Future Consumer Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2020

1. The Company is engaged in the business of Branding, Manufacturing, Processing, Selling and Distribution of "Consumer Products" which constitutes a single reporting segment. Hence there is no separate reportable segment as per Indian Accounting Standard - 108 'Operating Segments'.

2. During the quarter, the Company has infused additional investments of Rs. 1,500 lakhs in Aadhaar Wholesale Trading and Distribution Limited its Subsidiary, Rs. 300 lakhs in Fonterra Future Dairy' Private Limited, its joint venture and Rs. 500 lakhs in Hain Future Natural Products Private Limited, its joint venture.

3. The Company has adopted modified retrospective approach as per para C8 (c) (i) of Ind AS 116 - eLeases' effective April 1, 2019. This has resulted in recognizing a right-of-use asset of Rs. 6,223.57 lakhs, a corresponding lease liability of Rs. 6,913.38 lakhs (net of prepayments of Rs. 23.32 lakhs) and decrease in other equity by Rs. 463.94 lakhs (net of tax of Rs. 249.20 lakhs) as at April 1, 2019. Resulting impact in the financial results for the quarter ended March 31, 2020 is increase of Rs. 408.55 lakhs (Rs. 1,497.96 lakhs for the year ended March 31, 2020) and Rs. 171.55 lakhs (Rs. 710.24 lakhs for the year ended March 31, 2020) in depreciation cost for the right of use assets and finance cost on lease liability respectively and decrease in lease rent cost of Rs. 589.90 lakhs (Rs. 1,942.86 lakhs for the year ended March 31,2020).

4. Employee benefits expense during the quarter ended March 31, 2020 is net of reversal of Rs. 535.82 lakhs (Rs. 1,052.71 lakhs for the year ended March 31, 2020) relating to excess provision no longer required.

5. Exceptional items for the quarter ended March 31, 2020 include impairment loss on certain investments in subsidiaries and joint ventures amounting to Rs. 2,7614.56 lakhs ( Rs. 2,7625.86 lakhs for the year ended March 31, 2020), impairment of brand of Rs. 400 lakhs ( Rs. 400 lakhs for the year ended March 31, 2020) and write off of inter corporate loan amounting to Rs. 712.77 lakhs ( Rs. 1,136.88 lakhs for the year ended March 31, 2020).

6. Other expenses includes, Expected Credit Loss on trade and other receivables for the quarter ended March 31, 2020 - Rs. 7,872.12 lakhs (Previous period: Rs. 20.49 lakhs) and for the year ended March 31, 2020 - Rs. 7,901.42 lakhs (Previous year: Rs. 23.62 lakhs).

7. Issued and paid up share capital of the Company has been reduced by 7,05,500 shares due to acquisition of treasury shares by the ESOP trust and increased by 12,20,000 shares due to exercise of stock options during the year ended March 31,2020.

8. Disclosures under regulation 52(4) and 54(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 in respect of Non-Convertible Debentures are as follows :
For Table, kindly refer Corporate Announcements on www.bseindia.com.

Interest and Principal has been paid on due dates
*The rating of debentures has changed to CARE A- (Single A minus) (Credit watch with negative implications) w.e.f. May 19, 2020

9. The Listed Secured Non-Convertible Debentures of the Company aggregating to Rs. 20 crores as on March 31, 2020 are secured by way of Debenture Trustee and unconditional and irrevocable guarantee of Mr Kishore Biyani, Director of the Company, for principal and its of the said listed Non-Convertible Debentures.

10. Formula for computation of ratios are as follows :
(a) Paid up Debt Capital = (Long term borrowings + Short term borrowings + Current maturities of Long term borrowings + Short term
(b) Debt Equity Ratio ¡ (Long term borrowings + Short term borrowings + Current maturities of Long term borrowings + Short term L
(c) Debt Service Coverage Ratio = (Profit before tax + Interest on long-term borrowings + Interest on Lease Liabilities) / (Interest on lor
(d) Interest Service Coverage Ratio = (Profit before tax + Interest on long-term borrowings + Interest on Lease Liabilities) / (Interest on For the purpose of calculation, loans having original maturity of more than 365 days are considered as long-term borrowings.

11. The outbreak of Coronavirus (COVID-19) pandemic globally and in India impacted the business from mid-March, followed by a nationwide lockdown announced on 24th March, 2020. At FCL and in the rest of the country it caused significant disturbance and slowdown of economic activity. Though, in the latest extension dated effective 1 June 2020, the Government has given several relaxations from lockdown, the level of economic activity in the country continues to be curtailed.

Since the lockdown has started from last week of March 2020, it did not have any significant impact on operations of the Company for FY19-20. However due to lockdown related restrictions, the sales performance subsequent to March 2020 is impacted. The Company is engaged in the essential commodities and was allowed to carry on certain activities though it has faced issues in the supply chain due to severe transport restrictions and it has also hampered smooth operations of the entire organisation across warehouses, packing centres and administrative offices. Across the value chain, our suppliers faced similar problems impacting our ability to be consistent with supplies and sales. Employees health and safety was an important priority, social distancing efforts and government regulations were adhered to ensure continuous supply of essential products.

Further, during the lockdown period, most of our retail- channel partner stores remained closed for operations and stores that were opened, operated for restricted hours as directed by local authorities and customer footfalls were significantly lower than normal during the lockdown. Hence, it has adversely impacted the sales performance post March 2020.

In finalising these financial results, the Company has considered various internal and external sources of information and indicators of economic forecasts, including the impact of Covid-19 while assessing the carrying amounts of current and non-current assets and its repayment obligations on a timely basis upto the date of approval of these financial results. However, the impact of the global health pandemic and other events may be different from that estimated as at the date of approval of these financial results and the Company will continue to closely monitor any material changes to future economic conditions.

12. The figures for the corresponding previous period have been regrouped/reclassified wherever necessary, to make them comparable.
Figures for the quarter ended March 31, 2020 and March 31,2019 are the balancing figures between audited figures in respect of the full financial years ended on those dates and the published reviewed year-to-date figures upto the third quarter of the respective financial year.

13. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on July 10,2020.

14. The financial results will be available on the Company's website - www.futureconsumer.in, and on the website of BSE (www.bseindia.com) and NSE (www.nseindia.com).


Ashni Biyani
Managing Director