Heritage Foods Limited

Heritage Foods Limited 58 Board’s Report To the Members, Your Directors have a great pleasure in presenting the Twenty Ninth (29 th ) Annual Report together with the Standalone & Consolidated Audited Financial Statements of your Company for the Financial Year ended March 31, 2021. Financial Results and Performance The Company’s fi nancial performance for the year ended March 31, 2021 is summarized below: ( ` in Millions) Particulars Standalone FY 2020-21 FY 2019-20 Net Sales 24067.87 26795.94 Other Operating Income 2.42 15.13 Total Revenue 24070.29 26811.06 Add: i) Other Income 84.07 83.24 ii) Gain due to changes in fair value of derivative Liability - 2944.89 Total Income 24154.36 29839.19 Less: i) Total Expenditure 21525.36 25481.47 ii) Fair value loss on FVTPL equity securities 48.12 5116.06 Pro fi t/(Loss) before Finance cost, Depreciation, Amortisation Expense and Tax 2580.88 (758.33) Less: i) Financecost 178.48 208.07 ii) Depreciation and Amortisation Expense 440.54 480.36 Pro fi t /(Loss) before tax 1961.86 (1446.76) Less: i) Provision for current Tax 500.37 185.05 ii) Provision for deferred taxation 9.85 (31.77) Pro fi t/(Loss)after tax 1451.64 (1600.04) Performance of the Company Standalone Your Company, during the year under review earned revenue from operations (Gross) of ₹ 24,070.29 Million, against ₹ 26,811.06 million over the previous year. The pro fi t/(loss) before Finance Cost, depreciation & amortization and tax was of ₹ 2,580.88 Millions as against ₹ (758.33) Million in the previous year. The Pro fi t After Tax for the current year is ₹ 1,451.64 Million against ₹ (1,600.04) Million in the previous year. Consolidated Your Company, during the year under review earned revenue from operations (Gross) of ₹ 24,731.13 Million, against ₹ 27,259.04 million over the previous year. The pro fi t/(loss) before Finance Cost, depreciation & amortization and tax was of ₹ 2,679.24 Millions as against ₹ (806.10) Million in the previous year. The Pro fi t After Tax for the current year is ₹ 1490.50 Million against ₹ (1687.23) Million in the previous year. Your Company has compliedwith all theActs, Rules, Regulations and Guidelines issued/prescribed by the Securities Exchange Board of India, Reserve Bank of India, Ministry of Corporate A ff airs and other statutory authorities. Transfer to General/Other Reserves Your Directors do not propose to transfer any amount to general/other reserves for the fi nancial year ended March 31, 2021. Dividend Your Directors have pleasure in recommending a dividend of 100% i.e. ` 5/- per equity share of face value of ` 5/- each for the fi nancial year ended March 31, 2021at their meeting held on May 19, 2021 amounting to ` 231.99 Million. The dividend payout is subject to approval of members at the ensuing Annual General Meeting. The Board of Directors recommended the dividend of 100%, the 1st time in the history of the Company keeping in view of the pro fi tability and realisation of the sale of investment in Future Retail Limited during the year and keeping the view of the dividend distribution policy of the Company. Similar kind of dividend may or may not be recommend in the future years. The Register of Members and Share Transfer Books will remain closed from Saturday, July 24, 2021 to Friday, July 30, 2021 (both days inclusive) for the purpose of payment of dividend for the fi nancial year ended March 31, 2021. The Annual General Meeting is scheduled to be held on July 30, 2021. Dividend Distribution Policy In terms of Regulation43Aof theSecurities andExchangeBoard of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), the Company has formulated and adopted a Dividend Distribution Policy with the objective of providing clarity to its stakeholders on the pro fi t distribution strategies of the Company. During the year, the said Policy has been reviewed by the Board of Directors of the Company and hosted on the website of the Company at https://www.heritagefoods.in/policy