salary, perquisites, and commission on profits but does not include
Company’s contribution to Provident Fund / Gratuity Fund.
2. The monetary value of perquisites is calculated in accordance with the provisions of the Income Tax Act, 1961
and Rules made there under.
3. Nature of Employment of the Whole-time Directors as stated above is contractual. The other individuals named
above are employees of the Company.
4. None of the employees listed above held any shares in the Company as of 31.03.2019 except Dr. Vijay
Sankeshwar who held 2,97,92,000 shares (32.97% of the paid up capital of the Company), Mr. Anand Sankeshwar
who held 3,12,65,250 (34.60% of the paid up capital of the Company) shares, Mr. K N Umesh who held 1,750
shares and Mr. L R Bhat who held 2,115 shares jointly with his spouse, as of that date.
5. Dr. Vijay Sankeshwar and Mr. Anand Sankeshwar are related to each other.
The Revenue from operations increased by 9.74% from ` 1,92,232.03 lacs to ` 2,10,954.40 lacs and including other income
the Total income is increased by 9.34% from ` 1,93,655.07lacs to ` 2,11,746.82 lacs.
Goods Transportation (GT)
- GT Revenue increased by 11.13% from ` 1,51,722.15lacs to ` 1,68,601.88 lacs
- The increase in Revenue is due to increase in Tonnage by 5.49 % and increase in realization per tonne by 5.79%.
- Despite the growth in revenue the EBITDA Margins showed resilience and was slightly lesser at 11.9% compared with
12.83% in FY 18. The pressure on margin during the year is due to increase in Fuel Expenses which the company was
able to pass on with a lag, wherein Average Dealer Procuring cost per ltr was up by 15.70% , from Rs 60.73 in FY-18 to Rs
70.27 in FY-19. Diesel Cost expenses as a % to total income increased by 1.44% from 24.34% to 25.78%. Other Expenses
that impacted the margins besides fuel costs were Hamali charges, Vehicle Insurance and Electricity charges.
- Bio-fuel usage was to the tune of 19.45% of the total fuel consumption during FY 2018-19 and the same increased by
5.31% from 14.14% during FY 2017-18.
- Due to revision in axle load norms, the load carrying capacity of the existing vehicles of VRL increased and the operating
margins from the goods transportation business improved in H2FY19. Apart from better asset utlisation and improved
average billing per trip, the additional capacity available helped in reducing the dependence of VRL on hired vehicles thus
bringing down lorry hire charges for the company.
Passenger Travel (PT)
- PT revenue increased by 6.03% from ` 35,870.88 lacs to ` 38032.74 lacs
- The increase in Revenue is due to increase in number of passengers travelled by 1.87% despite of decrease in number
of Buses operated during the year by 15 nos from 396 in FY-18 to 381 in FY -19 and Increase in realisation per passenger
by 4.12%
- Despite the growth in revenue, the profitability margins have declined in FY2019 as compared to FY2018 due to increase
in fuel costs. Since the dynamics of pricing is completely driven by the market Company is unable to increase the
realisation per passenger in proportion to the increase in fuel costs. This impacted on EBITDA Margins by 2.05% declined
from 12.93% in FY 18 to 10.88% in FY 19.
Wind power
Sale of Power increased by 1.68% from ` 2172.06 lacs to ` 2208.51 lacs. Sale of Power increased mainly due to increase in
net power units generated during the year by 1.67 % from 63907920 units in FY-18 to 64977676 units in FY-19
Transport of Passengers by Air
Revenue from this segment decreased from ` 1312.97 lacs to ` 1072.22 lacs.
Note:
All the Company policies are available for internal consumption to related stakeholders. However, wherever external stakeholders are involved, relevant policies
are also available on company’s website www.vrlgroup.in
We wish to submit that we are in full compliance with all the environmental laws applicable to us. As regards Liaison, we are a part of nearly all the important industry
bodies and play a proactive role in highlighting and taking up matters for betterment of our surface transport industry. To quote an example, during the year our
submissions and representations at the GST council have resulted in several key policy changes benefitting the surface logistics industry as a whole.
S Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
No
1 The company has not understood the Principles - - - - - - - - -
2 The company is not at a stage where it finds itself in a po-
sition to formulate and implement the policies on specified - - - - - - - - -
principles
3 The company does not have financial or manpower re-
- - - - - - - - -
sources available for the task
4 It is planned to be done within next 6 months - - - - - - - - -
5 It is planned to be done within the next 1 year - - - - - √ √ - -
6 Any other reason (please specify) - - - - - - - - -
a) The Governance related to BR is being reviewed periodically by the Chairman and Managing Director.
Frequency –Annual
b) A copy of the report will also be made available at www.vrlgroup.in
Human Resource
Resourse mobili-
Business Opera-
Logistics experi-
Business Devel-
Corporate Gov-
Business Strat-
Legal expertise
Finance & Ac-
tions & Mgmt.
Risk Manage-
Management
Name of the
Liaisoning
Directors
ernance
opment
nology
counts
sation
ment
ence
egy
Dr. Vijay √ √ √ √ √ √ √ √ √ √
Sankeshwar
Mr. Anand √ √ √ √ √ √ √ √ √ √
Sankeshwar
Mr. K N √ √ √ √ √ √ √ √ √ √
Umesh
Mr. L R Bhat √ √ √ √ √ √ √ √
Dr. √ √ √ √ √ √ √ √ √
Prabhakar
Kore
Mrs. Medha √ √ √ √ √
Pawar
Dr. Anand √ √ √ √ √ √ √
Pandurangi
Dr. √ √ √ √ √ √
Raghottam
Akamanchi
Dr. Ashok √ √ √ √ √ √
Shettar
Mr. √ √ √ √ √ √ √
Shankarasa
Ladwa
Mrs.Smriti √ √ √ √ √ √ √ √ √
Bellad
Mr. J S √ √ √ √ √
Korlahalli
(i) Confirmation on Independent Directors
The Board based on the disclosures received from all Independent Directors, confirms that all Independent
Directors fulfill the conditions of Independence as specified in SEBI Listing Regulations and are independent of the
management of the Company for the year ended March 31, 2019.
(j) Resignation of Independent Directors
During the year, Mr. C Karunakara Shetty resigned from the office of Director w.e.f November 03, 2018 owing
to his pre-occupation. He confirmed that there are no material reasons for his resignation.
• List of shareholders holding more than 1 % of the paid up capital as March 31, 2019
Year Date Particulars Dividend Amount Last date for Due date
amount per unclaimed claim to transfer
share (in `) as on unclaimed
March 31, amount to IEPF
2019 (`)
2015-16 February 1, Interim Dividend 5.00 184,695 March 7, April 6, 2023
2016 2023
2015-16 April 25, 2015 IPO Share Application NA 1,465,750 June 1, 2022 June 30, 2022
Money
2016-17 January 25, Interim Dividend 4.00 273,168 March 3, April 2, 2024
2017 2024
2018-19 November 03, Interim Dividend 3.50 144,347 December 8, January 7, 2025
2018 2025
VII) Management
Management Discussion and Analysis
Management Discussion and Analysis is given in a separate section forming part of the Directors’ Report in
this Annual Report.
Business Responsibility Report
Business Responsibility Report is given in a separate section forming part of this Annual Report.
To
The Members of VRL Logistics Limited
Pursuant to Regulation 34(3) Part D of the SEBI Listing Regulation and Listing Agreement entered into with the
Stock Exchanges, I hereby declare that the Company has obtained affirmative compliance with the Code of
Conduct from all the Board members and Senior Management personnel of the Company for the financial year
ended 31 March 2019
Place: Hubballi
Date: May 18, 2019
To,
The Board of Directors
VRL Logistics Limited
Corporate Office,
Giriraj Annexe, Circuit House Road
Hubballi - 580 029
We, Dr. Vijay Sankeshwar, Chairman and Managing Director and Sunil Nalavadi, Chief Financial Officer of the
Company hereby certify that:
A. We have reviewed the financial statements and cash flow statement for the year ended March 31, 2019
and that to the best of our knowledge and belief:
1. These statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
2. These statements together present a true and fair view of the Company’s affairs and are in compliance
with existing Accounting Standards, applicable laws and regulations.
B. To the best of our knowledge and belief, no transactions entered into by the Company during the year
ended March 31, 2019 are fraudulent, illegal or violative of the Company’s Code of Conduct.
C. We accept responsibility for establishing and maintaining internal controls for financial reporting and we
have evaluated the effectiveness of internal control systems of the Company 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 have been taken to
rectify these deficiencies.
D. We have indicated to the Auditors and Audit committee that there are no:
1. Significant changes in internal control over financial reporting during the year;
2. Significant changes in accounting policies during the year requiring disclosure in the notes to the
financial statements; and
3. Instances of significant fraud of which we have become aware and the involvement therein, if any,
of the management or any employee having a significant role in the Company’s internal control
system over financial reporting.
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of
M/s VRL Logistics Limited, having its Registered office at RS No.351/1, Varur, Post Chabbi, Taluk Hubballi, District
Dharwad, Hubballi – 581 207, produced before us by the Company for the purpose of issuing this Certificate,
in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities Exchange
Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verification (including Directors Identification
Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us
by the Company & its officers, We hereby certify that none of the Directors on the Board of the Company for
the Financial Year ending on 31st March, 2019 have been debarred or disqualified from being appointed or
continuing as Directors of companies by the Securities and Exchange Board of India, Ministry of Corporate
Affairs or any such other Statutory.
Akshay S Pachlag
M. No.30741, CP: 11710
Date: 30.04.2019
Place: Hubballi
1. This certificate is issued in accordance with the terms of our engagement letter dated 23 August 2018.
2. We have examined the compliance of conditions of corporate governance by VRL Logistics Limited (the
‘Company’) for the year ended 31 March 2019, as stipulated in Regulations 17 to 27, clauses (b) to (i) of
Regulation 46(2), and paragraphs C, D and E of Schedule V of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’).
Management’s Responsibility
3. The compliance of conditions of corporate governance is the responsibility of the management. This
responsibility includes the designing, implementing and maintaining operating effectiveness of internal control
to ensure compliance with the conditions of corporate governance as stipulated in the Listing Regulations.
Auditor’s Responsibility
4. Pursuant to the requirements of the Listing Regulations, our responsibility is to express a reasonable assurance
in the form of an opinion as to whether the Company has complied with the conditions of corporate governance
as stated in paragraph 2 above. Our responsibility is limited to examining the procedures and implementation
thereof, adopted by the Company for ensuring the compliance with the conditions of corporate governance.
It is neither an audit nor an expression of opinion on the financial statements of the Company.
5. We have examined the relevant records of the Company in accordance with the applicable Generally
Accepted Auditing Standards in India, the Guidance Note on Certification of Corporate Governance issued
by the Institute of Chartered Accountants of India (‘ICAI’), and Guidance Note on Reports or Certificates for
Special Purposes issued by the ICAI which requires that we comply with the ethical requirements of the Code
of Ethics issued by the ICAI.
6. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1,
Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other
Assurance and Related Services Engagements.
7. Based on the procedures performed by us and to the best of our information and according to the explanations
provided to us, in our opinion, the Company has complied, in all material respects, with the conditions of
corporate governance as stipulated in the Listing Regulations during the year ended 31 March 2019.
We state that such compliance is neither an assurance as to the future viability of the Company nor the
efficiency or effectiveness with which the management has conducted the affairs of the Company.
Restriction on use
8. This certificate is issued solely for the purpose of complying with the aforesaid regulations and may not be
suitable for any other purpose.
Place : Hubballi
Date: 18 May 2019
Revenue recognition - Goods Our audit work included, but was not limited to, the following
transport and Bus operations procedures:
(Refer Note 1(n) and Note 23 of the • Understood the revenue and receivable business process
accompanying financial statements) for goods transport and bus operations, and assessed the
appropriateness of the accounting policy adopted by the Company
The Company has high volume of for revenue recognition.
transactions each day recorded
• Evaluated the design and implementation of the key financial
across various branches and through
and Information Technology (IT) controls around the revenue
agencies using complex information
recognition process including controls around issuance of invoices/
technology systems which are linked
bus tickets to customers based on underlying goods consignment
to the financial reporting process. A
notes and other evidences around service delivery, price approvals,
high number of sale transactions in
cash collections and timing of transaction recording in the books of
goods transport and bus operations
account including cut off procedures.
business are settled in cash. Further,
Standards on Auditing mandate a • Tested operating effectiveness of above identified key controls
presumed significant risk of fraud in over the recognition and measurement of revenue during the year
revenue recognition. and as at year end.
• Assessed the appropriateness of the accounting policy for
Further, Ind AS 115, Revenue from revenue recognition from goods transport and bus operations
Contracts with Customers, adopted business in accordance with Ind AS 115, ‘Revenue from Contracts
by the Company with effect from 1 with Customers’.
April 2018 requires management • Attended and re-performed cash counts at year end for locations
to make certain key judgements selected on sample basis.
relating to identifying contracts with • Inspected the internal audit reports for any observations reported
customers, performance obligations based on such internal audits conducted at branches during the
involved in contracts, determining year on rotation basis to evaluate if any such observations materially
transaction price which involves impact the financial statements or impact our assessment of
variable consideration elements, relevant key internal financial controls tested as above or otherwise
allocation of the transaction price materially impacts recognition and measurement of revenue.
to such performance obligations
and satisfaction of performance • Performed test of details on a sample of revenue transactions
obligations. recorded during the year including specific periods before and
after year end. For the samples selected, inspected supporting
Due to the significance of the documents such as invoices, contracts, goods consignment notes,
item to the financial statements, evidence of delivery of service, cash receipt, etc.
complexities involved including high • Performed substantive analytical procedures like occupancy
inherent risk associated with cash analysis for bus operations, tonnage growth, price yield growth, etc.
transactions, information technology • On a sample basis, compared the daily cash collection with the
systems relied on and management bank deposit reconciliation prepared by each branch and agency
judgement involved for ensuring and submitted to head office periodically by tracing the same to
appropriateness of accounting relevant bank statements.
treatment of revenue generated from • Tested the appropriateness and rationale for specific manual
goods transport and bus operations journal entries impacting revenue, as well as other adjustments
business, this matter has been made in the preparation of the financial statements, selected
identified as a key audit matter for through a combination of risk-based and high-value transactions
the current year’s audit. selection criteria.
• Evaluated the appropriateness of the disclosures made in the
financial statements for revenue recorded during the year.
Place : Hubballi
Date: 18 May 2019
Customs Customs duty on import of aircraft and 1,569.02 688.05 2007-08 Customs,
Act, 1962 related interest/ penalties/fines (Financial Excise and
year) Service Tax
Appellate
Tribunal
(Ahmedabad)
Finance Non-refund of service tax paid 242.88 - 2000-01 to Customs,
Act, 1994 2001-02 Excise and
Service Tax
Appellate
Tribunal
(Bengaluru)
Service tax arising due to reclassification 328.45 - April 2014 Customs,
of services to February Excise and
2017 Service Tax
Appellate
Tribunal
(Bengaluru)
Employees’ Contribution on drivers’ wages 12.92 3.17 October High Court of
State 2005 to Karnataka
Insurance January 2006
Act,1948
Place : Hubballi
Date: 18 May 2019
Independent Auditor’s report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 (“the Act”)
1. In conjunction with our audit of the financial statements of VRL Logistics Limited (the ‘Company’) as at and
for the year ended 31 March 2019, we have audited the internal financial controls over financial reporting
(IFCoFR) of the Company as at that date.
Management’s Responsibility for Internal Financial Controls
2. The Company’s Board of Directors is responsible for establishing and maintaining internal financial controls
based on the internal control over financial reporting 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 (the ‘Guidance Note’) issued by the Institute of Chartered Accountants of India
(the ‘ICAI’). These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of
the Company’s business, including adherence to Company’s policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the accounting records,
and the timely preparation of reliable financial information, as required under the Act.
Auditors’ Responsibility
3. Our responsibility is to express an opinion on the Company's IFCoFR based on our audit. We conducted our
audit in accordance with the Standards on Auditing, issued by the ICAI and deemed to be prescribed under
Section 143(10) of the Act, to the extent applicable to an audit of IFCoFR, and the Guidance Note issued by
the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether adequate IFCoFR were established and
maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the IFCoFR and
their operating effectiveness. Our audit of IFCoFR included obtaining an understanding of IFCoFR, assessing
the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness
of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement,
including the assessment of the risks of material misstatement of the financial statements, whether due to
fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the Company’s IFCoFR.
Meaning of Internal Financial Controls over Financial Reporting
6. A company's IFCoFR is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company's IFCoFR include those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions
and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are being made only in accordance
with authorisations of management and directors of the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's
assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. Because of the inherent limitations of IFCoFR, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be detected. Also,
projections of any evaluation of the IFCoFR to future periods are subject to the risk that IFCoFR may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures
may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, adequate internal financial controls over financial
reporting and such controls were operating effectively as at 31 March 2019, based on the internal control
over financial reporting 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 issued by
the Institute of Chartered Accountants of India.
Place : Hubballi
Date: 18 May 2019
PARTICULARS As at As at
NOTE
31st March 2019 31st March 2018
Assets
Non- current assets
Property, plant and equipment 2 70,131.64 62,170.49
Capital work-in-progress 2.1 4,164.49 764.21
Investment properti es 3 248.93 254.11
Intangible assets 4 124.76 71.57
Financial assets
Investments 5 5.75 5.75
Other fi nancial assets 6 2,818.81 2,655.07
Income tax assets 575.73 560.68
Other non- current assets 7 2,544.89 2,602.64
80,615.00 69,084.52
Current assets
Inventories 8 2,979.82 2,413.34
Financial assets
Trade receivables 9 7,952.99 8,074.68
Cash and cash equivalents 10 1,260.07 1,851.81
Bank balances other than cash and cash equivalents 11 54.09 83.57
Other fi nancial assets 12 1,082.10 1,101.56
Other current assets 13 3,837.90 3,616.74
17,166.97 17,141.70
Total assets 97,781.97 86,226.22
Equity and liabiliti es
Equity
Equity share capital 14 9,034.35 9,034.35
Other equity 15 55,559.45 50,287.62
64,593.80 59,321.97
Liabiliti es
Non- current liabiliti es
Financial liabiliti es
Borrowings 16 10,335.76 494.43
Other fi nancial liabiliti es 17 702.05 741.80
Provisions 18 1,644.45 892.48
Deferred tax liabiliti es (net) 30.2 7,376.58 8,079.07
Other non-current liabiliti es 19 741.16 709.67
20,800.00 10,917.45
Current liabiliti es
Financial liabiliti es
Borrowings 16 2,735.85 6,390.68
Trade payables 20
total outstanding dues of micro enterprises and small enterprises 3.25 0.30
total outstanding dues of creditors other than micro
enterprises and small enterprises 607.33 682.57
Other fi nancial liabiliti es 21 6,381.46 6,165.26
Provisions 18 997.63 1,137.79
Current tax liabiliti es (net) 370.53 125.08
Other current liabiliti es 22 1,292.12 1,485.12
12,388.17 15,986.80
Total equity and liabiliti es 97,781.97 86,226.22
For Walker Chandiok & Co LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm Registrati on No. 001076N / N500013
Vijay Sankeshwar Anand Sankeshwar
Bharat Shett y Chairman and Managing Director Managing Director
Partner (DIN: 00217714) (DIN: 00217773)
Membership No: 106815
Sunil Nalavadi Aniruddha Phadnavis
Chief Financial Offi
cer General Manager (Finance)
and Company Secretary
Place : Hubballi Place : Hubballi
Date : 18 May 2019 Date : 18 May 2019
211,746.82 193,655.07
Expenses
Freight, handling and servicing cost 25 147,433.88 131,891.93
Employee benefi ts expense 26 36,667.96 34,577.44
Finance costs 27 1,086.37 1,144.09
Depreciati on and amorti sati on expense 28 10,058.09 9,763.42
Other expenses 29 2,453.06 2,339.26
Tax expense 30
Current tax 5,500.19 5,464.45
Deferred tax credit (644.34) (781.94)
Other comprehensive income for the year, net of tax (288.34) (186.01)
Basic and diluted earnings per share of face value ` 10 each (in `) 31 10.17 10.17
The notes referred to above form an integral part of the fi nancial statements
For Walker Chandiok & Co LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm Registrati on No. 001076N / N500013
Vijay Sankeshwar Anand Sankeshwar
Bharat Shett y Chairman and Managing Director Managing Director
Partner (DIN: 00217714) (DIN: 00217773)
Membership No: 106815
Sunil Nalavadi Aniruddha Phadnavis
Chief Financial Offi
cer General Manager (Finance)
and Company Secretary
Place : Hubballi Place : Hubballi
Date : 18 May 2019 Date : 18 May 2019
For Walker Chandiok & Co LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm Registrati on No. 001076N / N500013
Vijay Sankeshwar Anand Sankeshwar
Bharat Shett y Chairman and Managing Director Managing Director
Partner (DIN: 00217714) (DIN: 00217773)
Membership No: 106815
Sunil Nalavadi Aniruddha Phadnavis
Chief Financial Offi
cer General Manager (Finance)
Place : Hubballi Place : Hubballi and Company Secretary
Date : 18 May 2019 Date : 18 May 2019
For Walker Chandiok & Co LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No. 001076N / N500013
Vijay Sankeshwar Anand Sankeshwar
Bharat Shetty Chairman and Managing Director Managing Director
Partner (DIN: 00217714) (DIN: 00217773)
Membership No: 106815
Sunil Nalavadi Aniruddha Phadnavis
Chief Financial Officer General Manager (Finance)
and Company Secretary
Place : Hubballi Place : Hubballi
Date : 18 May 2019 Date : 18 May 2019
Company Overview
VRL Logistics Limited (the “Company”) is engaged in logistics services dealing mainly in domestic transportation
of goods. Other businesses include bus operations, transport of passengers by air, sale of power and sale of
certified emission reductions (CER) units generated from operation of wind mills. The operations of the Company
are spread all over the country through various branches and transshipment points.
1 Significant Accounting Policies
a) Basis for preparation of financial Statements
These financial statements have been prepared in accordance with the Indian Accounting Standards
(hereinafter referred to as the 'Ind AS'), as notified by Ministry of Corporate Affairs pursuant to Section 133
of the Companies Act, 2013 ('Act') read with the Companies (Indian Accounting Standards) Rules, 2015 as
amended and other relevant provisions of the Act.
The financial statements have been prepared on a historical cost convention and accrual basis, except for
certain financial assets and liabilities measured at fair value and plan assets towards defined benefit plans,
which are measured at fair value.
All assets and liabilities have been classified as current or non-current as per the Company’s normal operating
cycle (twelve months) and other criteria set out in the Schedule III to the Act.
b) Use of estimates and judgements
The estimates and judgements used in the preparation of the financial statements are continuously evaluated
by the Company and are based on historical experience and various other assumptions and factors (including
expectations of future events) that the Company believes to be reasonable under the existing circumstances.
Differences between actual results and estimates are recognised in the period in which the results are known/
materialised.
The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred
after that date but provide additional evidence about conditions existing as at the reporting date.
c) Property, plant and equipment (including Capital work-in-progress)
Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at
historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the
acquisition of the items.
Subsequent cost are included in the asset’s carrying amount or recognized as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Company and
the cost of the item can be measured reliably. The carrying amount of any component accounted for as a
separate asset is derecognised when replaced. All other repairs and maintenance expenses are charged to
Statement of profit or loss during the reporting period in which they are incurred.
Assets acquired but not ready for use are classified under Capital work in progress and are stated at cost
comprising direct cost and related incidental expenses.
d) Investment Property
Investment property is the property that is not occupied by the Company, and which is held to earn rentals
or for capital appreciation, or both. Upon initial recognition, an investment property is measured at cost,
including directly attributable overheads, if any. Subsequent to initial recognition, investment property is
measured at cost less accumulated depreciation and accumulated impairment loss, if any.
VRL Logistics Limited 117 36th Annual Report 2018-19
Summary of the significant accounting policies and other explanatory information for the
year ended 31 March 2019
Any gain or loss on disposal of an investment property is recognised in Statement of profit and loss, unless
any other standard specifically requires otherwise.
Company depreciates the investment property using the straight line method over the useful lives of assets
as prescribed under Part C of Schedule II of the Act
The fair value of investment property is disclosed in the notes. The Fair value is determined by an independent
valuer who holds a recognised and relevant professional qualification and has recent experience in the
location and category of the investment property being valued.
e) Intangible assets
Intangible assets are stated at acquisition cost, net of accumulated amortisation and accumulated impairment
losses, if any. Gains or losses arising from the retirement or disposal of an intangible asset are determined as
the difference between the net disposal proceeds and the carrying amount of the asset and recognised as
income or expense in the Statement of Profit and Loss.
f) Depreciation/Amortisation
i. Depreciation is provided under the straight line method over the useful lives of assets as prescribed under Part
C of Schedule II of the Act except on Vehicles and Wind Turbine Generators (part of Plant and equipment).
Vehicles and Wind Turbine Generators are depreciated over a period of nine years and nineteen years
respectively, based on internal assessment and independent technical evaluation carried out by external
valuer; the management believes that the useful life as mentioned represents the period over which
management expects to use these assets. Hence, the useful life for these assets are different from the useful
life as prescribed under Part C of Schedule II of the Act.
ii. Cost of leasehold improvements is amortised over the period of the lease or its useful life, whichever is lower.
iii. Computer Software is amortized over a period of five years.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
g) Leases
Leases where the company is a lessee and has substantially all the risks and rewards of ownership are
classified as finance leases. Finance leases are capitalised at the lease’s inception at the fair value of the
leased property or, if lower, the present value of the minimum lease payments. The corresponding rental
obligations, net of finance charges, are included in borrowings or other financial liabilities as appropriate.
Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the
Statement of profit and loss over the lease period so as to produce a constant periodic rate of interest on the
remaining balance of the liability for each period.
Leases in which significant portion of the risk and rewards of ownership are not transferred to the Company
as lessee are classified as operating leases. Payment made under operating lease (net of any incentive
received from the lessor) are charged to Statement of Profit and Loss on straight-line-basis over the period of
the lease unless the payment are structured to increase in line with expected general inflation to compensate
for the lessor’s expected inflationary cost increase.
h) Impairment of non-financial assets
Assessment is done at each Balance Sheet date to evaluate whether there is any indication that a non-
financial asset may be impaired. For the purpose of assessing impairment, the smallest identifiable group
of assets that generates cash inflows from continuing use that are largely independent of the cash inflows
VRL Logistics Limited 118 36th Annual Report 2018-19
Summary of the significant accounting policies and other explanatory information for the
year ended 31 March 2019
from other assets or groups of assets, is considered as a cash generating unit. If any such indication exists,
an estimate of the recoverable amount of the asset/cash generating unit is made. Assets whose carrying
value exceeds their recoverable amount are written down to their recoverable amount. Recoverable amount
is higher of an asset’s or cash generating unit’s net selling price and its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the continuing use of an asset and from
its disposal at the end of its useful life. A previously recognised impairment loss is increased or reversed
depending on changes in circumstances. However, the carrying value after reversal is not increased beyond
the carrying value that would have prevailed by charging usual depreciation if there was no impairment.
i) Foreign currency transactions
Functional and presentation currency
The financial statements are presented in currency INR, which is the functional and presentation currency of
the Company.
Foreign currency transactions and balances
i. Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the
date of the transaction.
ii. Monetary assets and liabilities denominated in foreign currencies at the year-end are restated at the
rate of exchange prevailing on the date of the Balance Sheet.
iii. Any exchange difference on account of settlement of foreign currency transactions and restatement of
monetary assets and liabilities denominated in foreign currency is recognised in the Statement of Profit
and Loss.
iv. Non-monetary items are not retranslated at year-end and are measured at historical cost (translated
using the exchange rates at the transaction date), except for non-monetary items measured at fair value
which are translated using the exchange rates at the date when fair value was determined.
j) Financial instruments
A financial instrument is any contract that gives rise to a financial asset in one entity and a financial liability or
equity instrument in another entity.
Financial Assets
Initial recognition
In the case of financial assets, not recorded at fair value through profit or loss (FVPL), financial assets are
recognised initially at fair value plus transaction costs that are directly attributable to the acquisition of the
financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the market place (regular way trades) are recognised on the trade
date, i.e., the date that the Company commits to purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in following categories:
(a) Financial Assets at amortised cost
Financial assets are subsequently measured at amortised cost if these financial assets are held within a
business model with an objective to hold these assets in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified dates, to cash flows that are solely payments
of principal and interest on the principal amount outstanding. Interest income from these financial assets is
r) Trade receivables
A receivable is classified as a ‘trade receivable’ if it is in respect of the amount due on account of services
rendered in the normal course of business. Trade receivables are recognised initially at fair value and
subsequently measured at amortised cost using the EIR method, less provision for impairment.
s) Trade payables
A payable is classified as a ‘trade payable’ if it is in respect of the amount due on account of goods purchased
or services received in the normal course of business. These amounts represent liabilities for goods and
services provided to the Company prior to the end of the financial year which are unpaid. These amounts are
unsecured and are usually settled as per the payment terms stated in the contract. Trade and other payables
are presented as current liabilities unless payment is not due within 12 months after the reporting period.
They are recognised initially at their fair value and subsequently measured at amortised cost using the EIR
method.
t) Taxation
i. Tax expense recognised in profit or loss comprises the sum of deferred tax and current tax not recognised in
other comprehensive income or directly in equity.
ii. Current income tax liabilities and/or assets comprise those obligations to, or claims from, fiscal authorities
relating to the current or prior reporting periods, that are unpaid at the reporting date. Current tax is payable
on taxable profit, which differs from profit or loss in the financial statements. Calculation of current tax is
based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting
period. Deferred income taxes are calculated using the liability method on temporary differences between the
carrying amounts of assets and liabilities and their tax bases.
iii. Deferred tax assets are recognised to the extent it is probable that the underlying tax loss or deductible
temporary difference will be utilised against future taxable income. This is assessed based on the Company’s
forecast of future operations results, adjusted for significant non-taxable income and expenses and specific
limits on the use of any unused tax loss or credit. Deferred tax is not provided on the initial recognition
of goodwill, or on the initial recognition of an asset or liability unless the related transaction is a business
combination or affects tax or accounting profit.
iv. Changes in deferred tax assets or liabilities are recognised as a component of tax income or expense in profit
or loss, except where they relate to items that are recognised in other comprehensive income or directly in
equity, in which case the related deferred tax is also recognised in other comprehensive income or equity,
respectively.
v. Tax credit is recognised in respect of Minimum Alternate Tax (MAT) as per the provisions of Section 115JAA of
the Income Tax Act, 1961 based on convincing evidence that the Company will pay normal income tax within
the statutory time frame and is reviewed at each Balance Sheet date.
u) Provisions and Contingent liabilities
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation.
Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose
existence would be confirmed by the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Company. Such liabilities are disclosed by way of notes to the financial
VRL Logistics Limited 125 36th Annual Report 2018-19
Summary of the significant accounting policies and other explanatory information for the
year ended 31 March 2019
statements. No disclosure is made if the possibility of an outflow on this account is remote.
v) Significant management judgements in applying accounting policies and estimation uncertainty
When preparing the financial statements, management makes a number of judgements, estimates and
assumptions about the recognition and measurement of assets, liabilities, income and expenses. Uncertainty
about these assumptions and estimates could result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in future periods.
Impairment of non-financial assets
In assessing impairment, management estimates the recoverable amount of each asset or cash-generating
unit based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty
relates to assumptions about future operating results and the determination of a suitable discount rate.
Depreciation and useful lives of property, plant and equipment
Property, plant and equipment are depreciated over the estimated useful lives of the assets, after taking
into account their estimated residual value. Management reviews the estimated useful lives and residual
values of the assets annually in order to determine the amount of depreciation to be recorded during any
reporting period. The useful lives and residual values are based on the Company’s historical experience with
similar assets and take into account anticipated technological changes. The depreciation for future periods
is adjusted if there are significant changes from previous estimates.
Recoverability of trade receivable
Judgements are required in assessing the recoverability of overdue trade receivables and determining
whether a provision against those receivables is required. Factors considered include the credit rating of the
counterparty, the amount and timing of anticipated future payments and any possible actions that can be
taken to mitigate the risk of non-payment.
Provisions
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future
outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably
estimated. The timing of recognition and quantification of the liability require the application of judgement
to existing facts and circumstances, which can be subject to change. Since the cash outflows can take
place many years in the future, the carrying amounts of provisions and liabilities are reviewed regularly and
adjusted to take account of changing facts and circumstances.
Defined benefit obligation (DBO)
Management’s estimate of the DBO is based on a number of critical underlying assumptions such as
standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in
these assumptions may significantly impact the DBO amount and the annual defined benefit expenses
Fair value measurement
Management uses valuation techniques to determine the fair value of financial instruments (where active
market quotes are not available) and non-financial assets. This involves developing estimates and assumptions
consistent with how market participants would price the instrument. Management bases its assumptions on
observable data as far as possible but this is not always available. In that case management uses the best
information available. Estimated fair values may vary from the actual prices that would be achieved in an
arm’s length transaction at the reporting date.
w) Recent accounting pronouncements
Gross block Freehold Buildings Plant & Furniture & Offi ce Vehicles Aircarft s Leasehold TOTAL
Land Equipment Fixtures Equipment Improvements
Balance as at 01 April 2017 6,632.84 9,466.82 14,582.11 540.72 2,245.12 50,555.31 2,643.69 600.23 87,266.84
Additi ons 56.19 87.53 385.73 88.44 439.66 1,759.11 - 213.18 3,029.84
128
Depreciati on and amorti sati on charge - 360.11 1,389.67 61.91 522.55 7,378.84 190.01 100.19 10,003.28
Reversal on disposal of assets - - (2.91) - - (158.11) - - (161.02)
Balance as at 31 March 2019 - 1,432.88 5,371.41 267.47 1,752.93 27,623.91 760.04 416.52 37,625.16
Net block
Balance as at 31 March 2018 6,686.66 8,472.78 10,983.19 423.60 1,452.35 31,581.17 2,073.66 497.08 62,170.49
Balance as at 31 March 2019 14,845.01 8,703.89 10,322.29 517.07 1,346.67 32,081.24 1,883.65 431.82 70,131.64
Refer Note 36 for disclosure of contractual commitments for the acquisiti on of Property, plant and equipment.
Refer Note 32 for informati on on Property, plant and equipment pledged as security.
Net block
Balance as at 31 March 2018 254.11
Balance as at 31 March 2019 248.93
Fair value
As at 31 March 2018 1,071.14
As at 31 March 2019 1,049.72
Year ended Year ended
31 March 2019 31 March 2018
Rental income derived from investment properties 143.59 136.18
Direct operating expenses (including repairs and maintenance) - -
generating rental income - -
Income arising from investment properties before depreciation 143.59 136.18
Depreciation 5.18 5.18
Income arising from investment properties (Net) 138.41 131.00
Valuation process
Company obtains independent valuation of its investment properties atleast annually; the best evidence of fair value is
current price in an active market for similar properties. Where such information is not available, Company considers current
price in an active market for properties of different nature or recent prices of similar properties in less active market, adjusted
to reflect those differences.
They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs.
5 Investments
5.75 5.75
Aggregate amount of quoted investment and
market value thereof - -
Aggregate amount of unquoted investments 5.75 5.75
Aggregate amount of impairment in value of - -
investments
2,818.81 2,655.07
2,979.82 2,413.34
Write down of inventory to net realisable value - -
9 Trade receivables (Unsecured, considered good, unless otherwise stated)
Others 7,946.84 8,054.17
Receivables from related parti es (refer note 45)# 6.15 20.51
Trade Receivables which have signifi cant increase in credit risk) 145.00 130.00
Trade receivables - Credit Impaired 8,097.99 8,204.68
Less : Allowance for doubtf ul debts 145.00 130.00
7,952.99 8,074.68
# Includes ` 1.44 lakhs ( 31 March 2018 : `0.45 lakhs) due from a private company in which director of the Company is a director
Refer Note 42 for informati on about credit risk and market risk of trade receivables.
1,260.07 1,851.81
54.09 83.57
1,082.10 1,101.56
133
Balance at the end of the year 90,343,495 9,034.35 90,343,495 9,034.35
In the event of liquidati on of the Company, the holder of equity shares will be enti tled to receive the remaining assets of the Company, aft er
distributi on of all preferenti al amounts, if any, in proporti on to the number of equity shares held by the shareholders.
General reserve:
The reserve is created out of surplus balance of profit of the Company and is a distributable reserve maintained by the Company.
Retained earnings:
Retained earnings pertain to the accumulated earnings by the Company over the years.
135
`750.28 lakhs) is secured by fi rst charge by way of Registered equitable mortgage of land and having interest rate of 9.15% p.a. (31 March 2018 - 9.50% p.a.)
Building situated at Mangalore
iii. Term loan from bank, balance outstanding amounti ng to ` 6,989.60 Lakhs (31 March 2018 : Nil) Repayment will commence aft er 24 months of Moratorium period from date of disbursement.
is secured by fi rst charge by way of Registered equitable mortgage of land situated at Surat, Repayable in 60 EMIs ranging between `62.42 lakhs to ` 103.46 lakhs along with interest and having
Gujarat and Collateral security by registered equitable mortgage of Land and Building situated at interest rate of 9.25% p.a. (31 March 2018 - Nil )
Gulbarga, Davangere, Belgaum and Chitradurga .
The carrying amounts of fi nancial and non fi nancial assets as security for secured borrowings are disclosed in Note 32.
As at As at
31 March 2019 31 March 2018
17 Other non-current fi nancial liabiliti es
Deposits from agents and others 702.05 741.80
702.05 741.80
As at As at
31 March 2019 31 March 2018
a) Employee benefi ts
i) Defi ned Contributi on Plans:
The amount recognised as an expense during the year is ` 2,983.30 lakhs (31 March 2018: ` 3,137.82 lakhs).
Contributi on to Defi ned Contributi on Plans, recognised as expense for the year is as under:
Parti culars Year ended Year ended
31 March 2019 31 March 2018
Employer’s Contributi on to Provident Fund 1,948.34 2,209.24
Employer’s Contributi on to Labour Welfare Fund 3.91 4.31
Employer’s Contributi on to Employees State Insurance Scheme 1,031.05 924.27
I. Valuati ons in respect of Gratuity has been carried out by an independent actuary using the Projected Unit Credit Method,
which recognises each period of service as giving rise to additi onal unit of employee benefi t enti tlement and measures each
unit separately to build up the fi nal obligati on, as at the Balance Sheet Date, based on the following assumpti ons:
XI. The following payments are expected contributions to the defined benefit plan in future years:
2019 700.77
2020 507.37 574.07
2021 418.25 456.09
2022 394.49 386.95
2023 406.29 351.01
2024 353.23
Thereafter 6,370.90 2,772.19
XII. The Company expects to contribute around ` 604 lakhs to the funded plan in financial year 2019-20 for gratuity.
- Compensated absences
The obligation for compensated absences is recognised in the same manner as gratuity and net charge to the Statement of
Profit and Loss for the year is `318.50 lakhs (31 March 2018: ` 460.04 lakhs).
Company assesses the assumptions with the projected long-term plans of growth and prevalent industry standards.
Refer Note 42 for informati on about liquidity risk and market risk of trade payables.
a) The Company has amount due to suppliers under the Micro, Small and Medium Enterprises Development Act, 2006,
(MSMED Act). The disclosure pursuant to the said Act is as under:
As at As at
31 March 2019 31 March 2018
a) The principal amount remaining unpaid to any supplier at the end of the year 3.25 0.30
b) Interest due remaining unpaid to any supplier at the end of the year - -
c) The amount of interest paid by the buyer in terms of secti on 16 of the MSMED - -
Act, 2006, along with the amount of the payment made to the supplier beyond
the appointed day during the year
d) The amount of interest due and payable for the period of delay in making - -
payment (which have been paid but beyond the appointed day during the
year) but without adding the interest specifi ed under the MSMED Act, 2006
e) The amount of interest accrued and remaining unpaid at the end of each - -
accounti ng year
f) The amount of further interest remaining due and payable even in the -
succeeding years, unti l such date when the interest dues above are actually -
paid to the small enterprises, for the purpose of disallowance of a deducti ble
expenditure under secti on 23 of the MSMED Act, 2006
isclosure of payable to vendors as defi ned under the “Micro, Small and Medium Enterprises Development Act, 2006”
D
is based on the informati on available with the Company regarding the status of registrati on of such vendors under
the said Act, as per the inti mati on received from them on requests made by the Company. There are no overdue
principal amounts / interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There
are no delays in payment made to such suppliers during the year or for any earlier years and accordingly there is
no interest paid or outstanding interest in this regard in respect of payment made during the year or on balance
brought forward from previous year.
*There are no amounts due to be transferred to the Investor Educati on and Protecti on Fund as at the year end.
Sale of products
Sale of power 2,208.51 2,172.06
Sale of services
Goods transport 167,500.16 150,668.06
Bus operati ons 37,869.98 35,707.53
Income from hotel operati ons 162.76 163.35
Transport of passengers by air 1,072.22 1,312.97
Courier service 1,025.00 864.00
210,954.40 192,232.03
24 Other income
Rent income 619.80 658.57
Interest income 7.13 95.72
Dividend income from equity investment designated at FVTPL 0.71 0.74
Credit balances writt en back - 51.60
Interest on income tax refund 39.41 -
Service tax refund - 242.88
Profi t on sale of Property, plant and equipment (net) - 28.24
Interest income resulti ng from fair valuati on of security deposits paid - 214.97
Miscellaneous income 125.37 130.32
792.42 1,423.04
36,667.96 34,577.44
27 Finance costs
1,086.37 1,144.09
4855.85 4682.51
30.2 The movement in deferred tax assets and liabiliti es during the year ended 31 March 2018 and 31 March 2019 are
as follows:
c. The above figures for contingent liabilities do not include amounts towards certain additional penalties/interest that may
devolve on the Company in the event of an adverse outcome as the same is subjective and not capable of being presently
quantified.
d. Future cash outflows in respect of (A) above can be determined only on receipt of judgments/decisions pending with
various forums/authorities.
e. The amount disclosed in respect of (B) above represents the estimated liability based on independent legal opinion
obtained by the management in relation to the various cases of Motor Vehicle Accidents, Consumer disputes, Workmen
compensation, etc. filed against the Company.
34 The Department of Stamps and Registration, Government of Karnataka had issued a notice towards stamp duty payable
on acknowledgment of delivery of a letter, article, document, parcel, package or consignment, given by the Company to
the sender of such letter, article, document, etc. in accordance with the Karnataka Stamp Act, 1957 (Article- 1 (ii) of the
Schedule). The Company has challenged the constitutional validity of the said provision by way of Writ Petition before
the Honourable High Court of Karnataka, Circuit Bench at Dharwad. The Writ Petition came-up for hearing and subject to
deposit of a sum of ` 25 lakhs, the authorities have been directed not to take any coercive action and also to determine the
VRL Logistics Limited 146 36th Annual Report 2018-19
Summary of the significant accounting policies and other explanatory information for the
year ended 31 March 2019
(Rupees in Lakhs, except for share data, and if otherwise stated)
Stamp Duty liability. The Company has paid the deposit of ` 25 lakhs but the quantum of Stamp Duty payable is yet to be
arrived at by the department. In the opinion of the management, no financial liability is expected to arise in this regard. The
financial liability that may ultimately devolve upon the Company is currently not ascertainable and as such no amount has
been included as contingent liability towards the same.
“35 The Bhiwandi property admeasuring 240,000 square feet purchased for a total consideration of `3,240 lakhs from M/s
Indian Corporation, represented by its proprietor, Mr.Rudrapratap Urmaliya Tripathi, as a Power of Attorney holder of the
original land owners is registered in the name of VRL by paying appropriate stamp duty and registration fees. The Company
is in actual and physical possession of the property and has been carrying out its business activities in the aforesaid premises
without any hindrance from anybody whatsoever. However, the Company has been facing difficulties in getting its name
updated in the relevant Revenue Records i.e 7/12 extract and has accordingly brought this to the notice of the vendor, who is
trying to solve the matter and get the name of the Company entered into the Revenue Records as the owner of the property.
Considering the fact that the property is already registered in the name of the Company vide Registered Sale Deed and
further since the Company is in actual and physical possession of the property and has been carrying out its business
activities without any hindrance from anybody whatsoever, except that there has been some difficulty in entering the name
of the Company in the Revenue Records, the investment made by the Company is safe and fully recoverable. The Company
has also obtained appropriate legal opinion in this regard to support its view. That however, in case, for any reasons, entering
the name of the Company in the revenue records is not possible, the Vendor has given an option to the Company to
buy back the property at mutually agreed consideration, which shall not be less than the purchase price indicated above.
Management does not expect any financial impairment of the book value of the aforesaid property considering the
representations received from Mr. Rudrapratap Tripathi through his attorney and also the legal opinion obtained by the
Company and accordingly no adjustments have been made to the financial statements to this effect.”
36 Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) - `
12,802.69 lakhs (31 March 2018: ` 41,597.81 lakhs). Commitment relating to lease arrangements (refer note 38) `10,324.31
lakhs (31 March 2018: ` 7,762.30 lakhs).
37 The land whereat 33 Wind Turbine Generators (WTGs) are installed (at Kappatgudda, Gadag District, Karnataka) is
leased to Suzlon Energy Limited by Karnataka Forest Department. Consequently, Suzlon Energy Limited has transferred
the lease in favour of the Company with requisite clearances from Karnataka Forest Department.
38 The Company has entered into Operating lease agreements for godowns and office facilities and such leases include both
cancellable and non-cancellable leases.
Lease rental expense recognized in the Statement of Profit and Loss for the year ended 31 March 2019 in respect of the
operating leases is ` 10,665.46 lakhs (31 March 2018 : ` 9,538.41 lakhs).
Lease rental income recognized in the Statement of Profit and Loss for the year ended 31 March 2019 in respect of operating
leases is `619.80 lakhs (31 March 2018: ` 658.57 lakhs).
Certain non-cancellable operating leases extend upto a maximum of seven years from Balance Sheet Date. Some of such
lease agreements have a price escalation clause. Maximum obligations on long term non-cancellable operating leases in
accordance with the rentals stated in the respective agreements are as under:
As at As at
31 March 2019 31 March 2018
Not later than 1 year 2,036.64 1,427.39
Later than 1 year but not later than 5 years 7,256.36 5,315.89
Later than 5 years 1,031.31 1,019.02
10,324.31 7,762.30
Financial assets
Non-current Security deposits 2,484.38 - - 2,484.38
FVTPL financial investments 5.75 - - 5.75
Other financial assets 334.43 - - 334.43
Financial assets
Non-current Security deposits 2,418.37 - - 2,418.37
FVTPL financial investments 5.75 - - 5.75
Other financial assets 236.70 - - 236.70
As at 31 March 2018
Particulars On demand Less than 6 6 to 12 1 to 5 years Beyond 5 Total
months months years
Borrowings 6,390.68 767.85 584.29 519.47 - 8,262.29
Other financial liabilities - 4,920.98 - 747.81 - 5,668.79
Trade payables - 679.18 3.69 - - 682.87
c) Credit risk
Credit risk arises from cash and bank balances, current and non-current financial assets, trade receivables and other financial
assets carried at amortised cost.
Credit risk management
To manage credit risk, the Company periodically assesses the financial reliability of customers and other counterparties,
taking into account the financial condition, current economic trends, analysis of historical bad debts and ageing of accounts
receivable. Individual risk limits are set accordingly. The Company uses a provision margin to compute the expected credit
loss allowance for trade receivable.
Bank balances are held with only high rated banks. Trade receivables are generally recovered within the credit period.
Accordingly, the provision for impairment is considered immaterial. Also, trade receivables are monitored on periodic basis
for any non-recoverability of the dues.
Trade receivables:
The ageing of trade receivables and expected credit loss analysis on these trade receivables is given in below table:
Particulars Not due 0-60 days 61-180 days 181-365 days above 365 days Total
As at 31 March 2019 4,678.94 2,828.96 401.79 33.66 154.64 8,097.99
As at 31 March 2018 5,349.61 2,366.34 358.39 6.77 123.57 8,204.68
The expected credit loss analysis on these trade receivables is given in below table:
Particulars Amount
As at 01 April 2017 130.00
Provision for doubtful debts -
Bad debts -
As at 31 March 2018 130.00
Provision for doubtful debts 15.00
Bad debts -
As at 31 March 2019 145.00
43 Capital management
43.1 Risk management
The Company’s objectives when managing capital are to
- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and
benefits for other stakeholders, and
- maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, Company may adjust the amount of dividends paid to shareholders.
Particulars As at As at
31 March 2019 31 March 2018
Borrowings # 14,139.91 8,129.39
Less: Cash and cash equivalents (1,260.07) (1,851.81)
Net debt 12,879.84 6,277.58
Equity 64,593.80 59,321.97
Capital and net debt 77,473.64 65,599.55
Gearing ratio 16.62% 9.57%
#Borrowings for the above purpose includes non-current borrowings, current borrowings, current maturities of non current
borrowings and Interest accrued but not due on borrowings.
Particulars As at As at
31 March 2019 31 March 2018
Cash and cash equivalents 1,260.07 1,851.81
Non-current borrowings ( including current maturities) (11,331.84) (1,726.02)
Current borrowings (2,735.85) (6,390.68)
Interest payable (72.22) (12.69)
Net Debt (12,879.84) (6,277.58)
43.3 Dividends
44 Segment Reporting
The Company’s chief operating decision maker - Board of Directors examines the Company’s performance from a product
perspective and has identified four reportable segments of its business as follows:
- Goods transport division: Offers services for the transportation of Goods across India using a range of road transportation
solutions to the customers, including less than full truck load and full truck load. Under this segment, Company also
does courier business for transportation of small parcels and documents using range of multi model solutions.
- Bus operations division: Offers services of transportation solutions through Buses.
- Sale of power division: The wind farm consists of Wind Turbine Generators (WTGs) having individual capacity of 1.25
MW.
- Transport of passengers by air: Offers services for the transportation of passengers by Air through the Aircrafts owned
by the Company. The services are offered to the Individuals and corporate representatives.
No operating segments have been aggregated to form the above reportable operating segments.
Segment results
(Profit before Interest and Taxation from each segment)
15,210.57 13,640.92
a) Goods transport
1,657.05 2,109.91
b) Bus operations
460.93 521.33
c) Sale of power
(215.77) (21.71)
d) Transport of passengers by air
17,112.78 16,250.45
Less: Finance costs (1,086.37) (1,144.09)
Less: Other un-allocable expenditure net of un-allocable income (1,978.95) (1,167.43)
Profit before tax 14,047.46 13,938.93
As per Ind AS 24 “Related party Disclosures”, disclosure of transactions with the related parties as defined in the Accounting
Standard are given below:
a) Names of related parties and description of relationship:
a. Dr.Vijay Sankeshwar (Chairman & Managing Director)
b. Mr.Anand Sankeshwar (Managing Director)
c. Mr. Kalliveerappa Umesh (Executive director) (w.e.f. 19
May 2017)
d. Mr. Ramanand Laxminarayan Bhat (Executive director)
(w.e.f. 04 August 2017)
Key Management Personnel (KMP) and their relatives
e. Mrs.Vani Sankeshwar (President) - relative of director
f. Mrs.Lalitha Sankeshwar - relative of director
g. Mrs.Bharati Holkunde - relative of director
h. Mr. Sunil Nalavadi (Chief Financial Officer)
i. Mr. Aniruddha Phadnavis (Company Secretary)
a. Dr. Prabhakar Kore
b. Mr. J S Korlahalli (till 31 March 2019)
c. Mr. C Karunakar Shetty (till 03 November 2018)
d. Mrs. Medha Pawar
e. Mr. S R Prabhu (till 19 May 2017)
Non executive directors and Independent directors (with f. Mr. Ramesh Shetty (till 04 August 2017)
whom transactions have taken place)
g. Mr. Shankarasa Ladwa
h. Dr. Anand Pandurangi
i. Dr. Ashok Shettar
j. Mrs. Smriti Bellad (from 03 November 2018)
k. Dr. Raghottam Akamanchi
a. Aradhana Trust
b. Ayyappa Bhaktha Vrunda Trust
c. Shiva Agencies
d. Sankeshwar Minerals Private Limited
e. Sankeshwar Printers Private Limited
Enterprises in which KMP or their relative have significant f. VRL Media Limited
influence (with whom transactions have taken place) g. VRL employees group gratuity trust
h. VRL Foundation
i. Vijayanand Infotech Private Limited
j. Hyperkonnect Technologies Private Limited
k. VRL Electronics Private Limited
l. Vijayanand institute of Technologies
Expenditure/Payments
Remuneration/ Dr.Vijay Sankeshwar KMP 389.75 403.88
Commission# Mr.Anand Sankeshwar KMP 300.00 310.00
Mr.Sunil Nalavadi KMP 36.00 32.05
Mr.Aniruddha Phadnavis KMP 32.40 28.40
Mrs.Vani Sankeshwar KMP/ Relative of KMP 18.00 18.75
Mr. Ramanand Laxminarayan KMP 102.00 64.91
Bhat
Mr. Kalliveerappa Umesh KMP 102.00 84.94
Director Sitting Dr. Prabhakar Kore Director 0.50 0.20
fees (excluding Mr. J S Korlahalli Director 1.65 1.40
taxes)
Mr. C Karunakar Shetty Director 1.45 1.49
Mrs. Medha Pawar Director 1.35 0.80
Mr. S R Prabhu Director - 0.10
Mr. Ramesh Shetty Director - 0.10
Mr. Shankarasa Ladwa Director 1.65 1.30
Dr. Anand Pandurangi Director 0.85 0.60
Dr. Ashok Shettar Director 0.45 0.20
Dr. Raghottam Akamanchi Director 0.70 0.50
# This amount does not include amount in respect of gratuity and compensated absences as the same is not determinable.
47 The Company has adopted Ind AS-115, Revenue from Contracts with Customers, with effect from 1 April 2018, which
resulted in changes in accounting policies and adjustments to the amount recognized in the financial statements. In accordance
with the transition provisions in Ind AS -115, the Company has adopted the new rules using modified retrospective method.
As a result of change in accounting policies, adjustments due to the transition provision has been made in respective items
as at 1 April 2018 with corresponding impact to equity net of tax. Details of changes made in relevant items along with
equity has been given in table below :-
48 The Financial Statements were authorised for issue by the Board of directors on 18 May 2019.
For Walker Chandiok & Co LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No. 001076N / N500013
Vijay Sankeshwar Anand Sankeshwar
Bharat Shetty Chairman and Managing Director Managing Director
Partner (DIN: 00217714) (DIN: 00217773)
Membership No: 106815
Sunil Nalavadi Aniruddha Phadnavis
Chief Financial Officer General Manager (Finance)
and Company Secretary
Place : Hubballi Place : Hubballi
Date : 18 May 2019 Date : 18 May 2019