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Avenue Supermarts Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018

1. The above financial results have been prepared in accordance with Indian Accounting Standards ('IND AS -34 " Interim Financial Reporting") as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Indian Accounting Standards) Amendment Rules, 2016, as amended thereafter.

2. The above financial results have been reviewed and recommended by the Audit Committee and have been approved and taken on record by the Board of Directors at its meeting held on 12th January, 2019.

3. The limited review as required under Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 has been completed by the auditors of the Company.

4. The Company had completed the Initial Public offering (IPO) of fresh issue of 62,541,806 equity shares of ` 10 each at an issue price of ` 299 per share. The equity shares of the Company are listed on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE) w.e f. 21st March, 2017.

Use of IPO proceeds is summarised as below

(` Crores, unless otherwise stated)

Particulars Planned as per prospectus Utilisation upto

31st December, 2018 Balance as at

31st December, 2018

Towards repayment / payment of NCDs / Term loans 1,080.00 999.00 81.00

Construction and purchase of fit outs for new stores 366.60 282.50 84.10

Towards general corporate purpose (including transaction cost of IPO) 423.40 423.05 0.35

Total 1,870.00 1,704.55 165.45

IPO proceeds which remain unutilised as at 31st December, 2018, were invested in deposits with scheduled commercial banks and in monitoring agency accounts.

5. The Company has instituted an Avenue Supermarts Limited Employee Stock Option Scheme, 2016 ("the Scheme") as approved by the Board of Directors for issuance of stock option to eligible employee of the Company and of its subsidiaries. Pursuant to the said Scheme, Stock options convertible into 13,973,325 equity shares of ` 10/- each were granted to eligible employees at an exercise price of ` 299/- being the price at which fresh issue of shares were made in IPO. Out of the total options granted, 1,676,250 options lapsed (31st March, 2018 : 978,750) and 18,000 options were vested (31st March, 2018 : 3,600) till the end of period 31st December, 2018. No options have been exercised as at 31st December, 2018.

6. Ind AS 115 Revenue from Contracts with Customers, mandatory for reporting periods beginning on or after April 1, 2018, replaces existing revenue recognition requirements. Under the modified retrospective approach there were no adjustments required to the retained earnings at April 1, 2018. Also, the application of Ind AS 115 did not have any significant impact on recognition and measurement of revenue and related items in the financial results.

7.The Company is engaged in the business of retail trades through offline channels. There are no separate reportable segments as per IND AS 108 - Operating Segments.

8. Previous year / quarter figures are regrouped and rearranged wherever necessary.