Varun Beverages Limited — Interim / Quarterly Report 2021

Aug 2, 2021

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Corporate Off : Plot No.31, Institutional Area, Sec.-44, Gurgaon, Haryana-122002 (India) Ph.: +91-124-4643100-500 • Fax: +91-124-4643303/04 E-mail : info@rjcorp.in • Visit us at : www.varunpepsi.com CIN No. : L74899DL1995PLC069839

August 2, 2021

To,

National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, Block G, C/l, Bandra Kurla Phiroze Jeejeebhoy Towers Complex, Bandra (E), Mumbai - 400 051 Dalai Street, Mumbai - 400 001 Email: cmlist@nse.co.in Email: corp.relations@bseindia.com Symbol: VBL___ Security Code: 540180_

Subject: Regulation 30: Outcome of the Board Meeting

Dear Sir/Madam,

The Board of Directors at their meeting held today (started at 11:00 A.M. and concluded at 11:30 A.M.) inter-alia considered and approved the following:

1. The Unaudited Financial Results of the Company (Standalone and Consolidated) for the Quarter and Half Year ended June 30, 2021 (Copy of the same along-with Limited Review Report issued by M/s. Walker Chandiok & Co., LLP, Chartered Accountants and M/s. APAS &Co. LLP, Chartered Accountants, Joint Statutory Auditors of the Company, with unmodified opinion are attached and the same are being uploaded on website of the Company).

2. The payment of interim dividend of Rs. 2.50 (Two Rupees and Fifty Paisa only) per Equity Share for the financial year 2021 on the total issued, subscribed and paid-up 43,30,33,080 Equity Shares of the nominal value of Rs. 10/- each.

3. Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, fixed Thursday, August 12, 2021 as the "RECORD DATE" for ascertaining the eligibility of the Equity Shareholders for payment of interim dividend.

The interim dividend will be paid on and from Friday, August 13, 2021 to those shareholders whose name appears in the Register of Members of the Company or in the list of beneficial owners maintained by the Depositories as on Thursday, August, 12, 2021.

1. Upgradation of Mr. Vikas Bhatia as a Chief Financial Officer and Key Managerial Personnel of the Company with immediate effect, due to his role enhancement.

Further, pursuant to recommendation of Nomination and Remuneration Committee and Audit, Risk Management and Ethics Committee, Mr. Rajesh Chawla is upgraded as Chief Financial Officer and Key Managerial Personnel of the Company with immediate effect in place of Mr. Vikas Bhatia.

The detailed disclosure as required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Circular No. CIR/CFD/CMD/4/2015 dated September 9, 2015 is enclosed as Annexure - 1.

Regd. Office : F-2/7, Okhla Industrial Area Phase-1, New Delhi - 110 020 Tel. : 011-41706720-25 Fax. 26813665

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corp VRRlin BEVERAGES LffllfCED

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Corporate Off : Plot No.31, Institutional Area, Sec.-44, Gurgaon, Haryana-122002 (India)

Ph.: +91-124-4643100-500 • Fax: +91-124-4643303/04 E-m ail: info@rjcorp.in • Visit us a t : www.varunpepsi.com

CIN No. : L74899DL1995PLC069839

Further, please note that the Company is following 1st January to 31st December as its financial year in terms of Section 2 (41) of the Companies Act, 2013 as approved by the Company Law Board.

You are requested to take the above on record.

Yours faithfully,

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Chief Risk Officer & Group Company Secretary

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Enel.: As above

Regd. Office : F-2/7, Okhla Industrial Area Phase-1, New Delhi - 110 020 Tel. : 011-41706720-25 Fax. 26813665

corp

VARLOT BEVERAGES Lff7)fCED

Corporate Off : Plot No.31, Institutional Area, Sec.-44, Gurgaon, Haryana-122002 (India) Ph-: +91-124-4643100-500 • Fax: +91-124-4643303/04 E-m ail: info@rjcorp.in • Visit us a t : www.varunpepsi com

CIN No. : L74899DL1995PLC069839

Annexure - 1

Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements^ Regulations, 2015

s.	Particulars						Disclosure
No.
1 .	Reason for		change		viz.		Mr. Rajesh Chawla is upgraded as a Chief Financial
	appointment,		resignation,				Officer and Key Managerial Personnel.
	removal, death		or	otherwise
2.	Date of		appointment/				With immediate effect, i.e. August 2, 2021.
	cessation (as		applicable)			&
	term of appointment
3.	Brief profile		(in	case		of	Mr. Rajesh Chawla is a qualified CA. He had joined the
	appointment)						Company on February 1, 2021 as Senior Vice President -
							Finance and is being inducted into the current position
							with immediate effect.
							Mr. Chawla is a Finance professional with a diversified
							career spanning across more than 25 years of experience
							in controllership, commercial, manufacturing finance,
							financial planning, taxation etc. Before joining Varun
							Beverages Limited, he has worked with reputed
							organization like Whirlpool & SIS Group. In his earlier
							roles he was involved and leading the various projects of
							margin improvement, cost rationalization, working
							capital optimization, strengthening cash flows and
							driving ERP strategy of organization.
							He is not related to any Director/KMP of the Company.
4.	Disclosure	of	relationships				Not applicable.
	between directors			(in case		of
	appointment of a director)

Regd. Office : F-2/7, Okhla Industrial Area Phase-1, New Delhi - 110 020 Tel. : 011-41706720-25 Fax. 26813665

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VARUN BEVERAGES LIMITED

Corporate identification number: L74899DL1995PLC069839

Registered office: F-2/7, Okhla Industrial Area, Phase-I, New Delhi-110020

Corporate office: RJ Corp House, Plot No-31, Institutional Area, Sector-44, Gurugram-122002 (Haryana) Tel: +91-124-4643100, Fax: +91-124-4643303, E-mail: complianceofficer@rjcorp.in, Website: www.varunpepsi.com

Statement of consolidated assets and liabilities

				? in million
			As at	As at
			30 June 2021	31 December 2020
			(Unaudited)	(Audited)
Assets
Non-current assets
(a) Property, plant and equipment			57,565.16	58,271.88
(b) Capital work-in-progress			1,344.83	668.15
(c) Goodwill			242.30	242.30
(d) Other intangible assets			5,583.33	5,572.01
(e) Financial assets
(i) Investments			0.01	0.01
(ii) Loans			416.81	417.89
(iii) Others			8.01	1.21
(f) Deferred tax assets (Net)			54.22	110.18
(g) Other non-current assets			1,888.32	1,303.44
Total non-current assets (A)			67,102.99	66,587.07
Current assets
(a) Inventories			12,746.93	9,288.04
(b) Financial assets
(i) Trade receivables			3,238.44	2,417.97
(ii) Cash and cash equivalents			953.70	1,045.58
(iii) Bank balances other than (ii) above			529.95	854.92
(iv) Loans			92.94	100.16
(v) Others			1,680.27	1,670.04
(c) Current tax assets (Net)			40.33	102.19
(d) Other current assets			1,682.75	2,517.86
Total current assets (B)			20,965.31	17,996.76
	Total assets (A+B)		88,068.30	84,583.83
Equity and liabilities
Equity
(a) Equity share capital			4,330.33	2,886.89
(b) Other equity			35,285.49	32,353.12
Equity attributable to owners of the Company			39,615.82	35,240.01
(c) Non-controlling interest			829.36	647.88
		Total equity (C)	40,445.18	35,887.89
Liabilities
Non-current liabilities
(a) Financial liabilities
(i) Borrowings			13,087.54	19,796.22
(ii) Other financial liabilities			288.29	244.39
(b) Provisions			1,956.03	2,039.06
(c) Deferred tax liabilities (Net)			2,867.26	2,259.43
(d)Other non-current liabilities			6.95	7.34
Total non-current liabilities (D)			18,206.07	24,346.44
Current liabilities
(a) Financial liabilities
(i) Borrowings			4,251.74	7,138.58
(ii) Trade payables
(a) Total outstanding dues of micro enterprises and small			62.00	93.70
enterprises
(b) Total outstanding dues of creditors other	than micro		5,550.22	5,020.15
enterprises and small enterprises
(iii) Other financial liabilities			12,957.20	8,543.51
(b) Other current liabilities			5,281.93	3,182.92
(c) Provisions			661.66	331.72
(d) Current tax liabilities (Net)			652.30	38.92
Total current liabilities (E)			29,417.05	24,349.50
Total liabilities (F=D+E)			47,623.12	48,695.94
Total equity	and liabilities(C+F)		88,068.30	84,583.83
See accompanying notes
SIGNED FOR
IDENTIFICATION
PURPOSES ONLY

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VARUN BEVERAGES LIMITED

Corporate identification number: L74899DL1995PLC069839

Registered office: F-2/7, Okhla Industrial Area, Phase-I, New Delhi-110020

Corporate office: RJ Corp House, Plot No-31, Institutional Area, Sector-44, Gurugram-122002 (Haryana) Tel: +91-124-4643100, Fax: +91-124-4643303, E-mail: complianceofficer@ rjcorp.in, Website: www.varunpepsi.com

Statement of consolidated financial results for the quarter and half year ended on 30 June 2021

					T in million,	except per share data
Particulars	Three months	Three months	Three months	Six months	Six months	Year ended on
	ended on	ended on	ended on	ended on	ended on
	30 June 2021	31 March 2021	30 June 2020	30 June 2021	30 June 2020	31 December 2020
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
1. Income
(a) Revenue from ooerations	24.830.44	22.698.77	16.656.90	47.529.21	33.649.38	65.557.91
(b) Other income	244.08	57.29	26.62	301.37	279.26	369.72
Total income	25,074.52	22.756.06	16.683.52	47.830.58	33.928.64	65,927.63
2. Expenses
(a) Cost of materials consumed	9.967.60	10.929.94	6,229.38	20.897.54	13.775.92	26.885.09
(b) Excise dutv	331.99	289.85	255.07	621.84	483.21	1.056.49
(cl Purchases of stock-in-trade	287.02	578.89	148.83	865.91	598.97	925.87
(d) Changes in inventories of finished goods, stock-in-trade and	1,128.75	(1,607.21)	1,032.56	(478.46)	(49.34)	(171.59)
work-in-progress
(e) Emolovee benefits expense	2,432.48	2.384.35	1.992.91	4.816.83	4.284.36	8.897.36
(f) Finance costs	467.77	579.41	741.87	1.047.18	1.611.56	2.811.04
fat Depreciation and amortisation expense	1.287.76	1.347.21	1.243.11	2.634.97	2.594.34	5,287.02
(h) Other expenses	4.974,60	6,306.73	3,221.18	11.281.33	8.067.73	15.946.01
Total expenses	20.877.97	20.809.17	14.864.91	41.687.14	31.366.75	61.637.29
3. Profit before exceptional items and tax (1-2)	4,196.55	1,946.89	1.818.61	6.143.44	2.561.89	4.290.34
4. Exceptional items	-	-	-	-	665.29	665.29
5. Profit before tax (3-4)	4.196.55	1.946.89	1.818.61	6.143.44	1.896.60	3.625.05
6. Tax exDense:
(a) Current tax	629.62	320.06	171.94	949.68	230.99	423.85
(b) Adjustment of tax relatina to earlier periods	2.49	(0.44)	0.10	2.05	123.06	153.69
(c) Deferred tax charqe/(credit)	376.41	259.68	216.79	636.09	(487.85)	(525.20)
Total tax expense	1,008.52	579.30	388.83	1.587.82	(133.80)	52.34
7. Net profit for the period (5-6)	3,188.03	1.367.59	1.429.78	4,555.62	2.030.40	3.572.71
8. Other comprehensive income
A Items that will not be reclassified to profit or loss	(2.65)	92.54	(61.04)	89.89	(88.49)	(115.38)
B Income tax relating to items that will not be reclassified to profit	0.69	(23.37)	15.82	(22.68)	23.05	29.53
or loss
C Items that will be reclassified to profit or loss	103.07	(168.61)	(533.03)	(65.54)	(795.14)	(531.02)
D Income tax relating to items that will be reclassified to profit or	-	-	124.18	-	185.24	(7.64)
loss
Total other comprehensive income	101.11	(99.44)	(454.07)	1.67	(675.34)	(624.51)
9. Total comprehensive income for the period (including non-	3,289.14	1,268.15	975.71	4,557.29	1,355.06	2,948.20
controllina interest) (7+8)
10. Net profit attributable to:
A Owners	3.081.65	1,292.55	1,407.78	4,374.20	1,956.97	3.289.95
B Non-controllinq interest	106.38	75.04	22.00	181.42	73.43	282.76
11. Other comprehensive income attributable to:
A Owners	101.18	(99.57)	(454.10)	1.61	(675.37)	(624.57)
B Non-controllinq interest	(0.07)	0.13	0.03	0.06	0.03	0.06
12. Total comprehensive income attributable to:
A Owners	3.182.83	1,192.98	953.68	4,375.81	1.281.60	2.665.38
B Non-controllinq interest	106.31	75.17	22.03	181.48	73.46	282.82
13. Paid-up equity share capital (face value of ? 10 each)	4,330.33	2,886.89	2,886.89	4,330.33	2,886.89	2,886.89
14. Other equity				35.285.49	31.691.06	32.353.12
15. Earnings per share (of 7 10/- each) (not annualised for quarters
and half vears) (Refer Note 7)
(a) Basic	7.12	2.98	3.25	10.10	4.52	7.60
(b) Diluted	7.12	2.98	3.25	10.10	4.52	7.60
See accompanvinq notes

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IDENTIFICATION PURPOSES ONLY

Varun Beverages Limited Consolidated Cash Flow Statement

(Indirect Method) _______________in million)	(Indirect Method) _______________in million)	(Indirect Method) _______________in million)
Particulars	Six months period	Six months period
	ended on	ended on
	30 June 2021	30 June 2020
	(Unaudited)	(Unaudited)
A. Operating activities
Profit before tax and share of profit in associate	6,143.44	1,896.60
Adjustments to reconcile profit before tax to net cash flows:
Depreciation on property, plant and equipment	2,607.06	2,565.93
Amortisation of intangible assets	27.91	28.41
Exceptional items	-	665.29
Interest expense at amortised cost	1,048.33	1,574.49
Interest income at amortised cost	(41.38)	(43.73)
Profit on sale of current investments	(0.07)	-
Excess provisions/ balances written back	(17.09)	(220.07)
Loss on disposal of property, plant and equipment (Net)	355.14	13.70
Bad debts and advances written off	-	2.98
Allowance for expected credit loss	38.67	16.64
Unrealised foreign exchange fluctuation	(395.36)	(96.15)
Operating profit before working capital changes	9,766.65	6,404.09
Working capital adjustments
Increase in inventories	(3,458.89)	(1,030.10)
Increase in trade receivables	(859.14)	(686.37)
Decrease in current and non-current financial assets and other current and non-current	836.74	1,107.53
assets
Increase in current financial liabilities and other current and non-current liabilities and	3,340.97	1,938.71
provisions
Total cash from operations	9,626.33	7,733.86
Income tax paid	(271.47)	(583.17)
Net cash flows from operating activities (A)	9,354.86	7,150.69
B. Investing activities
Purchase of property, plant and equipment and intangible assets (including adjustment on	(3,473.06)	(3,974.34)
account of capital work-in-progress, capital advance paid and capital creditors)
Proceeds from disposal of property, plant and equipment and intangible assets	87.13	132.12
Change in advance received for capital assets	(200.59)	1,379.71
Interest received	39.60	45.78
Proceeds from sale of current investments (Net)	0.07	-
Decrease/(increase) in other bank balances	318.17	(5.72)
Net cash used in investing activities (B)	(3,228.68)	(2,422.45)
C. Financing activities
Proceeds from long term borrowings	2,847.07	5,337.58
Repayment of long term borrowings	(5,042.42)	(6,919.46)
Repayment of lease liabilities	(61.28)	(63.86)
Repayment from short term borrowings (Net)	(2,886.84)	(1,131.23)
Interest paid (inclusive of interest paid on lease liabilities ? 13.78 (30 June 2020: ? 15.63)	(1,075.60)	(1,580.22)
Net cash flows (used in) financing activities (C)	(6,219.07)	(4,357.19)
Net change in cash and cash equivalents (D=A+B+C)	(92.89)	371.05
Cash and cash equivalents at the beginning of year (E)	1,045.58	1,379.68
Unrealised exchange differences on translation of cash and cash equivalent in subsidiary (F)	1.01	31.66
Cash and cash equivalents at the end of year (G= D+E+F)	953.70	1,782.39

Cash and cash equivalents at the end of year (G= D+E+F)

Note:

(a) Non-cash changes in liabilities arising from financing activities pertains to impact of fair value changes and foreign exchange fluctuations which are considered to be insignificant.

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SIGNED FOR IDENTIFICATION PURPOSES ONLY

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VARUN BEVERAGES LIMITED

Corporate Identification number: L74899DL1995PLC069839

Registered office: F-2/7, Okhla Industrial Area, Phase-I, New Delhi-110020

Corporate office: RJ Corp House, Plot No-31, Institutional Area, Sector-44, Gurugram-122002 (Haryana) Tel: +91-124-4643100, Fax: +91-124-4643303, E-mail: complianceofficer@rjcorp.in, Website: www.varunpepsi.com

Statement of standalone assets and liabilities

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				? in million
			As at	As at
			30 June 2021	31 December 2020
			(Unaudited)	(Audited)
Assets
Non-current assets
(a) Property, plant and equipment			45,884.71	47,061.67
(b) Capital work-in-progress			421.81	390.05
(c) Goodwill			19.40	19.40
(d) O ther intangible assets			5,568.02	5,553.03
(e) Investment in subsidiaries and associates			13,521.64	13,521.64
(f) Financial assets
(i) Investments			0.01	0.01
(ii) Loans			3,169.43	2,700.50
(iii) Others			8.01	1.21
(g) Other non-current assets			1,646.69	1,053.48
Total non-current assets (A)			70,239.72	70,300.99
Current assets
(a) Inventories			8,876.66	6,790.61
(b) Financial assets
(i) Trade receivables			2,353.99	1,705.29
(ii) Cash and cash equivalents			190.42	364.04
(iii) Bank balances other than (ii) above			0.80	0.72
(iv) Loans			92.66	99.94
(v) Others			1,813.25	2,130.20
(c) Current tax assets (Net)			-	88.80
(d) O ther current assets			791.23	1,485.15
		Total current assets (B)	14,119.01	12,664.75
		Total assets (A+B)	84,358.73	82,965.74
Equity and liabilities
Equity
(a) Equity share capital			4,330.33	2,886.89
(b) O ther equity			39,487.81	37,230.78
		Total equity (C)	43,818.14	40,117.67
Liabilities
Non-current liabilities
(a) Financial liabilities
(i) Borrowings			12,074.63	19,543.51
(ii) Other financial liabilities			87.39	79.50
(b) Provisions			1,845.38	1,931.60
(c) Deferred tax liabilities (Net)			2,819.47	2,209.92
(d) Other non-current liabilities			6.95	7.34
Total non-current liabilities (D)			16,833.82	23,771.87
Current liabilities
(a) Financial liabilities
(i) Borrowings			3,155.24	6,355.40
(ii) Trade payables
(a) Total outstanding dues of micro	enterprises and small		60.95	90.61
enterprises
(b) Total outstanding dues of creditors other than micro			3,286.79	2,630.07
enterprises and small enterprises
(iii) O ther financial liabilities			11,863.96	7,415.98
(b) O ther current liabilities			4,079.55	2,261.30
(c) Provisions			652.12	322.84
(d) Current tax liabilities (Net)			608.16	-
	Total current liabilities (E)		23,706.77	19,076.20
		Total liabilities (F=D+E)	40,540.59	42,848.07
Total	equity and liabilities (C+F)		84,358.73	82,965.74
See accompanying notes
SIGNED FOR
IDENTIFICATION
PURPOSES ONLY

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VARUN BEVERAGES LIMITED

Corporate identification number: L74899DL1995PLC069839

Registered office: F-2/7, Okhla Industrial Area, Phase-I, New Delhi-110020

Corporate office: RJ Corp House, Plot No-31, Institutional Area, Sector-44, Gurugram-122002 (Haryana) Tel: +91-124-4643100, Fax: +91-124-4643303, E-mail: complianceofficer@rjcorp.in, Website: www.varunpepsi.com

Statement of standalone financial results for the quarter and half year ended on 30 June 2021

					? in million	except per share data
Particulars	Three months	Three months	Three months	Six months	Six months	Year ended on
	ended on	ended on	ended on	ended on	ended on
	30 June 2021	31 March 2021	30 June 2020	30 June 2021	30 June 2020	31 December 2020
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
1. Income
(a) Revenue from operations	19,853.23	17,991.52	14,105.93	37.844.75	27,242.56	48,764.51
(b) Other income	91.30	60.51	107.21	151.81	412.53	719.92
Total income	19.944.53	18,052.03	14,213.14	37.996.56	27.655.09	49.484.43
2. Expenses
_(a)_Cost of materials consumed	7,917.98	9,233.96	5.359.04	17,151.94	11,765.17	21,313.31
(b) Purchase of stock-in-trade	223.08	451.40	118.78	674.48	551.83	874.83
(c) Changes in inventories of finished goods, work-in-	1,446.40	(1,450.54)	1,288.53	(4.14)	315.22	(31.37)
oroqress and stock-in-trade
id) Employee benefits expense	1,815.16	1,812.72	1,638.79	3,627.88	3,472.16	6,950.64
(e) Finance costs	439.77	448.46	689.58	888.23	1,417.23	2,490.15
(f) Depreciation and amortisation expense	970.32	1,050.83	984.29	2,021.15	2,053.17	4,128.17
(q) Other expenses	3,791.93	4,752.37	2,539.70	8,544.30	5.769.93	11,066.61
Total expenses	16.604.64	16.299.20	12.618.71	32.903.84	25.344.71	46,792.34
3. Profit before exceptional items and tax (1-2)	3,339.89	1.752.83	1,594.43	5.092.72	2,310.38	2.692.09
4. Exceptional items	_	-	-	-	665.29	665.29
5. Profit before tax (3-4)	3.339.89	1.752.83	1.594.43	5,092.72	1,645.09	2.026.80
6. Tax expense
(a) Current tax	588.22	284.42	141.82	872.64	146.99	269.80
(b) Adjustment of tax relatino to earlier periods	_	-	-	-		14.50
(c) Deferred tax charqe/fcredit)	370.89	215.99	233.10	586.88	(490.13)	(521.79)
Total tax expense	959.11	500.41	374.92	1.459.52	(343.14)	(237.49)
7. Net profit after tax (5 - 6)	2,380.78	1,252.42	1.219.51	3.633.20	1.988.23	2.264.29
8. Other comprehensive income
A. Items that will not be reclassified to profit or loss	(2.58)	92.49	(61.80)	89.91	(90.03)	(117.51)
B. Income tax relating to items that will not be	0.65	(23.28)	15.84	(22.63)	23.07	29.58
reclassified to profit or loss
Total other comprehensive income	(1.93)	69.21	(45.96)	67.28	(66.96)	(87.93)
9. Total comprehensive income for the period (7+8)	2,378.85	1,321.63	1,173.55	3,700.48	1,921.27	2,176.36
10. Paid-up equity share capital (face value of ? 10 each)	4,330.33	2,886.89	2,886.89	4,330.33	2,886.89	2,886.89
11. Other equity				39,487.81	37,697.40	37,230.78
12. Earnings per share(of ? 10/- each) (not annualised for
quarters and half years) (Refer Note 7)
(a) Basic	5.50	2.89	2.82	8.39	4.59	5.23
(b) Diluted	5.50	2.89	2.82	8.39	4.59	5.23

See accompanvinq notes

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IDENTIFICATION PURPOSES ONLY

Varun Beverages Limited Standalone Cash Flow Statement

(Indirect Method) Particulars

(Indirect Method)		(? in million)
Particulars	Six months period	Six months period
	ended on	ended on
	30 June 2021	30 June 2020
	(Unaudited)	(Unaudited)
A. Operating activities
Profit before tax	5,092.72	1,645.09
Adjustments to reconcile profit before tax to net cash flows:
Depreciation on property, plant and equipment	1,997.25	2,028.48
Amortisation of intangible assets	23.90	24.69
Exceptional items	-	665.29
Interest expense at amortised cost	889.40	1,383.14
Interest income at amortised cost	(57.81)	(172.78)
Loss/(gain) on disposal of property, plant and equipment (Net)	337.79	(0.64)
Bad debts and advances written off	1.68	1.90
Excess provisions written back	(13.00)	-
Guarantee commission received	(7.85)	(18.32)
Unrealised foreign exchange fluctuation	(41.27)	(102.61)
Allowance for expected credit loss	27.16	-
Operating profit before working capital changes	8,249.97	5,454.24
Working capital adjustments:
Increase in inventories	(2,086.06)	(534.09)
Increase in trade receivables	(677.54)	(959.77)
Decrease in current and non-current financial assets and other current and non-	720.74	943.08
current assets
Increase in current financial liabilities and other current and non-current liabilities and	3,122.53	1,166.17
provisions
Total cash from operations	9,329.64	6,069.63
Income tax paid	(175.68)	(183.55)
Net cash flows from operating activities (A)	9,153.96	5,886.08
B. Investing activities
Purchase of property, plant and equipment and intangible assets (including adjustment	(2,175.87)	(2,790.68)
on account of capital work-in-progress, capital advance paid and capital creditors)
Proceeds from disposal of property, plant and equipment and intangible assets	44.16	120.96
Loan given to a subsidiary	(430.98)	(435.39)
Change in advance received for capital assets	(200.59)	1,379.71
Decrease in other bank balances	(6.83)	-
Guarantee commission received	13.68	46.09
Interest received	169.38	27.65
Dividend income from non-current investment in subsidiary	192.19	-
Net cash used in investing activities (B)	(2,394.86)	(1,651.66)
'. Financing activities
Proceeds from long term borrowings	2,000.00	5,214.50
Repayment of long term borrowings	(4,832.63)	(6,149.07)
Repayment of lease liabilities	(34.31)	(35.60)
Repayment from short term borrowings (Net)	(3,200.17)	(1,484.92)
Interest paid (inclusive of interest paid on lease liabilities ? 5.68 (30 June 2020: ? 7.55)	(865.61)	(1,381.78)
Net cash flows (used in) financing activities (C)	(6,932.72)	(3,836.87)
Net change in cash and cash equivalents (D=A+B+C)	(173.62)	397.55
Cash and cash equivalents at the beginning of year (E)	364.04	323.51
Cash and cash equivalents at the end of year (D+E)	190.42	721.06

Notes:

(a) During the period, loan amounting to ? Nil (30 June 2020: ? 2,626.57) outstanding from a subsidiary has been converted into equity.

(b) Non-cash changes in liabilities arising from financing activities pertains to impact of fair value changes and foreign exchange

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VARUN BtVCRACitS

VARUN BEVERAGES LIMITED

Corporate identification number: L74899DL1995PLC069839

Registered office: F-2/7, Okhla Industrial Area, Phase-I, New Delhi-110020

Corporate office: RJ Corp House, Plot No-31, Institutional Area, Sector-44, Gurugram-122002 (Haryana)

Tel: +91-124-4643100, Fax: +91-124-4643303, E-mail: complianceofficer@rjcorp.in, Website: www.varunpepsi.com

(? in million, except per share data)

Notes:

1. These standalone and consolidated financial results for the quarter and half year ended on 30 June 2021 have been reviewed and recommended for approval by the Audit, Risk Management and Ethics Committee and accordingly approved by the Board of Directors of Varun Beverages Limited (“VBL” or “the Company”) at their respective meetings held on 02 August 2021. The Statutory Auditors have conducted a limited review of these financial results.

2. These financial results have been prepared in accordance with the recognition and measurement principles of applicable Indian Accounting Standards ('Ind AS') notified under the Companies (Indian Accounting Standards) Rules, 2015 as specified in section 133 of the Companies Act, 2013 (read with SEBI Circular CIR/CFD/FAC/62/2016 dated 05 July 2016 and other recognised accounting practices and policies).

3. VBL follows calendar year as its financial year as approved by the Company Law Board, New Delhi.

4. The business activities of the Company and its subsidiaries (together referred to as the "Group") predominantly fall within a single primary business segment viz. manufacturing and sale of beverages. There is no separate reportable business segment. The Group operates in two principal geographical areas, i.e., in India, its home country, and in other countries. The aforesaid is in line with review of operating results by the chief operating decision maker. The sale of products of the Group is seasonal.

5. The exceptional items for the half year ended on 30 June 2020 and year ended on 31 December 2020, represents write off of certain plant and equipment, glass bottles and plastic shells which are not in use.

6. The resurgence of Covid 19 pandemic had caused a significant disturbances and slowdown of economic activity and business operations of the company in the month of May. The business operations of the Company have shown significant growth during the month of June after relaxation of nationwide lockdowns. The impact assessment of COVID 19 is a continuous process given the uncertainties associated with its nature and duration. Hence, the management will continue to monitor changes to the future economic conditions which may have an impact on the operations of the Company.

7. During the quarter ended 30 June 2021, the Company on 14 June 2021 allotted 14,43,44,360 bonus equity shares of ? 10 each as fully paid-up bonus equity shares, in the proportion of 1 (One) equity share of Rs. 10/- each for every 2 (Two) existing equity shares of? 10/- each to the eligible members whose names appeared in the register of members/list of beneficial owners as on 12 June 2021, i.e., record date. Accordingly, earnings per share of comparative periods presented has been calculated based on number of shares outstanding in respective periods, as increased for issuance of bonus shares.

8. The Board of Directors have approved a payment of interim dividend of ? 2.50 (Rupees two and paise fifty only) per equity share of the face value of ? 10 each.

9. During the previous year, Directorate General of Goods and Services Tax Intelligence (“DGGI”), Ahmedabad, visited Jodhpur plant, Bharuch Plant and corporate office and issued summons to few officials of the Company. During visits and summons, DGGI primarily sought information around nature of sale discounts given on Invoices. Further, during the current quarter, fresh summon were received by Company officials. Till date, no show cause notice or demand has been received by the Company. However, during the current quarter, the Company on conservative basis, considered a provision of ? 250 million towards any future liability.

For and on behalf of Board of Directors of Varun Beverages Limited

Place : Gurugram Dated : 02 August 2021

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/'''.'I
A [I-]
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SIGNED FOR id e n tific a tio n PURPOSES ONLY

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Independent Auditor’s Review Report on Consolidated Unaudited Quarterly Financial Results and Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

To the Board of Directors of Varun Beverages Limited

1. We have reviewed the accompanying statement of unaudited consolidated financial results (‘the Statement’) of Varun Beverages Limited (‘the Holding Company’) and its subsidiaries (the Holding Company and its subsidiaries together referred to as ‘the Group’) (refer Annexure 1 for the list of subsidiaries included in the Statement) for the quarter ended 30 June 2021 and the consolidated year to date results for the period 01 January 2021 to 30 June 2021, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including relevant circulars issued by the SEBI from time to time.

2. This Statement, which is the responsibility of the Holding Company’s management and approved by the Holding Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, Interim Financial Reporting (‘Ind AS 34’), prescribed under section 133 of the Companies Act, 2013 (‘the Act’), and other accounting principles generally accepted in India and is in compliance with the presentation and disclosure requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including relevant circulars issued by the SEBI from time to time. Our responsibility is to express a conclusion on the Statement based on our review.

3. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing specified under section 143(10) of the Act, and consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the SEBI Circular CIR/CFD/CMD1/44/2019 dated 29 March 2019 issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), to the extent applicable.

1. Based on our review conducted and procedures performed as stated in paragraph 3 above and upon consideration of the review reports of one of the joint auditors, APAS & Co LLP and the other auditors referred to in paragraph 5 below, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in Ind AS 34, prescribed under Section 133 of the Act, and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including the manner in which it is to be disclosed, or that it contains any material misstatement.

2. We did not review the interim financial results of 7 subsidiaries included in the Statement, whose financial information reflects total assets of ? 21,066.62 million as at 30 June 2021, and total revenues of ? 5,804.30 million and ? 11,256.52 million, total net profit after tax of ? 793.71 million and ? 902.02 million, total comprehensive income of ? 793.69 million and ? 901.95, for the quarter and year-to-date period ended on 30 June 2021, respectively, and cash flows (net) of? 81.75 million for the period ended 30 June 2021, as considered in the Statement. Out of the above, financial results of one subsidiary included in the Statement whose financial information reflect total assets of ? 1,330.44 million as at 30 June 2021, total revenues of ? 384.81 million

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Independent Auditor’s Review Report on Consolidated Unaudited Quarterly Financial Results and Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) (Cont’d)

and ? 711.37 million, total net profit after tax of ? 46.01 million and ? 100.72 million, total comprehensive income of? 45.87 million and ? 100.86 million, for the quarter and year-to-date period ended 30 June 2021, respectively, and cash flows (net) of ? 23.80 million for the period ended 30 June 2021, as considered in the Statement have been reviewed by one of the joint auditors, APAS & Co LLP. These interim financial results have been reviewed by APAS & Co LLP and other auditors whose review reports have been furnished to us by the management, and our conclusion in so far as it relates to the amounts and disclosures included in respect of these subsidiaries is based solely on the review reports of APAS & Co LLP and such other auditors, and the procedures performed by us as stated in paragraph 3 above.

Our conclusion is not modified in respect of these matters with respect to our reliance on the work done by and the reports of the other auditors.

For Walker Chandiok & Co LLP Chartered Accountants

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UDIN: 21504662AAAAfW6£l& 2 ^ ;/

For APAS & Co LLP

Chartered Accountants

Firm Registration No: 000340C/C400308

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UDIN: 21520078AAAAIA7108

Place: New Delhi Date: 02 August 2021

L-41, Connaught Place, New Delhi 110001

Place: New Delhi Date: 02 August 2021

606, 6th Floor, PP City Centre, Road No. 44, Pitampura, New Delhi 110034

Independent Auditor’s Review Report on Consolidated Unaudited Quarterly Financial Results and Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) (Cont’d)

Annexure 1

List of entities included in the Statement

Holding Company

1. Varun Beverages Limited

Subsidiaries

1. Varun Beverages (Nepal) Private Limited

2. Varun Beverages (Lanka) Private Limited

3. Varun Beverages Morocco SA

4. Ole Spring Bottlers (Private) Limited

5. Varun Beverages (Zambia) Limited

6. Varun Beverages (Zimbabwe) (Private) Limited

7. Lunarmech Technologies Private Limited

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Independent Auditor’s Review Report on Standalone Unaudited Quarterly Financial Results and Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

To the Board of Directors of Varun Beverages Limited

1. We have reviewed the accompanying statement of standalone unaudited financial results (‘the Statement’) of Varun Beverages Limited (‘the Company’) for the quarter ended 30 June 2021 and the year to date results for the period 01 January 2021 to 30 June 2021, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including relevant circulars issued by the SEBI from time to time.

2. The Statement, which is the responsibility of the Company’s Management and approved by the Company’s Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, Interim Financial Reporting (‘Ind AS 34’), prescribed under Section 133 of the Companies Act, 2013 (‘the Act’), and other accounting principles generally accepted in India and is in compliance with the presentation and disclosure requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including relevant circulars issued by the SEBI from time to time. Our responsibility is to express a conclusion on the Statement based on our review.

3. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing specified under section 143(10) of the Act, and consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

4. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in Ind AS 34, prescribed under Section 133 of the Act, and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including the manner in which it is to be disclosed, or that it contains any material misstatement.

For Walker Chandiok & Co LLP

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Membership No.: 504662
UDIN: 21504662AAAAFU3694
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For APAS & Co LLP

Chartered Accountants

Firm Registration No: 000340C/C400308

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<^m\
Sumit Kathuria
Partner ___ _
Membership No.: 52007
UDIN: 21520078AAAAHZ51(
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Place: Gurugram Date: 02 August 2021

Place: Gurugram Date: 02 August 2021

L-41, Connaught Place New Delhi 110001

606, 6th Floor, PP City Centre, Road No. 44, Pitampura, New Delhi 110034