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Accounting Policies of United Foodbrands Ltd. Company
Mar 31, 2025
2. MATERIAL ACCOUNTING POLICIES
2.1 Statement of compliance and basis of
preparation
The standalone financial statements of the Company have
been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the Companies (Indian
Accounting Standards) Rules, 2015 (as amended from
time to time) and presentation requirements of Division
II of Schedule III to the Companies Act, 2013 (as amended
from time to time) [Ind AS compliant Schedule III], as
applicable to the standalone financial statements. The
standalone financial statements have been prepared on
accrual basis under the historical cost basis except for
certain financial instruments that are measured at fair
values, equity settled ESOP at grant date fair value at the
end of each reporting period. The accounting policies and
related notes further described the specific measurements
applied for each of such assets and liabilities.
The standalone financial statements are presented in
INR and all values are rounded to the nearest millions
(INR 000,000), except when otherwise indicated.
The accounting policies adopted in the preparation of the
standalone financial statements are consistent with those
of previous year.
The Company has prepared the standalone financial
statements on the basis that it will continue to operate as
a going concern.
2.2 Summary of material accounting
policies
a. Business combinations and goodwill
Business combinations are accounted for using the
acquisition method. The cost of an acquisition is measured
as the aggregate of the consideration transferred
measured at acquisition date fair value and the amount of
any non-controlling interests in the acquiree. Acquisition-
related costs are recognised in the Statement of Profit
and Loss as incurred.
At the acquisition date, the identifiable assets acquired,
and the liabilities and contingent liabilities assumed are
recognised at their acquisition date fair values. However,
certain assets and liabilities i.e., deferred tax assets or
liabilities, assets or liabilities related to employee benefit
arrangements, liabilities or equity instruments related
to share-based payment arrangements and assets or
disposal groups that are classified as held for sale, acquired
or assumed in a business combination are measured as
per the applicable Ind-AS.
Judgement is applied in determining the acquisition
date and determining whether control is transferred from
one party to another. Control exists when the Company
is exposed to or has rights to variable returns from its
involvement with the entity and has the ability to affect
those returns through power over the entity. In assessing
control, potential voting rights are considered only if the
rights are substantive.
At the acquisition date, goodwill on business combination
is initially measured at cost, being the excess of the sum
of the consideration transferred, the amount recognised
for any non-controlling interests in the acquiree, and the
fair value of the acquirer''s previously held equity interest
in the acquiree (if any) over the net identifiable assets
acquired and the liabilities assumed.
After initial recognition, goodwill is measured at cost less
any accumulated impairment losses. For the purpose
of impairment testing, goodwill acquired in a business
combination is allocated to each of the Company''s cash¬
generating units that are expected to benefit from the
combination, irrespective of whether other assets or
liabilities of the acquiree are assigned to those units.
When additional payments contingent on future events
are negotiated and agreed as part of the business
combination agreement, the Company analyses the
nature as well as economic substance of these payments.
A cash generating unit to which goodwill has been
allocated is tested for impairment annually as at reporting
date. If the recoverable amount of the cash generating
BARBEQUE-NATION HOSPITALITY LIMITED
Notes to the Standalone Financial Statements
For the year ended March 31, 2025
Corporate Identity Number (CIN): L55101KA2006PLC07303
[All amounts in Indian Rupees Millions, unless otherwise stated)
1. CORPORATE INFORMATION
Barbeque-Nation Hospitality Limited (the âCompanyâ),
a public company domiciled in India and incorporated
under the provisions of the Companies Act, 1956. Its
equity shares are listed on the National Stock Exchange
of India Limited (NSE) and BSE Limited (BSE) in India.
The registered office of the Company is located at âSaket
Callipolisâ Unit No. 601 & 602, 6th Floor, Doddakannalli
Village, Varthur Hobli, Sarjapur Road, Bengaluru-560035,
Karnataka, India.
The Company is primarily engaged in the business of
operating casual dining restaurant chain in India.
The standalone financial statements have been approved
by the Board of Directors in their meeting held on May
22, 2025. The standalone financial statements once
approved by the Board of Directors needs to be adopted
by the shareholders at the annual general meeting of the
Company.
2. MATERIAL ACCOUNTING POLICIES
2.1 Statement of compliance and basis of
preparation
The standalone financial statements of the Company have
been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the Companies (Indian
Accounting Standards) Rules, 2015 (as amended from
time to time) and presentation requirements of Division
II of Schedule III to the Companies Act, 2013 (as amended
from time to time) [Ind AS compliant Schedule III], as
applicable to the standalone financial statements. The
standalone financial statements have been prepared on
accrual basis under the historical cost basis except for
certain financial instruments that are measured at fair
values, equity settled ESOP at grant date fair value at the
end of each reporting period. The accounting policies and
related notes further described the specific measurements
applied for each of such assets and liabilities.
The standalone financial statements are presented in
INR and all values are rounded to the nearest millions
(INR 000,000), except when otherwise indicated.
The accounting policies adopted in the preparation of the
standalone financial statements are consistent with those
of previous year.
The Company has prepared the standalone financial
statements on the basis that it will continue to operate as
a going concern.
2.2 Summary of material accounting
policies
a. Business combinations and goodwill
Business combinations are accounted for using the
acquisition method. The cost of an acquisition is measured
as the aggregate of the consideration transferred
measured at acquisition date fair value and the amount of
any non-controlling interests in the acquiree. Acquisition-
related costs are recognised in the Statement of Profit
and Loss as incurred.
At the acquisition date, the identifiable assets acquired,
and the liabilities and contingent liabilities assumed are
recognised at their acquisition date fair values. However,
certain assets and liabilities i.e., deferred tax assets or
liabilities, assets or liabilities related to employee benefit
arrangements, liabilities or equity instruments related
to share-based payment arrangements and assets or
disposal groups that are classified as held for sale, acquired
or assumed in a business combination are measured as
per the applicable Ind-AS.
Judgement is applied in determining the acquisition
date and determining whether control is transferred from
one party to another. Control exists when the Company
is exposed to or has rights to variable returns from its
involvement with the entity and has the ability to affect
those returns through power over the entity. In assessing
control, potential voting rights are considered only if the
rights are substantive.
At the acquisition date, goodwill on business combination
is initially measured at cost, being the excess of the sum
of the consideration transferred, the amount recognised
for any non-controlling interests in the acquiree, and the
fair value of the acquirer''s previously held equity interest
in the acquiree (if any) over the net identifiable assets
acquired and the liabilities assumed.
After initial recognition, goodwill is measured at cost less
any accumulated impairment losses. For the purpose
of impairment testing, goodwill acquired in a business
combination is allocated to each of the Company''s cash¬
generating units that are expected to benefit from the
combination, irrespective of whether other assets or
liabilities of the acquiree are assigned to those units.
When additional payments contingent on future events
are negotiated and agreed as part of the business
combination agreement, the Company analyses the
nature as well as economic substance of these payments.
A cash generating unit to which goodwill has been
allocated is tested for impairment annually as at reporting
date. If the recoverable amount of the cash generating
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unit is less than its carrying amount, the impairment loss
is allocated first to reduce the carrying amount of any
goodwill allocated to the unit and then to the other assets
of the unit pro-rata based on the carrying amount of
each asset in the unit. Any impairment loss for goodwill is
recognised in profit or loss. An impairment loss recognised
for goodwill is not reversed in subsequent periods.
On disposal of the relevant cash-generating unit,
the attributable amount of goodwill is included in the
determination of the profit or loss on disposal.
b. Investment in subsidiaries and associate
The Company''s investments in its subsidiaries and
associate are accounted at cost less impairment.
Impairment of investments
The Company reviews its carrying value of investments
carried at cost annually, or more frequently when there
is indication for impairment. If the recoverable amount
is less than its carrying amount, the impairment loss is
recorded in the Statement of Profit and Loss.
When an impairment loss subsequently reverses, the
carrying amount of the investment is increased to the
revised estimate of its recoverable amount, so that the
increased carrying amount does not exceed the cost
of the investment. A reversal of an impairment loss is
recognised immediately in Statement of Profit or Loss.
c. Current versus non-current classification
The Company segregates assets and liabilities into
current and non-current categories for presentation in
the Balance Sheet after considering the normal operating
cycle and other criteria set out in Ind AS 1, âPresentation
of Financial Statementsâ. For this purpose, current assets
and liabilities include the current portion of non-current
assets and liabilities respectively.
Deferred tax assets and liabilities are always classified as
non-current.
The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash and
cash equivalents. The Company has identified period up to
twelve months as its operating cycle.
d. Foreign currencies
Transactions and balances
Transactions in foreign currency are recorded applying
the exchange rate at the date of transaction. Monetary
assets and liabilities denominated in foreign currency,
remaining unsettled at the end of the year, are translated
at the closing exchange rates prevailing on the Balance
Sheet date.
Exchange differences arising on settlement or translation
of monetary items are recognised in the Statement of
Profit and Loss.
Non-monetary items carried at fair value that are
denominated in foreign currencies are retranslated at
the rates prevailing at the date when the fair value was
determined. Non-monetary items that are measured
in terms of historical cost in a foreign currency are not
retranslated. The gain or loss arising on translation of
non-monetary items measured at fair value is treated in
line with the recognition of the gain or loss on the change
in fair value of the item (i.e., translation differences on
items whose fair value gain or loss is recognised in Other
Comprehensive Income (OCI) or the Statement of Profit
and Loss are also reclassified in OCI or the Statement of
Profit and Loss, respectively).
e. Fair value measurements and hierarchy
The Company measures financial instruments at fair value
at each Balance Sheet date.
Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability
takes place either:
(a) In the principal market for the asset or liability; or
(b) In the absence of a principal market, in the most
advantageous market for the asset or liability.
The principal or the most advantageous market must be
accessible by the Company.
The fair value of an asset or a liability is measured using
the assumptions that market participants would use
when pricing the asset or liability, assuming that market
participants act in their best economic interest.
A fair value measurement of a non-financial asset takes
into account a market participant''s ability to generate
economic benefits by using the asset in its highest and
best use, or by selling it to another market participant that
would use the asset in its highest and best use.
The Company uses valuation techniques that are
appropriate in the circumstances, and for which sufficient
data are available to measure the fair value, maximising
the use of relevant observable inputs and minimising the
use of unobservable inputs.
All assets and liabilities for which fair value is measured
or disclosed in the standalone financial statements are
categorised within the fair value hierarchy based on its
nature, characteristics and risks:
⢠Level 1 - inputs are quoted (unadjusted) market
prices in active markets for identical assets or liabilities
that the entity can access at the measurement date;
⢠Level 2 - valuation techniques for which the lowest level
input that is significant to the fair value measurement is
directly or indirectly observable; and
⢠Level 3 - valuation techniques for which the lowest level
input that is significant to the fair value measurement is
unobservable.
For assets and liabilities that are recognised in the
standalone financial statements on a recurring basis,
the Company determines whether transfers have
occurred between levels in the hierarchy by re-assessing
categorization (based on the lowest level of input that is
significant to the fair value measurement as a whole) at
the end of each reporting period.
f. Government grants
Government grants are recognised where there is
reasonable assurance that the grant will be received, and
all attached conditions will be complied with. When the
grant relates to an expense item, such grant is deducted
from the related expense.
g. Taxes
Current tax
The Income tax expense or credit for the period is the tax
payable on the current period''s taxable income based on
the applicable income tax rate adjusted by changes in
deferred tax assets and liabilities attributable to temporary
differences and to unused tax losses.
Income tax assets and liabilities are measured at the
amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted or
substantively enacted, at the reporting date in India.
Management periodically evaluates positions taken
in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation
and establishes provisions where appropriate.
Deferred tax
Deferred tax is provided using the Balance Sheet approach
on temporary differences between the tax base of assets
and liabilities and their carrying amounts for financial
reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable
temporary differences, except when the deferred tax
liability arises from the initial recognition of goodwill or an
asset or a liability in a transaction that is not a business
combination and, at the time of the transaction, affects
neither the accounting profit nor the taxable profit or loss.
Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused tax
losses. Deferred tax assets are recognised to the extent
that it is probable that taxable profit will be available against
which the deductible temporary differences, and the
carry forward of unused tax losses can be utilised, except
when the deferred tax asset relating to the deductible
temporary difference arises from the initial recognition of
an asset or a liability in a transaction that is not a business
combination and, at the time of the transaction, affects
neither the accounting profit nor the taxable profit or loss.
The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit will
be available to allow all or part of the deferred tax asset
to be utilised. Unrecognised deferred tax assets are re¬
assessed at each reporting date and are recognised to
the extent that it has become probable that future taxable
profits will allow the deferred tax asset to be recovered.
In assessing the recoverability of deferred tax assets, the
Company relies on the same forecast assumptions used
elsewhere in the standalone financial statements.
Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset
is realised, or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted
at the reporting date.
Deferred tax relating to items recognised outside profit
or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items
are recognised in correlation to the underlying transaction
either in OCI or directly in equity.
The Company offsets deferred tax assets and deferred
tax liabilities if and only if it has a legally enforceable right
to set off current tax assets and current tax liabilities and
the deferred tax assets and deferred tax liabilities relate to
income taxes levied by the same taxation authority on the
same taxable entity.
h. Revenue from operations
Revenue from contracts with customers is recognised
when control of the goods or services are transferred to
the customer at an amount that reflects the consideration
to which the Company expects to be entitled in exchange
for those goods or services.
Revenue from sale of food and beverages
Revenue from sale of food and beverages is recognised
at the time of underlying sale to the customer. Revenue
is measured at the fair value of the consideration received
or receivable net of discounts, excluding taxes or duties
collected on behalf of the government.
Goods and Service Tax (GST) and Value Added Tax (VAT) is
not received by the Company in its own account. Rather,
it is tax collected on value added to the commodity by
the seller on behalf of the government. Accordingly, it is
excluded from revenue.
Income from gift voucher
Gift voucher sales are recognised when the vouchers are
redeemed, and the food and beverages are sold to the
customer.
Loyalty points programme
The Company operates a loyalty programme which
allows customers to accumulate points on booking
made through the Company''s mobile-app and website
for dine-in and online mode. The points give rise to a
separate performance obligation as it entitles them for
redemption as settlement of future purchase transaction
price. Consideration received is allocated between the
sale of food and beverages and the points issued, with
the consideration allocated to the points equal to their
fair value. Fair value of points is determined by applying
statistical techniques based on the historical trends.
Consideration allocated to reward points is deferred and
recognised when points are redeemed or when the points
expire. The amount of revenue is based on the value of
points redeemed/expired.
Income from royalty
Royalty arrangements based on sales are recognised at
the time the underlying sales occur.
Interest income
Interest income in relation to financial instruments
measured at amortised cost is recorded using the effective
interest rate (EIR). EIR is the rate that exactly discounts
the estimated future cash payments or receipts over the
expected life of the financial instrument or a shorter period,
where appropriate, to the gross carrying amount of the
financial asset. When calculating the EIR, the Company
estimates the expected cash flows by considering all the
contractual terms of the financial instrument. Interest
income is included in other income in the Statement of
Profit and Loss.
Contract balances
Trade receivables
A receivable is recognised if an amount of consideration
that is unconditional (i.e., only the passage of time is
required before payment of the consideration is due).
Refer to accounting policies of financial assets in section
Financial instruments.
i. Property, plant and equipment
Property, plant and equipment are stated at cost, net of
accumulated depreciation and accumulated impairment
losses, if any. The cost comprises purchase price,
borrowing costs if capitalisation criteria are met, directly
attributable cost of bringing the asset to its working
condition for the intended use and initial estimate of
decommissioning, restoring and similar liabilities. Any
trade discounts and rebates are deducted in arriving at
the purchase price.
Expenditure directly relating to construction activity
are capitalised. Other expenditure incurred during the
construction period which neither are related to the
construction activity nor are incidental thereto, are
charged to the Statement of Profit and Loss.
Subsequent costs are included in the asset''s carrying
amount or recognised 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 de-recognised when replaced. All other repairs
and maintenance are charged to the Statement of Profit
and Loss, during the reporting period in which they are
incurred.
Capital work-in-progress is stated at cost net of
accumulated impairment losses, if any.
Depreciation methods, estimated useful lives and
residual value
Depreciation on property, plant and equipment is
calculated on a straight-line basis over the useful life of
the asset estimated by the Management. Depreciation on
additions is provided on a pro rata basis from the month
of installation or acquisition. Depreciation on deletions/
disposals is provided on a pro rata basis upto the date of
deletions/disposals.
The Company, based on technical assessment made by
technical expert and Management estimate, depreciates
certain property, plant and equipment over estimated
useful lives which are different from the useful life
prescribed in Schedule II to the Companies Act, 2013. The
Intangible assets with indefinite useful lives are not
amortised, but are tested for impairment annually,
either individually or at the cash-generating unit level.
The assessment of indefinite life is reviewed annually
to determine whether the indefinite life continues to be
supportable. If not, the change in useful life from indefinite
to finite is made on a prospective basis.
Management believes that these estimated useful lives
reflect fair approximation of the period over which the
assets are likely to be used.
The Company has used the following rates to provide
depreciation on its property, plant and equipment:
An intangible asset is derecognised upon disposal or no
future economic benefits are expected from its use or
disposal. Any gain or loss arising upon derecognition of
the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset)
is included in the Statement of Profit and Loss when the
asset is derecognised.
Leasehold improvements are amortised on a straight-line
basis over the estimated useful lives of the assets or the
period of lease, whichever is lower.
An item of property, plant and equipment is derecognised
upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising
on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying
amount of the asset) is included in the Statement of Profit
and Loss when the asset is derecognised.
The residual values, useful lives and methods of
depreciation of property, plant and equipment are reviewed
at each financial year end and adjusted prospectively, if
appropriate.
j. Intangible assets
Intangible assets acquired separately are measured on
initial recognition at cost. The cost of intangible assets
acquired in a business combination is their fair value at
the date of acquisition. Internally generated intangibles,
excluding capitalised development costs, are not
capitalised and the related expenditure is reflected in
profit or loss in the period in which the expenditure is
incurred.
The useful lives of intangible assets are assessed as either
finite or indefinite.
Intangible assets with finite lives are amortised over
the useful economic life and assessed for impairment
whenever there is an indication that the intangible
asset may be impaired. The amortisation period and the
amortisation method for an intangible asset with a finite
useful life are reviewed at least at the end of each reporting
period and changes if any, made on prospective basis. The
amortisation expense on intangible assets with finite lives
is recognised in the Statement of Profit and Loss.
k. Borrowing costs
Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily
takes a substantial period of time to get ready for its
intended use or sale (qualifying asset) are capitalised as
part of the cost of the asset. All other borrowing costs
are expensed in the period in which they occur in the
Statement of Profit and Loss.
Borrowing costs consist of interest and other costs that
an entity incurs in connection with the borrowing of funds.
l. Receivable discounting charges
Receivables discounting charges are recognised in
Statement of profit and loss in the period in which they
are incurred.
m. Leases
The Company assesses whether a contract contains a
lease, at inception of a contract. A contract is, or contains,
a lease if the contract conveys the right to control the use
of an identified asset for a period of time in exchange for
consideration.
Company as a lessee
The Company applies a single recognition and
measurement approach for all leases, except for short¬
term leases and leases of low-value assets. The Company
recognises lease liabilities to make lease payments and
right-of-use assets representing the right to use the
underlying assets.
i) Right-of-use assets
The Company recognises right-of-use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost of right-of-use
assets includes the amount of lease liabilities recognised,
initial direct costs incurred, and lease payments made
at or before the commencement date less any lease
incentives received. Right-of-use assets are depreciated
on a straight-line basis over the lease term.
The right-of-use assets are also subject to impairment.
Refer to the accounting policies in section impairment of
non-financial assets.
ii) Lease Liabilities
At the commencement date of the lease, the Company
recognises lease liabilities measured at the present value
of lease payments to be made over the lease term. The
lease payments include fixed payments (including in
substance fixed payments).
In calculating the present value of lease payments,
the Company uses its incremental borrowing rate at
the lease commencement date because the interest
rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of interest
and reduced for the lease payments made. In addition,
the carrying amount of lease liabilities is remeasured
if there is a modification, a change in the lease term,
a change in the lease payments (e.g., changes to
future payments resulting from a change in an index
or rate used to determine such lease payments) or a
change in the assessment of an option to purchase
the underlying asset.
iii) Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition
exemption to its short-term leases (i.e., those leases
that have a lease term of 12 months or less from the
commencement date and do not contain a purchase
option). It also applies the lease of low-value assets
recognition exemption to leases that are considered to
be low value. Lease payments on short-term leases and
leases of low-value assets are recognised as expense on
a straight-line basis over the lease term.
Company as a lessor
Leases in which the Company is an intermediate lessor
and enters into intermediate finance lease are accounted
using Head lease accounting as detailed below:
⢠Derecognise the right-of-use asset under the head
lease which it transfers to the sub lessee;
⢠Recognise the net investment in the sublease as an
asset;
⢠Recognise the difference between the right-of-use
asset and net investment as a gain or loss; and
⢠Continue to recognise the lease liability, i.e. the lease
payments owed the head lessor, for the head lease.
Over the sublease term, the intermediate lessor recognises
the interest income from sublease and the interest
expense for the head lease.
n. Inventories
Inventories are valued at the lower of cost and net
realisable value. Costs of inventories are determined on
a first-in-first-out basis. Cost of inventories include all
costs incurred in bringing the inventories to their present
location and condition. Net realisable value represents the
estimated selling price for inventories less all estimated
costs of completion and costs necessary to make the sale.
o. Impairment of non-financial assets
The Company assesses, at each reporting date, whether
there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for
an asset is required, the Company estimates the asset''s
recoverable amount. An asset''s recoverable amount is
the higher of an asset''s or cash-generating unit''s (CGU)
fair value less costs of disposal and its value in use. The
recoverable amount is determined for an individual asset,
unless the asset does not generate cash inflows that are
largely independent of those from other assets or group
of assets. When the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset.
In determining fair value less costs of disposal, recent
market transactions are taken into account. If no such
transactions can be identified, an appropriate valuation
model is used. These calculations are corroborated by
valuation multiples, quoted share prices for publicly
traded companies or other available fair value indicators.
The Company bases its impairment calculation on detailed
budgets and forecast calculations, which are prepared
separately for each of the Company''s CGUs to which the
individual assets are allocated.
For assets excluding goodwill, an assessment is made
at each reporting date to determine whether there is an
Mar 31, 2024
2. MATERIAL ACCOUNTING POLICIES
2.1 Statement of compliance and basis of preparation
The Standalone Financial Statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III), as applicable to the Standalone Financial Statements. The Standalone Financial Statements have been prepared on accrual basis under the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.
The Standalone Financial Statements are presented in INR and all values are rounded to the nearest Millions (INR 000,000), except when otherwise indicated.
The accounting policies adopted in the preparation of the Standalone Financial Statements are consistent with those of previous year.
The Company has prepared the Standalone Financial Statements on the basis that it will continue to operate as a going concern.
2.2 Summary of material accounting policies
a. Business combinations and goodwill
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred measured at acquisition date fair value and the amount of any non-controlling interests in the acquiree. Acquisition-related costs are recognised in the Statement of Profit and Loss as incurred.
At the acquisition date, the identifiable assets acquired, and the liabilities and contingent liabilities assumed are recognised at their acquisition date fair values. However, certain assets and liabilities i.e., deferred tax assets or liabilities, assets or liabilities related to employee benefit arrangements, liabilities or equity instruments related to share-based payment arrangements and assets or disposal groups that are classified as held for sale, acquired or assumed in a business combination are measured as per the applicable Ind AS.
Judgement is applied in determining the acquisition date and determining whether control is transferred from one party to another. Control exists when the Company is exposed to or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through power over the entity. In assessing control, potential voting rights are considered only if the rights are substantive.
At the acquisition date, goodwill on business combination is initially measured at cost, being the excess of the sum of the consideration transferred, the amount recognised for any non-controlling interests in the acquiree, and the fair value of the acquirer''s previously held equity interest in the acquiree (if any) over the net identifiable assets acquired and the liabilities assumed.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the Company''s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.
A cash generating unit to which goodwill has been allocated is tested for impairment annually as at reporting date. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognised.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
b. Investment in subsidiaries
The Company''s investments in its subsidiaries are accounted at cost less impairment.
Impairment of investments
The Company reviews its carrying value of investments carried at cost annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is recorded in the Statement of Profit and Loss.
c. Current versus non-current classification
The Company presents assets and liabilities in the Balance Sheet based on current/non-current classification.
An asset is treated as current when it is:
⢠Expected to be realised or intended to be sold or consumed in normal operating cycle;
⢠Held primarily for the purpose of trading;
⢠Expected to be realised within twelve months after the reporting period; or
⢠Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
⢠It is expected to be settled in normal operating cycle;
⢠It is held primarily for the purpose of trading;
⢠It is due to be settled within twelve months after the reporting period; or
⢠There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle.
d. Foreign currencies
Transactions and balances
Transactions in foreign currency are recorded applying the exchange rate at the date of transaction. Monetary assets and liabilities denominated in foreign currency, remaining unsettled at the end of the year, are translated at the closing exchange rates prevailing on the Balance Sheet date.
Exchange differences arising on settlement or translation of monetary items are recognised in the Statement of Profit and Loss.
Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognised in Other Comprehensive Income (OCI) or the Statement of Profit and Loss are also reclassified in OCI or the Statement of Profit and Loss, respectively).
e. Fair value measurements and hierarchy
The Company measures financial instruments at fair value at each Balance Sheet date
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
(a) In the principal market for the asset or liability; or
(b) In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their best economic interest.
A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use, or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances, and for which sufficient data are available to measure the fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy based on its nature, characteristics and risks:
⢠Level 1: inputs are quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date;
⢠Level 2: valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and
⢠Level 3: valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorization (based on the lowest level of input that is significant to the fair value measurement as a whole) at the end of each reporting period.
f. Taxes
Current tax
The Income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.
Income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in India.
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences, except when the deferred tax liability arises from the initial recognition of goodwill or an asset or a liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor the taxable profit or loss.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax losses can be utilised, except when the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or a liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor the taxable profit or loss.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced
to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
In assessing the recoverability of deferred tax assets, the Company relies on the same forecast assumptions used elsewhere in the financial statements.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised, or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.
The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on the same taxable entity.
g. Revenue from operations
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.
Revenue from sale of food and beverages
Revenue from sale of food and beverages is recognised at the time of underlying sale to the customer. Revenue is measured at the fair value of the consideration received or receivable net of discounts, excluding taxes or duties collected on behalf of the government.
Goods and Service Tax (GST) and Value Added Tax (VAT) s not received by the Company in its own account. Rather, it is tax collected on value added to the commodity by the seller on behalf
of the government. Accordingly, it is excluded from revenue.
Income from gift voucher
Gift voucher sales are recognised when the vouchers are redeemed, and the food and beverages are sold to the customer.
Loyalty points programme
The Company operates a loyalty programme which allows customers to accumulate points on booking made through the Company''s mobile-app and website for dine-in and online mode. The points give rise to a separate performance obligation as it entitles them for redemption as settlement of future purchase transaction price. Consideration received is allocated between the sale of food and beverages and the points issued, with the consideration allocated to the points equal to their fair value. Fair value of points is determined by applying statistical techniques based on the historical trends.
Consideration allocated to reward points is deferred and recognised when points are redeemed or when the points expire. The amount of revenue is based on the value of points redeemed/expired.
Income from royalty
Royalty arrangements based on sales are recognised at the time the underlying sales occur.
Interest income
Interest income in relation to financial instruments measured at amortised cost is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset. When calculating the EIR, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument. Interest income is included in other income in the Statement of Profit and Loss.
h. Property, plant and equipment
Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalisation criteria are met, directly attributable cost of bringing the asset to its working condition for the intended use and initial estimate of
decommissioning, restoring and similar liabilities. Any trade discounts and rebates are deducted in arriving at the purchase price.
Expenditure directly relating to construction activity are capitalised. Other expenditure incurred during the construction period which neither are related to the construction activity nor are incidental thereto, are charged to the Statement of Profit and Loss.
Subsequent costs are included in the asset''s carrying amount or recognised 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 de-recognised when replaced. All other repairs and maintenance are charged to the Statement of Profit and Loss, during the reporting period in which they are incurred.
Capital work-in-progress is stated at cost net of accumulated impairment losses, if any.
Depreciation methods, estimated useful lives and residual value
Depreciation on property, plant and equipment is calculated on a straight-line basis over the useful life of the asset estimated by the management. Depreciation on additions is provided on a pro rata basis from the month of installation or acquisition. Depreciation on deletions/disposals is provided on a pro rata basis upto the date of deletions/disposals.
The Company, based on technical assessment made by technical expert and management estimate, depreciates certain property, plant and equipment over estimated useful lives which are different from the useful life prescribed in Schedule II to the Companies Act, 2013. The management believes that these estimated useful lives reflect fair approximation of the period over which the assets are likely to be used.
Leasehold improvements are amortised on a straight-line basis over the estimated useful lives of the assets or the period of lease, whichever is lower.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit and Loss when the asset is derecognised.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.
i. Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred.
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period and changes if any, made on prospective basis. The amortisation expense on intangible assets with finite lives is recognised in the Statement of Profit and Loss.
Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cashgenerating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.
An intangible asset is derecognised upon disposal or no future economic benefits are expected from its use or disposal. Any gain or loss arising upon derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit and Loss when the asset is derecognised.
j. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur in the Statement of Profit and Loss.
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.
k. Receivable discounting charges
Receivables discounting charges are recognised in Statement of profit and loss in the period in which they are incurred.
l. Leases
The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Company as a lessee
The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.
i) Right-of-use assets
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the lease term.
The right-of-use assets are also subject to impairment. Refer to the accounting policies in Section (n) Impairment of non-financial assets.
ii) Lease Liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments).
In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement
date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.
iii) Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.
m. Inventories
Inventories are valued at the lower of cost and net realisable value. Costs of inventories are determined on a first-in-first-out basis. Cost of inventories include all costs incurred in bringing the inventories to their present location and condition. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.
n. Impairment of non-financial assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets. When the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.
The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Company''s CGUs to which the individual assets are allocated.
For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset''s or CGU''s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset''s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the Statement of Profit and Loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.
Goodwill is tested for impairment annually as at reporting date. Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than it''s carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods.
Intangible assets with indefinite useful lives are tested for impairment annually as at reporting date as appropriate, and when circumstances indicate that the carrying value may be impaired.
Mar 31, 2023
Significant accounting policies
2.1 Statement of compliance:
These financial statements have been prepared
to comply in all material aspects with the ''Indian
Accounting Standards''("Ind AS") notified under
section 133 of the Companies Act, 2013 (the "Act")
read with Companies (Indian Accounting Standards)
Rules, 2015 and relevant amendment rules issued
thereafter, as applicable to the Company, and other
relevant provisions of the Act. The accounting
policies adopted in the preparation of the financial
statements are consistent with those followed in
the previous year except where a newly-issued
accounting standard is initially adopted or a revision
to an existing accounting standard requires a change
in the accounting policy hitherto in use.
2.2 Basis of preparation and presentation
The financial statements have been prepared in
accordance with the historical cost basis except for
certain financial instruments that are measured at
fair values at the end of each reporting period, as
explained in the accounting policies below.
Historical cost is generally based on the fair
value of the consideration given in exchange for
goods and services.
Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date, regardless of whether that price
is directly observable or estimated using another
valuation technique. In estimating the fair value
of an asset or a liability, the Company takes into
account the characteristics of the asset or liability if
market participants would take those characteristics
into account when pricing the asset or liability at the
measurement date.
In addition, for financial reporting purposes, fair
value measurements are categorised into Level
1, 2, or 3 based on the degree to which the inputs
to the fair value measurements are observable
and the significance of the inputs to the fair
value measurement in its entirety, which are
described as follows:
(a) Level 1 inputs are quoted prices (unadjusted)
in active markets for identical assets or
liabilities that the entity can access at the
measurement date;
(b) Level 2 inputs are inputs, other than quoted
prices included within Level 1, that are
observable for the asset or liability, either
directly or indirectly; and
(c) Level 3 inputs are unobservable inputs for the
asset or liability.
Revenue is recognized at an amount that reflects the
consideration to which the Company expects to be
entitled in exchange for transferring the goods or
services to a customer.
Revenue from sale of food and beverages is
recognized at the time of underlying sale to the
customer. Revenue is presented net of discounts
given to the customers and any taxes collected
from customers for remittance to the government.
In case of discount to customers in the form of
"Smilesâ, the value of such discount is determined
based on the percentage of redemption in the past.
Customer purchases of gift cards are recognized as
sales upon redemption of gift card or upon expiry.
Revenue from displays and sponsorships are
recognized in the period in which the products or the
sponsor''s advertisements are promoted/displayed.
Royalty arrangements based on sales are recognised
at the time the underlying sales occur.
Government incentives are accrued for based
on fulfilment of eligibility criteria for availing the
incentives and when there is no uncertainty in
receiving the same. These incentives include
estimated realisable values/benefits from
special import licenses and benefits under Serve
From India Scheme.
Interest income is accrued on a time basis, by
reference to the principal outstanding and at the
effective interest rate applicable, which is the
rate that exactly discounts estimated future cash
receipts through the expected life of the financial
asset to that asset''s net carrying amount on
initial recognition.
Acquisitions of businesses are accounted for
using the acquisition method. The consideration
transferred in a business combination is measured
at fair value, which is calculated as the sum of the
acquisition-date fair values of the assets transferred
by the Company, liabilities incurred by the Company
to the former owners of the acquiree and the equity
interests issued by the Company in exchange of
control of the acquiree. Acquisition-related costs are
generally recognised in Statement of profit and loss
as incurred. At the acquisition date, the identifiable
assets acquired and the liabilities assumed are
recognised at their fair value.
Goodwill is measured as the excess of the sum of
the consideration transferred, the amount of any
non-controlling interests in the acquiree, and the
fair value of the acquirer''s previously held equity
interest in the acquiree (if any) over the net of the
acquisition-date amounts of the identifiable assets
acquired and the liabilities assumed.
Business combinations involving entities or
businesses under common control are accounted
for using the pooling of interest method. The assets
and liabilities of the combining entities are reflected
at their carrying amounts. The difference, if any,
between the amount recorded as share capital issued
plus any additional consideration in the form of cash
or other assets and the amount of share capital of
the transferor is transferred to capital reserve.
Goodwill arising on an acquisition of a business
is carried at cost as established at the date of
acquisition of the business less accumulated
impairment losses, if any. For the purposes of
impairment testing, goodwill is allocated to the
Company''s cash-generating units.
A cash-generating unit to which goodwill has been
allocated is tested for impairment annually, or more
frequently when there is an indication that the unit
may be impaired. If the recoverable amount of the
cash-generating unit is less than its carrying amount,
the impairment loss is allocated first to reduce the
carrying amount of any goodwill allocated to the
unit and then to the other assets of the unit pro rata
based on the carrying amount of each asset in the
unit. Any impairment loss for goodwill is recognised
directly in profit or loss.
2.6 Property, Plant and Equipment
Property, Plant and Equipment are carried at cost
less accumulated depreciation and impairment
losses, if any. The cost of Property, Plant and
Equipment comprises its purchase price net of any
trade discounts and rebates, any import duties
and other taxes (other than those subsequently
recoverable from the tax authorities), any directly
attributable expenditure on making the asset ready
for its intended use, other incidental expenses.
An item of property, plant and equipment is
derecognised upon disposal or when no future
economic benefits are expected to arise from the
continued use of the asset. Any gain or loss arising
on the disposal or retirement of an item of property,
plant and equipment is determined as the difference
between the sales proceeds and the carrying
amount of the asset and is recognised in Statement
of profit and loss.
Depreciable amount for assets is the cost of asset less
its estimated residual value. Depreciation on tangible
assets have been provided on the straight-line
method. The estimated useful lives, residual values
and depreciation method are reviewed at the end
of each reporting period, with the effect of any
changes in estimate accounted for on a prospective
basis. The useful life of assets is given below:
Leasehold improvements Amortised over the
period of the lease
Furniture and fittings 10 Years
Plant & machinery 15 Years
Service equipments 10 Years
Computer equipments 3-6 Years
Vehicles 8 Years
Acquired Intangible Assets - Intangible assets
with finite useful lives that are acquired
separately are carried at cost less accumulated
amortisation and accumulated impairment losses.
Amortisation is recognised on a straight-line basis
over their estimated useful lives. The estimated
useful life and amortisation method are reviewed at
the end of each reporting period, with the effect of
any changes in estimate being accounted for on a
prospective basis. Intangible assets with indefinite
useful lives that are acquired separately are carried
at cost less accumulated impairment losses.
Intangible assets acquired in a business combination
and recognised separately from goodwill are initially
recognised at their fair value at the acquisition date
(which is regarded as their cost). Subsequent to initial
recognition, intangible assets acquired in a business
combination are reported at cost less accumulated
amortisation and accumulated impairment losses,
on the same basis as intangible assets that are
acquired separately.
Liquor licenses with Amortised over
perpetual term purchased the lease term of
for restaurant chain business: the respective
restaurants
Software and other licenses 3 Years
Brand name Indefinite useful life
An intangible asset is derecognised on disposal, or
when no future economic benefits are expected
from use or disposal. Gains or losses arising from
derecognition of an intangible asset, measured as
the difference between the net disposal proceeds
and the carrying amount of the asset, are recognised
in Statement of profit and loss when the asset
is derecognised.
Investment in subsidiaries are measured at cost
less impairment.
I nventories are stated at the lower of cost and net
realisable value. Costs of inventories are determined
on a first-in-first-out basis. Cost of inventories
include all costs incurred in bringing the inventories
to their present location and condition. Net realisable
value represents the estimated selling price for
inventories less all estimated costs of completion
and costs necessary to make the sale.
Financial assets and financial liabilities:
Financial assets and financial liabilities are
recognised when the Company becomes a party to
the contractual provisions of the instruments.
Initial recognition and measurement:
Financial assets and financial liabilities are
initially measured at fair value, except for trade
receivables that do not have a significant financing
component which are measured at transaction
price. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss)
are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate,
on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets
or financial liabilities at fair value through profit or
loss are recognised immediately in statement of
profit and loss.
Financial assets at amortised cost: Financial assets
are subsequently measured at amortised cost if these
financial assets are held within a business model
whose objective is to hold these assets in order to
collect contractual cash flows and contractual terms
of financial asset give rise on specified dates to
cash flows that are solely payments of principal and
interest on the principal amount outstanding.
Financial Assets at fair value through other
comprehensive Income: Financial assets are
measured at fair value through other comprehensive
income if these financial assets are held within
business model whose objective is achieved by both
collecting contractual cash flows on specified dates
that are solely payments of principal and interest
on the principal amount outstanding and selling
financial assets.
Financial assets at fair value through profit or loss:
Financial assets are measured at fair value through
profit or loss unless it measured at amortised cost
or fair value through other comprehensive income
on initial recognition. The transaction cost directly
attributable to the acquisition of financial assets
and liabilities at fair value through profit or loss
are immediately recognised in the statement of
profit and loss.
Financial liabilities are measured at amortised
cost at the end of subsequent accounting periods.
The carrying amounts of financial liabilities that
are subsequently measured at amortised cost are
determined based on the effective interest method.
The effective interest method is a method of
calculating the amortised cost of a financial liability
and of allocating interest expense over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash payments
(including all fees and points paid or received that
form an integral part of the effective interest rate,
transaction costs and other premiums or discounts)
through the expected life of the financial liability,
or (where appropriate) a shorter period, to the net
carrying amount on initial recognition.
Equity Instrument
An equity instrument is a contract that evidences
residual interest in the assets of the company after
deducting all of its liabilities. Equity instruments
recognised by the Company are recognised at the
proceeds received net off direct issue cost.
Impairment of financial assets (other than at Fair
value)
The Company assesses at each date of balance
sheet, whether a financial asset or a Company of
financial assets is impaired. Ind AS 109 requires
expected credit losses to be measured though a
loss allowance. The Company recognises lifetime
expected losses for all contract assets and / or all
trade receivables that do not constitute a financing
transaction. For all other financial assets, expected
credit losses are measured at an amount equal to
the twelve-month expected credit losses or at an
amount equal to the life time expected credit losses
if the credit risk on the financial asset has increased
significantly, since initial recognition.
Derecognition of financial assets
The Company derecognises a financial asset when
the contractual rights to the cash flows from the
asset expire, or when it transfers the financial
asset and substantially all the risks and rewards of
ownership of the asset to another party.
On derecognition of a financial asset in its entirety,
the difference between the asset''s carrying amount
and the sum of the consideration received and
receivable and the cumulative gain or loss that
had been recognised in other comprehensive
income and accumulated in equity is recognised
in Statement of profit and loss if such gain or loss
would have otherwise been recognised in Statement
of profit and loss on disposal of that financial asset.
Derecognition of financial liabilities
The Company derecognises financial liabilities
when, and only when, the Company''s obligations are
discharged, cancelled or have expired. The difference
between the carrying amount of the financial liability
derecognised and the consideration paid and
payable is recognised in Statement of profit and loss.
The transaction costs of an equity transaction
are accounted for as a deduction from equity to
the extent they are incremental costs directly
attributable to the equity transaction.
2.12 Cash and cash equivalents
Cash comprises cash on hand and demand deposits
with banks. Cash equivalents are short-term, highly
liquid investments that are readily convertible to
known amounts of cash and which are subject to an
insignificant risk of changes in value.
2.13 Foreign Currency transactions and translations
The functional currency of the Company is
Indian Rupee (Rs.).
Transactions in foreign currencies are recorded
at the exchange rate prevailing on the date of
transaction. At the end of each reporting period,
monetary items denominated in foreign currencies
are retranslated at the rates prevailing at that
date. Non-monetary assets and liabilities that
are measured in terms of historical cost in foreign
currencies are not retranslated.
Exchange differences on monetary items are
recognised in statement of profit and loss in the
period in which they arise except for exchange
differences on foreign currency borrowings relating
to assets under construction for future productive
use, which are included in the cost of those assets
when they are regarded as an adjustment to interest
costs on those foreign currency borrowings.
2.14 Employee Benefits
Defined Contribution Plan
The Company''s contribution to provident fund,
superannuation fund and employee state insurance
scheme are considered as defined contribution
plans and are recognised as an expense when
employees have rendered service entitling them to
the contributions.
For defined benefit plans in the form of gratuity
fund, the cost of providing benefits is determined
using the projected unit credit method, with
actuarial valuations being carried out at the
end of each reporting period. Remeasurement,
comprising actuarial gains and losses is recognised
in other comprehensive income in the period in
which they occur.
The undiscounted amount of short-term employee
benefits expected to be paid in exchange for the
services rendered by employees are recognised
during the year when the employees render the
service. These benefits include performance
incentive and compensated absences which are
expected to occur within twelve months after the
end of the period in which the employee renders the
related service.
The cost of short-term compensated absences is
accounted as under:
(a) in case of accumulated compensated
absences, when employees render the services
that increase their entitlement of future
compensated absences; and
(b) in case of non-accumulating compensated
absences, when the absences occur.
Compensated absences which are not expected
to occur within twelve months after the end of the
period in which the employee renders the related
service are recognised as a liability at the present
value of the defined benefit obligation as at the
balance sheet date less the fair value of the plan
assets out of which the obligations are expected to
be settled. Long Service Awards are recognised as a
liability at the present value of the defined benefit
obligation as at the balance sheet date.
The Code on Social Security, 2020 (''Code'') relating
to employee benefits during employment and
post-employment benefits received Presidential
assent in September 2020. The Code has been
published in the Gazette of India. However, the
date on which the Code will come into effect has
not been notified. The Company will assess the
impact of the Code when it comes into effect and
will record any related impact in the period the Code
becomes effective
2.15 Share based payment transaction
Equity-settled share-based payments to employees
are measured at the fair value of the equity
instruments at the grant date. The fair value
determined at the grant date of the equity-settled
share-based payments is expensed on a
straight-line basis over the vesting period, based on
the Company''s estimate of equity instruments that
will eventually vest, with a corresponding increase
in equity. At the end of each reporting period, the
Company revises its estimate of the number of
equity instruments expected to vest. The impact
of the revision of the original estimates, if any, is
recognised in Statement of profit and loss such
that the cumulative expense reflects the revised
estimate, with a corresponding adjustment to the
equity-settled employee benefits reserve.
2.16 Borrowing Costs
Borrowing costs include:
(a) interest expense calculated using the effective
interest rate method and
(b) exchange differences arising from foreign
currency borrowings to the extent that they are
regarded as an adjustment to interest costs.
Borrowing costs directly attributable to the
acquisition, construction or production of qualifying
assets, which are assets that necessarily take a
substantial period of time to get ready for their
intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially
ready for their intended use or sale.
Interest income earned on the temporary investment
of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing
costs eligible for capitalisation.
All other borrowing costs are recognised in
Statement of profit and loss in the period in which
they are incurred.
The Company assesses whether a contract contains
a lease, at inception of a contract. A contract is,
or contains, a lease if the contract conveys the
right to control the use of an identified asset for
a period of time in exchange for consideration.
At the date of commencement of the lease, the
Company recognizes a right-of-use asset ("ROUâ)
and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for leases
with a term of twelve months or less (short-term
leases) and low value leases. For these short-term
and low value leases, the Company recognizes
the lease payments as an operating expense on a
straight-line basis over the term of the lease.
Certain lease arrangements include the options to
extend or terminate the lease before the end of the
lease term. ROU assets and lease liabilities includes
these options when it is reasonably certain that they
will be exercised.
Further, in respect of lease contracts of its outlet
premises, the Company has elected not to separate
non-lease components from lease components,
and instead account for each lease component and
any associated non-lease components as a single
lease component.
Measurement of the right-of use asset:
At the commencement date, the right-of-use asset
is measured at cost and comprises:
⢠the amount of the initial measurement of the
lease liability, to which is added, if applicable,
any lease payments made at or before
the commencement date, less any lease
incentives received;
⢠where relevant, any initial direct costs incurred
by the lessee for the conclusion of the contract.
These are incremental costs which would not
have been incurred if the contract had not
been concluded;
⢠estimated costs for restoration and dismantling
ofthe leased asset according to the terms of the
contract, through a return obligation liability or
provision determined as a discounted amount
of the restoration and dismantling costs.
Following the initial recognition, the right-of-use
asset is depreciated from the commencement
date on a straight-line basis over the lease term.
Right-of-use assets are evaluated for recoverability
whenever events or changes in circumstances
indicate that their carrying amounts may not be
recoverable. For the purpose of impairment testing,
the recoverable amount (i.e. the higher of the
fair value less cost to sell and the value-in-use) is
determined on an individual asset basis unless the
asset does not generate cash flows that are largely
independent of those from other assets. In such
cases, the recoverable amount is determined for
the Cash Generating Unit (CGU) to which the
asset belongs.
Measurement of the lease liability
At the commencement date, the lease liability is
recognized for an amount equal to the present value
of the lease payments over the lease term.
Amounts involved in the measurement of the
lease liability are:
⢠fixed payments (including in-substance fixed
payments; meaning that even iftheyarevariable
in form, they are in-substance unavoidable);
⢠variable lease payments that depend on
an index or a rate, initially measured using
the index or the rate in force at the lease
commencement date;
⢠amounts expected to be payable by the lessee
under residual value guarantees;
⢠payments of penalties for terminating the
lease, if the lease term reflects the lessee
exercising an option to terminate the lease.
The lease liability is subsequently measured based
on a process similar to the amortized cost method
using the discount rate:
⢠the liability is increased by the accrued interests
resulting from the discounting of the lease
liability, at the beginning of the lease period;
⢠less payments made. The interest cost for the
period as well as variable payments, not taken
into account in the initial measurement of the
lease liability and incurred over the relevant
period are recognized as costs.
In addition, the lease liability may be remeasured in
the following situations:
⢠change in the lease term,
⢠modification related to the assessment of
the reasonably certain nature (or not) of the
exercise of an option,
⢠remeasurement linked to the residual
value guarantees,
⢠adjustment to the rates and indices according
to which the rents are calculated when rent
adjustments occur.
Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments
have been classified as financing cash flows.
I ncome tax expense represents the sum of the tax
currently payable and deferred tax.
Current tax: The tax currently payable is based on
taxable profit for the year. Taxable profit differs from
''profit before tax'' as reported in the Standalone
statement of profit and loss because of items of
income or expense that are taxable or deductible
in other years and items that are never taxable
or deductible. The current tax is calculated using
tax rates that have been enacted or substantively
enacted by the end of the reporting period.
Deferred tax: Deferred taxis recognised on temporary
differences between the carrying amounts of assets
and liabilities in the financial statements and the
corresponding tax bases used in the computation
of taxable profit. Deferred tax liabilities are generally
recognised for all taxable temporary differences.
Deferred tax assets are generally recognised for
all deductible temporary differences to the extent
that it is probable that taxable profits will be
available against which those deductible temporary
differences can be utilised. Such deferred tax assets
and liabilities are not recognised if the temporary
difference arises from the initial recognition of
assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.
In addition, deferred tax liabilities are not recognised
if the temporary difference arises from the initial
recognition of goodwill.
A deferred tax asset is recognised on the carry
forward of unused tax losses and unused tax credits
to the extent that it is probable that future taxable
profit will be available against which the unused tax
losses and unused tax credits can be utilised.
The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to
allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at
the tax rates that are expected to apply in the period
in which the liability is settled or the asset realised,
based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the
reporting period.
The measurement of deferred tax liabilities and
assets reflects the tax consequences that would
follow from the manner in which the Company
expects, at the end of the reporting period, to
recover or settle the carrying amount of its assets
and liabilities.
Current and deferred tax For the period
Current and deferred tax are recognised in
Statement of profit and loss, except when they relate
to items that are recognised in other comprehensive
income or directly in equity, in which case, the
current and deferred tax are also recognised
in other comprehensive income or directly in
equity respectively.
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