Heritage Foods Limited | 30th Annual Report 2021-22

Financial Statements Company Overview Statutory Reports 179 The details of the contractual maturities of lease liabilities on an undiscounted basis is as follows: Particulars As at 31 March 2022 As at 31 March 2021 Less than one year 33.65 26.33 One to five years 52.22 24.32 More than five years 0.95 2.71 Total 86.82 53.36 The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due. Rental expense recorded for short-term leases for the year ended 31 March 2022 was ` 37.14 (31 March 2021: ` 19.98). Leases not yet commenced to which the Company is committed aggregated to ` Nil as on 31 March 2022. 46. Segment reporting In accordance with Ind AS 108 - ‘Operating segments’, segment information has been given in the consolidated financial statements of the Company and therefore no separate disclosure on segment information is given in these standalone financial statements. 47. Key Ratios Note 31 March 2022 31 March 2021 Change Current ratio = Current assets / current liabilities (i) 1.60 1.24 29.04% Debt equity ratio = (Long-term borrowings / Equity) (ii) - 0.08 -100.00% Debt Service coverage ratio (Net profit + depreciation + finance cost + gain on sale of PPE) / (finance cost + lease payments + principal repayments) (iii) 2.74 1.02 169.34% Return on equity ratio / return on investment ratio = net profit after tax divid- ed by average equity (iv) 16.19 27.49 -41.11% Inventory turnover ratio = cost of goods sold divided by average inventory @ 10.76 11.10 -3.07% Trade receivables turnover ratio = revenue from operations divided by aver- age trade receivables 162.60 135.12 20.33% Trade payables turnover ratio = cost of goods sold divided by average trade payables (vi) 51.63 40.25 28.28% Net capital turnover ratio = Revenue from operations divided by (current assets less current liabilities) (v) 25.40 51.14 -50.35% Net Profit Margin (%) (PAT / Revenue from operations) (iv) 3.84% 6.03% -36.30% Return on capital employed = (earnings before finance cost, other income, taxes and exceptional items) divided by average capital employed # (iv) 19.78 31.70 -37.60% @ cost of goods sold includes cost of materials consumed, purchase of stock-in-trade and changes in inventories of finished goods, semi finished goods, stock-in- trade and work-in-progress # capital employed = total assets - current liabilities Note: Reasons for change more than 25% is as under (i) Principal reason for change in the current ratio is attributed to the increase in current assets balances as at 31 March 2022. (ii) Principal reason for change in the debt equity ratio is attributed to the decrease in borrowings on account of prepayment of long- term borrowings during the year ended 31 March 2022. (iii) Principal reason for change in the debt service coverage ratio is attributed to the increase in prepayment of loan term borrowings during the year ended 31 March 2021 when compared to prepayments made during the year ended 31 March 2022. (iv) Principal reason for change in the return on equity ratio / return on investment ratio / net profit margin / return on capital employed is attributed to the increase in raw material prices resulting in decrease in profits reported during the year ended 31 March 2022 compared to the year ended 31 March 2021. (v) Principal reason for change in net capital turnover ratio is attributed to the increase in current assets balances as at 31 March 2022. (vi) Principal reason for change in trade payables turnover ratio is attributed to the increase in cost of goods sold during the year ended 31 March 2022, on account of increase in revenue from operations. Summary of the significant accounting policies and other explanatory information (All amounts in ` millions, except share data and where otherwise stated) Standalone