Diageo | United Spirits Limited Annual Report 2018-19

Balance sheet
(All amounts in INR Millions unless otherwise stated)

As at As at
Notes
March 31, 2019 March 31, 2018
ASSETS
Non-current assets
Property, plant and equipment 3.1 11,151 9,901
Capital work-in-progress 1,006 980
Intangible assets 3.2 131 120
Intangible assets under development 165 -
Investments in subsidiaries and associate 4 2,984 2,775
Financial assets
Loans 5 6,475 7,030
Other financial assets 6 757 743
Deferred tax assets (net) 7 1,878 856
Income tax assets (net) 8 9,309 5,600
Other non-current assets 9 3,695 4,360
Total non-current assets 37,551 32,365
Current assets
Inventories 10 18,767 18,694
Financial assets
Trade receivables 11 25,181 26,998
Cash and cash equivalents 12.1 509 1,119
Bank balances other than cash and cash equivalents 12.2 79 79
Loans 5 169 263
Other financial assets 6 1,529 781
Other current assets 9 2,838 4,694
Total current assets 49,072 52,628
Assets held for sale 13 - 1,417
Total assets 86,623 86,410
EQUITY AND LIABILITIES
EQUITY
Share capital 14 1,453 1,453
Other equity
Reserves and surplus 15 29,862 23,585
Total equity 31,315 25,038
LIABILITIES
Non-current liabilities
Financial liabilities
Borrowings 16 7,643 7,527
Provisions 18 518 512
Total non-current liabilities 8,161 8,039

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Balance sheet (continued)
(All amounts in INR Millions unless otherwise stated)

As at As at
Notes
March 31, 2019 March 31, 2018
Current liabilities
Financial liabilities
Borrowings 16 18,086 21,435
Trade payables 19
(A) total outstanding dues of micro enterprises and small enterprises;
269 89
and
(B) total outstanding dues of creditors other than micro enterprises
13,091 13,846
and small enterprises
Other financial liabilities 17 2,267 6,185
Provisions 18 3,259 2,930
Income tax liabilities (net) 8 4,205 4,577
Other current liabilities 20 5,970 4,271
Total current liabilities 47,147 53,333
Total liabilities 55,308 61,372
Total equity and liabilities 86,623 86,410

The above balance sheet should be read in conjunction with the accompanying notes.

As per our report of even date

For Price Waterhouse & Co. Chartered Accountants LLP For and on behalf of the Board of Directors
Firm registration number: 304026E/E-300009
Mahendra Kumar Sharma Anand Kripalu
Chairman Managing Director &
Chief Executive Officer

Pradip Kanakia V. K. Viswanathan Sanjeev Churiwala

Partner Director Executive Director &
Membership number: 039985 Chief Financial Officer

V. Ramachandran
Place : Bengaluru Place : Bengaluru Executive Vice President &
Date : May 29, 2019 Date : May 29, 2019 Company Secretary

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Diageo | United Spirits Limited Annual Report 2018-19

Statement of profit and loss

(All amounts in INR Millions unless otherwise stated)

For the year ended For the year ended

Notes
March 31, 2019 March 31, 2018
INCOME
Revenue from operations 21 285,123 260,691
Other income 22 952 2,060
Total income 286,075 262,751
EXPENSES
Cost of materials consumed 23 42,250 39,778
Purchase of stock-in-trade 2,892 2,375
Change in inventories of finished goods, work-in-progress and
24 807 (177)
stock-in-trade
Excise duty 195,317 178,990
Employee benefits expense 25 6,753 6,601
Finance costs 26 2,200 2,675
Depreciation, amortisation and impairment expense 3.1,3.2 1,445 1,351
Others:
Advertisement and sales promotion 8,587 7,882
Loss allowance on trade receivables and other financial
31 1,077 1,513
assets (net)
Other expenses 27 14,566 13,450
Total expenses 275,894 254,438
Profit before exceptional items and tax 10,181 8,313
Add/ (Less): Exceptional items (net) 28 (267) 90
Profit before tax 9,914 8,403
Tax expense:
Current tax 8 4,350 2,401
Deferred tax (credit) / charge 7 (1,022) 385
Total tax expense 29 3,328 2,786
Profit for the year 6,586 5,617
Other comprehensive Income
A. Items that will be reclassified to profit or loss - -
B. Items that will not be reclassified to profit or loss
(i) Remeasurements of post-employment benefit obligations 38(b)E 15 126
(ii) Income tax credit/(charge) relating to these items (5) (43)
Other comprehensive income for the year, net of tax 10 83
Total comprehensive income for the year 6,596 5,700
Basic and diluted earnings per share (INR) 30 9.06 7.73
The above statement of profit and loss should be read in conjunction with the accompanying notes.
As per our report of even date
For Price Waterhouse & Co. Chartered Accountants LLP For and on behalf of the Board of Directors
Firm registration number: 304026E/E-300009
Mahendra Kumar Sharma Anand Kripalu
Chairman Managing Director &
Chief Executive Officer
Pradip Kanakia V. K. Viswanathan Sanjeev Churiwala
Partner Director Executive Director &
Membership number: 039985 Chief Financial Officer
V. Ramachandran
Place : Bengaluru Place : Bengaluru Executive Vice President &
Date : May 29, 2019 Date : May 29, 2019 Company Secretary

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cash flow statement
(All amounts in INR Millions unless otherwise stated)

Notes For the year ended For the year ended

March 31, 2019 March 31, 2018
A. CASH FLOW FROM OPERATING ACTIVITIES
Profit before tax 9,914 8,403
Adjustments for
Depreciation, amortisation and impairment expense 3.1, 3.2 1,445 1,351
Employee share-based payment expense 25 197 84
Loss allowance on trade receivables and other financial
1,077 1,513
assets (net)
Loss allowance on other assets (net) 27 181 -
Exchange gain (net) on translation of assets and liability (15) (15)
Finance costs 26 2,200 2,675
Liabilities, provisions or allowances no longer required
22 (96) (477)
written back
Gain on disposal of property, plant and equipment (net) 22 (366) (1,117)
Dividend income 22 - (38)
Interest income 22 (425) (406)
Exceptional items 28 267 4,465 (90) 3,480
Operating profit before changes in working capital 14,379 11,883
(Increase) / decrease in trade receivables 982 1,255
(Increase) / decrease in loans and other financials assets (986) 3
(Increase) / decrease in other assets 2,323 653
(Increase) / decrease in inventories (73) (156)
Increase / (decrease) in trade payables (1,046) 2,612
Increase / (decrease) in other financial liabilities (485) (3,062)
Increase / (decrease) in other liabilities 1,681 (170)
Increase / (decrease) in provisions 38 2,434 343 1,478
Cash generated from operations 16,813 13,361
Income taxes paid 8 (8,238) (3,898)
Net cash generated from operating activities 8,575 9,463
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and intangible (1,614) (1,332)
assets
Proceeds from sale of property, plant and equipment and 958 1,373
assets held for sale
Investment in subsidiaries and associate 42(d), 57 (1,447) -
Proceeds from sale of investment in subsidiaries 42(d) 319 213
Loans given to subsidiaries 36(b)(xvi) (1,766) (1,166)
Repayment of loans by subsidiaries 36(b)(xvii) 3,071 2,345
Interest received 413 79
Dividend received 22 - 38
Net cash inflow / (outflow) from investing activities (66) 1,550

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