Jubilant Foodworks Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Sep 2021

3 Consequential to COVID-19 pandemic the Company has negotiated several rent concessions. In view of recent amendments by the Companies (Indian Accounting Standards) Amendment Rules, 2020, the Company has elected, as a practical expedient, not to assess these rent concessions as lease modifications and has recognized impact of such rent concession in Statement of Profit and Loss. The election is made for all such rent concessions as these satisfy the conditions mentioned in Para 46A and Para 46B of Ind AS 116 (as amended). During the quarters ended 30th September 2021, 30th June 2021, 30th September 2020, six months ended 30th September 2021, 30th September 2020 and year ended 31st March 2021 the Company has negotiated rent concessions of INR 1,025.24 lakhs, INR 895.59 lakhs, INR 1,611.61 lakhs, INR 1,920.83 lakhs, INR 4,554.96 lakhs and INR 6,804.44 lakhs respectively. The Rent expense for the quarters ended 30th September 2021, 30th June 2021, 30th September 2020, six months ended 30th September 2021, 30th September 2020 and year ended 31st March 2021 were INR 2,175.64 lakhs, INR 1,711.76 lakhs, INR 1,885.06 lakhs, INR 3,887.40 lakhs, INR 2,793.34 lakhs and INR 7,915.49 lakhs respectively. After netting off with the aforesaid rent concessions, the net rent expense/ (credit) for the quarters ended 30th September 2021, 30th June 2021, 30th September 2020, six months ended 30th September 2021, 30th September 2020 and year ended 31st March 2021 were INR 1,150.40 lakhs, INR 816.17 lakhs, INR 273.45 lakhs, INR 1,966.57 lakhs, INR (1,761.62) lakhs and INR 1,111.05 lakhs respectively and has been included under Other expenses.



4 Segment Reporting: The Company's business activity falls within a single business segment i.e. Food and Beverages in terms of Ind AS 108 on Segment Reporting.



5 "The COVID-19 situation across the country affected the normal dine-in operations of the restaurants resulting in lower sales. However the Company has taken various measures to protect profit margins. The Company has made detailed assessments of its liquidity position for the next one year and of the recoverability and carrying values of all its assets and liabilities as at 30th September 2021 and on the basis of evaluation based on the current estimates has concluded that no material adjustments is required in the standalone unaudited financial results.

Given the uncertainties associated with nature, condition and duration of COVID-19, the impact assessment on the Company's financial statements will be continuously made and provided for as required."



6 Exceptional items during the quarter includes costs of INR 125.17 lakhs (Previous Quarter INR 558.44 lakhs) incurred by the Company to support its employees, associates and their dependents during COVID-19 pandemic. These includes assistance to families of deceased employees and associates, vaccination of employees, associates and their dependents, quarantine facilities for COVID-19 impacted employees and associates, etc.

7 During the quarter, the Company has entered into Share Subscription Agreement and Shareholders’ Agreement to acquire 25.02% stake in Wellversed Health Private Limited (Wellversed). Wellversed is a Gurgaon-based nutrition company offering a variety of food products tailored for specific nutrition and dietary needs including keto, gluten-free, vegan, high-protein, diabetic and immunity. The proposed investment would be made in two tranches, in first tranche the Company invested INR 655.22 lakhs (including transaction cost) during the quarter. The Company will further invest INR 350 lakhs in second tranche after nine months from disbursement of the first tranche.

8 During the quarter, the Company has remitted an amount of INR 304.47 lakhs in its subsidiary Jubilant Golden Harvest Limited which is pending for allotment as on 30th September 2021.



9 During the quarter, pursuant to Share Subscription and Shareholders’ Agreement dated March 6, 2018 executed between the Company, its subsidiary Jubilant Golden Harvest Limited (JGHL) and non controlling shareholder Golden Harvest QSR Limited (Golden Harvest), the Company has exercised a call option for acquiring 39% (thirty nine percent) equity stake in JGHL from Golden Harvest. Post-acquisition, the Company shall own 90% (ninety per cent) of the total shareholding of JGHL and Golden Harvest shall own remaining 10% (ten per cent) of the total shareholding of JGHL. The acquisition is estimated to be completed by January 27, 2022 subject to receipt of all applicable approvals, as may be required.



10 During the quarter, subsidiary company, Jubilant Foodworks Netherlands B.V. (JFN), proposed to acquire upto 17.18% ordinary shares of DP Eurasia N.V. (DP Eurasia) via a reverse bookbuild (RBB) process from certain professional investors of DP Eurasia. The Company through JFN, holds 100% of Fides Food Systems Coöperatief U.A., Netherlands, which holds 32.81% ordinary shares of DP Eurasia. Accordingly, post-acquisition, the Company may indirectly hold upto 49.99% ordinary shares of DP Eurasia. The final number of ordinary shares to be acquired will be agreed at the close of the RBB process.



11 These unaudited financial results have been prepared in accordance with the recognition and measurement principles as laid down in the Indian Accounting Standards (referred to as "Ind AS") prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules as amended from time to time. The above standalone unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors of the Company at their meetings held on 20th October 2021. The statutory auditor’s report on review of interim standalone unaudited financial results for the quarter and six months ended 30th September 2021 is being filed with the BSE Limited and National Stock Exchange of India Limited. For more details on standalone unaudited financial results, visit Investors section of our website at www.jubilantfoodworks.com and Financial Results at Corporates Section of www.nseindia.com and www.bseindia.com.