Brilloca Limited

Standalone Balance Sheet as at 31 March 2021 (₹ in lakh)

Particulars Note As at As at
31 March 2021 31 March 2020
ASSETS
1 Non-current assets
(a) Property, plant and equipment 4 10,370.69 10,926.93
(b) Capital work-in-progress 89.68 228.47
(c) Other intangible assets 5 66.76 108.56
(d) Financial assets
(i) Investments 6 50.50 75.34
(ii) Loans 7 1,291.37 318.14
(e) Deferred tax assets (net) 21 1,165.80 902.27
(f) Other non-current assets 8 111.78 143.71
Total non-current assets 13,146.58 12,703.42
2 Current assets
(a) Inventories 9 15,239.32 17,553.31
(b) Financial assets
(i) Investments 10 2,564.02 8.31
(ii) Trade receivables 11 24,706.52 24,238.46
(iii) Cash and cash equivalents 12 491.08 174.29
(iv) Loans 13 59.59 -
(v) Other financial assets 14 817.92 1,560.23
(c) Other current assets 15 7,273.32 5,707.31
Total current assets 51,151.77 49,241.91
Total assets 64,298.35 61,945.33

EQUITY AND LIABILITIES

1 Equity -0.00
(a) Equity share capital 16 490.00 10.00
(b) Other equity 17 25,435.32 18,569.26
Total equity 25,925.32 18,579.26

2 Liabilities
Non-current liabilities
(a) Financial liabilities
(i) Borrowings 18 2,978.64 3,331.96
(ii) Other financial liabilities 19 5,347.70 5,229.79
(b) Provisions 20 630.86 569.18
(c) Other non-current liabilities 22 88.39 131.18
Total non-current liabilities 9,045.59 9,262.11
Current liabilities
(a) Financial liabilities
(i) Borrowings 23 4,599.35 15,545.82
(ii) Trade payables 24
- Due to micro and small enterprise 1,929.38 1,332.63
- Due to others 2,188.96 3,291.57
(iii) Other financial liabilities 25 14,967.37 10,939.74
(b) Other current liabilities 26 4,813.09 2,414.34
(c) Income-tax liabilities (net) 27 779.58 554.13
(d) Provisions 28 49.71 25.73

Total current liabilities 29,327.44 34,103.96

Total liabilities 38,373.03 43,366.07
Total equity and liabilities 64,298.35 61,945.33
Notes 1 to 58 form an integral part of these standalone financial statements.
In terms of our report attached.
For and on behalf of the Board of Directors

Sd/- Sd/-
For Lodha & Co
Chartered Accountants G.L. Sultania Sandip Somany
Firm Registration No.:301051E Director Chairman and Managing Director
DIN: 00060931 DIN: 00053597
Sd/-

Gaurav Lodha Sd/- Sd/-

Partner
M. No. 507462 Payal M. Puri Sandeep Sikka
Place : New Delhi Company Secretary Chief Financial Officer
Date : 19th May, 2021 ACS No.: 16068
Place : Gurugram
Date : 19th May, 2021
Brilloca Limited
Standalone statement of Profit and Loss for the year ended 31 March 2021 (₹ in lakh)
Note
Year ended Year ended
Particulars
31 March 2021 31 March 2020
I Revenue from operations 29 1,26,196.01 1,16,087.50
II Other income 30 1,822.12 2,054.21
III Total income 1,28,018.13 1,18,141.71
IV Expenses
Purchases of stock-in-trade 31 83,620.48 79,443.59
Changes in inventories of stock-in-trade 32 2,420.58 (410.15)
Employee benefits expense 33 12,877.83 12,747.85
Finance costs 34 1,535.54 2,012.23
Depreciation and amortisation expense 35 2,375.18 2,412.55
Other expenses 36 15,875.55 16,272.39
Total expenses 1,18,705.16 1,12,478.46
V Profit before exceptional items and tax 9,312.97 5,663.25
VI Exceptional items - -
VII Profit before tax 9,312.97 5,663.25
VIII Tax expense 37
(1) Current tax 2,863.33 1,830.23
Earlier year income tax (427.44) -
(2) Deferred tax (315.24) (200.42)
Total tax expense 2,120.65 1,629.81
IX Profit for the year 7,192.32 4,033.44
X Other comprehensive income
(i) Items that will not be reclassified to profit or loss
(a) Remeasurements of the defined benefit plan 205.45 (43.18)
(ii) Income-tax relating to these items (51.71) 11.07
Other comprehensive income, net of tax 153.74 (32.11)
XI Total comprehensive income for the year 7,346.06 4,001.33

XII Earnings per equity share (of ₹ 2/- each):

Basic and diluted 42 29.36 16.46
Notes 1 to 58 form an integral part of these standalone financial statements.
In terms of our report attached.
For and on behalf of the Board of Directors

Sd/- Sd/-

For Lodha & Co G.L. Sultania Sandip Somany

Chartered Accountants Director Chairman and Managing Director
Firm Registration No.:301051E DIN: 00060931 DIN: 00053597

Sd/-
Sd/- Sd/-
Gaurav Lodha
Partner Payal M. Puri Sandeep Sikka
M. No. 507462 Company Secretary Chief Financial Officer
Place : New Delhi ACS No.: 16068
Date : 19th May, 2021 Place : Gurugram
Date : 19th May, 2021
Brilloca Limited
Standalone cash flow statement for the year ended 31 March 2021
(₹ in lakh)
Year ended Year ended
Particulars
31 March 2021 31 March 2020
Cash flows from operating activities
Profit before tax 9,312.97 5,663.25
Adjustments for:
Finance costs 1,535.54 2,012.23
Interest income (137.92) (13.03)
Gain on disposal of property, plant and equipment (7.82) (5.21)
Loss on disposal of property, plant and equipment 0.70 22.93
Net (gain) arising on current investments (4.80) (0.49)
Sundry balances and liabilities no longer required, written back (1,650.54) (624.66)
Provision for expected credit loss 954.20 591.14
Provision for doubtful advances 66.93 -
Bad debts written off 5.44 32.94
Impairment loss 76.94
Depreciation and amortisation expenses 2,375.18 2,412.55
Lease concession (90.30) -
Net foreign exchange (gain) (87.11) (16.80)
Operating profit before working capital changes 12,349.41 10,074.85
Working capital adjustments :
(Increase)/decrease in trade and other receivables (727.30) 10,704.11
(Increase)/decrease in inventories 2,314.00 (428.88)
(Increase)/decrease in other assets (1,602.15) (1,181.33)
Increase/(decrease) in trade and other liabilities 7,906.11 (7,955.41)
Increase/(decrease) in provisions 85.65 45.16
7,976.31 1,183.65
Cash generated from / (used in) operations 20,325.72 11,258.50
Income taxes paid (2,353.89) (5,560.09)
Income taxes refund 143.45 -
Net cash generated from / (used in) operating activities 18,115.28 5,698.41

Cash flows from investing activities:

Payments to acquire financial assets (2,603.01) -
Proceeds on sale of financial assets - 0.40
Interest income 137.92 13.03
Loan to related party (1,000.00) -
Payments for property, plant and equipment (1,390.99) (2,084.01)
Proceeds from disposal of property, plant and equipment 114.17 42.94
Net Cash generated from / (used in) investing activities (4,741.91) (2,027.64)

Cash flows from financing activities:

Proceeds from borrowings - 10.00
Repayment of borrowings (178.04) -
Movement in short term borrowings (net) (10,946.47) 647.57
Principle payment of leased liability (376.31) (355.61)
Taxes on dividend paid - (513.88)
Dividends paid to owners of the Company - (2,500.00)
Interest paid (1,555.76) (2,027.91)
Net Cash generated from / (used in) financing activities (13,056.58) (4,739.83)

Net increase / (decrease) in cash and cash equivalents: 316.79 (1,069.06)

Cash and cash equivalents at the beginning of the year 174.29 1,243.35
Cash and cash equivalents at the end of the year 491.08 174.29

The movement in liabilities from financing activities:

As at Non-cash flow changes - Other As at
Particulars Cash flow
31st March, 2020 31st March, 2021
Foreign exchange Other
Long term borrowings 3,510.00 (178.04) - - 3,331.96
Short term borrowings 15,545.82 (10,946.47) - - 4,599.35
Total liabilities from financing activities 19,055.82 (11,124.51) - - 7,931.31

As at Non-cash flow changes - Other As at

Particulars Cash flow
31st March, 2019 31st March, 2020
Foreign exchange Other
Long term borrowings 3,500.00 10.00 - 3,510.00
Short term borrowings 14,898.25 647.57 - 15,545.82
Total liabilities from financing activities 18,398.25 657.57 - - 19,055.82

Notes:-
1. Previous year’s figures have been re-grouped/ re-arranged wherever necessary.
2. The Cash flow statement has been prepared under the Indirect method as set out in Indian Accounting Standard(Ind As 7) statement of Cash flows.
Notes 1 to 58 form an integral part of these standalone financial statements.
In terms of our report attached. For and on behalf of the Board of Directors

Sd/- Sd/-

For Lodha & Co G.L. Sultania Sandip Somany

Chartered Accountants Director Chairman and Managing Director
Firm Registration No.:301051E DIN: 00060931 DIN: 00053597

Sd/- Sd/-
Sd/-
Gaurav Lodha Payal M. Puri
Partner Company Secretary Sandeep Sikka
M. No. 507462 ACS No.: 16068 Chief Financial Officer
Place : New Delhi
Date : 19th May, 2021 Place : Gurugram
Date : 19th May, 2021
Brilloca Limited
Standalone statement of changes in equity for the year ended 31 March 2021

a. Equity share capital (₹ in lakh)

Particulars Number of shares Amount

Issued and paid up capital

Balance as at 1 April 2019 5,00,000 10.00
Changes in equity share capital during the year - -
Balance as at 31 March 2020 5,00,000 10.00
Changes in equity share capital during the year* 2,40,00,000 480.00
Balance as at 31 March 2021 2,45,00,000 490.00

b. Other equity (₹ in lakh)

Other comprehensive
Reserves and surplus
income
Particulars Total
Securities Premium General Retained Actuarial gain / (loss)
Account Reserve Earnings
Balance as at 1 April 2019 3,913.05 1,323.86 12,304.79 40.11 17,581.81

Profit for the year - - 4,033.44 - 4,033.44

Other comprehensive income for the year (net of income tax) - - - (32.11) (32.11)
Payment of dividend (including dividend distribution tax) (Refer note 55) - - (3,013.88) - (3,013.88)
Total - - 1,019.56 (32.11) 987.45

Balance as at 31 March 2020 3,913.05 1,323.86 13,324.35 8.00 18,569.26

Profit for the year - - 7,192.32 - 7,192.32

Other comprehensive income for the year (net of income tax) - - - 153.74 153.74
Total comprehensive income for the year - - 7,192.32 153.74 7,346.06
Issue of bonus shares * (480.00) (480.00)
Balance as at 31 March 2021 3,433.05 1,323.86 20,516.67 161.74 25,435.32

* Board of Directors in their meeting held on 6th November 2020 had approved issue of bonus shares of ₹480.00 lakh, i.e. 2,40,00,000 nos. equity shares of ₹ 2/- each
fully paid up (in the proportion of 48 equity shares for every 1 (one) equity share held) of the Company, out of balance available in the Securities Premium Account.
Subsequent to approval of Shareholders obtained in their extra ordinary general meeting held on 1st December 2020, shares were allotted in the meeting held on 14th
December 2020 of Corporate Affairs Committee of Board of Directors. Accordingly, the paid up shares capital of the Company increased from ₹10 lakh to ₹490 lakh
(from 5,00,000 nos. to 2,45,00,000 nos.).

<This space has been intentionally left blank>

Notes 1 to 58 form an integral part of these standalone financial statements.

In terms of our report attached.

For and on behalf of the Board of Directors

Sd/- Sd/-

For Lodha & Co G.L. Sultania Sandip Somany

Chartered Accountants Director Vice Chairman and Managing Director
Firm Registration No.:301051E DIN: 00060931 DIN: 00053597

Sd/- Sd/- Sd/-

Gaurav Lodha Payal M. Puri Sandeep Sikka

Partner Company Secretary Chief Financial Officer
M. No. 507462 ACS No.: 16068
Place : New Delhi
Date : 19th May, 2021 Place : Gurugram
Date : 19th May, 2021
Brilloca Limited

Significant accounting policies and other explanatory information to the standalone financial
statements for the year ended 31 March 2021

1. Corporate information
Brilloca Limited (the 'Company') is a public limited company incorporated in India under the
Companies Act 2013. The registered office of the Company is located in Kolkata and the corporate
office is in Gurugram. The Company is engaged into the business of trading of Building products.
The Company is wholly owned subsidiary of Somany Home Innovation Limited.

These financial statements were approved and authorized for issue in accordance with the
resolution of the Company’s Board of Directors on 19th May 2021.

2. Application of new and revised Indian Accounting Standard (“Ind AS”)

All the Ind AS issued and notified by the Ministry of Corporate Affairs under the Companies
(Indian Accounting Standards) Rules, 2015 (as amended) till the standalone financial statements
are authorized have been considered in preparing these standalone financial statements.

2.1 Recent accounting pronouncements

A. Application of New Accounting Pronouncements

The Company applied for the first-time amendments to the following standards from 1st April
2020.

i. Amendments to Ind AS 1 and Ind AS 8, Definition of Material:

The amended definition states that, “information is material if omitting, misstating or
obscuring it could reasonably be expected to influence decisions that the primary users
of general purpose financial statements make on the basis of those financial
statements, which provide financial information about a specific reporting entity.”
The amendments to the definition of material are not expected to have a significant
impact on the Company’s standalone financial statements, nor is there expected to
have any future impact to the Company.

ii. Amendments to Ind AS 107 and Ind AS 109, Interest Rate Benchmark Reform:
The amendments to Ind AS 107 prescribe the disclosures which entities are required
to make for hedging relationships to which the reliefs as per the amendments in Ind
AS 109 are applied. These amendments are not expected to have a significant impact
on the Company’s standalone financial statements.

iii. Amendment to Ind AS 116, Covid-19-Related Rent Concessions:

The amendments provide relief to lessees from applying Ind AS 116 guidance on lease
modification accounting for rent concessions arising as a direct consequence of the
Covid-19 pandemic. As a practical expedient, a lessee may elect not to assess whether
a Covid-19 related rent concession from a lessor is a lease modification.
This amendment had no significant impact on the standalone financial statements of
the Company.

iv. Amendments to Ind AS 103, Business Combination:

These amendments did not have any impact on the amounts recognised in prior
periods and are not expected to significantly affect the current or future periods.
Brilloca Limited

Significant accounting policies and other explanatory information to the standalone financial
statements for the year ended 31 March 2021 (contd.)

B. Changes and revision in Schedule III

MCA issued notifications dated 24th March, 2021 to amend Schedule III to the Companies
Act, 2013 to enhance the disclosures required to be made by the Company in its standalone
financial statements. These amendments are applicable to the Company for the financial year
starting 1st April, 2021.

3. Significant accounting policies and other explanatory information

3.1 Statement of compliance with Indian Accounting Standards (Ind AS)

The standalone financial statements of the Company have been prepared in accordance with Ind
AS notified by the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian
Accounting Standards) Amendment Rules, 2016. (as amended) and presentation requirement of
division II of the schedule IIII of the companies act 2013. Accordingly, the standalone financial
statements for the year ended 31 March 2021 are prepared complying applicable Ind AS.

3.2 Historical cost convention

These standalone financial statements have been prepared on a historical cost convention except
where certain financial assets and liabilities have been measured at fair value. (refer accounting
policy of financial instruments)

3.3 Business combinations

Business combinations involving entities under common control are accounted for using the
pooling of interest’s method. The net assets of the transferor entity or business are accounted at
their carrying amounts on the date of the acquisition subject to necessary adjustments required
to harmonise accounting policies. Any excess or shortfall of the consideration paid over the share
capital of transferor entity or business is recognised as capital reserve under equity.

3.4 Goodwill
Goodwill represents the future economic benefits arising from a business combination that are
not individually identified and separately recognised. Goodwill is carried at cost less accumulated
impairment losses.

3.5 Revenue recognition

Revenue from contracts with customers are recognized when the performance obligation towards
customer have been made i.e on transfer of control of promised goods or services to a customer
at an amount that reflects the consideration to which the Company is expected to be entitled to in
exchange for those goods or services.
Revenue towards satisfaction of a performance obligation is measured at the amount of transaction
price (net of variable consideration) allocated to that performance obligation. Revenue is
recognized net of sales reductions such as discounts and sales incentives granted. This variable
consideration is estimated based on the expected value of outflow.
Brilloca Limited

Significant accounting policies and other explanatory information to the standalone financial
statements for the year ended 31 March 2021 (contd.)

Sale of products:
Revenue from the sale of products is recognized when the Company has transferred control of the
goods to the buyer and the buyer obtains the benefits from the goods, the potential cash flows and
the amount of revenue (the transaction price) can be measured reliably, and it is probable that the
Company will collect the consideration to which it is entitled to in exchange for the goods.

Sales‑related warranties associated with the goods are integral to sales price and cannot be
purchased separately, hence they serve as an assurance that the products sold comply with
agreed‑upon specifications. Accordingly, the Company accounts for warranties in accordance with
Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets.

Rendering of services:
Revenue from services is recognized over time by measuring progress towards satisfaction of
performance obligation for the services rendered.

Interest and dividends

Interest income and expenses are reported on an accrual basis using the effective interest method.
Dividends are recognised at the time the right to receive payment is established.

3.6 Leases

The Company’s lease asset classes primarily consist of leases for Buildings. The Company assesses
whether a contract is or contains a lease, at inception of a contract. A contract is, or contains, a
lease if the contract conveys the right to control the use of an identified asset for a period of time
in exchange for consideration. To assess whether a contract conveys the right to control the use of
an identified asset, the Company assesses whether:
(i) The contract involves the use of an identified asset
(ii) The Company has substantially all of the economic benefits from use of the asset through
the period of the lease and
(iii) The Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognises a right-of-use asset (“ROU”)
and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases
with a term of twelve months or less (short term leases) and leases of low value assets. For these
short term and leases of low value assets, the Company recognises the lease payments as an
operating expense on a straight line basis over the term of the lease.

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the
lease liability adjusted for any lease payments made at or prior to the commencement date of the
lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost
less accumulated depreciation and impairment losses, if any. Right-of-use assets are depreciated
from the commencement date on a straight-line basis over the shorter of the lease term and useful
life of the underlying asset.

The lease liability is initially measured at the present value of the future lease payments. The lease
payments are discounted using the interest rate implicit in the lease or, if not readily determinable,
using the incremental borrowing rates. The lease liability is subsequently remeasured by increasing
Brilloca Limited

Significant accounting policies and other explanatory information to the standalone financial
statements for the year ended 31 March 2021 (contd.)

the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect
the lease payments made.

A lease liability is remeasured upon the occurrence of certain events such as a change in the lease
term or a change in an index or rate used to determine lease payments. The remeasurement
normally also adjusts the leased assets.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease
payments have been classified as financing cash flows.

3.7 Foreign currency transactions and translations

Initial recognition
The Company's standalone financial statements are presented in INR, which is also the Company's
functional currency. Transactions in foreign currencies are recorded on initial recognition in the
functional currency at the exchange rates prevailing on the date of the transaction.

Measurement at the balance sheet date

Foreign currency monetary items of the Company, outstanding at the balance sheet date are
restated at the year-end rates. Non-monetary items which are carried at historical cost denominated
in a foreign currency are reported using the exchange rate at the date of the transaction. Non-
monetary items measured at fair value in a foreign currency are translated using the exchange rates
at the date when the fair value is determined.

Treatment of exchange difference

Exchange differences that arise on settlement of monetary items or on reporting at each balance
sheet date of the Company’s monetary items at the closing rate are recognised as income or
expenses in the period in which they arise.

3.8 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their
intended use or sale, are capitalised during the period of time that is necessary to complete and
prepare the asset for its intended use or sale.

All other borrowing costs are expensed in the period in which they are incurred and reported in
finance cost.

3.9 Employee benefits

Employee benefits include provident fund, pension fund, gratuity and compensated absences.

Defined contribution plans

The Company's contribution to provident fund and pension fund is considered as defined
contribution plan and is charged as an expense as they fall due based on the amount of contribution
Brilloca Limited

Significant accounting policies and other explanatory information to the standalone financial
statements for the year ended 31 March 2021 (contd.)

required to be made and when services are rendered by the employees. The Company has no legal
or constructive obligation to pay contribution in addition to its fixed contribution.

Defined benefit plans

For defined benefit plans in the form of gratuity, the cost of providing benefits is determined using
'the Projected Unit Credit method', with actuarial valuations being carried out at each Balance Sheet
date. Re-measurements, comprising of actuarial gains and losses are recognised immediately in the
balance sheet with a corresponding debit or credit to retained earnings through other
comprehensive income in the period in which they occur. Re-measurements are not reclassified to
the statement of profit and loss in subsequent periods. The retirement benefit obligation
recognised in the Balance Sheet represents the present value of the defined benefit obligation as
adjusted for unrecognised past service cost.

Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for
the services rendered by employees are recognised during the year when the employees render the
service. These benefits include performance incentive and compensated absences which are
expected to occur within twelve months after the end of the period in which the employee renders
the related service. The cost of such compensated absences is accounted as under:

(a) in case of accumulated compensated absences, when employees render the services that
increase their entitlement of future compensated absences; and
(b) in case of non-accumulating compensated absences, when the absences occur.

Long-term employee benefits

Compensated absences which are allowed to carried forward over a period in excess of 12 months
after the end of the period in which the employee renders the related service are recognised as a
liability at the present value of the defined benefit obligation as at the Balance Sheet date out of
which the obligations are expected to be settled.

3.10 Taxation
Tax expense recognised in the statement of profit or loss comprises the sum of deferred tax and
current tax not recognised in other comprehensive income or directly in equity.

Current tax
Current income tax assets and/or liabilities comprise those obligations to, or claims from, fiscal
authorities relating to the current or prior reporting periods, that are unpaid at the reporting date.
Current tax is payable on taxable profit, which differs from profit or loss in the financial statements.
Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively
enacted by the end of the reporting period. Deferred income taxes are calculated using the liability
method on temporary differences between the carrying amounts of assets and liabilities and their
tax bases.
Brilloca Limited

Significant accounting policies and other explanatory information to the standalone financial
statements for the year ended 31 March 2021 (contd.)

Deferred tax
Deferred tax assets are recognised to the extent that it is probable that the underlying tax loss or
deductible temporary difference will be utilised against future taxable income. This is assessed
based on the Company’s forecast of future opening results, adjusted for significant non-taxable
income and expenses and specific limits on the use of any unused tax loss or credit.

Deferred tax liabilities are generally recognised in full, although Ind AS 12, Income Taxes, specifies
limited exemptions.
Changes in deferred tax assets or liabilities are recognised as a component of tax income or expense
in the statement of profit or loss, except where they relate to items that are recognised in other
comprehensive income (such as the revaluation of land) or directly in equity, in which case the
related deferred tax is also recognised in other comprehensive income or equity, respectively.

3.11 Operating cycle

Based on the nature of products/activities of the Company and the normal time between purchase
of raw materials and their realisation in cash or cash equivalents, the Company has determined its
operation cycle as 12 months for the purpose of classification of its assets and liabilities as current
and non-current.

3.12 Operating expenses

Operating expenses are recognised in statement of profit or loss upon utilisation of the service or
as incurred. Expenditure for warranties is recognised when the Company incurs an obligation,
which is usually when the related goods are sold.

3.13 (a) Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairment
losses, if any.
Property, plant and equipment are stated at their original cost including freight, duties, taxes and
other incidental expenses relating to acquisition and installation.

The carrying amount of assets, including those assets that are not yet available for use, are reviewed
at each balance sheet date to determine whether there is any indication of impairment. If any such
indication exists, recoverable amount of asset is determined. An impairment loss is recognised in
the statement of profit and loss whenever the carrying amount of an asset exceeds its recoverable
Brilloca Limited

Significant accounting policies and other explanatory information to the standalone financial
statements for the year ended 31 March 2021 (contd.)

amount. An impairment loss is reversed only to the extent that the carrying amount of asset does
not exceed the net book value that would have been determined if no impairment loss had been
recognised.

When significant parts of property, plant and equipment are required to be replaced at intervals,
the Company recognises the new part and is depreciated accordingly. Further, when major
overhauling/ repair are performed, the cost associated with this is capitalised, if the recognition
criteria are satisfied, and is then depreciated over the remaining useful life of asset or over the
period of next overhauling due, whichever is earlier. All other repair and maintenance costs are
recognised in the statement of profit and loss as and when incurred.

The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate.

(b) Intangible assets

Intangible are stated at cost less accumulated amortisation and impairment losses, (if any). Cost
related to technical assistance for new projects are capitalized.

(c) Capital work-in-progress

Expenditure incurred during the period of construction, including all direct and indirect expenses,
incidental and related to construction, is carried forward and on completion, the costs are allocated
to the respective property, plant and equipment. Capital work-in-progress includes capital
inventory.

3.14 Depreciation and amortisation

Depreciation is charged on a pro-rata basis on the straight line method at rates prescribed in
Schedule II to the Companies Act, 2013 and is charged to the statement of profit and loss. Freehold
land is not depreciated.
The estimated useful life of the items of property, plant and equipment are as follows:

Asset class Useful life

Property, plant and equipment
Plant and machinery 7.5-20 years** #
Furniture and fixtures 10 years
Office equipment 5 years
Computer 3-6 years
Vehicles 8 years*
Intangible assets
Software 6 years
* Vehicles are being depreciated using written down value method as per life of 8 years mentioned
in Schedule II of the Act
** Moulds, included in Plant and machinery, are depreciated over a smaller useful life than
mentioned in above table depending on the actual use of the asset
Brilloca Limited

Significant accounting policies and other explanatory information to the standalone financial
statements for the year ended 31 March 2021 (contd.)

# Plant and machinery of the pipe division are depreciated over a life of 10 to 20 years which is
different from life prescribed in Schedule II of the Act, based on independent chartered engineer
certificate

3.15 Impairment of property, plant and equipment

Assets are tested for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable and impairment loss is recognised for the amount by
which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is
higher of an asset's fair value less costs of disposal and value in use. For the purpose of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash
inflows which are largely independent of the cash inflows from other assets or group of assets
(cash generating units). If at the balance sheet date, there is an indication that a previously assessed
impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at
the recoverable amount subject to a maximum of depreciated historical cost and the same is
accordingly reversed in the statement of profit and loss.

3.16 Investment in Associates, Joint Ventures and Subsidiaries

The Company has accounted for its investment in subsidiaries, associates and joint venture at cost
less impairment, if any

3.17 Investment in Mutual Funds

Investments in Mutual Funds are accounted for at cost. Any subsequent fair value gain or loss is
recognized through Profit or Loss Account.

3.18 Cash and cash equivalents

Cash and cash equivalents comprise cash in hand and demand deposits, together with other short-
term, highly liquid investments maturing within 90 days from the date of acquisition. Cash and
cash equivalent are readily convertible into known amounts of cash and are subject to an
insignificant risk of changes in value.

3.19 Cash flow statement

Cash flows are reported using the indirect method, whereby profit/loss before tax is adjusted for
the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash
receipts or payments.
3.20 Inventories
Inventories are stated at the lower of cost and net realisable value. The cost of inventories
comprises of all costs of purchase, (net of tax credits where applicable) costs of conversion and
other costs incurred in bringing the inventories to their present location and condition.

Costs of inventories are determined on weighted average basis. Net realisable value is the estimated
selling price in the ordinary course of business less any applicable selling expenses.

3.21 Provisions and contingencies

A provision is recognised in the standalone financial statements where there exists a present
obligation as a result of a past event, the amount of which can be reliably estimated, and it is
probable that an outflow of resources would be necessitated in order to settle the obligation. If the
effect of the time value of money is material, provisions are discounted using a current pre-tax rate
Brilloca Limited

Significant accounting policies and other explanatory information to the standalone financial
statements for the year ended 31 March 2021 (contd.)

that reflects, when appropriate, the risks specific to the liability. When discounting is used, the
increase in the provision due to the passage of time is recognised as a finance cost. Provisions are
reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent
liabilities are not recognised but are disclosed in the notes unless the outflow of resources is
considered to be remote. Contingent assets are neither recognised nor disclosed in the standalone
financial statements.

3.22 Equity, reserves and dividend payments

Equity shares are classified as equity. Incremental costs directly attributable to the issue of new
shares are shown in equity as a deduction, net of tax, from the proceeds.

Retained earnings include current and prior period retained profits. All transactions with owners
of the Company are recorded separately within equity.

Dividend distribution payable to equity shareholders are included in other liabilities when the
dividends have been approved in a general meeting prior to the reporting date.

3.23 Earnings per share

Basic earnings or loss per share are calculated by dividing the net profit or loss for the period
attributable to equity shareholders by the weighted average number of equity shares outstanding
during the period. The weighted average number of equity shares outstanding during the period is
adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse
share split (consolidation of shares) that have changed the number of equity shares outstanding,
without a corresponding change in resources.

For the purpose of calculating diluted earnings or loss per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of shares outstanding during
the period are adjusted for the effects of all dilutive potential equity shares.

3.24 Fair value measurement

The Company measures financial instruments such as investments in mutual funds, investment in
certain equity shares etc. at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability at the
measurement date.

All assets and liabilities for which fair value is measured or disclosed in the standalone financial
statements are categorised within the fair value hierarchy, described as follows, based on the lowest
level input that is significant to the fair value measurement as a whole:
• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable
• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable.
For the purpose of fair value disclosures, the Company has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of
the fair value hierarchy as explained above.
Brilloca Limited

Significant accounting policies and other explanatory information to the standalone financial
statements for the year ended 31 March 2021 (contd.)

3.25 Financial instruments

I. Financial assets
a. Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in case of financial assets not recorded
at fair value through profit or loss, transaction costs that are attributable to the acquisition of the
financial asset, which are not at fair value through profit and loss, are added to fair value on initial
recognition. Transaction costs of financial assets carried at fair value through profit or loss are
expensed in statement of profit and loss.

b. Subsequent measurement
(i) Financial assets carried at amortised cost
A financial asset is subsequently measured at amortised cost if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

(ii) Financial assets at fair value through other comprehensive income (FVOCI)
A financial asset is subsequently measured at fair value through other comprehensive income if it
is held within a business model whose objective is achieved by both collecting contractual cash
flows and selling financial assets and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

(iii) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are subsequently fair valued
through statement of profit and loss.

c. Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses (ECL) associated with
its assets measured at amortised cost and assets measured at fair value through other
comprehensive income. The impairment methodology applied depends on whether there has been
a significant increase in credit risk. Note 38 details how the Company determines whether there
has been a significant increase in credit risk.

d. Derecognition of financial assets

A financial asset is derecognised when:
- The Company has transferred the right to receive cash flows from the financial assets or
- Retains the contractual rights to receive the cash flows of the financial assets, but assumes a
contractual obligation to pay the cash flows to one or more recipients.

Where the entity transfers the financial asset, it evaluates the extent to which it retains the risk and
rewards of the ownership of the financial assets. If the entity transfers substantially all the risks and
rewards of ownership of the financial asset, the entity shall derecognise the financial asset and
recognise separately as assets or liabilities any rights and obligations created or retained in the
Brilloca Limited

Significant accounting policies and other explanatory information to the standalone financial
statements for the year ended 31 March 2021 (contd.)

transfer. If the entity retains substantially all the risks and rewards of ownership of the financial
asset, the entity shall continue to recognise the financial asset.

Where the entity has neither transferred a financial asset nor retains substantially all risks and
rewards of the ownership of the financial asset, the financial asset is derecognised if the Company
has not retained control of the financial assets. Where the Company retains control of the financial
assets, the asset is continued to be recognised to the extent of continuing involvement in the
financial asset.

II. Financial liabilities

a. Initial recognition and subsequent measurement
All financial liabilities are recognized initially at fair value and in case of borrowings and payables,
net of directly attributable cost.

Financial liabilities are subsequently carried at amortized cost using the effective interest method.
For trade and other payables maturing within one year from the balance sheet date, the carrying
amounts approximate fair value due to the short maturity of these instruments. Changes in the
amortised value of liability are recorded as finance cost.

III. Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods
and assumptions that are based on market conditions and risks existing at each reporting date. The
methods used to determine fair value include discounted cash flow analysis, available quoted
market prices. All methods of assessing fair value result in general approximation of value, and
such value may vary from actual realization on future date.

IV. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance
sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

3.26 Derivative financial instruments

The Company enters into a variety of derivative financial instruments to manage its exposure to
interest rate and foreign exchange rate risks, including foreign exchange forward contracts, interest
rate swaps and cross currency swaps.

Derivatives are initially recognised at fair value at the date the derivative contracts are entered into
and are subsequently re-measured to their fair value at the end of each reporting period. The
resulting gain or loss is recognised in statement of profit and loss immediately unless the derivative
is designated and effective as a hedging instrument, in which event the timing of the recognition in
the statement of profit and loss depends on the nature of the hedging relationship and the nature
of the hedged item.
3.27 Significant accounting judgements, estimates and assumptions
The preparation of the Company's standalone financial statements requires management to make
judgments, estimates and assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities.
Brilloca Limited

Significant accounting policies and other explanatory information to the standalone financial
statements for the year ended 31 March 2021 (contd.)

Uncertainty about these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in future periods.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year, are described below. The Company based its
assumptions and estimates on parameters available when the standalone financial statements were
prepared. Existing circumstances and assumptions about future developments, however, may
change due to market changes or circumstances arising that are beyond the control of the
Company. Such changes are reflected in the assumptions when they occur.

(i) Estimation of defined benefit obligation

The cost of the defined benefit plan and other post-employment benefits and the present value of
such obligation are determined using actuarial valuations. An actuarial valuation involves making
various assumptions that may differ from actual developments in the future. These include the
determination of the discount rate, future salary increases, mortality rates and attrition rate. Due to
the complexities involved in the valuation and its long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting
date.

(ii) Estimation of current tax and deferred tax

Management judgment is required for the calculation of provision for income - taxes and deferred
tax assets and liabilities. The Company reviews at each balance sheet date the carrying amount of
deferred tax assets. The factors used in estimates may differ from actual outcome which could lead
to adjustment to the amounts reported in the standalone financial statements.

(iii) Useful lives of depreciable assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date,
based on the expected utility of the assets. Uncertainties in these estimates relate to technological
obsolescence that may change the utility of certain property, plant and equipment.

(iv) Impairment of trade receivables

Trade receivables do not carry any interest and are stated at their normal value as reduced by
appropriate allowances for estimated irrecoverable amounts. Individual trade receivables are
written off when management deems them not to be collectible. Impairment is recognised based
on the expected credit losses, which are the present value of the cash shortfall over the expected
life of the financial assets.

(v) Fair value measurement

Management uses valuation techniques to determine the fair value of financial instruments (where
active market quotes are not available) and non-financial assets. This involves developing estimates
and assumptions consistent with how market participants would price the instrument. Management
bases its assumptions on observable data as far as possible but this is not always available. In that
case management uses the best information available. Estimated fair values may vary from the
actual prices that would be achieved in an arm’s length transaction at the reporting date (refer
note 39).
Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year ended 31 March 2021

Note 4 - Property, plant and equipment

(₹ in lakh)
Description of assets Lease hold Right to use - Plant and Office Furniture and Computers Vehicles Total
improvement Building equipment equipment fixtures
I. Gross block
Balance as at 1 April 2019 - - 4,966.16 253.51 4,222.43 729.26 307.77 10,479.13
Additions - 3,344.48 217.24 136.95 1,208.56 87.00 251.52 5,245.75
Disposals/adjustment - - - 1.24 (59.14) (89.70) (41.60) (189.20)
Balance as at 31 March 2020 - 3,344.48 5,183.40 391.70 5,371.85 726.56 517.69 15,535.68
Additions 25.06 746.12 57.82 42.77 667.35 231.32 432.99 2,203.43
Disposals/adjustment (499.61) (2.91) (19.00) - (90.09) (189.36) (800.97)

Balance as at 31 March 2021 25.06 3,590.99 5,238.31 415.47 6,039.20 867.79 761.32 16,938.14

II. Accumulated depreciation and amortisation

Balance as at 1 April 2019 - 378.68 159.13 1,270.71 436.53 132.80 2,377.85
Depreciation and amortisation charge for the year 528.48 545.95 52.95 1,000.06 167.80 64.22 2,359.46
Disposals/adjustment - - 1.48 (36.57) (69.41) (24.06) (128.56)
Balance as at 31 March 2020 - 528.48 924.63 213.56 2,234.20 534.92 172.96 4,608.75
Depreciation and amortisation charge for the year 3.10 607.02 349.93 58.95 1,054.69 147.20 112.79 2,333.68
Disposals/adjustment (180.36) (0.73) (18.00) - (67.80) (108.09) (374.98)
Balance as at 31 March 2021 3.10 955.14 1,273.83 254.51 3,288.89 614.32 177.66 6,567.45

Net block (I-II)

Balance as at 31 March 2021 21.96 2,635.85 3,964.48 160.96 2,750.31 253.47 583.66 10,370.69
Balance as at 31 March 2020 - 2,816.00 4,258.77 178.14 3,137.65 191.64 344.73 10,926.93

Note :
1. Refer note 18 for details of property, plant and equipment pledged as security by the Company.
Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements
as at and for the year ended 31 March 2021

Note 5 - Other intangible assets

(₹ in lakh)
Description of assets Computer Total
software
I. Gross block
Balance as at 1 April 2019 373.56 373.56
Additions 25.97 25.97
Disposals/adjustment 91.51 91.51
Balance as at 31 March 2020 491.04 491.04
Additions -
Disposals/adjustment (9.89) (9.89)
Balance as at 31 March 2021 481.15 481.15

II. Accumulated amortisation

Balance as at 1 April 2019 257.24 257.24
Amortisation charge for the year 53.09 53.09
Disposals/adjustment 72.15 72.15
Balance as at 31 March 2020 382.48 382.48
Amortisation charge for the year 41.50 41.50
Disposals/adjustment (9.59) (9.59)
Balance as at 31 March 2021 414.39 414.39

Net block (I-II)

Balance as on 31 March 2021 66.76 66.76
Balance as on 31 March 2020 108.56 108.56

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year ended
31 March 2021

Note 6 - Non current investments

(₹ in lakh)
As at 31 March 2021 As at 31 March 2020
Particulars
Number Amount Number Amount
Investment in Subsidiaries measured at cost less impairments, if any
Unquoted investments (fully paid-up) (At cost)
Halis International Limited, Mauritius (Equity share, face value USD 1 1705000 782.50 17,05,000 782.50
each)
Less : Provision for impairment of investments (782.50) - (782.50) -

Alchemy International Cooperative U.A., Netherlands (Euro 180)* 180 0.12

Less : Provision for impairment of investments (Refer note 56) - - 0.12

Halis International Limited, Mauritius (Preference Share, face value 2106000 1,228.15 2036000 1,176.05
USD 1 each)
Less : Provision for impairment of investments (1,177.65) 50.50 (1,100.83) 75.22

Unquoted investments 50.50 75.34

Total investments carried at cost 50.50 75.34

Other disclosures
Aggregate amount of unquoted investments 2,010.65 1,958.67
Aggregate amount of impairment in value of investments 1,960.15 1,883.33

* Liquidated during the year

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at
and for the year ended 31 March 2021

Note 7 - Non-current financial assets - loans

(₹ in lakh)
Particulars As at As at
31 March 2021 31 March 2020
(unsecured and considered good unless otherwise specified, as considered
by the management)
Security deposits* 291.37 318.14
Loans to related party ** 1,000.00 -
1,291.37 318.14
* Including of HSIL Limited of ₹ 2.52 Lakh (previous year ₹ Nil)
** The loan has been given to Somany Home Innovation Limited for normal business operations.

Note 8 - Other non-current assets

(₹ in lakh)
As at As at
Particulars 31 March 2021 31 March 2020
(unsecured and considered good, unless stated otherwise, as considered by
the management)
Capital advances 19.10 20.26
Considered doubtful 15.15 15.15
Less : Provision for doubtful advances (15.15) (15.15)
Prepaid expenses 0.18 -
Balances with government authorities 91.50 123.45
Others 1.00 -
111.78 143.71

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for
the year ended 31 March 2021

Note 9 - Inventories
(₹ in lakh)
As at As at
Particulars 31 March 2021 31 March 2020
(valued at cost or net realisable value, whichever is lower)
Stock-in-trade of goods acquired for trading @ 15,114.00 17,534.58
Stores and spares 125.16 18.73
Packing material 0.16 -

15,239.32 17,553.31

@Included above, goods-in-transit:

Stock-in-trade 5.64 -

5.64 -

Notes
Refer note 23 for information on inventory hypothecated as security by the Company.

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the
year ended 31 March 2021

Note 10 - Current investments

(₹ in lakh)
Particulars As at 31 March 2021 As at 31 March 2020
Units Amount Units Amount

Fair value through profit and loss (FVTPL)

Quoted investments
Investments in mutual fund
UTI Overnight Fund-Direct Growth Plan 10,700.32 301.50 - -
Aditya Birla Sun Life overnight fund- Growth direct plan 36,093.27 401.70 - -
Axis Overnight Fund Direct Growth 1,70,253.23 1,852.22 - -
HDFC Liquid Fund-Regular Plan-Growth 213.999 8.60 213.999 8.31

2,17,260.822 2,564.02 213.999 8.31

Other disclosures
Aggregate amount of quoted investments- at cost 2,559.66 7.24
Aggregate amount of quoted investments- at market value 2,564.02 8.31

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements
as at and for the year ended 31 March 2021

Note 11 - Trade receivables (₹ in lakh)

Particulars As at As at
31 March 2021 31 March 2020
Secured, considered good 1,510.10 1,447.40
Unsecured, considered good 23,196.42 22,791.05
Trade Receivables - Credit impaired 3,534.82 2,580.62
28,241.34 26,819.08
Less: Provision for impairment/Expected credit loss 3,534.82 2,580.62
24,706.52 24,238.46

Movement in the allowance for provision for impairment/Expected credit loss (₹ in lakh)
Particulars As at As at
31 March 2021 31 March 2020
Opening balance 2,580.62 1,989.49
Expected credit losses provided for during the year (Refer note 36) 954.20 591.14
Amounts written back during the year (net) - (0.01)
3,534.82 2,580.62

Trade receivables are hypothecated against the borrowings obtained by the Company as referred in note 23

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone
financial statements as at and for the year ended 31 March 2021

Note 12 - Cash and cash equivalents

(₹ in lakh)
Particulars As at As at
31 March 2021 31 March 2020

Balances with banks 86.51 67.88

Cheques, drafts on hand - 50.60
Cash on hand 2.18 3.47
Remittance in transit 402.39 52.34
491.08 174.29

There are no repatriation restrictions with regard to cash and cash equivalents as at the end of the
reporting period and prior periods.

Note 13 - Loans
(₹ in lakh)
Particulars As at As at
31 March 2021 31 March 2020
(unsecured and considered good by the management)
Security deposits-Current* 59.59 -
59.59 -

* Including of HSIL Limited of ₹ 59.59 Lakh (previous year Nil)

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone
financial statements as at and for the year ended 31 March 2021

Note 14 - Current financial assets - Other financial assets

(₹ in lakh)
Particulars As at As at
31 March 2021 31 March 2020
(unsecured and considered good by the management)
Other receivable * 817.92 1,560.23

817.92 1,560.23

* Including of HSIL Limited of ₹ Nil (previous year ₹ 955.48 lakh), Somany Home Innovation
Limited of ₹ 816.46 lakh (previous year ₹ 604.75 lakh) and Hintastica Private Limited of ₹ 1.46 Lakh
(previous year ₹ Nil)

Note 15 - Other current assets

(₹ in lakh)
Particulars As at As at
31 March 2021 31 March 2020
(unsecured and considered good by the management)
Prepaid expenses 48.81 371.74
Balances with government authorities 3,456.58 3,053.32
Others
- Advance to suppliers # 2,883.54 1,152.96
Considered doubtful 41.36 4.43
less : Provision against Advance to Vendors (41.36) (4.43)
- Employee advances 23.54 55.29
- Other current assets * 860.85 1,074.00
Considered doubtful 30.00 -
less : Provision against Advance to Vendors (30.00) -
7,273.32 5,707.31

* Including of Somany Home Innovation Limited of ₹ 168.50 Lakh (previous year ₹ Nil) and
Hintastica private limited of ₹ Nil (previous year ₹ 0.50 lakh)
# Including of HSIL Limited of ₹ 2078.91 Lakh (previous year ₹ Nil) and Somany Home
Innovation Limited of ₹ nil (previous year ₹ 47.03 lakh)

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 Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the
year ended 31 March 2021
Note 16 - Equity share capital
Particulars As at As at
31 March 2021 31 March 2020
No. of shares (₹ in lakh) No. of shares (₹ in lakh)
Authorised:
Equity shares of ₹ 2 each 2,50,00,000 500.00 5,00,000 10.00

Issued:
Equity shares of ₹ 2 each 2,45,00,000 490.00 5,00,000 10.00

Subscribed and fully paid:

Equity shares of ₹ 2 each (refer note (d) below) 2,45,00,000 490.00 5,00,000 10.00

2,45,00,000 490.00 5,00,000 10.00

(a) Reconciliation of share outstanding at the beginning and at the end of the reporting year
Particulars As at As at
31 March 2021 31 March 2020
Number (₹ in lakh) Number (₹ in lakh)
Equity shares outstanding at the beginning of the year 5,00,000 10.00 5,00,000 10.00
Add: Shares issued during the year (refer note (d) below) 2,40,00,000 480.00 - -
Equity shares outstanding at the end of the year 2,45,00,000 490.00 5,00,000 10.00

(b) Terms and rights attached to equity shares

The Company has issued only one class of equity shares having par value of ₹ 2 per share. Each holder of equity share is entitled to
one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the board of directors is
subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the
holder of equity shares will be entitled to receive remaining assets of the Company, after settling of all liabilities. The distribution will
be in proportion to the number of equity shares held by the shareholders.

(c) List of shareholders holding more than 5% of the equity share capital of the Company as at: *
31 March 2021 31 March 2020
Number % of holding Number % of holding
Somany Home Innovation Limited** (including nominee) 2,45,00,000 100.00 5,00,000 100.00

* Information is furnished as per shareholder register as at the year end.

** Holding company

(d) Board of Directors in their meeting held on 6th November 2020 had approved issue of bonus shares of ₹480 lakh, i.e. 2,40,00,000
nos. equity shares of ₹ 2/- each fully paid up (in the proportion of 48 equity shares for every 1 (one) equity share held) of the
Company, out of balance available in the Securities Premium Account. Subsequent to approval of Shareholders obtained in their extra
ordinary general meeting held on 1st December 2020, shares were allotted in the meeting held on 14th December 2020 of Corporate
Affairs Committee of Board of Directors. Accordingly, the paid up share capital of the Company increased from ₹10 lakh to ₹490 lakh
(from 5,00,000 nos. to 2,45,00,000 nos.). Consequently the Company capitalized a sum of ₹ 480 lakh from “Securites premium
account”.

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year ended 31 March 2021

Note 17- Other equity (₹ in lakh)

Other comprehensive
Reserves and surplus
income
Particulars Total
Securities Premium General Retained Actuarial gain / (loss)
Account Reserve Earnings
Balance as on 1st April 2019 3,913.05 1,323.86 12,304.79 40.11 17,581.81
Profit for the year 4,033.44 4,033.44
Other comprehensive income for the year (net of income tax) (32.11) (32.11)
Payment of dividend (including dividend distribution tax) (Refer note 55) (3,013.88) (3,013.88)
Total - - 1,019.56 (32.11) 987.45

Balance as at 31 March 2020 3,913.05 1,323.86 13,324.35 8.00 18,569.26

Profit for the year 7,192.32 7,192.32

Other comprehensive income for the year (net of income tax) 153.74 153.74
Total comprehensive income for the year - - 7,192.32 153.74 7,346.06
Bonus issue (refer note 16(d)) (480.00) (480.00)
Balance as at 31 March 2021 3,433.05 1,323.86 20,516.67 161.74 25,435.32

Nature and purpose of other reserve:

1. Securities premium account is used to record the premium on issue of shares. The same is utilised in accordance with the provisions of the Act.
2. General reserves was created by transferring certain amount out of profits at the time of distribution of dividend in the past.

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year ended 31 March
2021

Note 18 - Non current financial liabilities - Borrowings (₹ in lakh)

Particulars As at As at
31 March 2021 31 March 2020

Measured at amortised cost

Secured:
Term loan from bank:
Rupee loan 3,325.00 3,500.00
Term loans from NBFC:
Vehicle loan 6.96 10.00
3,331.96 3,510.00
Less: Current maturities of long term borrowing (refer note 25) 353.32 178.04
2,978.64 3,331.96

Terms and conditions of outstanding borrowings are as follow (₹ in lakh)

Particulars Currency Year of Rate of Carrying amount Carrying Remarks
maturity Interest as at amount as at
31 March 2021 31 March 2020
Secured loan from bank - rupee loans ₹ 2026-27 1 year 3,325.00 3,500.00 Refer Note 1
MCLR + below
08bps
Secured loan from NBFC - vehicle loan ₹ 2022-23 8.99% p.a. 6.96 10.00 Refer Note 2
below

Note:
1 Loan is secured by first pari-passu Charge on Movable Fixed Assets (PPE) of the company.
Term loan from bank aggregating to ₹ 3,325 lakh (previous year ₹ 3500 lakh) is repayable in 12 half yearly instalments from June 2021 to December
2026.
2 Vehicle loan having carrying amount of ₹ 6.96 lakh (previous year ₹ 10.00 lakh), is secured by way of hypothecation of the respective vehicle
purchased and repayable in 24 monthly instalments from 1st April 2021.

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements
as at and for the year ended 31 March 2021

Note 19 - Non-current financial liabilities - Other financial liabilities

(₹ in lakh)
Particulars As at As at
31 March 2021 31 March 2020

Trade deposits 2,983.89 2,797.38

Lease liability (Refer note 47) 2,363.81 2,432.41

5,347.70 5,229.79

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial
statements as at and for the year ended 31 March 2021

Note 20 - Non-current liabilities - Provisions (₹ in lakh)

Particulars As at As at
31 March 2021 31 March 2020
Provision for employee benefits
Long-term employee benefits
Provision for compensated absences 328.35 321.06
Provision for long service award 70.87 61.48
Provision for warranty 231.64 186.64

630.86 569.18

Details of movement in provision for warranty (including current portion) (₹ in lakh)

Particulars Amount
Balance as at 1 April 2019 244.54
Additional provisions recognised (included in Other expenses) 65.00
Utilised during the year (122.91)
Balance as at 31 March 2020 186.64
Balance as at 1 April 2020 186.64
Additional provisions recognised (included in Other expenses) 45.00
Utilised during the year -
Balance as at 31 March 2021 231.64

Warranty claims:
The provision for warranty claims represent the present value of best estimate of the future outflow of
economic benefits that will be required under the Company obligations for warranties under the local sale
of goods. The estimate has been made based on historical warranty trends and may vary as a result of new
materials, altered manufacturing process or other events. Assumptions used to calculate the provision for
warranties were based on current sales levels and current information available about returns based on
warranty period of certain products up to 12 years.

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year ended 31 March
2021

Note 21 - Deferred tax assets (net) (₹ in lakh)

Particulars As at As at
31 March 2021 31 March 2020
Deferred tax liability arising on account of
Unrealised foreign exchange gain 1.25 -
1.25 -
Deferred tax asset arising on account of
Difference between book balance and tax balance of property, plant and equipment 193.42 80.09
Provision for doubtful debts and loans and advances 907.60 662.43
Provision for employee benefits 42.31 86.78
Others 23.72 72.97
1,167.05 902.27
Deferred tax assets (net) 1,165.80 902.27

Deferred tax assets (net) in relation to: (₹ in lakh)

Particulars Recognised in
Recognised in other
As at As at
statement of comprehensive
1 April 2020 31 March 2021
profit and loss income
Deferred tax liability arising on account of
Unrealised foreign exchange gain - 1.25 - 1.25
Sub total - 1.25 - 1.25
Deferred tax asset arising on account of
Investments at fair value through OCI - - - -
Difference between book balance and tax balance of 80.09 113.33 193.42
property, plant and equipment
Provision for doubtful debts and loans and advances 662.43 245.17 - 907.60
Provision for employee benefits 86.78 7.24 (51.71) 42.31
Others 72.97 (49.25) - 23.72
Sub total 902.27 316.49 (51.71) 1,167.05
Net deferred tax assets 902.27 - 315.24 (51.71) 1,165.80

Deferred tax assets (net) in relation to: (₹ in lakh)

Particulars Recognised in
Recognised in
As at other As at
statement of
1 April 2019 comprehensive 31 March 2019
profit and loss
income
Deferred tax liability arising on account of
Difference between book balance and tax balance of 98.48 (178.57) - (80.09)
property, plant and equipment
Sub total 98.48 (178.57) - (80.09)
Deferred tax asset arising on account of
Provision for doubtful debts and loans and advances 702.05 (39.62) - 662.43
Provision for employee benefits 87.21 (11.50) 11.07 86.78
Others - 72.97 72.97
Sub total 789.26 21.85 11.07 822.18
Net deferred tax assets 690.78 200.42 11.07 902.27
Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone
financial statements as at and for the year ended 31 March 2021

Note 22 - Other non-current liabilities

(₹ in lakh)
Particulars As at As at
31 March 2021 31 March 2020

Employee related payables 88.39 131.18

88.39 131.18

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as
at and for the year ended 31 March 2021

Note 23 - Current financial liabilities - Borrowings

(₹ in lakh)
Particulars As at As at
31 March 2021 31 March 2020
Secured borrowings
From banks
Cash credit - loans repayable on demand 572.49 831.82
Working capital demand loan 4,026.86 14,714.00
4,599.35 15,545.82

Details of security and term of repayment of each type of borrowing:

a) Cash credit facilities :
Cash credit facilities from banks is repayable on demand and is secured by hypothecation of all current assets
including stocks and book debts, present and future

b) Short term loan facilities :

Working capital demand loan from banks repayable within 7 days to 65 days from disbursement and is secured
by hypothecation of all current assets including stocks and book debts, present and future.

c) The interest rate for the above short term borrowings varies from 5.90% p.a. to 9.50% p.a.

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for
the year ended 31 March 2021

Note 24 - Trade payables

(₹ in lakh)
Particulars As at As at
31 March 2021 31 March 2020
-total outstanding dues of micro and small enterprises 1,929.38 1,332.63
-total outstanding dues of creditors other than micro and small enterprises * 2,188.96 3,291.57
Trade payable 4,118.34 4,624.20

* Including of HSIL Limited of ₹ 230.57 Lakh (previous year ₹ 1691.06 lakh)

Disclosure under MSME Act, 2006

Dues to micro and small enterprises as defined under the Micro, Small and Medium Enterprises Development Act (MSMED),
2006 to the extent identified and information available with the Company pursuant to section 22 of the Micro, Small and Medium
Enterprises Development Act (MSMED), 2006, details as certified by the management are mentioned below:
(₹ in lakh)
Particulars As at As at
31 March 2021 31 March 2020
Principal amount overdue remaining unpaid to any supplier 17.14 302.90
Interest due thereon remaining unpaid to any supplier 0.61 86.07
Interest paid by the Company in terms of Section 16 of MSMED
Act, 2006, along with the amount of the payment made to the 63.47 Nil
suppliers beyond the appointed day during the year

Interest due and payable for the period of delay in making

payment (which has been paid but beyond the appointed day
during the year) but without adding the interest specified under 136.27 Nil
MSMED Act, 2006
Interest accrued and remaining unpaid 136.88 86.07
Further interest remaining due and payable even in the succeeding
years, until such date when the interest dues as above are actually
paid to the small enterprise for the purpose of disallowance of a Nil Nil
deductible expenditure under section 23 of the MSMED Act,
2006.

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at
and for the year ended 31 March 2021

Note 25 - Current financial liabilities - Other financial liabilities

(₹ in lakh)
As at As at
Particulars 31 March 2021 31 March 2020
Current maturities of long-term borrowings (Refer note 18) 353.32 178.04
Interest accrued but not due on borrowings 37.49 57.71
Earnest money deposits 4.21 2.95
Security deposits/retention money payable 45.72 4.92
Others
Towards capital creditors 3.97 77.58
Employee related payables 2,027.01 2,373.91
Towards expenses payable * 1,269.63 966.50
Commission payable to directors 248.85 59.94
Gratuity payable (net of obligation) 67.69 127.40
Lease liability (Refer note 47) 446.64 417.78
Other payables # 10,462.84 6,673.01

14,967.37 10,939.74

* Including of HSIL Limited of ₹ 178.80 Lakh (previous year ₹ Nil)

# Mainly includes liability against sales and marketing expenses

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for
the year ended 31 March 2021

Note 26 - Other current liabilities

(₹ in lakh)
As at As at
Particulars 31 March 2021 31 March 2020

Advances received from customers 613.67 594.94

Payable towards statutory dues 4,199.42 1,819.40
4,813.09 2,414.34

Note 27 - Provision for income tax (net)

(₹ in lakh)
As at As at
Particulars 31 March 2021 31 March 2020
Provision for Income tax opening 554.13 4,283.99
Provision for the year 2,863.33 1,830.23
Earlier year income tax (427.44) -
2,990.02 6,114.22
Less: Advance tax paid * 2,210.44 5,560.09
779.58 554.13

* Including advance tax of ₹ Nil (previous year ₹ 1100 lakh) paid by HSIL Limited and endorsed in favour of the Company post
implementation of Scheme.

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for
the year ended 31 March 2021

Note 28 - Current liabilities - Provisions (₹ in lakh)

Particulars As at As at
31 March 2021 31 March 2020
Provision for employee benefits
Long-term employee benefits
Provision for compensated absences 45.21 17.60
Provision for long service award 4.50 8.13
49.71 25.73

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and
for the year ended 31 March 2021

Note 29 - Revenue from operations

(₹ in lakh)
Particulars For the year ended For the year ended
31 March 2021 31 March 2020
Sale of goods 1,23,807.35 1,14,656.73
Sale from rendering of services 21.11 13.97
Other operating revenue @ 2,367.55 1,416.80
1,26,196.01 1,16,087.50

Segment wise revenue information

a) Building Products 1,26,196.01 1,16,087.50
b) Others - -
Total 1,26,196.01 1,16,087.50
Total income from operations 1,26,196.01 1,16,087.50
- -
ii) Unsatisfied Performance Obligation
Aggregated amount of Transaction Price allocated to the contracts
i) Sale of Goods 613.67 594.94

iii) Reconciliation of contract price vis a vis revenue recognised in profit and loss statement is as follows:-
Contract Price
a) Sale of goods 2,10,650.49 1,89,319.05
b) Sale from rendering of services 21.11 13.97
c) Other operating revenue 2,367.55 1,416.80

Adjustment:-
Discount/Rebate 86,843.14 74,662.32
Revenue recognised in the statement of profit and loss account 1,26,196.01 1,16,087.50
(0.00) 0.01

@ Other operating revenues comprise of:

Sundry balances and liabilities no longer required, written back 1,650.54 624.66
Gain on foreign exchange fluctuations 87.11 132.23
Insurance claims received 60.34 39.16
Scrap sales 9.52 37.75
Miscellaneous receipts 560.04 583.00
2,367.55 1,416.80

Note 30 - Other income

(₹ in lakh)
Particulars For the year ended 31 For the year ended 31
March 2021 March 2020
Interest income on financial assets 137.92 13.03
Rental income 0.08 0.02
Profit on sale of current investments (net) 0.71 0.01
Profit on sale of property, plant and equipment 7.82 5.21
Gain arising on financials instruments designated as at FVTPL (net) 4.09 0.48
Management fee 1,515.16 1,993.46
Miscellaneous income 156.34 42.00
1,822.12 2,054.21
Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at
and for the year ended 31 March 2021

Note 31 - Purchases of traded goods

(₹ in lakh)
Particulars For the year ended For the year ended
31 March 2021 31 March 2020
Sanitaryware and other products(net) 83,620.48 79,443.59
83,620.48 79,443.59

Note 32 - Changes in inventories of stock-in-trade

(₹ in lakh)
Particulars For the year ended For the year ended
31 March 2021 31 March 2020
Inventories at the end of the year:
Stock-in-trade 15,114.00 17,534.58
15,114.00 17,534.58

Inventories at the beginning of the year:

Stock-in-trade 17,534.58 17,124.43
17,534.58 17,124.43

Changes in inventories of stock-in-trade 2,420.58 (410.15)

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the
year ended 31 March 2021

Note 33 - Employee benefits expense

(₹ in lakh)
Particulars For the year ended For the year ended
31 March 2021 31 March 2020
Salaries, wages and bonus 11,793.91 11,676.66
Contribution to provident funds and other funds 629.55 525.41
Staff welfare expenses 454.37 545.78
12,877.83 12,747.85

Note 34 - Finance cost

(₹ in lakh)
Particulars For the year ended For the year ended
31 March 2021 31 March 2020
Interest expense on financial liabilities 1,126.35 1,787.24
Interest on lease liability (Refer note 47) 275.57 224.99
Other 133.62 -
1,535.54 2,012.23

Note 35 - Depreciation and amortisation

(₹ in lakh)
Particulars For the year ended For the year ended
31 March 2021 31 March 2020
Depreciation and amortisation of Property, plant and 1,726.66 1,830.98
equipment (Refer note 4)
Amortisation of other intangible assets (Refer note 5) 41.50 53.09
Depreciation on right to use - Building (Refer note 4) 607.02 528.48
2,375.18 2,412.55

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for
the year ended 31 March 2021

Note 36 - Other expenses

(₹ in lakh)
Particulars For the year ended For the year ended
31 March 2021 31 March 2020
Power and fuel - 3.57
Consumption of stores and spares 8.31 12.59
Consumption of packing material 400.70 312.42
Repairs and maintenance:
Buildings 5.54 12.05
Plant and machinery 1.87 2.43
Others 404.96 381.67
Rent (including lease charges) 961.47 963.14
Rates and taxes 5.61 9.00
Directors sitting fees 4.30 0.50
Expenditure on ceramic and applied research centre - -
Insurance 239.53 182.92
Travelling and conveyance 1,653.64 2,472.83
Commission on sales 334.66 318.43
Freight and forwarding charges 111.95 74.39
Advertisement and publicity 3,776.68 3,417.89
Transportation and forwarding 4,615.74 4,754.66
Sales promotion expenses * 249.86 1,063.34
Other selling expenses 409.13 111.46
Provision for expected credit loss (Refer note 11) 954.20 591.14
Provision for doubtful advances/debts 66.93 -
Bad debts written off 5.44 32.94
Corporate social responsibility expenditure (also refer note 48) 42.00 -
Charity and donation 26.00 -
Loss on foreign exchange fluctuation - -
Loss on sale of property, plant and equipment 0.70 22.93
Management fees 249.67 115.00
Investment written off 76.94 -
Miscellaneous expenses 1,269.72 1,417.09
15,875.55 16,272.39

* Including of warranty expenses

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for
the year ended 31 March 2021

Note 37 Current tax and deferred tax

(a) Income tax expense through profit and loss (₹ in lakh)

Particulars For the year ended For the year ended
31 March 2021 31 March 2020
Current tax:
Current income tax charge (including Minimum alternate tax) 2,863.33 1,830.23
Earlier year income tax (427.44) -
2,435.89 1,830.23
Deferred tax:
In respect of current year origination and reversal of (315.24) (200.42)
temporary differences

Total tax expense recognised in profit and loss account 2,120.65 1,629.81

(b) Income tax on other comprehensive income (₹ in lakh)

Particulars For the year ended For the year ended
31 March 2021 31 March 2020
Current tax
Re-measurement of defined benefit obligations (51.71) 11.07

(51.71) 11.07

(c) Numerical reconciliation between average effective tax rate and applicable tax rate :
The major components of tax expense and the reconciliation of the expected tax expense based on the domestic effective tax rate
of the Company at 25.168% (31 March 2020: 25.168%) and the reported tax expense in the statement of profit and loss are as
follows:
(₹ in lakh)
Particulars As at As at
31 March 2021 31 March 2020

Profit / (loss) before tax 9,312.97 5,663.25

Domestic tax rate for the Company 25.168% 25.168%
Latest statutory enacted income tax for the Company 2,343.89 1,425.33

Tax effect of :
- Non deductible expenses 77.56 139.23
- Tax rate difference - 67.52
- Earlier year income tax (427.44) -
Others 126.64 (2.27)
Income-tax recognised in statement of profit and loss 2,120.65 1,629.81

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year ended 31 March 2021

Note - 38 Financial instruments and risk review

Capital management

The Company manages its capital to be able to continue as a going concern while maximising the returns to shareholders through optimisation of the debt and equity balance. The
capital structure consists of debt which includes the borrowings as disclosed in note 18 and 23; cash and cash equivalents as disclosed in note 12 and equity attributable to equity
holders of the Company, comprising issued share capital, reserves and retained earnings as disclosed in the Statement of changes in equity. For the purpose of calculating gearing
ratio, debt is defined as non current and current borrowings (excluding derivatives). Equity includes all capital and reserves of the Company attributable to equity holders of the
Company. The Company is not subject to externally imposed capital requirements. The Board reviews the capital structure and cost of capital on an annual basis but has not set
specific targets for gearing ratios. The risks associated with each class of capital are also considered as part of the risk reviews presented to the Board of Directors.

The following table summarises the capital of the Company (₹ in lakh)

As at As at
Note
31 March 2021 31 March 2020
Equity 25,925.32 18,579.26
Liquid assets (cash and cash equivalent and current
3,055.09 182.60
investments) (a)
Current borrowings 23 4,599.35 15,545.82
Non- current borrowings 18 2,978.64 3,331.96
Current maturities of non current borrowings 25 353.32 178.04
Total debt (b) 7,931.31 19,055.82
Net debt [c = (b) - (a)] 4,876.22 18,873.22
Total capital (equity + net debt) 30,801.54 37,452.48

Gearing ratio
Debt to equity 31% 103%
Net debt to equity ratio 19% 102%

Categories of financial instruments

Categories of financial assets/(liabilities) (₹ in lakh)
31 March 2021 31 March 2020
Particulars Carrying Gain/(loss) to Gain/(loss) Gain/(loss) to Gain/(loss) to
Notes Carrying value
value income to equity income equity
Financial assets measured at amortised costs
Trade receivable 11 24,706.52 - - 24,238.46 - -
Loans 7 & 13 1,350.96 - - 318.14 - -
Other financial assets 14 817.92 - - 1,560.23 - -
Cash and bank balances 12 491.08 - - 174.29 - -
Investments 6 50.50 - - 75.34 - -
Total Financial assets measured at amortised costs 27,416.98 - - 26,366.46 - -

Financial assets measured at fair value

Investments 10 2,564.02 4.09 - 8.31 0.48 -
Financial assets at fair value 2,564.02 4.09 - 8.31 0.48 -

Total financial assets 29,981.00 4.09 - 26,374.77 0.48 -

Financial liabilities measured at amortised cost

Current payables 23, 24, 25 23,685.06 - - 31,109.76 - -
Non-current payables 19 5,347.70 - - 5,229.79 - -
Non-current borrowings 18 2,978.64 - - 3,331.96 - -
Financial liabilities measured at amortised cost 32,011.40 - - 39,671.51 - -

Total financial assets/(liabilities) (2,030.40) 4.09 - (13,296.74) 0.48 -

Financial risk management objective

The Company is exposed to various risks in relation to financial instruments. The main types of risks are market risk, credit risk and liquidity risk. The Company is not engaged in
speculative treasury activities but seeks to manage risk and optimise interest and commodity pricing through proven financial instruments.

The use of any derivative is approved by the management, which provide guidelines on the acceptable levels of interest rate risk, credit risk, foreign exchange risk and liquidity risk
and the range of hedging requirement against these risks.
Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year ended 31 March 2021

Note - 38 Financial instruments and risk review (contd.)

Credit risk:
Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to financial loss. The Company is exposed to credit
risk for receivables, cash and cash equivalents, short term investments, financial guarantee and derivative financial instruments.

Cash and cash equivalents and short term investments

The Company considers factors such as track record, size of institution, market reputation and service standard to select the banks with which deposits are maintained. Generally
the balances are maintained with the institutions with which the Company has also availed borrowings. The Company does not maintain significant deposit balances other than
those required for its day to day operations.

Trade receivables
The Company extends credits to customer in normal course of the business. The Company considers the factors such as credit track record in the market of each customer and past
dealings for extension of credit to the customer. The Company monitors the payment track record of each customer and outstanding customer receivables are regularly monitored.
The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located at several jurisdiction and industries and operate in large
independent markets. The Company also takes advances and security deposits from customers which mitigate the credit risk to an extent.

The average credit period taken on sales of goods is 30 to 60 days. Generally, no interest has been charged on the receivables. Allowances against doubtful debts are recognised
against trade receivables based on estimated irrecoverable amounts determined by reference to past default experience of the counterparty and an analysis of the counterparty’s
current financial position.
Before accepting any new customer, the Company uses an internal credit system to assess the potential customer’s credit quality and defines credit limits by customer. Limits
attributed to customers are reviewed periodically. There are no customers who represent more than 10 per cent of total net revenue from operations
The Company does not hold any collateral or other credit enhancements over any of its trade receivables nor does it have a legal right of offset against any amounts owed by the
Company to the counterparty.

Expected credit loss :

The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into
account historical credit loss experience and adjusted for forward-looking information. The expected credit loss allowance is based on the ageing of the days the receivables are due
and the rates as given in the provision matrix. The provision matrix at the end of the reporting period is as follows:

Expected credit
Ageing
loss (%)
Not due for payment 0
Up to 6 months 0
From 6 months to 1 year 0
From 1 year to 3 years 10 to 100
More than 3 years 100

Ageing of past due trade receivables (₹ in lakh)

As at As at
Period
31 March 2021 31 March 2020
Not due for payment 13,879.42 6,649.43
Up to 6 months 7,987.03 14,205.04
From 6 months to 1 year 600.12 1,260.82
From 1 year to 3 years 2,708.83 2,521.91
More than 3 years 3,065.94 2,181.88

Ageing of impaired trade receivables

As at As at
Period
31 March 2021 31 March 2020
Up to 6 months - -
From 6 months to 1 year * - -
From 1 year to 3 years 468.88 398.74
More than 3 years 3,065.94 2,181.88

* Based upon lifetime expected credit loss

Liquidity risk:
Liquidity risk reflects the risk that the Company will have insufficient resources to meet its financial liabilities as they fall due.
The Company’s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company relies on a mix of borrowings, capital infusion and
excess operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium term expansion needs. The Company
monitors rolling forecasts of its liquidity requirements to ensure that it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn
committed borrowing facilities so that it does not breach borrowing limits.
Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year ended 31 March 2021

Note - 38 Financial instruments and risk review (contd.)

The table below provides undiscounted cash flows towards non-derivative financial liabilities into relevant maturity based on the remaining period at the balance sheet date to the
contractual maturity date and, where applicable, their effective interest rates.

(₹ in lakh)
As at 31 March 2021
later than one
Particulars not later than year and not later than five
Notes Total
one year later than five years
years
Financial liabilities
Borrowings - bank loans Note 18, 23, 25 4,952.67 2,103.64 875.00 7,931.31
Current payables Note 24, 25 18,951.78 18,951.78
Non-current payables Note 19 - 2,130.62 3,806.14 5,936.76
Total 23,904.45 4,234.26 4,681.14 32,819.85

(₹ in lakh)
As at 31 March 2020
later than one
Particulars not later than year and not later than five
Notes Total
one year later than five years
years
Financial liabilities
Borrowings - bank loans Note 18, 23, 25 15,723.86 1,931.96 1,400.00 19,055.82
Current payables Note 24, 25 15,594.50 - - 15,594.50
Non-current payables Note 19 - 2,252.96 3,596.05 5,849.01
Total 31,318.36 4,184.92 4,996.05 40,499.33

Market risk
The Company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Company enters into a variety of derivative
financial instruments to manage its exposure to foreign currency risk, including :
Forward foreign exchange contract to hedge the exchange rate risk arising on the export and import of its products.

Currency risk
The Company undertakes various transactions denominated in foreign currencies, consequently, exposure to exchange rate fluctuations arise. Exchange rate exposures are managed
within approved policy parameters utilising forward foreign exchange contracts.

The Company transacts business primarily in Indian Rupee, USD, Euro and AED. The Company has obtained foreign currency loans and has foreign currency trade payables and
receivables and is therefore, exposed to foreign exchange risk. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated
in similar foreign currencies. For the remaining exposure to foreign exchange risk, the Company adopted a policy of selective hedging based on risk perception of the management.
Foreign exchange hedging contracts are carried at fair value.

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows:
(in lakh)
As at As at
Particulars Currency
31 March 2021 31 March 2020
Trade receivables USD 5.77 11.49

Trade payables USD 0.91 0.72

EUR 0.19 0.10
AED - 0.13

As at As at
Currency rate
31 March 2021 31 March 2020

USD 73.5047 75.3859

EUR 86.0990 83.0496
AED - 20.4905

Of the above foreign currency exposures, following exposures are not hedged:
(in lakh)
As at As at
Particulars Currency
31 March 2021 31 March 2020
Trade receivables USD 5.77 11.49

Trade payables USD 0.91 0.72

EUR 0.19 0.10
AED - 0.13
Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year ended 31 March 2021

Note - 38 Financial instruments and risk review (contd.)

Sensitivity analysis
The following table demonstrates the sensitivity of profit and equity in USD, Euro, GBP and AED to the Indian Rupee with all other variables held constant. The impact on the
Company’s profit before tax and other comprehensive income due to changes in the fair value of monetary assets and liabilities is given below:
(₹ in lakh)
Effect on
Change in Effect on profit
profit before
Currency currency before tax
tax
exchange rate 31 March 2020
31 March 2021

USD 5% 17.87 40.59

-5% (17.87) (40.59)

EUR 5% (0.80) (0.42)

-5% 0.80 0.42

AED 5% - (0.14)
-5% - 0.14

This is mainly attributable to the exposure outstanding on foreign currency receivables and payables in the Company at the end of each reporting period.

Interest rate risk

The Company's exposure to the risk of changes in market interest rates relates primarily to long term debts. Its objective in managing its interest rate risk is to ensure that it always
maintain sufficient head room to cover interest payment from anticipated cash flows which is regularly reviewed by the board/nominated committee as well.

The following table demonstrates the sensitivity in the interest rate with all other variables held constant. The impact on the Company’s profit before tax and other comprehensive
income due to changes in the interest rates is given below :

(₹ in lakh)
Effect on
Effect on profit
Change in profit before
Particulars before tax
interest rate tax
31 March 2020
31 March 2021

Long term borrowings from bank 0.50% (16.63) (17.55)

-0.50% 16.63 17.55

Commodity risk
The Company is exposed to the movement in the price of key traded goods in the domestic and international markets. The Company has in place policies to manage exposure to
fluctuation the prices of key traded goods. The Company enter into contracts for procurement of traded goods, most of the transactions are short term fixed price contract and a
few transactions are long term fixed price contracts.

Note 39 - Fair value measurement

Fair valuation techniques and inputs used

Relationship of
Valuation Significant
Fair value as at Fair value unobservable
Financial assets technique(s) and unobservable
(₹ in lakh) hierarchy inputs to fair value
key input(s) input(s)
and sensitivity

'31 March 202131 March 2020

Current investments 2,564.02 8.31 1 - - -

Other financial instruments

The carrying amount of the financial assets and liabilities carried at amortised cost is considered a reasonable approximation of fair value.

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year ended 31 March 2021

Note 40 - Employee benefits

A. Defined contribution plan

The Company operates defined contribution retirement benefit plans for all employees. The Provident Fund contributions are made to Regional Provident
Fund, the Company has no further obligations beyond its monthly contributions.

The Company’s contribution to Provident Fund and Superannuation Fund aggregating to ₹ 440.31 lakh (previous year ₹ 362.54 lakh ) has been recognised in the
Statement of Profit and Loss under the head Employee Benefits Expense.

B. Defined benefit plans

Gratuity
The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per the Payment of Gratuity
Act, 1972 or the Company Scheme applicable to the employee. The benefit vests upon completion of five years of continuous service and once vested it is
payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The
Company makes annual contribution to the group gratuity Scheme administered by the Birla Sun Life Insurance Company Limited. (Refer note 53).

Details of the Company's defined benefit plans are as follows:

(₹ in lakh)
Funded plan
Particulars Gratuity
31 March 2021 31 March 2020
Current service cost 141.31 123.07
Net interest expense/(income) 4.43 (0.35)
Components of defined benefit costs recognised in profit or loss 145.74 122.72

Net actuarial (gain)/loss (42.01) 16.51

Expected return on plan assets excluding interest income (163.44) 26.67
Components of defined benefit costs recognised in other comprehensive income (205.45) 43.18

I. Net asset/(liability) recognised in the balance sheet as at 31 March

1. Present value of defined benefit obligation 563.86 557.45
2. Fair value of plan assets 496.17 430.05
3. Deficit 67.69 127.40
4. Current portion of the above 67.69 127.40

II. Change in the obligation during the year ended 31 March

1. Present value of defined benefit obligation at the beginning 557.45 423.54
of the year
2. Expenses recognised in the statements of profit and loss
- Current service cost 141.31 123.07
- Interest expense 34.32 27.08
3. Recognised in other comprehensive income
- Actuarial (gain)/loss arising from experience adjustments (20.97) (39.68)
- Actuarial (gain)/loss arising from financial assumption (21.04) 56.19
4. Benefit payments (127.21) (32.75)
5. Present value of defined benefit obligation at the end of the year 563.86 557.45
Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year ended 31 March 2021

(₹ in lakh)
Funded plan
Particulars Gratuity
31 March 2021 31 March 2020
III. Change in fair value of assets
1. Fair value of plan assets at the beginning of the year 430.05 412.42
2. Recognised in the statement profit and loss
- Expected return on plan assets 29.89 27.43
3. Recognised in other comprehensive income
- Actual return on plan assets in excess of the expected return 163.44 (26.67)
4. Contributions by employer (including benefit payments recoverable) - 49.62
5. Benefit payments (127.21) (32.75)
6. Fair value of plan assets at the end of the year 496.17 430.05

IV. The major categories of plan assets

The Company made annual contribution to the Birla Sun Life Insurance Company Limited (‘BSL’) of an amount advised by the BSL. The Company was
informed by BSL that the planned assets are held in growth/fixed interest bonds.

V. Actuarial assumptions 31 March 2021 31 March 2020

1. Discount rate 6.95% 6.65%
2. Expected rate of increase in compensation level 6.50% 6.50%
3. Expected rate of return on plan assets 6.95% 6.65%
4. Attrition rate 1.00% 1.00%
5. Mortality table IALM 2012-14 IALM 2006-08
6. Superannuation age 58 58

VI. Sensitivity analysis

(₹ in lakh)
Particulars 31 March 2021 31 March 2020
Change in Effect on Change in Effect on gratuity
assumption gratuity assumption obligation
obligation
Discount rate 0.50% (32.65) 0.50% (30.73)
-0.50% 35.71 -0.50% 33.59
Expected rate of increase in compensation level 0.50% 34.01 0.50% 31.69
-0.50% (31.51) -0.50% (29.29)

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and
changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the
same method (projected unit credit method) has been applied as when calculating the defined benefit obligation recognised within the balance sheet.

VII. Experience adjustments : (₹ in lakh)

FY 2020-21 FY 2019-20
1. Defined benefit obligation 563.86 557.45
2. Fair value of plan assets 496.17 430.05
3. Surplus/(deficit) (67.69) (127.40)
4. Experience adjustment on plan liabilities gain/(loss) 20.97 39.68

The expected rate of return on plan assets is based on the average long term rate of return expected on investments of the fund during the estimated term of
obligation.

The estimate of future salary increases, considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors, such as
supply and demand in the employment market.
Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year ended 31 March 2021

C. Other long-term benefits - Compensated absences (unfunded)

(₹ in lakh)
For the year ended For the year ended
31 March 2021 31 March 2020
Amounts recognised in the balance sheet
Non current (Refer note 20) 328.35 321.06
Current (Refer note 28) 45.21 17.60
373.56 338.66

Amounts recognised in the statement of profit and loss

Current service cost 117.46 102.87
Interest cost 23.03 23.35
Actuarial loss 49.31 (1.76)
Total included in employee benefits expense 189.80 124.46

Reconciliation of opening and closing balances of benefit obligations

Change in benefit obligation
Defined benefit obligation at the beginning of the year 338.66 305.21
Interest cost 23.03 23.35
Current service cost 117.46 102.87
Benefits paid (154.90) (91.01)
Actuarial loss 49.31 (1.76)
Defined benefit obligation at the end of the year 373.56 338.66

The average duration of remaining working life at the end of the reporting period is 16.52 years (Previous year 17.05 years)

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year
ended 31 March 2021

Note 41 - Segment Information

The Company operates in a single segment i.e. Building Products.

Note 42 - Earnings per share

For the year ended For the year ended
Particulars
31 March 2021 31 March 2020
Profit / (loss) for the year attributable to owners of the Company (₹ in lakh) 7,192.32 4,033.44
Weighted average number of equity shares (nos.) (refer note 16) 2,45,00,000 2,45,00,000
Nominal value per share (₹) 2.00 2.00
Earnings per share - basic and diluted (₹) 29.36 16.46

The Company does not have any outstanding dilutive potential equity shares. Consequently, the basic and diluted earnings per share of the
Company remain the same.

Note - 43 Contingent liabilities not provided for in respect of: (₹ in lakh)

As at As at
Particulars
31 March 2021 31 March 2020

a) Demands made by the sales tax authorities against which appeals have been filed 461.30 553.94
b) Claims against the Company not acknowledged as debts 143.11 55.16

Note - 44 Capital and other commitments (₹ in lakh)

As at As at
Particulars
31 March 2021 31 March 2020
a) Commitments relating to contracts remaining to be executed on capital account and other
262.46 173.87
commitments not provided for

Note - 45 Payment to statutory auditors (excluding goods and service tax) (₹ in lakh)
Year ended Year ended
Particulars
31 March 2021 31 March 2020
As auditors 8.00 8.00
For taxation matters 2.00 2.00
Other services 2.40 3.25
For reimbursement of expenses 0.23 -
12.63 13.25

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year ended 31 March 2021

Note 46 - Related party transactions

In accordance with the requirement of Indian Accounting Standard (Ind AS) 24 "Related Party Disclosures" name of the related party, related party relationship,
transactions and outstanding balances including commitments where control exist and with whom transactions have taken place during the reported period are as
follows:

List of related parties

Relationship Name of related party (as identified by the management)
Key management personnel (KMP) Executive directors
Mr. Sandip Somany (Chairman & Managing Director)

Executives / Key Managerial Personnel

Mr. Sandeep Sikka (CFO)
Ms Payal M Puri (CS)

Non-executive directors
Mr. G.L. Sultania
Mr. Ashok Jaipuria
Mr. Salil Bhandari
Dr. Rainer Siegfried Simon
Mr. N.K. Goenka (Ceased to be director w.e.f. 13th May 2020)
Ms. Alpana Parida
Relative of Key management personnel Ms. Sumita Somany (Wife of Mr. Sandip Somany) (w.e.f. 01-Aug-2020)
Holding company Somany Home Innovation Limited
Subsidiaries Halis International Limited, Mauritius
Alchemy International Cooperatief U.A. (subsidiary of Halis International Limited) (Liquidated
on16th March 2021)
Haas International B.V. (subsidiary of Alchemy International Cooperatief U.A.) (Liquidated on16th
March 2021)
Queo Bathroom Innovations Limited, UK (subsidiary of Haas International B.V. till 15-Mar-2021 &
became subsidiary of Halis International Limited w.e.f. 16-Mar-2021)

Fellow Subsidiaries Hintastica Private Limited (Subsidiary of Somany Home Innovation Limited)
Hindware Home Retail Private Limited (Subsidiary of Somany Home Innovation Limited)
Entities where significant influence is exercised by KMP/KMP Textool Mercantile Private Limited
of holding company/ and/or their relatives Khaitan & Co. LLP

Others HSIL Limited (Subsidiary of Somany Impresa Limited (which is having significant influence over the
holding company) w.e.f. 31-Dec-2020)

Post employment benefit plan Somany Provident Fund Institution

The following transactions were carried out with related parties in the ordinary course of business and on arm's length basis.
(₹ in lakh)
Particulars Holding/Subsidiary/Fellow Subsidiaries Entities where significant influence is
exercised by KMP/KMP of holding
company/ and/or their relatives and other
related parties
Transactions during the year 31 March 2021 31 March 2020 31 March 2021 31 March 2020
Investment made in
Equity component in redeemable preference shares of Halis 52.10 - - -
International Limited
Management fees received from
Somany Home Innovation Limited 321.90 15.72 - -
HSIL Limited - - 1,193.26 -
Management fees paid to
HSIL Limited - - 249.67 -
Rent paid to
Somany Home Innovation Limited 33.60 8.40 - -
Textool Mercantile Private Limited - - 2.80 1.12
HSIL Limited - - 745.31 -
Loan given to
Somany Home Innovation Limited 1,000.00 - - -
Interest received from
Somany Home Innovation Limited 77.42 - - -
Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year ended 31 March 2021

(₹ in lakh)
Particulars Holding/Subsidiary/Fellow Subsidiaries Entities where significant influence is
exercised by KMP and/or their relatives and
other related parties

Transactions during the year 31 March 2021 31 March 2020 31 March 2021 31 March 2020
Sale of fixed assets to
Somany Home Innovation Limited 21.45 - - -
HSIL Limited - - 32.96 -
Purchase of fixed assets from
Somany Home Innovation Limited 2.13 - - -
Purchase (net) of goods from
Somany Home Innovation Limited 5.50 - - -
Hindware Home Retail Private Limited 5.36 - - -
HSIL Limited - - 59,504.30 -
Sale of goods to
HSIL Limited - - 17.48 -
Rent received from
Hintastica Private Limited 0.82 0.50 - -
Reimbursement of expense received from
HSIL Limited - - 3.58 -
Reimbursement of expenses paid to
HSIL Limited - - 10.86 -
Security Deposit given
HSIL Limited - - 62.11 -
Contribution made
Somany provident fund institution - - - 78.90

Consultancy fees paid to

Khaitan & Co. LLP - - 0.58 -

Balances outstanding as at the end of the year - Receivable

Somany Home Innovation Limited - -
Loan receivable 1,000.00 - - -
Others 984.96 651.78 - -
Hintastica Private Limited 1.46 0.50 - -
HSIL Limited - - 1,731.65 -
Balances outstanding as at the end of the year - Payable
Textool Mercantile Private Limited - - - 0.21
Khaitan & Co. LLP - - 0.09 -

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year ended
31 March 2021

Note 46 - Related party transactions (Contd.)

(₹ in lakh)
Particulars Key management personnel
and their relatives
Transactions during the year 31 March 2021 31 March 2020

Remuneration of key management personnel and their relatives

Mr. Sandip Somany 496.71 140.63
Mr. Sandeep Sikka 260.83 28.00
Ms. Sumita Somany 58.37 -
Commission and other payments to non executive directors 103.68 60.44

Remuneration payable as at the end of the year

Mr. Sandip Somany 153.87 12.42
Mr. Sandeep Sikka 9.70 9.18
Ms Sumita Somany 2.59
Commission and other payments to non executive directors 99.38 59.94

The remuneration and other transactions with members of key managerial personnel and their relative during the year are as follows :
(₹ in lakh)
Particulars Year ended Year ended
31 March 2021 31 March 2020
Short-term employee benefits # 874.05 214.73
Post-employment benefits
- Defined contribution plan $ 45.54 14.34
- Defined benefit plan * - -
- Other long-term benefits * - -
Rent paid - -
Total 919.59 229.07
# Including bonus, sitting fee, commission on accrual basis and value of perquisites.
$ including provident fund, leave encashment paid and any other benefit.
* As the liability for gratuity and leave encashment are provided on actuarial basis for the Company as a whole, amounts accrued pertaining to key
managerial personnel are not included above.

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year
ended 31 March 2021
Note 47 Adoption of Ind AS 116 Leases
Effective April 1, 2019, the Company adopted Ind AS 116 “Leases” and applied the standard to all lease contracts existing on April 1, 2019 using the modified
retrospective method. Consequently, the company recorded the lease liability at the present value of the future lease payments discounted at the incremental
borrowing rate and the right of use asset at the date of initial application. Comparatives as at and for the year ended March 31, 2019 have not been
retrospectively adjusted and therefore will continue to be reported under the accounting policies included as part of our Annual Report for year ended March 31,
2021.
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. For operating leases, rental
income is recognized on a straight line basis over the term of the relevant lease.
The following is the break-up of current and non-current lease liabilities as at March 31, 2021
(₹ in lakh)
Particulars As at As at
31 March 2021 31 March 2020
Current lease liabilities 446.64 417.78
Non current lease liabilities 2,363.81 2,432.41
Total 2,810.45 2,850.19

The following is the movement in lease liabilities during the year ended March 31, 2020:
Particulars As at As at
31 March 2021 31 March 2020
Balance at the beginning 2,850.19 -
Addition 736.43 3,205.79
Finance cost accrued during the period 275.57 224.99
Deletions /adjustment 309.57 -
Payment of lease liabilities 651.87 580.59
Lease concession 90.30 -
Balance at the end 2,810.45 2,850.19

The table below provides details regarding the contractual maturities of lease liabilities as at March 31, 2021 on an undiscounted basis:
Particulars As at As at
31 March 2021 31 March 2020
Less than one year 666.02 626.38
One to five years 2,130.62 2,252.96
More than five years 822.26 798.67
Total 3,618.90 3,678.01

Rental expense recorded for short-term leases was ₹ 961.47 lakh (Previous period ₹ 963.14 lakh) for the year ended March 31,2021

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year ended 31 March 2021

Note: 48 Corporate social responsibility

In accordance with the provisions of section 135 of the Act, the Board of Directors of the Company had constituted a Corporate Social Responsibility (CSR)
Committee. In terms, with the provisions of the said Act, the Company was to spend a sum of ₹ 42.00 lakh (previous year ₹ Nil) towards CSR activities during
the year ended 31 March 2021. The CSR Committee has been examining and evaluating suitable proposals for deployment of funds towards CSR initiatives,
however, the committee expects finalization of such proposals in due course. During the year ended 31 March 2021, the Company has contributed the following
sums towards CSR initiatives. (Refer note 36)

(₹ in lakh)
Particulars For the year ended For the year ended
31 March 2021 31 March 2020
(i) On construction/acquisition of any asset 36.80 -
(ii) On purposes other than (i) above 5.20 -
42.00 -

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year ended 31
March 2021

Note 49 - Financial instrument by category

(₹ in lakh)
Particulars 31 March 2021 31 March 2020
FVOCI FVTPL Amortised FVOCI FVTPL Amortised
cost cost
Non current financial assets
Investments - - 50.50 - 75.34
Loans - - 1,291.37 - - 318.14
Other financial assets - - - - - -

Current financial assets

Investments - 2,564.02 - - 8.31 -
Trade receivable - - 24,706.52 - - 24,238.46
Cash and cash equivalents - - 491.08 - - 174.29
Loans 59.59 -
Bank balances other than cash and cash equivalents - - - - - -
Other financial assets - - 817.92 - - 1,560.23
Total financial assets - 2,564.02 27,416.98 - 8.31 26,366.46

Non Current financial liabilities

Non-current borrowings - - 2,978.64 - - 3,331.96
Other financial liabilities - - 5,347.70 - - 5,229.79
Current financial liabilities
Current borrowings - - 4,599.35 - - 15,545.82
Trade payables - - 4,118.35 - - 4,624.20
Other financial liabilities - - 14,967.37 - - 10,939.74
Total financial liabilities - - 32,011.41 - - 39,671.51

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Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and
for the year ended 31 March 2021

Note 50 - Disclosure under section 186(4) of the Companies Act, 2013

(₹ in lakh)
Particulars Halis International Halis International
Limited, Mauritius Limited, Mauritius
(Wholly owned (Wholly owned
subsidiary) subsidiary)
As at 31 March 2021 As at 31 March 2020
Guarantee
Guarantees given as at the beginning of the financial year - -
Guarantees given during the financial year - -
Guarantee closed during the year - -
Guarantees given as at the end of the financial year - -

Investments
Investments at the beginning of the financial year 75.22 75.22
Additions during the financial year 52.10 -
Provision for diminution in the value of during the year 76.82 -
Investment at the end of the financial year 50.50 75.22

Loans and advances

Loans at the beginning of the financial year - -
Additions during the financial year - -
Return back during the year - -
Loans at the end of the financial year - -
Brilloca Limited
Significant accounting policies and other explanatory information to the Standalone financial statements as at and for the year ended 31 March 2021

Note 51 - Impact of Covid-19

To restrain the wide spread of COVID-19 pandemic in India, the Government of India declared lockdowns which impacted the business activities during first half of the financial year 2020-2021.
Accordingly results of year ended on 31st March 2021 are not comparable with corresponding year ended on 31st March 2020, on account of restriction in business activities. Considering current market
scenario and company’s quality product portfolio, brand image, long-standing relationships & goodwill with its customers, suppliers and other stakeholders, Company expects that the business operations,
cash flows, future revenue, assets and liabilities will sustain going forward.

Note 52 - GST Note

The annual return of GST for Financial Year 2020-21 is under process of filing with statutory authorities. The management believes that there will not be any material impact over financial statements after
final submission/filing.

Note 53 :- Gratuity valuation

Gratuity liability as on 31st March ,2021 has been provided based on the actuarial valuation however pending final allocation of fund assets among transferor and resulting companies i.e. Somany home
innovation Limited and Brilloca has been done on the basis of estimates as per the management of the Company and transferor Company (HSIL Limited)

Note 54 - Social security code

The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment benefits received Indian Parliament’s approval and Presidential assent in September
2020. The Code has been published in the Gazette of India and subsequently, on November 13, 2020, draft rules were published and stakeholders’ suggestions were invited. However, the date on which
the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes
effective.

Note 55 :- Dividend declaration

The Board of Directors have recommended a dividend of 500 % i.e. ₹ 10/- on equity share of ₹2/- each for the year ended 31st March 2021 subject to approval of shareholders in the ensuing Annual
General Meeting. (The total estimated equity dividend to be paid is ₹ 2450.00 lakh Previous year interim and final dividend of ₹ 2500 lakh exclusive of dividend distribution tax)
Note 56 :- Liquidation of stepdown subsidiary
Two foreign stepdown subsidiaries namely, Alchemy International Cooperatief U.A and Haas International B.V., incorporated in Netherlands, have been liquidated during the year ended 31st March 2021.
The Company is in process of filing necessary form with the Designated AD category/ AD bank in this regard.

Note 57 :- Change of useful life

Based on technical assessments carried out by technical experts in line with usage & practices, the Company had during the year revised the useful life of certain class of Property, Plant and Equipment.
The aforesaid revision in useful life had been given effect from 1st April 2020. The depreciation for year ended 31st March 2021 is lower by ₹ 207.04 lakh.

Note 58 - Previous period figures have been regrouped /re-arranged wherever considered necessary to confirm to the current year's classification.
In terms of our report attached. For and on behalf of the Board of Directors

Sd/- Sd/-

For Lodha & Co G.L. Sultania Sandip Somany

Chartered Accountants Director Vice Chairman and Managing Director
Firm Registration No.:301051E DIN: 00060931 DIN: 00053597

Sd/- Sd/- Sd/-

Gaurav Lodha Payal M. Puri Sandeep Sikka

Partner Company Secretary Chief Financial Officer
M. No. 507462 ACS No.: 16068
Place : New Delhi Place : Gurugram
Date : 19th May, 2021 Date : 19th May, 2021
 Brilloca Limited
Form AOC‐1
( Pursuant to first proviso to sub‐section (3) of section 129 read with rule 5 of Companies (Accounts) Rule, 2014)
Statement containing salient features of the financial statement of subsidiary/associate companies/joint ventures
Part "A" : Subsidiaries (₹ in lakh)

Reporting period
% of
for the subsidiary Reporting currency and Turnover
Total shareholding
concerned, if exchange rate as on the Investments (including Provision Other
Reserves & Total Profit before Profit after comprehens Proposed (including
Sr. No. Name of Subsidiary different from last date of the relevant Share capital Total assets (Other than other for comprehens
surplus liabilities taxation taxation ive income dividend stepdown
the holding financial year in the case subsidiary) operating taxation ive income
for the year subsidiary
company's of foreign subsidiaries income)
holding)
reporting period

1 Halis International Ltd. USD 1 = INR 73.5047 2,010.62 (1,985.86) 25.87 25.87 ‐ ‐ (121.57) ‐ (121.57) 0.54 (121.03) ‐ 100%
(Subsidiary of Brilloca Ltd.)

NA
2 Queo Bathroom Innovations Ltd. GBP 1 = INR 100.9509 5.36 20.83 32.57 32.57 ‐ ‐ (7.16) ‐ (7.16) 0.04 (7.12) ‐ 100%
(Subsidiary of Halis International Ltd.)

Note 1 : Name of subsidiaries which are yet to commence operations : Nil

Note 2 : Name of subsidiaries which have been liquidated or sold during the year : 1. Alchemy International Cooperatief U.A. 2. Haas International B.V.

Part "B" : Associates and Joint Ventures

Statement pursuant to section 129 (3) of the Companies Act, 2013 related to associate companies/joint ventures
(₹ in lacs)

4. Reason 5. Networth
3.Description why the attributable to
1. Latest audited
2. Share of Associate/Joint Venture held by the company on of how there associate/joi Shareholding
Sr. No. Name of Associates/Joint Ventures Balance Sheet 6.Profit/Loss for the year
the year end is significant nt venture is as per latest
Date
influence not audited
consolidated Balance Sheet

Amount of
i. Considered i. Not
investment in Extend of
No. in considered in
Associates/Joint Holding %
Consolidation Consolidation
Venture
Nil
Note 1 : Name of associates or joint ventures which are yet to commence operations : Nil
Note 2 : Name of associates or joint ventures which have been liquidated or sold during the year : Nil
 Sd/- Sd/-

G.L. Sultania Sandip Somany

Director Chairman and Managing Director
DIN: 00060931 DIN: 00053597

Sd/- Sd/-

Place : Gurugram Payal M. Puri Sandeep Sikka

Date : 19th May, 2021 Company Secretary Chief Financial Officer
ACS No.: 16068