contents - renuka group | home holdings plc annual reports 2013-14.pdf · 10 annual report 2014...

CONTENTS

1

2-4

5

6

7-8

9-10

11-13

14-16

17-18

19-20

21-24

25

28

29

30

31

32

33

34-94

95

96

97-99

100

101

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ANNUAL REPORT 2014

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OUR MARKET

OUR LOCATIONS

AT A GLANCE

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01,0002,0003,0004,0005,0006,0007,0008,000

2010 2011 2012 2013 2014

Revenue Profit after Tax

01,0002,0003,0004,0005,0006,0007,0008,000

2010 2011 2012 2013 2014

Total Assets Total Liabilities

GROUP REVENUE & PROFIT AFTER TAX

PROFIT AFTER TAX ANDTT DIVIDEND DECLARED

TOTAL ASSETS & LIABILITIES

TOTAL EQUITY & LONG TERM LIABILITY

VALUEVV ADDED DISTRIBUTIONCASH GENERATED FROM OPERATION

0100200300400500600700800900

2010 2011 2012 2013 2014

PAT Dividend paid

0

1,000

2,000

3,000

4,000

5,000

6,000

2010 2011 2012 2013 2014

Long Term Liability Total Equity

To Employees

40.34%

To Providers of Capital

2.65%To

Government Revenue

2.37%

To Maintain Operations

9.49%

Retained with the

Business45.14%

0.00

200.00

400.00

600.00

800.00

1,000.00

1,200.00

2010 2011 2012 2013 2014

Cash Generated from operations

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MRS. I. R. RAJIYAH

DR. S. R. RAJIYAH

MR. S. V. VV RAJIYAH

MR. M. S. DOMINIC

MS. A.L.RAJIYAH

MR. C. J. DE S. AMARATUNGE

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MR. L.M.ABEYWICKRAMA

MR. T.TT K.BANDARANAYAKE

MR. J.M. SWAMINATHAN

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ECONOMIC PERFORMANCE

CORPORATE PERFORMANCE

SECTOR PERFORMANCE

FOOD AND BEVERAGEAUTOMOTIVE

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INVESTMENTS AND SERVICES

FUTURE CHALLENGES AND OPPORTUNITIES

ACKNOWLEDGEMENTS

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THE BOARD OF DIRECTORS

BOARDS RESPONSIBILITIES

Strategic Direction:

Business Performance:

Management Risk:

Code of Business Conduct and Ethics:

Financial Performance of the Company:

Investor Rights and Relations:

Audit:

COMPOSITION AND ATTENDANCEAA MEETINGS

Name of Director Board Meeting

Audit Committee

Meeting

Remuneration Committee

Meeting

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BOARD BALANCE

SUPPLY OF INFORMATION

RE-ELECTION OF DIRECTORS

GOING CONCERN

INTERNAL CONTROL

COMMUNICATION WITH STAKEHOLDERS

BOARD COMMITTEES

AUDIT COMMITTEE

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REMUNERATION COMMITTEE

CORPORATE GOVERNANCE DISCLOSURE

MAJOR TRANSACTIONS

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FORMATION AND COMPOSITION OF THECOMMITTEE

DUTIES AND RESPONSIBILITIES

EXTERNAL AUDIT

COMPLIANCE WITH LAWS AND REGULATIONS AND COMPANY POLICIES

INTERNAL CONTROLS

RISK MANAGEMENT

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FINANCIAL STATEMENTS

MEETINGS

EVALUATION OF THE EFFECTIVENESS OF THECOMMITTEE

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INTERNAL CONTROLS

BUSINESS RISK

COMPETITIVE ENVIRONMENT

PEOPLE CAPABILITIES

HEALTH AND SAFETY RISKS

IT SYSTEMS AND INFRASTRUCTURE

MARKET RISK

PRODUCT RISK

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OPERATIONAL RISKS

LEGAL COMPLIANCE

REGULATORY COMPLIANCE

FINANCIAL RISK

ISSUES PERTAINING TO EMPLOYEES ANDINDUSTRIAL RELATIONSHIP

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INTERNAL OPERATIONS

Economic Performance -

Renuka Work place -

Environmental Impact -

STAKEHOLDER ENGAGEMENT

Our Customers -

Our Employees -

Our business partners -

Our Investors/Shareholders -

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Local Community-

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THE PRINCIPAL ACTIVITIES OF THE GROUP AND STRUCTURE

REVIEW OF BUSINESS

FINANCIAL RESULTS

Group Company2014

Rs 0002013

Rs 0002014

Rs 0002013

Rs 000

AUDITORS REPORT

ACCOUNTING POLICES


STATEMENT OF DIRECTORS’ RESPONSIBILITIES

DIRECTORS’ INTEREST

DIRECTORS’ INTERESTS IN TRANSACTIONS AND SHARES

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2014 2013

Voting Non Voting

Voting Non Voting

REMUNERATION OF DIRECTORS

CORPORATE DONATIONS

DIRECTORS

RECOMMENDATION FOR RE-ELECTION

AUDITORS

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CORPORATE GOVERNANCE

BOARD OF DIRECTORS

AUDIT COMMITTEE

REMUNERATION COMMITTEE

SOLVENCY TEST

DIVIDENDS

STATED CAPITAL

SHAREHOLDERS FUNDS

PROPERTY, PLANT & EQUIPMENT

STATUTORY PAYMENTS

GOING CONCERN

EVENTS OCCURRING AFTER THE BALANCESHEET DATE

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SHARE INFORMATION

ANNUAL REPORT

NOTICE OF MEETING

PUBLIC HOLDING

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29

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31

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34-94

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MANAGEMENT’S RESPONSIBILITY FOR THEFINANCIAL STATEMENTS

SCOPE OF AUDIT AND BASIS OF OPINION

OPINION- COMPANY

OPINION- GROUP

REPORT ON OTHER LEGAL AND REGULATORYREQUIREMENTS

TO THE SHAREHOLDERS OF RENUKA HOLDINGS PLCREPORT ON THE FINANCIAL STATEMENTS

Kreston MNS & Co

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Group CompanyAs at 31.03.2014 31.03.2013 31.03.2014 31.03.2013

Note Rs. Rs. Rs. Rs.ASSETSNon-Current Assets

2,525,979,843 - 134,957,311 - 937,000,000 -

7 279,044,358 - 35,648,016 -

376,000,000 - - 852,000,010 - 59,491,500

223,958,952 - 26,737,471 , , -

4,539,325,951, , ,, , , 911,491,510 , ,, ,Current Assets

1,091,643,415 - 3,658,840 -

1,041,669,711 - 108,611,543 -

5,932,185 - 7,911,349 6,540,000

310,355,548 24,884 215,305,797 , , 1,168,239, ,

2,785,088,387, , , 7,733,123 , ,Total Assets 7,324,414,339 919,224,633

EQUITY AND LIABILITIESCapital and Reserves

175,000,000 175,000,000 2,649,111,332, , , 386,105,636 , ,2,824,111,332 561,105,636 2,012,814,534, , , -

Total Equity 4,836,925,866, , ,, , , 561,105,636 , ,, ,

Non Current Liabilities 48,377,308 -

169,431,548 - 56,896,203 , , -

274,705,059 , ,, , -

Current Liabilities 753,266,824 1,308,972 106,108,510 199,280 755,806,062 - 324,450,000 356,436,140

- 104,623 273,152,018 , , 69,982,

2,212,783,413, , , 358,118,997 , ,Total Equity and Liabilities 7,324,414,339, , ,, , , 919,224,633 , ,, ,

P. Gunathilake

Dr S.R Rajiyah S.V Rajiyah

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Group CompanyFor The Year Ended 31st March 2014 2013 2014 2013

Note Rs. Rs. Rs. Rs.

7,177,796,724 27,994,794 - -

(5,795,971,793) -

1,381,824,932 27,994,794

193,705,324 -

(659,515,708) - (511,929,408) (1,789,386) (13,816,707) -

390,268,433 26,205,407 12,880,031 1,080,236

(115,406,413) (35,714) 10,834,984 - 2,259,579 -

300,836,614 27,249,929 (31,828,592) (196,603) 269,008,021 27,053,326

Attributable to : 191,728,353 27,053,326 77,279,669 -

269,008,021 27,053,326

33 3.76 0.53

0.70 0.70

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Group CompanyFor The Year Ended 31st March 2014 2013 2014 2013

Rs. Rs. Rs. Rs.

269,008,021 27,053,326

2,994,621 -

(498,511) -

2,496,110 -

271,504,132 27,053,326

Total Comprehensive Income Attributable to: 192,921,514 27,053,326

78,582,618 -

271,504,132 27,053,326

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Stated Retained Non Controlling TotalCapital Earnings Interest

Note Rs. Rs. Rs. Rs. Group

Balance as at 31st March 2012 175,000,000 1,898,743,080 1,587,533,340 3,661,276,420

271,969,372

2,599,366

Total comprehensive income 274,568,738

(425,987)

385,658,906

(90,525,811)


Balance as at 1st April 2013 175,000,000 2,081,548,504 1,974,003,762 4,230,552,266

269,008,021

2,496,110

271,504,132

(6,309,801)

422,418,432

(81,239,163)


Stated Retained Total Capital Earnings

Company Rs. Rs. Rs.

Balance as at 31st March 2012 175,000,000 390,708,293 565,708,293

39,668,037

-

39,668,037

(35,662,010)


Balance as at 1st April 2013 175,000,000 394,714,320 569,714,320

27,053,326

27,053,326

(35,662,010)


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Groupp Companyp ypFor The Year Ended 31st March 2014 2013 2014 2013


300,836,614 27,249,929

Adjustments : (12,880,031) (1,080,236)

15,194,309 - 127,462,707 -

4,115,148 - 107,457,228 35,714

370,322 - 7 5,978,340 -

(3,149,516) - (148,992,500) -

- - - - -

(2,259,579) - (6,056,368) -

3,863,453 - 7,578,863 -

Operating Profit before changes in Working Capital 399,518,991 26,205,407

(288,115,886) - (56,347,393) - (29,974,104) -

27,997,745 792,646,660 (3,658,840) -

186,141,051 176,885 (108,343,324) 150,728

322,169,068 (35,458,840)

Cash Generated/ (used in) from Operations 449,387,308 783,720,840 (5,663,365) -

(23,380,911) (334,995) (2,774,057) - 12,880,031 1,080,236

(107,457,228) (35,714)Net Cash from / (used in) Operating Activities 322,991,778 784,430,367

- - - -

(3,497,651) - 422,418,512 -

(376,000,000) - (173,828,258) -

3,821,288 - (78,400) -

- (750,000,000)

Net Cash from/ (used in) Investing Activities (127,164,509) (750,000,000)

- - (35,662,010) (35,662,010) (45,577,153) - (3,839,314) -

196,470,369 -

Net Cash from / (used in) Financing Activities 111,391,892 (35,662,010)

Net Increase / ( Decrease) in Cash and Cash Equivalents 307,219,161 (1,231,643)Cash and Cash Equivalents at the Beginning of the year (54,709,834) 2,354,783

Cash and Cash Equivalents at the End of the year 252,509,327 1,123,140

310,355,548 24,884 (57,846,221) 1,098,256

252,509,327 , ,, , 1,123,140, ,, ,

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1.1 General

Company Activities

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Activities

1.3 Parent Enterprise and Ultimate Parent Enterprise

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2.2.1 Business combinations and goodwill

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2.2.2 Interest in a joint venture

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2.3 Foreign Currencies

Transactions and Balances

(i) Renuka Holdings PLC

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Interest Income

Interest Income

(iv) Renuka Agri Foods PLC

(vi) Kandy Plantations Ltd.

(vii) Captain Foods (Pvt) Ltd

(viii) Renuka Teas (Ceylon) (Pvt) Ltd.

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2.7 Property, Plant & Equipment

(a)

(b)

Percentage

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(c) Leases

Group as a Lessee

Group as a lessor

(e) Immature and Mature Plantations

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2.8 Investment properties

2.9 Borrowing costs

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2.10 Related Party Transactions

2.12 Going Concern

2.14Financial Statements

2.15 Inventories

Biological Assets

Input Material, Spares and Consumables

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Provident Fund and Employee’s Trust Fund.

2.16.3 Changing in Accounting Policies

2.17Cash and Cash Equivalents

2.18Provisions

2.19 Capital Commitments and contingencies

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2.20 Financial instruments - initial recognition and subsequent measurement

2.20.1 Financial assets

Initial recognition and measurement

Subsequent measurement

(b) Loans and receivables

(c) Held-to-maturity investments

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Derecognition

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a) Financial assets carried at amortised cost

2.20.2 Financial liabilities

Initial recognition and measurement

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borrowings

Derecognition

I

2.22Contingent Assets and Contingent Liabilities

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2.23 Intangible assets

impairment

Income Statement

2.24 Revenue Recognition

(c) Interest

(d) Dividend Income

(e)

2.25

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2.26Reporting Segments

b) SLFRS 10 Consolidated Financial Statements

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2.28

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3.1 Group

Fair Value through

Profit & Loss (Carried at

FVTVV PL)

Available for AASale (Carried

at FV)

Held to Maturity

(Carried at Amortised

Cost)

Loans & Receivables (Carried at

Amortised Cost)

TotalTT

Note Rs. Rs. Rs. Rs. Rs. 31st March 2014Financial assets

223,958,952 1,041,669,711

310,355,548 7,911,349 3,658,840

215,305,797 2,178,860,196

Other Liabilities at

FVTV PL

Other Liabilities at Amortised

Cost

TotalTT

Rs. Rs. Rs. Financial Liabilities

860,015,421 753,266,824 324,450,000 273,152,018

2,210,884,263

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Fair Value

through Profit & Loss

(Carried at FVTVV PL)

Available for AASale (Carried

at FV)

Held to Maturity

(Carried at Amortised

Cost)

Loans & Receivables (Carried at Amortised

Cost)

Total TT

Note Rs. Rs. Rs. Rs. Rs. 31st March 2013Financial assets

223,958,952 993,421,527 37,013,597 35,909,094

121,020,714

1,411,323,884

Other Liabilities at FVTVV PL

Other Liabilities at Amortised

Cost

TotalTT

Rs. Rs. Rs. Financial Liabilities

663,545,051

567,093,468 2,280,932

212,744,145

1,445,663,596

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3.2 Company

Fair Value through Profit &

Loss(Carried at FVTV P)

Held to Maturity(Carried at

Amortised Cost)

Loans & Receivables (Carried at

Amortised Cost)

TotalTT


31st March 2014Financial assets

6,540,000

24,884

1,168,239

7,733,123

Other Liabilities Other Liabilities TotalTTat FVTVV PL at Amortised

Cost

Rs. Rs. Rs.Financial Liabilities

1,308,972

356,436,140

69,982

357,815,094

Fair Value through

HTM Loans & Receivables

TotalTT

Profit & Loss (Carried at FV) (Carried at Amortised Cost)

Rs. Rs. Rs.31st March 2013Financial assets

799,186,660

613,187

1,741,596

801,541,443

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Other Liabilities at FVTPL

Other Liabilities at Amortised Cost

Total

Note Rs. Rs. Rs.Financial Liabilities

1,132,086 391,894,980

-

393,027,066

GroupAs at Additions / As at

01.04.2013 TransfersTT Disposals 31.03.2014Cost Rs. Rs. Rs. Rs.

1,053,954,850 740,118,339 880,683,026 159,675,700 227,263,040 84,409,305 18,524,798 12,083,699

3,176,712,756

As at Charge for Depreciation As at 01.04.2013 the year on Disposal 31.03.2014

Depreciation Rs. Rs. Rs. Rs.

-

77,839,003

308,041,348

103,059,329

94,046,854

50,825,709

13,590,164

5,380,971

652,783,378

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Impairment As at Charge for On As at 01.04.2013 the year Disposal 31.03.2014

Rs. Rs. Rs. Rs.

25,321,250

25,321,250

As at As at 31.03.2014 31.03.2013

Rs. Rs.

2,498,608,128 27,371,715

2,525,979,843

5. INTANGIBLE ASSETS

Goodwill Trade MarkT Other Intangible TotalTT

Cost Assets

144,701,218 - -

144,701,218

Accumulated Amortization/Impairment

5,628,759 4,115,148

9,743,907

Net Book Value 139,072,459

134,957,311

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Goodwill

31.03.2013Name of the Subsidiary Rs. Rs.

49,621,455 66,431,610

116,053,065

Trademarkk

Group Company 31.03.2014 31.03.2013 31.03.2014 31.03.2013

Rs. Rs. Rs. Rs. 6. INVESTMENT PROPERTY

(a) Movement of Investment Property788,007,500

-148,992,500

937,000,000

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(b) Details of Investment Property as at 31.03.2014

Name of the

Company

Details of the

Fair Value Directors Valuation

Valuer's Valuation

Property as at 31.03.2014

as at 31.03.2014 Date Value

937,000,000 937,000,000

937,000,000 937,000,000

(c) Rental Income earned & Direct Operating Expenses incurred

Coco Hotels & Properties (Pvt) Ltd

Group Company 31.03.2014 31.03.2013 31.03.2014 31.03.2013

Rs. Rs. Rs. Rs. 7. RIGHT TO USE LAND

Kandy Plantations Ltd (Note 7(a)) 82,500,000

(30,250,020)

52,249,980

Renuka Agri Foods PLC (Note 7(b)) 2,555,532

(69,070)

2,486,462

Shaw Wallace Properties Ltd. (Note 7(c)) 227,467,182 (3,159,266)

224,307,916

TotalTT 279,044,358

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7(a) Kandy Plantations Ltd

7(b) Renuka Agri Foods Plc

7(c) Shaw Wallace Properties Ltd

Group Company 31.03.2014 31.03.2013 31.03.2014 31.03.2013

8. BIOLOGICAL ASSETS Rs. Rs. Rs. Rs.

(a) Bearer Biological Assets - Coconut Plantations

85,585 -

85,585

(b) Consumable Biological Assets - Timber Plantations

29,427,663 6,056,368

78,400

35,562,431

35,648,016

60

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Timber Plantation

Key assumption used in valuation

Variable Comment

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Sensitivity Analysis

Sensitivity Variation on Sales Price

roup -10% + 10%Rs Rs Rs

Sensitivity Variation on Discount Rate

roup -1.5% + 1.5%Rs Rs Rs

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Gro

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852,

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10(b

)G

roup

Inve

stm

ents

In S

ubsi

diar

ies % H

oldi

ngN

o of

Sha

res

Valu

e In

vest

or31

.03.

2014

31

.03.

2013

31

.03.

2014

M

ovem

ent

31.

03.2

013

31.0

3.20

14 M

ovem

ent

31.0

3.20

13

Inve

stee

Quo

ted

Inve

stm

ents

62.9

7% 5

6,53

3,42

888

9,25

7,04

8

15.

73%

751

,031

13

,813

,762

Inve

stor

Inve

stee

Quo

ted

Inve

stm

ents

50.0

9%28

1,40

0,00

0 52

1,17

2,08

2

Unq

uote

d In

vest

men

ts10

0% 4

,500

,000

45

0,00

0,00

0

50%

5,0

00,0

00

450,

000,

000

100%

1,2

50,0

00

48,

437,

500

-

1,2

50,0

00

48,

437,

500

65

RENU

KA

HO

LDIN

GS PLC

ANNUAL REPORT 2014

% H

oldi

ngN

o of

Sha

res

Valu

e 31

.03.

2014

31.

03.2

013

31.

03.2

014

Mov

emen

t 3

1.03

.201

331

.03.

2014

Mov

emen

t 31

.03.

2013

Inve

stor

Inve

stee

42.2

4% 4

1,25

2,93

329

1,97

4,64

4

Inve

stor

Inve

stee

100%

20,

290,

000

605,

000,

000

100%

500

,000

50

,000

,000

- -

-

- -

-

Inve

stor

Inve

stee

78.6

% 3

,299

,995

4

0,76

1,02

5

50%

1

1,0

00

- -

-

66

ANNUAL REPORT 2014

REN

UK

A H

OLD

ING

S PL

C

% H

oldi

ngN

o of

Sha

res

Valu

e 31

.03.

2014

31.

03.2

013

31.

03.2

014

Mov

emen

t 3

1.03

.201

331

.03.

2014

Mov

emen

t 31

.03.

2013

Inve

stor

I nve

stee

60%

2,1

00,0

00

20,

000,

000

Inve

stor

Inve

stee

100%

2,5

00,0

00

25,

000,

000

Inve

stor

Inve

stee

-

-

-

100

% 2

011

0,00

0,00

0

Inve

stor

Inve

stee

50%

5,00

050

,000

67

RENU

KA

HO

LDIN

GS PLC

ANNUAL REPORT 2014

% H

oldi

ngN

o of

Sha

res

Valu

e 31

.03.

2014

31.

03.2

013

31.

03.2

014

Mov

emen

t 3

1.03

.201

331

.03.

2014

Mov

emen

t 31

.03.

2013

Inve

stor

Inve

stee

30%

7,5

00

7,5

00

Inve

stor

Inve

stee

100%

600

,000

6

,990

,000

100%

6,0

00,0

02

211,

218,

411

100%

10,

000

1,2

50,0

00

100%

5,0

00

5,1

15,0

00

100%

150

,000

1

50,0

00

100%

1

100

68

ANNUAL REPORT 2014

REN

UK

A H

OLD

ING

S PL

C

10(c

)In

vest

men

ts In

Join

t Ven

ture

s

% H

oldi

ngN

o of

Sha

res

Valu

e In

vest

or 3

1.03

.201

4 3

1.03

.201

3 3

1.03

.201

4 M

ovem

ent

31.

03.2

013

31.0

3.20

14 M

ovem

ent

31.0

3.20

13

Inve

stee

50.0

0% 2

,750

,000

5

9,49

1,50

0

59,

491,

500

Inve

stor

Inve

stee

100%

500

,006

5

,000

,060

5,0

00,0

60

69

RENU

KA

HO

LDIN

GS PLC

ANNUAL REPORT 2014

31.0

3.20

1431

.03.

2013

1,13

6,27

8,91

6 (1

,123

,959

,534

)

12,

319,

381

31.0

3.20

1431

.03.

2013

584,

574,

552

530,

581,

773

53,

992,

778

10(d

)O

ther

Inve

stm

ents

% H

oldi

ngN

o of

Sha

res

Valu

e 3

1.03

.201

4 3

1.03

.201

3 3

1.03

.201

4 M

ovem

ent

31.

03.2

013

31.0

3.20

14M

ovem

ent

31.0

3.20

13

Inve

stor

Inve

stee

44.

25%

265

,500

56,8

82,5

42

56,

882,

542

70

ANNUAL REPORT 2014

REN

UK

A H

OLD

ING

S PL

C

% H

oldi

ngN

o of

Sha

res

Valu

e 3

1.03

.201

4 3

1.03

.201

3 3

1.03

.201

4 M

ovem

ent

31.

03.2

013

31.0

3.20

14M

ovem

ent

31.0

3.20

13

Inve

stor

Inve

stee

20.

71%

12,

420

96,

112,

570

20.

64%

12,

386

46,

062,

520

20.

64%

12,

386

24,

901,

310

167,

076,

400

Inve

stor

Inve

stee

-

1,0

00

10 10

223,

958,

952

71

RENU

KA

HO

LDIN

GS PLC

ANNUAL REPORT 2014

No of Shares Carrying Value of Shares 31.03.2014 31.03.2013 31.03.2014 31.03.2013

Rs. Rs. 11. SHORT TERM INVESTMENTS IN SHARES

Investor

Investee 1,000 859,446 3,675 457,128 8,936 2,342,266

3,658,840

Group Company 31.03.2014 31.03.2013 31.03.2014 31.03.2013

Rs. Rs. Rs. Rs. 12. INVENTORIES

125,209,832550,887,618126,972,861 51,947,770

- 75,281,450

8,954,997 182,732,855(30,343,968)

1,091,643,415

13. TRADE AND OTHER RECEIVABLES

13.1 Summary

973,710,535 (67,698,695) 906,011,840

3,021,500 132,636,370135,657,870

1,041,669,711

72

ANNUAL REPORT 2014

REN

UK

A H

OLD

ING

S PL

C

Group Company 31.03.2014 31.03.2013 31.03.2014 31.03.2013

Rs. Rs. Rs. Rs. 13.2 Provision for Impairment

60,119,832 -

7,578,863 -

67,698,695 -

14.

36,343,882 - 72,267,660 -

108,611,543 -

15.

- - - 6,540,000 - - - -

458,599 - 1,000,000 -

113,500 - 6,339,248 - 7,911,349 6,540,000

16.

54,593,875 - 115,761,674 24,884140,000,000 -310,355,548 24,884

17. CASH AND CASH EQUIVALENTS

17.1 Favorable Cash and Cash Equivalents Balances

215,305,797 1,168,239 215,305,797 1,168,239

17.2

(273,152,018) (69,982)(273,152,018) (69,982)

(57,846,221) 1,098,256

73

RENU

KA

HO

LDIN

GS PLC

ANNUAL REPORT 2014

18. STATED CAPITAL Group/Company 31.03.2014 31.03.2013

Rs. Rs.

50,945,728 -

50,945,728

Stated Capital175,000,000

- 175,000,000

Group Company 31.03.2014 31.03.2013 31.03.2014 31.03.2013

Rs. Rs. Rs. Rs. 19. DEFERRED TAXATION

15,735,328 5,405,999

498,511

21,639,837

48,377,308(26,737,471) 21,639,837

74

ANNUAL REPORT 2014

REN

UK

A H

OLD

ING

S PL

C

Group Company 31.03.2014 31.03.2013 31.03.2014 31.03.2013

Rs. Rs. Rs. Rs.

20. INTEREST BEARING BORROWINGS & LEASE INSTALLMENTS

20(a) Interest Bearing Borrowings And Lease Installments Due After One YearYY

107,796,187 60,000,000

1,635,361

169,431,548

20(b) Interest Bearing Borrowings And Lease Installments Due Within One YearYY

371,615,813 2,500,000

1,086,828

300,000,000 80,603,421

755,806,062

20(c) Long TermTT Borrowings

577,876,7371,312,393,929(1,410,858,667)

479,412,000371,615,813

107,796,187

75

RENU

KA

HO

LDIN

GS PLC

ANNUAL REPORT 2014

Group Company 31.03.2014 31.03.2013 31.03.2014 31.03.2013

Rs. Rs. Rs. Rs.

20(d) Liabilities To TT Make Lease Payments (To TT The Owner Of The Estate / Lessor)

82,500,000

(20,000,000)

62,500,000

(2,500,000)

60,000,000

20(e) Lease Obligation (Motor Vehicles)VVConsolidated

TotalTTLease Liability

Balance on 31.03.2014 3,112,138

Interest in Suspense

Balance on 31.03.2014 389,949

Net Balance 2,722,189

20( ) Project Loan Due Within One YearYY

40,750,000 - 861,000,000 -

(601,750,000) - 300,000,000 -

76

ANNUAL REPORT 2014

REN

UK

A H

OLD

ING

S PL

C

20 (g

)D

etai

ls O

f Lon

gTe

rm

TTBo

rrow

ings

Lend

erFa

cilit

y ob

tain

ed b

y B

alan

ce

as a

t 31.0

3.2

01

4

Inte

rest

Rat

eRe

paym

ent

Term

sTT

Secu

rity

77

RENU

KA

HO

LDIN

GS PLC

ANNUAL REPORT 2014

Lend

erFa

cilit

y ob

tain

ed b

y B

alan

ce

as a

t 31.0

3.2

01

4

Inte

rest

Rat

eRe

paym

ent

Term

sTT

Secu

rity

78

ANNUAL REPORT 2014

REN

UK

A H

OLD

ING

S PL

C

21. RETIREMENT BENEFIT OBLIGATIONGroup Company

31.03.2014 31.03.2013 31.03.2014 31.03.2013 Rs. Rs. Rs. Rs.

(a) Provision for Retiring Gratuity 50,026,214 12,199,688 (5,329,699) 56,896,203

(b) Pension Fund 333,666

(333,666) -

56,896,203

21.1 Net Benefit Expenses Categorized Under Personal Expenses

8,738,060 6,456,249

(2,994,621) 12,199,688

21.2

21.3

31.03.2014 31.03.2013

21.4

79

RENU

KA

HO

LDIN

GS PLC

ANNUAL REPORT 2014

Group Company 31.03.2014 31.03.2013 31.03.2014 31.03.2013

Rs. Rs. Rs. Rs. 22. TRADE & OTHER PAYABLES

539,769,313 - 213,497,511 1,308,972 753,266,824 1,308,972

23. OTHER CURRENT LIABILITIES

104,450,369 199,280 1,658,141 -

106,108,510 199,280

24. AMOUNTS DUE TO RELATED COMPANIES

324,450,000 323,000,000 - 33,000,000 - - - - - 436,140

324,450,000 356,436,140

25. INCOME TAX PAYABLE / (REFUND DUE)

(6,199,811) 243,015 (305) -

23,648,537 196,603 (22,830,554) (328,067)

(550,052) (6,928) - -

(5,932,185) 104,623

26. REVENUE

2,371,167,503 - 49,504,134 -

1,341,968,705 - 2,218,574,102 - 1,136,278,916 -

60,303,365 27,994,7947,177,796,724 27,994,794

80

ANNUAL REPORT 2014

REN

UK

A H

OLD

ING

S PL

C

Group Company 31.03.2014 31.03.2013 31.03.2014 31.03.2013

Rs. Rs. Rs. Rs. 26(a) Investment Services & Others

4,200,000 - 5,507,240 -

46,004,122 - 4,592,003 27,994,794

- - 60,303,365 27,994,794

27. OTHER OPERATING INCOME

5,738,560 - 850,720 -

3,149,516 -

16,099,695 - 12,817,966 -

- - 148,992,500 -

6,056,368 -

193,705,324 -

28. FINANCE INCOME

923,672 69,277 263,233 -

8,228,500 - - -

3,464,626 1,010,959 12,880,031 1,080,236

29. FINANCE COST

104,077,825 35,714 370,322 -

3,379,403 - 7,578,863 -

- - 115,406,413 35,714

81

RENU

KA

HO

LDIN

GS PLC

ANNUAL REPORT 2014

Group Company 31.03.2014 31.03.2013 31.03.2014 31.03.2013

Rs. Rs. Rs. Rs. 30. OTHER FINANCIAL ITEMS

10,834,984 - 10,834,984 - -

31. PROFIT BEFORE TAXATION

40,900,000 300,000

3,591,500 199,500 127,462,707 -

19,300 -

15,194,309 - 522,177,023 -

4,115,148 - 5,978,340 -

- - - -

3,863,453 -

31(a) Auditor's Remuneration

199,500 199,500

461,000 -

2,931,000 -

3,591,500 199,500

82

ANNUAL REPORT 2014

REN

UK

A H

OLD

ING

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C

Group Company 31.03.2014 31.03.2013 31.03.2014 31.03.2013

Rs. Rs. Rs. Rs. 32. TAXATION

23,648,537 196,603 2,774,057 - 5,405,999 -

31,828,592 196,603

32.1 Reconciliation Between Taxable TT Profit And The Accounting Profit

300,836,614 27,249,929539,777,513 2,905,332

(447,622,501) (29,075,027)(254,599,147) -

- - 138,392,479 1,080,234 (8,589,515) (378,082)129,802,964 702,152 13,443,846 196,603

9,851,587 - - -

353,104 -

23,648,537 196,603 5,405,999 - 2,774,057 -

31,828,592 196,603

33. EARNINGS PER SHARE

33.1

33.2

Amount used as the Numerator191,728,353 27,053,326

Number of Ordinary Shares used as Denominator

50,945,728 50,945,728

3.76 0.53

83

RENU

KA

HO

LDIN

GS PLC

ANNUAL REPORT 2014

34. DIVIDEND PER SHARE

35. ADJUSTMENTS DUE TO CHANGES IN SUBSIDIARIES

(a) Adjustments Due To ChangesTT In Shareholding of Subsidiaries

84

ANNUAL REPORT 2014

REN

UK

A H

OLD

ING

S PL

C

35. ADJUSTMENTS DUE TO CHANGES IN SUBSIDIARIES (CONT.)

(b) Disposal of Subsidiary Campbell TeasTTLtd

Assets

Liabilities

The effect of disposal on Cash flow

(3,497,651)

36. EVENTS OCCURRING AFTER THE REPORTING DATE

37. LITIGATIONS AGAINST THE GROUP

(a) Renuka Shaw Wallace PLC

(b) Kandy Plantations Ltd.

85

RENU

KA

HO

LDIN

GS PLC

ANNUAL REPORT 2014

(c) Renuka Agri Foods PLC

38. CAPITAL COMMITMENTS

39. CONTINGENT LIABILITIES

40. DIRECTORS' RESPONSIBILITY STATEMENT

41. GOING CONCERN OF SUBSIDIARIES

Shaw Wallace Food Services Limited

42. RELATED PARTY TRANSACTIONS

42.1 Transactions with Key Managerial Persons

42.1.1 Key Managerial Persons include members of the Board of Directors of the Company and its Subsidiaries.

42.1.2 Transactions with Key Managerial Persons are given below

42.1.3 Transactions with Key Managerial Persons 31.03.2014 31.03.2013Rs. Rs.

86

ANNUAL REPORT 2014

REN

UK

A H

OLD

ING

S PL

C

42.1.4 Transactions with Related Entities31.03.2014 31.03.2013

Rs. Rs.(a) Amount due from / due to Related Entities

GroupAmount Due From Related Companies

6,339,248 458,599

1,000,000 113,500

Amount Due to Related Companies324,450,000

-

CompanyAmount Due From Related Companies

- - -

6,540,000

Amount Due to Related Companies323,000,000

33,000,000436,140

-

(b) Transactions with related entitiesTT2014 2013

Name of the Company Nature of TransactionT Relationship Rs. Rs. 857,136

19,697,247

36,387,655

20,192,664

57,583,045

2,449,600 1,325,294,536

12,678,495

87

RENU

KA

HO

LDIN

GS PLC

ANNUAL REPORT 2014

42.2

Dir

ecto

rs o

f Gro

upCo

mpa

nies

88

ANNUAL REPORT 2014

REN

UK

A H

OLD

ING

S PL

C

43.

IND

UST

RYSE

GM

ENT

INFO

RMAT

ION

AGRI

FO

OD

EXPO

RTS

RRD

AIRY

FMC

GAU

TOM

OTI

VEIN

VEST

MEN

T &

SER

VIC

ESG

ROU

P31

.03.

2014

31.0

3.20

1331

.03.

2014

31.0

3.20

1331

.03.

2014

31.0

3.20

1331

.03.

2014

31.0

3.20

1331

.03.

2014

31.0

3.20

1331

.03.

2014

31.0

3.20

13Rs

.Rs

.Rs

.Rs

.Rs

.Rs

.Rs

.Rs

.Rs

.Rs

.Rs

.Rs

.

2,37

1,16

7,50

3 -

- -

- 2,

371,

167,

503

318

,130

,175

1,

341,

968,

705

2,2

79,7

56,2

50

1,13

6,27

8,91

6 6

1,44

3,36

5 5,

137,

577,

411

(268

,626

,042

) -

(61,

182,

148)

- (1

,140

,000

) (3

30,9

48,1

90)

2,42

0,67

1,63

6 1,

341,

968,

705

2,21

8,57

4,10

2 1,

136,

278,

916

60,

303,

365

7,1

77,7

96,7

24

475

,371

,884

2

65,5

10,6

28

410

,786

,135

2

23,1

97,7

42

6,9

58,5

431,

381,

824,

932

Prof

it be

fore

Tax

& F

inan

ce C

ost

TT 4

16,2

43,0

26

(115

,406

,413

)

(31,

828,

592)

Prof

it fo

r th

e ye

ar a

fter

tax

269

,008

,021

1

,881

,065

,041

8

81,9

12,5

71

1,85

1,76

6,52

1 5

73,8

06,0

35

2,1

35,8

64,1

70

7,32

4,41

4,33

9

1,36

0,17

1,08

9 5

49,8

48,9

79

601,

154,

742

13,

127,

773

938,

677,

260

3,46

2,97

9,84

3

- -

- -

223,

958,

952

223

,958

,952

- -

25,

540,

948

- 1

,196

,523

26,

737,

471

Non

Inte

rest

Bea

ring

Lia

bilit

ies

27,

298,

724

21,

078,

584

- -

- 4

8,37

7,30

8

26,

116,

387

8,5

47,3

77 1

5,32

5,39

3 3

,080

,412

3,82

6,63

4 5

6,89

6,20

3

203

,944

,164

1

35,9

21,8

29

229

,734

,966

1

78,2

63,2

45

5,40

2,62

0 7

53,2

66,8

24

44,

599,

940

- 4

8,52

8,77

9 9

,677

,536

3,30

2,25

5 1

06,1

08,5

10

89

RENU

KA

HO

LDIN

GS PLC

ANNUAL REPORT 2014

44. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Risk Management framework

Financial Risks Factors

1. Market Risk

a. Currency Risk

Exposure to Currency risk

90

ANNUAL REPORT 2014

REN

UK

A H

OLD

ING

S PL

C

31.03.2014 31.03.2013Rs USD Rs USD

Average RateAA Reporting Date spot rate2014 2013 2014 2013

Rs Rs Rs Rs

Sensitivity Analysis

Strengthening WeakeningProfit or Loss Profit or Loss

Rs Rs

b. Interest rate risk

91

RENU

KA

HO

LDIN

GS PLC

ANNUAL REPORT 2014

Carrying Amount

31.03.2014 31.03.2013

Rs RsFixed Rate Instruments

376,000,000 -

-

376,000,000Variable rate Instruments

310,355,548

(273,152,018)(925,237,609)(888,034,079)

C. Price Risk

2. Credit Risk

Exposure Credit risk

Carrying amount2014 2013

Rs Rs

92

ANNUAL REPORT 2014

REN

UK

A H

OLD

ING

S PL

C

Impairment losses

Carrying amount31.03.2014 31.03.2013

Rs Rs

867,922,281 63,881,293 26,121,477

3,465,476 19,738,849

5,428,211 35,508,474

6,875,777 12,727,873

1,041,669,711

Cash and bank balances

3. Liquidity Risk

93

RENU

KA

HO

LDIN

GS PLC

ANNUAL REPORT 2014

Carrying amount

0-12 Months More than one year

Rs Rs RsFinancial Liabilities (Non-Derivative)

TotalTT

Financial Liabilities (Non-Derivative)

TotalTT

4. Capital Management risk

Group Company

31.03.2014 31.03.2013 31.03.2014 31.03.2013Rs Rs Rs Rs

925,237,609 - 4,836,925,866 561,105,636

19.1% -

94

ANNUAL REPORT 2014

REN

UK

A H

OLD

ING

S PL

C

5. Operational Risk

95

RENU

KA

HO

LDIN

GS PLC

ANNUAL REPORT 2014

Cla

ssifi

catio

nN

ame

of th

e C

ompa

nyLo

catio

nLa

nd P

erch

esN

o.of

Build

ing

ing

Valu

e (R

s.00

0)(

)Le

ase

Hol

dFr

ee H

old

Build

ings

Sq.ft

Cos

t/Va

luat

ion

3

96

ANNUAL REPORT 2014

REN

UK

A H

OLD

ING

S PL

C

Year ended 31st March 2014 2013 2012 2011 2010Rs'000 Rs'000 Rs'000 Rs'000 Rs'000

a) summary of the operation7,177,7971,381,825

416,243300,837(31,829)269,008191,728

b) summary of financial position

175,0002,649,1112,824,1112,012,815

Total equityTT 4,836,926

Liabilities274,705

2,212,783Total liabilitiesTT 2,487,488

Total equity and liabilitiesTT 7,324,414

Assets2,525,980

937,000599,959476,387

2,785,088Total assetsTT 7,324,414

c) key indicators3.76

3.75%55.43

0.7013.11%

7.633.041.26

3.38%5.56%

97

RENU

KA

HO

LDIN

GS PLC

ANNUAL REPORT 2014

STOCK EXCHANGE LISTING

SHARE INFORMATION

2014 2013Voting Non Voting Voting Non Voting

VOTING SHARES

31st March 2014 31st March 2013No of Shares Held -

Voting No of

Shareholders No of Shares % No of

Shareholders No of Shares %

31st March 2014 31st March 2013Analysis of Shareholders

– VotingNo of

ShareholdersNo of Shares % No of

ShareholdersNo of Shares %


- VotingNo of



98

ANNUAL REPORT 2014

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UK

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Non Voting 31st March 2014 31st March 2013No of Shares Held – Non

Voting No of

Shareholders No of Shares % No of

Shareholders No of Shares %

377

Analysis of Shareholders – Non Voting

No of Shareholders

No of Shares % No of Shareholders

No of Shares %


– Non VotingNo of



Public Share Holding

2014 2013

Share TradingT Information2013/2014 2012/2013

Voting Non Voting Voting Non VotingShare Prices

99

RENU

KA

HO

LDIN

GS PLC

ANNUAL REPORT 2014

Voting as at 31.03.2014g Voting as at 31.03.2013gNo. of shares % No. of shares %

3

7

37,847,005 85.02 37,102,472 83.34

Non-voting as at 31.03.2014

Non-Voting as at 31.03.2013

No. of shares % No. of shares %

3

7

2,905,610 45.20 2,196,338 34.17

100

ANNUAL REPORT 2014

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C

101

RENU

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LDIN

GS PLC

ANNUAL REPORT 2014

102

ANNUAL REPORT 2014

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INSTRUCTIONS AS TO COMPLETION OF THE FORM PROXY

103

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ANNUAL REPORT 2014

NOTES

104

ANNUAL REPORT 2014

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NOTES

SUBSIDIARIES:

PRINCIPAL ACTIVITYAA

REGISTRARS

BANKERS

Prod

uced

by

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