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Department of Corporate Relationship Corporate Relationship Department SSE Ltd. National Stock Exchange of India Ltd. Phi roze Jeej eebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street , Fort, Bandra (East ), Mumbai - 400051 Mumbai - 400001
Dea r Sir/Madam,
Sub:- Second Integrated Annual Report along with Reasonable Assurance Certificate from Independent Auditor Grant Thornton India LLP (GT).
Ref.: Vakrangee Limited - Scrip Code - 511431/VAKRANGEE
Pursuant to Regu lation 34 (1) of SEBI (Listing Obligations and Disclosure Requirements) Regu lations, 2015, please find enclosed herewith the 20d Integrated Annua l Report and 31" Annual Accounts of the Company for th e financial year 2020-21. The I ntegrated Annual Report has been sent t hrough electronic mode to those Me mbers whose e-mail addresses are reg istered with the Company/Registrars and Transfer Agent/Depositories.
The Report is Vakrangee's 20d I ntegrated Annua l Report along with Reasonable Assurance from Independent Auditor Grant Thornton Bharat LLP (GT), The report elaborates on the orga nisa tion's inclusive approach of creati ng val ue for stakeholders. It covers information during t he pe riod 1st April 2020 to 31st March 2021.
This Report follows t he Integrated Re porting Framework provided by t he International Integrated Reporting Council (IIRC). It also incorporates the GRI Standards where relevant as per the Core reporting option. Financial and statutory information reported are aligned to leading frameworks. It adheres to reporting requirements of Companies Act, 2013 and ru les thereunder, t he Securities Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requi rements), Indian Accou nting St andards (IndAS) . In addition, the National Voluntary Guidelines (NVGs) for Business Responsibi lity Report (BRR) and UN-Sustainable Development Goals (UNSDGs) are also considered while developing this Report,
Integrated Annual Report of the Company fo r t he financial yea r ended March 31, 2021 is also avail able on the Company's website at the below mentioned link: httDs:llvakrangee.in/annual general meetings.html.
Thanking you,
You rs faithfully,
For Vakrangee Limited ~ (Y\ . 13 h. <>nl>~
Jay Bhansali Company Secretary ACS:48251 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
1
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 ANNUAL REPORT 2020-21 REPORT ANNUAL
INTEGRATED INTEGRATED
Building Resilience by redefining the last mile the last redefining by 2
CORPORATE OVERVIEW
Building Resilience by redefining the last mile
‘Resilience’ is a word being used very For us, ‘resilience’ has been often these days. Black swan events, like the coronavirus pandemic, is about how relevant we making the world ask some very can be to our customers fundamental questions on how to navigate the future. For many in times of adversity and businesses, it’s been about having adequate financial liquidity; possessing tranquillity, and how many sufficient balance sheet strength; people we can reach within and about the validity and relevance of their existing business model in a the world’s second most world beset with the ‘New Normal’. For Vakrangee, these basic questions populous country. It is about were never needed to be asked. re-inventing our last mile Thanks to our zero debt philosophy; robust balance sheet with embedded engagement with customers. liquidity; and a time tested business model that has become even more It is about our customer relevant in a post-pandemic world, we centricity. have never been more sure about our capacity, purpose and relevance to an evolving marketplace.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
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VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 By redefining the last mile, we the last mile, By redefining super-gluingare our bond more The with our consumers. customer-centric become, we our capacity to the greater serve a nation and create our stakeholders. value for During the pandemic, the Vakrangee Vakrangee the During the pandemic, so more brand became ever meaningful and germane our to increasingly are we Today, consumers. being seen as an essential and indispensable service the to provider marketplace, in which the masses can carry out their basic crucial of times. at the worst even transactions, introducing made this possible by We our of delivering ways new innovative Banking’ ‘Doorstep services, such as and ‘Digital These Vakrangee Kendra’. our customers allow now innovations services receive the comfortto of from their homes - especially the need of the in force. hour while lockdowns were arbiter in also became a trusted We much needed tele-medicinedelivering services such as our customers, to online doctor consultations in regional homes, from blood tests languages, deliveryand doorstep of medicines. For Vakrangee, becoming more resilient resilient more becoming Vakrangee, For the last ‘redefining has been about focussed not just been have We mile’. on expanding our Kendra network, but our services deliver we also on how and online models in physical through also redefined have We way. a hybrid services bringing the last mile by to the very of our consumers, doorsteps ensuring during their safety this dealing When one is uneasy period. in both of customers with vast clusters the urban and rural environments, by no act the last mile is of redefining In fact, our means an easy endeavour. ability serve to nation on the entire a vital role is playing an equal footing the divide between the in narrowing underserved the privileged rural and urban India. 2
CORPORATE OVERVIEW
CONTENTS
CORPORATE OVERVIEW 04-35 About the report
Integrated Overview of our reports 04 This Integrated Annual Report (‘Report’) for FY 2020-21 highlights Vakrangee Limited’s (‘Vakrangee’) creative approach towards value Achievements on global ESG ratings 06 creation for its stakeholders by redefining the last mile service and thereby Highlights of Value Creation in FY 2020-21 08 contributing towards building a resilient India. Message from the Chairman 10 The Report provides a comprehensive overview of how we create financial and non-financial value in terms of six capitals, for our stakeholders. Message from the Managing Director & Group CEO 12 About Vakrangee 16 Scope
Board of Directors 26 The Report covers information in the period of 1st April 2020 to 31st Corporate Structure 28 March 2021, unless otherwise stated. For the Report, we have adopted the Integrated Reporting
STATUTORY REPORTS 132-215 The Report covers information in the period of 1st April 2020 to 31st March 2021. Management Discussion and Analysis 132 Directors’ Report 150 Responsibility Statement
Corporate Governance Report 186 Vakrangee’s senior management has reviewed the content of the Report, Business Responsibility Report 204 under the guidance of the Board. The Report’s integrity, accuracy and completeness of information has therefore, been ensured.
Independent Assurance FINANCIAL STATEMENTS 218-339 We have reported performance of six capitals in terms of Key Performance Standalone Statements 218 Indicators (KPIs). Grant Thornton Bharat LLP has provided a reasonable assurance on select KPIs for FY 2020-21. They are mentioned in the Consolidated Statements 278 assurance statement, which also forms part of the Report.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
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VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 04 06 08 10 12 16 26 28 29 30 34 35 Integrated OverviewIntegrated of our reports CORPORATE CORPORATE OVERVIEW Achievements on global ESG ratings Achievements in FY 2020-21 Creation Value Highlights of the ChairmanMessage from CEO & Group Director the Managing Message from About Vakrangee of Directors Board Structure Corporate Our Key Management Governance Corporate and Recognitions Rewards InformationCorporate 4
CORPORATE OVERVIEW
Integrated Overview of our reports Our sustainable value creation efforts are built on the basis of integrated thinking. We published our first integrated report in 2020 using the
Strategy 2.0: Vakrangee’s Physical Vakrangee Ltd.’s CDP Climate CDP SCORE REPORT - CLIMATE CHANGE 2020 Vakrangee Softwares Ltd. The CDP Score Report allows companies to understand their score and indicate which categories require attention to reach higher Region Asia scoring levels. This enables companies to progress towards environmental stewardship through benchmarking and comparison with Country India peers, in order to continuously improve their climate governance. Investors will additionally Network Platform - Our next 5 year Change 2020 Report Questionnaire General receive a copy of the CDP Score Report upon request. For further feedback please contact your Activity Group Specialized professional services account manager or your key CDP contact.
Your CDP score Average performance growth plan D D C It provides a detailed disclosure of the B Specialized Global professional Asia Average services
UNDERSTANDING YOUR SCORE REPORT
Vakrangee Softwares Ltd. received a B which is in the Management It provides a detailed highlights of company’s strategy and performance band. This is higher than the Asia regional average of D, and higher than the Specialized professional services sector average of D.
Leadership (A/A-): Implementing current best practices Management (B/B-): Taking coordinated action on climate issues Awareness (C/C-): Knowledge of impacts on, and of, climate issues the company’s Next 5 year growth with respect to climate change and its’ Disclosure (D/D-): Transparent about climate issues ACTIVITY GROUP PERFORMANCE Specialized professional services
Your company is amongst 31% of companies that reached Management level A sample of A-list companies targets and operational and financial impacts. in your Activity Group from your Activity Group: Moody's Corporation deliverables of Physical network of Royal BAM Group nv Next-Gen Kendra outlets in detail.
Vakrangee Ltd.’s CDP Supplier CDP SUPPLIER ENGAGEMENT Assurance Statement for Integrated RATING REPORT 2020 Vakrangee Softwares Ltd. CDP evaluates organizations engagement with their suppliers on climate change. Purchasing organizations have the potential to incentivize Region Asia significant environmental changes through engagement with their suppliers. By evaluating
supplier engagement and recognizing best Grant Thornton India LLP Country India practice, CDP aims to accelerate global action L 41, Connaught Circus,
Engagement 2020 Report on supply chain emissions. This document Report 2019-20 Outer Circle, Questionnaire General New Delhi - 110 001 presents your supplier engagement rating and India helps you benchmark against your peers. Activity Group Specialized professional services T +91 11 4278 7070 F +91 11 4278 7071
YOUR SER Average performance Independent Limited Assurance Statement on the non-financial performance data and information in Annual Integrated Report for FY 2019-20 B- B- C A- It provides a snapshot of the company’s It provides the assurance on non- To The Board of Directors Specialized Vakrangee Limited Global professional Asia Mumbai, Maharashtra, India Average services
UNDERSTANDING YOUR SCORE REPORT Introduction We have been engaged by the Management of Vakrangee Limited (herein referred as Vakrangee Softwares Ltd. received a A- which is in the Leadership “Vakrangee” or “The Company”) to carry out limited assurance engagement and provide strategy and performance with respect band. This is higher than the Asia regional average of B-, and higher financial data reported in the year than the Specialized professional services sector average of B-. independent assurance statement on the selected non-financial performance as presented in their Annual Integrated Report for FY 2019-20 (herein referred as “The Report”). The review has been performed on select non-financial performance for a period beginning from Leadership (A/A-): Implementing current best practices 01 April, 2019 till 31 March, 20201. Management (B/B-): Taking coordinated action on supplier engagement
Awareness (C/C-): Knowledge of impacts of supplier engagement Reporting Criteria Disclosure (D/D-): Transparent about supplier engagement to engagement with suppliers on climate 2020 in the Annual Integrated Report. Vakrangee’s management is responsible for selecting the criteria and the report has been developed based on the principles of the International Integrated Reporting (
Your company is amongst 18% of companies that reached Leadership level in A sample of A-list companies your Activity Group from your Activity Group: change and its’ impacts. Our Responsibility Our responsibility, is to provide limited assurance on the select non-financial performance data Alten and information as described in Scope, Boundary and Limitations. We disclaim any assumption of responsibility for any reliance on this assurance statement to any party or person other than Ernst & Young LLP UK Vakrangee management, or for any purpose other than that for which it was prepared. We KPMG UK provide no assurance over changes to the content of web-based information after the date of Lockton Companies LLP this assurance statement. Mastercard Incorporated
1 The disclosure on number of on-boarding Kendras is till the period of 31st July, 2020.
Member firm of Grant Thornton International Ltd www.grantthornton.in Grant Thornton India LLP is registered with limited liability with identity number AAA-7677 and its registered office at L-41, Connaught Circus, New Delhi, 110001 Offices in Ahmedabad, Bengaluru, Chandigarh, Chennai, Dehradun, Gurugram, Hyderabad, Kolkata, Kochi, Mumbai, New Delhi, Noida and Pune
Sustainalytics ESG Risk Rating Summary Report Sustainalytics ESG Ratings Report Vakrangee Ltd Data Processing India BOM:511431 Integrated Approach Climate
ESG Risk Rating Negligible Risk 7.4 +0.0 Updated Jun 17, 2021 Momentum NEGL LOW MED HIGH SEVERE It provides ESG Risk parameters 0-10 10-20 20-30 30-40 40+ Change & Business Strategy
ESG Risk Rating ESG Risk Rating Ranking Category Distribution UNIVERSE RANK PERCENTILE 69% (1st = lowest risk) (1st = lowest risk) 59% Global Universe 22/14051 1st 39% 36% Assessing & Managing Climate 28% Software & Services 25% 1/816 1st and rating for Vakrangee Ltd. by 20% INDUSTRY 15% 6% Data Processing 1% 1% 1% 1/83 1st 0% 0% 0% SUBINDUSTRY
Negligible Low Medium High Severe Related Risk / Opportunities across Sustainalytics for year 2020. Peers Comparison
Peers (Market cap $0.7 - $0.8bn) Exposure Management ESG Risk Rating
1. Vakrangee Ltd 31.6 Low 82.1 Strong 7.4 Negligible Business Operations Integrated Approach 2. Cass Information Systems, Inc. 28.5 Low 28.3 Average 21.0 Medium Climate Change & Business Strategy 3. QIWI PLC 30.6 Low 22.0 Weak 24.3 Medium Assessing & Managing Climate Related Risk / 4. OptimizeRx Corp. 33.9 Low 26.7 Average 25.5 Medium Opportunities across Business Operations 5. iEnergizer Ltd. 32.0 Low 10.3 Weak 28.9 Medium It provides climate change related
risk and opportunity assessment and
CORPORATE OFFICE: Vakrangee Corporate House Plot No. 93, Road No. 16, M.I.D.C., Marol, Andheri (East), Mumbai – 400093, Maharashtra © 2021 Sustainalytics. All rights reserved. Page 1 of 7 Vakrangee’s climate related strategy.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
5
2020
Corporate Corporate SETTING
TARGETS TARGETS
March, March,
& Chairman of Chairman of Equality Index (GEI). The Equality The (GEI). Index - mpany. Gender Equality Gender mpany. is
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UPDATE ON INTEGRATING ON INTEGRATING UPDATE culture with gender Diversity and believe it is core core is it believe and Diversity gender with culture Limited today announced that it is one of 380 380 of one is it that announced today Limited
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related data that investors are demanding today,” said Peter T.Grauer,demandingtoday,” said Peter investors are data that related We areextremely proud to see that Vakrangee is recognized &included in 2021 - VAKRANGEE LIMITED INCLUDED IN 2021 BLOOMBERG INCLUDED IN 2021 BLOOMBERG VAKRANGEE LIMITED women brand.women , “ , - Bloomberg. “Their commitment to disclosure is making the business case for inclusion, and for and making the inclusion, business to case Bloomberg. disclosure is “Their commitment driving transparency in the markets.” gender to transparency brings GEI The related practices and policies at publicly listed the increasing b companies (ESG) governance social, environmental, The investors. to data available scoring GEI transparent comprehensive, assess investors to allows methodology across compare and performance company industry peer groups. to the success and growth of ourcompany and transparency. Vakrangee has always been a Responsible and Socially conscious co for treatment Equal equalizer. social a being of DNA core and philosophy to our fundamental women and men is not just the right thing to do but alsomakes good business sense fornow and the future.We strive build to a workplace talent and leadership pillars: female five across equality gender measures index reference The and policies, harassment sexual culture, payinclusive parity, gender payand equalpipeline, pro andregions. countries across 42 headquartered companies 325 2020 included TheGEI to include data universe the ESG expanding 2021 are GEI the in “The included companies gender PRESS RELEASE Ltd. Vakrangee CEO, Group & Director Managing Nandwana, Dinesh Mr. this on Commenting said Gender Bloomberg GEI expanded in 2021 to represent 44 countries and regions, including firms headquartered in headquartered firms including and regions, countries 44 represent to 2021 in expanded GEI fo Indonesia Bermuda and and retail. construction, and engineering services, consumer banking, includingautomotive, companies across 11 sectors included in the 2021 Gender Bloomberg the 2021 in companies included across 11 sectors Mumbai, January 27, 2021 THE ASSISTED DIGITAL CONVENIENCE STORE CONVENIENCE ASSISTED DIGITAL THE VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Update on Integrating UN SDG on Integrating Update & Setting Business Strategy into Targets Performance Vakrangee’s It details on provides SDG targets integrate to strategy and their targets their business, into performance against these targets. Vakrangee included in the Bloomberg in the Bloomberg included Vakrangee Gender-Equality 2021 Index efforttowards Vakrangee’s It on elaborates practices gender related transparent and policies.
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SUSTAINABILITY YEARBOOK 202 YEARBOOK SUSTAINABILITY sustainability performance is within the top 15% of the industry and is industry the 15% of the top performance iswithin sustainability P Global Sustainability Yearbook 2021 , 2021 , companies across 61 industries this year with the goal of identifying those those identifying of the goal with year this industries 61 across companies
among the world’s highest performing highest the world’s among This recognition reflects our commitment towards sustainability. commitment towards reflects our This recognition
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n to operating ethically and our emphasis on sustainability across all 30 sustainability leaders leaders sustainability 30 7,000 ,always we have attempteda Responsibleto be and SociallyConscious company. Vakrangee LimitedVakrangee
Plot No. Road 93, No. 16, M.I.D.C., Marol, Andheri VAKRANGEE LIMITED VAKRANGEE LIMITED Vakrangee inability Yearbook 2021, published by S&P Global is one of the world’s most most the world’s of isone Global byS&P published 2021, Yearbook inability economic pyramid and serving serving and the last as pyramid economic
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Only 6 S&P Global, which acquired the ESG RatingstheS&P Global,acquired which We are extremely proud to proud extremely are We
, “ , underservedrural and urban citizens by offering them the same products and services the at s price and competitive same time, At Vakrangee This recognition is a validation of ourbelief and commitment to ourBusiness model of Nextgen Vakrangee Kendras. Through ournetwork of kendras, we aretaking the financial a the socio bridging the gap between the urban and rural population in India.” our business model. for our dedicatio for our their S&P Global ESG Scores calculated from the the CSA. from calculated ESG Scores their S&P Global Ltd. Vakrangee CEO, Group & Director Managing Nandwana, Dinesh Mr. this on Commenting said assessed over assessed over longon focus and a practices sustainability corporate leading exemplify that drivers. industry as determined by their score in the annual SAM Corporate Sustainability Assessment SustainabilityAssessment Corporate SAM the annual in bytheir score determined industryas (CSA). PRESS RELEASE RELEASE PRESS has score and the yearbook in earned a spot industry. Susta The in providing publications comprehensive in companies largest world's the of sustainabilityperformance the rankingshowcases Commenting on this Mr. congratulate Mumbai, part of this year’s Vakrangee included in the S&P Global included Vakrangee 2021 Sustainability Yearbook Vakrangee’s It details on provides ethically and an in- operate dedication to dept. analysis of corporate responsibility. Human Rights: Due-Diligence & Impact Assessment Vakrangee’s It details on provides as human rightscommitment to as well and impact their due diligence followed of operations. 6
CORPORATE OVERVIEW
Vakrangee has been Achievements on global successful in benchmarking its performance on a wide range of industry specific ESG criteria ESG ratings that are relevant to the growing focus on business sustainability and financially relevant to the At Vakrangee, we have always attempted to be a responsible corporate success.
and socially conscious. Through our network of Kendras, we are Global recognition reflects Vakrangee’s commitment to taking the financial and digital literacy to the bottom of the socio further enhance its corporate economic pyramid and serving as the last mile link to connect governance and transparency standards. We have achieved India’s unserved and underserved rural and urban citizens by Global recognition across various platforms for the offering them the same products and services at affordable prices superior ESG performance and long term business and same service levels. We are acting as the biggest equalizer by sustainability. bridging the gap between the urban and rural population in India.
Sustainalytics ESG Risk rating RobecoSAM – S&P Global ESG Disclosure through CDP Score Sustainalytics is the leading Vakrangee has been on the independent global provider of Vakrangee has been included journey towards achieving ESG and corporate governance in the S&P Global Sustainability sustainable operation and research and ratings to investors. Yearbook 2021 for the first time. during the FY we have boosted Sustinalytics is also the Rating Our sustainability performance our level of transparency on partner to National Stock is within the top 15% of the the environmental and climate Exchange (NSE). Vakrangee is industry and is among the world’s change data by disclosing relevant proud of being ranked no. 1 out highest performing sustainable information to the stakeholders of the 816 companies worldwide companies. Only 630 sustainability through CDP. We have recognised assessed in the Software and leaders have been selected out the importance of environmental Services industry. We have also of 7,000 Companies assessed impacts and have taken strategic ranked 22nd globally out of for this year’s Yearbook based actions towards reducing the the 14051 companies (Global on their S&P Global ESG Scores same by introducing initiatives Universe). This has been achieved calculated from the CSA. We have such as “Go Green”, AePS (Aadhaar by establishing a robust structure ranked 13th with a score of 70 enabled Payment System) model of governance and interest in in the Global industry ranking for our banking processes and assessing the key risks associated and ranked 9th with a score of disabling the generation of paper with ESG parameters. The score 69 in the Corporate Governance receipts on ATM transactions. not only motivates us to continue global industry ranking based on our efforts towards ESG risk RobecoSAM – S&P Global ESG management but also helps us Score. This showcases the high identify areas where we may level of corporate responsibility improve further in future. and the continuous effort towards ethical business practice driving sustainability across all levels of our business model.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
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VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 United Nations Women United Women Nations principles (UN Empowerment WEP) Women’s Nations United The (UN Principles Empowerment a set of Principles are WEPs) to business on guidance offering gender equality promote to how empowerment and women’s in the workplace, marketplace Established and community. UN Global Compact and UN by by informed are WEPs the Women, international labour and human in and grounded rights standards that businesses the recognition a stake in, and a responsibility have gender equality and women’s for, is a Vakrangee empowerment. WEPs Signatory member of UN which further the demonstrates gender commitment towards equality that equal believe as we is of men and women treatment not only the right do but thing to seven The business. also good for will help us realize WEPs of steps these opportunities. Participant and MemberParticipant of UNGC Nations Global Compact United largest (UNGC) is the world’s corporate sustainability initiative. align companies to A call to and operations with strategies principles on human universal and environment labour, rights, anti-corruption, and take actions that advance societal goals. and a Participant is now Vakrangee Signatory and member of UNGC compliant is entirely our Company The with the ESG Framework. participation and the membership have the commitment we adds to adoption and towards shown implementation of sustainable policies. and socially responsible Bloomberg Gender-Equality Bloomberg Index has been included in Vakrangee Gender Equalitythe Bloomberg Index among 380 companies 11 sectors in 44 countriesacross achievement This and regions. of the belief and is an outcome practice gender equality of and made have We transparency. effortsconsistent in building an workplaceinclusive without bias and socially being responsible by conscious at the same time. index measures reference The pillars five gender equality across leadership and talent of female gender and equal pay pipeline, culture, inclusive parity, pay and sexual harassment policies, pro-women Vakrangee brand. with the has been transparent data and provided gender related an opportunityinvestors assess to performance in the Company’s as provided as well the ESG front the market with a benchmark initiatives of gender related towards be a step which may business altogether. transforming CDP Environmental Rating for Rating for CDP Environmental Supplier Engagement the has achieved Vakrangee from “A-“ of leadership band score suppliers engagement CDP for which is higher than the Asia Global “B-“, of average regional and higher than “C” of Average professional the specialized It “B-“. services of sector average of the concrete is a recognition and constant commitment of the engagement with its Company’s change and suppliers on climate implementation of sustainable the value throughout approach chain. 8
CORPORATE OVERVIEW
Highlights of Value Creation in FY 2020-21
Total Income PAT EBITDA INR 38,395 INR 6,279 INR 9,762 Lakhs Lakhs Lakhs
Total Next-Gen Kendras Presence in Presence in 11,730 518 4,588 districts postal codes
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
9
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 7,201 4,490 39 94.99 lakhs >70% 11,730 199.36 MT report) (Annual CSR Expenditure Next-Gen Outlets in V VI Tier Tier and in trained Franchisees technology advanced through saved Paper paperless transactions Gold Silver Bronze
40,459 0 172 INR 300 800 Lakhs Instances of Data Breach Breach of Data Instances Investment in R&D and Investment technology advanced GHG Emission avoided use of through Energy Renewable Total Employees Total Next-Gen Kendras and Tribal in LWE, Districts Aspirational 947
1,241 hours
15.4% 288 1.21:1 Women Divyang 9 Suppliers Assessed on Suppliers Assessed ESG impact Percentage of Energy of Energy Percentage Solar from Skill Development Skill Development Training Male Female Income Income Male Female Parity Next-Gen Kendras by: owned 10
CORPORATE OVERVIEW
Message Dear Stakeholders, The COVID-19 pandemic has been from the Chairman a black swan tragedy for mankind, and our sympathy goes out to all those affected. This financial year has been challenging for all businesses around the globe as Covid-19 slackened growth and affected millions of families. Resilience in operation and innovative approach have been the key parameters to continue as a growing entity and serving humanity in the best possible way. Vakrangee has been a facilitator of the same and through multiple initiatives, we have been able to redefine the last mile service. We are not only expanding the business geographically but also addressing the need of the society by amalgamating technology with innovation through diversification of the services offered. Our Company has served the people by bringing the essential products and services at doorstep at the time of crisis. Based on the essential services we provided during the pandemic, we are amongst the very few companies globally who were fully “As we journey through FY2022, I know that operational and brought our services to the unserved and underserved population we have the best teams, a business that is in the remotest parts of the country and redefined the last mile service during tremendously resilient, and strong momentum to the time of crisis. We further introduced surpass our financial objectives” new facilities such as Doorstep banking and Digital Vakrangee Kendras whereby customers could avail the facilities from the comfort of their homes and reduce possibilities of getting affected by Covid-19. We look forward to serving the community while expanding our operation through a sustainable approach and driving resilience by incorporating leading edge technology and innovation.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
11 11 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Closing Remarks Closing the the future, for optimistic While I’m a profound have pandemic continues to impact the global economy on people, While the social and economic and society. COVID-19 caused by will likelyupheaval has our focus some time, continue for been on the long term. Returningalways will be a shared normal’ ‘new the to across be coordinated to responsibility businesses and society. governments, commendable results delivered We and I want year, a challenging throughout India our people across thank – you to journey we through As up. stepped really the best FY2022, I know have that we a business that is tremendously teams, surpass momentum to and strong resilient, to ready We’re our financial objectives. and to results strong continue delivering our communities in rebuilding a role play the by energized are We and the economy. possibilities ahead. best wishes, With Ramesh Joshi Chairman Non-Executive to leverage the Vakrangee OnGround Eco- OnGround Vakrangee the leverage to pan diversified – a vast well India system Vakrangee network of store physical level to especially Assistance as point of Physical Semi Urbanconsumers to and rural remote locations. Our purpose extends simply beyond back on track after a getting customers our financial strength combine We crisis. and deep industry expertise help build a to is based on strength Our society. resilient being people, caring for Values, living our and open and honest, taking accountability, through progress we As driving change. in substantial investments year, the current expertise design tools, digital technology, and artificial planned (AI) are intelligence industry-leading delivering for digital convenience more and provide platforms Our new service customers. for app – will make it India ka“BharatEasy, Super App” do and franchisees to customers easier for have By aim to 2025, we business with us. as advocates customers out of four three second-to-none delivering by experiences. and a Sustainable A unique differentiator our advantage is whereby Competitive be able would Super App platform Digital Our customers are our advocates our are Our customers Following the onset of the COVID-19 Following focus our intensified have we pandemic, on ensuring and health of our the safety including the and customers, employees a consistently ensure to highest standards our sanitised experience and across safe these actions believe have We Kendras. been an important behind the driver loyalty employee and customer significant the seen through have commitment we important single most The recovery phase. was to ourselves established for aim we than we the crisis stronger from emerge it. entered 12
CORPORATE OVERVIEW
Letter from the Dear Stakeholders, The financial year 2021 was one in Managing Director & Group CEO which your Company’s underlying purpose for serving individuals and communities in times of both adversity and celebration, was displayed in broad daylight. I am pleased to inform you that our business model resoundingly proved Vakrangee to be a reliable conduit for addressing the basic needs of the masses, no matter which part of the social pyramid they belong to, through our impactfully relevant products and services. This unprecedented pandemic has affected every one of us, unifying us in our vulnerability – as communities, cities, nations and as companies, sectors, and economies. This meant that at Vakrangee, we needed to be agile in finding new ways of serving our customers and delivering our services safely – and we did so diligently and imaginatively. There has never been a more pertinent time, when the true meaning of Vakrangee shone through. We were among the very few companies “We are confident of delivering strong growth globally, that was fully operational at all times for providing key momentum over the next 5 years as our network emergency and essential services would grow from 11,700+ to 25,000+ Next-Gen to our citizens, even within the remotest parts of the country. I outlets by March 2022 and to 75,000 Next-Gen am truly proud of what our armies outlets by March 2026. We estimate that our of more than 800+ workforce and 11,700+ franchisees across Gross Transaction value would cross US$50 India were able to achieve in Billion on an annualised basis over the next 5 directly serving our customers and society at large, and indirectly our years, while the number of transactions would shareowners. I would like to offer cross a billion transactions annually” my warmest thanks to our officers and staff for their determination and the tremendous work they have done.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
13 13 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Your Company also aims to become India’s India’s become also aims to Company Your facilitating universal for 1 retailer No. We and social inclusion. digital financial, inclusion towards the charge leading are ideas and proven innovative through experience all to for modern technologies, Vakrangee “Next-Gen at our outlets or Keeping our vision for true to Kendras”. franchisee largest the world’s creating based distribution channel in India, we towards makingare progress steady across presence establishing our last mile every each and covering all postal codes, more The in the country. Gram Panchayat the more in this journey, progress we become. we resilient We have also recently launched a Mobile launched also recently have We : Super App based business platform India kaBharatEasy App, Super App. Vakrangee’s By a single downloading BharatEasy Super App mobile application, can access a wide array our customers and Servicesof Products which would to requirement reduce their significantly would This between multiple apps. switch superior experiencelead to customer and convenience. and a sustainable A unique differentiator Digital advantage of our competitive ability be our would Super App platform Eco- OnGround Vakrangee the leverage to – a vast well-diversified pan-Indiasystem network as store 11,700+ physical level especially to assistance, points of physical consumers in Semi Urban and rural remote of Digital Unique Proposition This locations. help would “Phygital” along with Physical: and scale up rapidly, channel to the Digital related reduce our costs significantly would assistance, physical acquiringto customers, returns management fulfilment and order leveraging Furthermore, of online orders. into result would presence our physical brand interaction, strong customer better service and better recall experience and our customers. trust for Launch of Digital Platform : Platform Launch of Digital Mobile Super App BharatEasy , and the Top 10 10 Top , and the th m-Health providers in the world. Going in the world. m-Health providers make plans to more the Company forward, services this platform. through live supported also other new were by These ‘Doorstep servicesinnovative such as the our customers giving facility, Banking’ services of receiving convenience right During the lockdown, homes. their our to banking provided business correspondents bankingdoorstep services Jan Dhan to rural areas, Holders in remote Account and old age senior citizens especially to pensioners. our unique hybrid also introduced We online-to-offline model ‘Digital Vakrangee which our customers through Kendra’ could get a plethora of basic services at With anywhere. from their convenience the existing Kendra networkthis, is able to the customer, assistance to physical provide trust and sense of ease for greater fostering our customers. In terms of reach, we have redefined the redefined have In we terms of reach, successfully crossing last mile access by Kendras, Vakrangee 11,700+ Next-Gen 27 states covering across spreading 510 districts over Territories, and Union Out of these and 4,580 postal codes. V & Tier in of our outlets are 70% outlets, of weightage ensuring a greater VI cities, rural and semi-urban into our presence that your you India. inform to I am happy the fourth is currently Largest Company in Rural India than operator with more ATM in operation. 5,400 modern ATMs we introduced In terms of our offerings, new ‘need-of-the-hour’ Tele-medicine ‘Online Doctor’ services, which includes languages, consultation in regional and doorstep facility, test ‘Homes Blood’ vital were These delivery of medicines. and indispensable services in many for during which mobilitythis pandemic, prolonged restricted due to was severely Vakrangee these services, For lockdowns. parthas partnered Aetna, with vHealth by of the CVS Pharmacy – a Fortune Group ranking500 company 5 At the veryAt of our journey beginning years the opportunity fully understood we ago, of becoming of us – the prospect in front player retail last-mile organised the largest serveto million people market a 700+ a $1 trillion economy. that represents an enormous opening have we Today, bridgeto inclusion gap the financial between urban developed india and know that We rural india. underdeveloped can also bring a plethora of relevant we products and services still out that are in rural and semi-urban india. of reach did just we under review, During the year our mission, while true to that and stayed being mindful of supporting and helping all our stakeholders the impacted due to pandemic. light year 2021 also poured financial The a virtueupon the criticality of resilience, otherwise eclipsed during merrier times. maintaining by upheld our resilience We on our basic business opportunity, focus the divide between rural narrowing by consumerism, and and urban India’s terms the last mile in of redefining by of expansion; diversification geographical well as in new and innovative as offerings of makingways services available. Building Resilience by by Building Resilience mile the last redefining During the last three years, we have been been have we years, Duringthe last three journeyon a transformational whereby our Business transform to focussed we of Non Exclusive old format model from and Kendras a standardised Vakrangee to “Next-Gen” Exclusive highly recognisable They each became branded stores format. consumer a consistent delivering for experience and well-defined service that despite share I am pleased to levels. pandemic impact, currently;the Covid successfully launched 11,700+ have we on KendrasVakrangee and are Next-Gen 25,000 operational Next- deliver track to 2022. I believe March Gen kendras before an inflection point reached have that we growth a strong forsee we here and from well momentum in terms financial as of the coming over as operational growth years. 14
CORPORATE OVERVIEW
I would like to inform you that we are in Financial Performance Our commitment to the process of segregating (demerger) As a year riddled with major disruptions sustainability the business of Physical Vakrangee Kendra and restricted footfalls to our Kendras Outlets and Digital Vakrangee Kendra (our Aligned with Vakrangee’s sustainability throughout the year under review, your vision, your Company has embarked on its online based business). This would enable Company was able to achieve a total highly focused management of each own sustainability journey, adopting the revenue of Rs. 383.95 crore, and Profit After global best practices to fuel dreams and, business, and allow us to explore potential Tax (PAT) at Rs. 62.79 crore. business opportunities more effectively and in turn, augment long-term value creation for all its stakeholders. As India’s largest efficiently. This would also set the platforms In spite of COVID-19 Pandemic situation, network of last mile retail outlets to cater for “value discovery” of the digital business Vakrangee’s Kendra Network throughput to the unserved and underserved markets, at a later stage, with the ultimate objective crossed more than US$ 5.2 Billion Vakrangee has a unique opportunity of maximising shareholder returns. (` 37,600+ crore) in the Full year FY2021, to make a positive difference in the and Our Total Number of transactions communities we proudly serve. We take this We are also in the process of empaneling crossed 126.8 mn (~12.6 crore) transactions opportunity seriously and feel an abiding global consultants to understand the online on an annualised basis. These numbers responsibility to make the most of it. We see market landscape and to further strategize have been very encouraging to say the our sustainability efforts first and foremost and strengthen our business model least. offering. as the right thing to do—the continuation During the financial year 2021, outlet of responsible corporate citizenship that Update on Strategy 2.0 : Our revenues were impacted due to Covid-19 began in our earliest days as a company. At Next 5 year Growth Plan induced lockdowns, as only our key the same time, we know that sustainability is also a business imperative: our Company I am pleased to inform you that we recently essential services such as Banking, ATM, Mobile recharges and Tele-medicine can only be as healthy as the people and launched our “Strategy 2.0” Document, communities we strive to refresh. detailing our Next 5 year growth targets services were fully operational.Our E-Commerc and Logistics business was and operational and financial deliverables. I am pleased to report that we have made significantly impacted because of on- This document focuses on the Core solid progress toward that end during ground field level delivery challenges, and Business of the Physical network of FY2021. Through our network of Kendra’s, our Travel services were closed most of the Next-Gen Kendra outlets. This strategy we are taking financial and digital literacy to time due to the lockdown. On a brighter plan document does not include any the bottom of the socio economic pyramid. note as situation is improving, our key contribution from the digital mobile app By making our products equally accessible services, such as Assisted Online Shopping platform. and affordable to all segments of society, and Online Healthcare have recently we are facilitating universal economic become operational, and are gradually Our vision is now set to create the world’s suffrage and narrowing the urban-rural reversing back towards pre-COVID-19 largest franchisee based distribution divide. channel in India with a strong focus on levels. The Company’s return to normalcy Rural India. We are confident of delivering on the business front has been progressing strong growth momentum over the next very well, with growing month-on-month 5 years as our network would grow from improvement in sales. 11,700+ to 25,000+ outlets by March 2022 and to 75,000 outlets by March 2026. As we are returning to normalcy, and as we We estimate that our Gross Transaction continue to expand our operational Next- value would cross US$50 Billion on an Gen Kendra outlets significantly, I would annualised basis over the next 5 years, expect our Revenue and profitability to also while the number of transactions would improve sharply for the current and ensuing cross a billion transactions annually. This fiscal years. would result into significant growth in revenues and profitability, especially as we will continue to take advantage of “I would expect our our asset-light franchisee-based model Revenue and Profitability with strong operating leverage. Our Cash Adjusted Return on Capital would improve to also improve sharply significantly. for the current and ensuing fiscal years.”
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
15 15 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Closing remarks Closing more In difficult times like these, it’s that society before essential than ever issues. future looks forward and addresses Vakrangee. doing at what we’re And that’s working products and on innovative We’re services move we As that help the masses. expectations strong are along FY2022, there I am of recovery in the Indian economy. employees, our franchisees, thankful to business partners, and our customers their continued support for shareholders and confidence in our journeytowards last-mile largest becoming the world’s I would On behalf of the board, superstore. unwavering all your for like thank you to support, belief in our trust and perennial capabilities and competencies. best wishes, With Dinesh Nandwana CEO & Group Managing Director We further of the entire digitization initiated We hire-to-retire cycle – starting with remote pivoted we As of new joiners. on-boarding working a hybrid ensured to we model, and sustained days lost productive zero excellence the emphasis on operational and going the extra quality mile through performance engagement and employee in the resilient management, manifest business outcomes. significantly have initiatives These requirement the manpower reduced resulted well as as at the field level franchisee satisfaction improved into management of centralized and better has also Company The field operations. cost overall of the same in benefited reduction and enhanced profitability.
Sustained Focus on Performance on Performance Sustained Focus Culture Outlook pre- closer to return gradually we As continue as we and COVID-19 conditions, Next-Gen expand our operational to Kendra the nextover fiscal outlets significantly expect and bottom would I our top year, the current sharply for also improve lines to This pandemic has years. and ensuing fiscal to Vakrangee of the relevance highlighted deal of faith a great creating our customers, trusted and in our brand as a reassuring I expect the essential service provider. conditions and general business economy reaching normalcy, to return rapidly to pre-COVID-19 another by levels revenue quarter. Our franchisee-based network is founded well are and we model, on an asset-light scale our network to without the resourced and resilient support debt. Financially of any our wings, tailwinds under with positive expect cross we our outlet expansion to With 25,000+ Next-Gen FY2022. outlets by than and more enhanced brand awareness, 1,28,000+ franchisee applications in place, at a good vantage point currently are we going forward. With the advent of the ‘new normal’, normal’, ‘new of the the advent With elastic a digitally onto moved Vakrangee COVID-19The workspace with alacrity. pandemic has caused unprecedented people work,disruption in how and as is leveraging Vakrangee a consequence, and implementing process technology digital and innovative automation adopt new us to that allows initiatives of conductingways everyday business and These initiatives field operations. managing franchisee improved into should result satisfaction centralized and better During management of field operations. process several implemented we the year, initiatives, and technology automation cost which should yield in an overall going reduction and enhanced profitability forward. In highest ESG of attaining the pursuit has Company your corporate culture, been successful in benchmarking its performance on a wide range of industry recognition specific ESG criteria. Our global to further commitment Vakrangee’s reflects and enhance its corporate governance I am pleased transparency standards. has Company that your you inform to across major Global recognition achieved its superior ESG for various platforms performance and long term business Vakrangee instance, For sustainability. globally ranked 1st out of 816 Companies in the Software and Services industry based on Sustainalytics ESG Assessment. & included in was recognized Vakrangee Gender-Equality Index.2021 Bloomberg 13 in was also rankedVakrangee as No. the global industry in 9 ranking, and No. Governance global industrythe Corporate ranking – S&P based on RobecoSAM has been Company Your Global ESG Score. group included in the highly exclusive in the S&P Sustainability of trendsetters 2021 based on RobeccoSAM Yearbook Under the CDP Sustainability ratings. has Vakrangee Ratings, Environmental Environmental robust demonstrated from Score “B” transparency and achieved During practices. Environmental CDP for Vakrangee also is now the fiscal period, and Signatorya Participant Member of Nations Global Compact), UNGC (United and a Signatory Member Nations of United principles Empowerment (UN Women WEP). 16
CORPORATE OVERVIEW
About Vakrangee
Vakrangee Ltd (‘Vakrangee’ or urban and urban population of ‘Company’), incorporated in 1990 the country. Our delivery outlets is a technology-driven company are Assisted Digital Convenience aiming to bring about a social stores better known as Next-Gen revolution in India. We are well on Vakrangee Kendras. These kendras our way to building India’s largest act as the ‘One Stop Shop’ for network of last-mile retail outlets to availing our products and services. deliver our services to the unserved and the underserved rural, semi-
VISION Vakrangee aims to be the most trustworthy physical as well as online convenience store across India. We will keep expanding this network until we are in close proximity to the last excluded person within the country.
MISSION Vakrangee intends to become India’s No. 1 retailer by offering innovative ideas and proven modern technologies for facilitating universal financial, digital and social inclusion.
BRAND PROMISE Vakrangee aims to be the most trustworthy local convenience store across India. We promise to give every Indian, their rightful access to a wide range of modern-day products and services, which are reasonably priced and of high quality. We also aim to be present within a short travelling distance of every Indian and will continue to keep expanding our network until we are close to the last excluded person within the country.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
17 17 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 The value that binds all our stakeholders – Government, Banks, our stakeholders value that binds all The Banks, – Government, Businesses and Franchisees. Partners, Our basic approach to scalability, security, confidentiality, planning, risk planning, confidentiality, security, scalability, to Our basic approach management and value creation. The attitude we have to accomplish the unprecedented feat of feat accomplish the unprecedented to have attitude we The network, retail largest remote in the most even the world’s creating electricity without and inhospitable areas and connectivity. of quality in train our people and set high standards we way The take We is the backbone and processes our systems of our success. ordinary and train them with skill individuals help them yield sets that remarkable results. business - both in our to spirit in our approach An entrepreneurial and our franchisees - our keyemployees business partners. Trust Prudent Perseverance Rigor Unyielding Entrepreneurial experience. best-in-class customer ethically, thereby delivering delivering thereby ethically, to functionto efficiently and the bedrock that allows us allows that the bedrock that these principles are that these principles are operations. We We believe operations. every aspect business of our our brand principles into endeavour to inculcate inculcate to endeavour At Vakrangee, Vakrangee, At we Our Brand Principles Our Brand 18
CORPORATE OVERVIEW
Our Business through the Years
We set out as a system integrator for e-Governance projects while transforming our business to fulfil the ever-changing needs of our customers. We started our first digital assistance stores in the Next-Gen Kendra model in 2018 and have expanded ever since all over the country. Following depict illustrates how we have evolved over time to serve citizens of India better.
1990-2005
• Incorporated as system Integrator for e-governance projects • Computerization of Central Election Commission • Project MCA 21 for Ministry of Corporate Affairs
2007-2009
• Rashtriya Swasthya Bima Yojana for Uttar Pradesh, Haryana and Rajasthan • Digitization of Land and Revenue Records in Uttar Pradesh • Land Record Digitization for Government of Philippines
2010-2011
• Passport SevaKendra, establishing modern passport offices at 77 locations with Business Process Engineering • Common Service Centre in Punjab • UID Enrolment Project for enrolling Aadhar
2012-2013
• Common Service Centre Project for e-Governance services in Rajasthan • National Business Correspondent tie-up appointed by major banks • Inspector General Registration of Stamp • National Population Register for data digitization
2014-2019
• RBI license to set up and manage White Label ATMs across India • Business to customer services: • Assisted e-commerce • Bus ticket booking, mobile and DTH recharge • Railway E-ticket booking
2020-2021
• Tie-up for Banking Business Correspondent with Private Banks such as SBM Bank (India) Ltd. & NSDL Payments Bank Ltd. • Lauch of Digital Platform : BhrartEasy Super Mobile App
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
19 19 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Transactions, Financial Non Transactions Financial ATM Assisted Online Shopping, Online Shopping, Assisted Healthcare, Total Assisted Assisted Online Travel and Bill Telecom Services, services, Logistics Payment E-commerce & Logistics E-commerce including banking, financial services, online shopping, logistics, ATM, insurance, and bill payment telecom travel, healthcare, to people. services,benefits maximize to enhance trust and loyalty we Moreover, the same of our stakeholders offering by product and services, at the same time, price and same servicecompetitive levels. services to The specially focussed are part at the remotest facilities even provide of the Nation. Banking, Insurance, Financial Banking, Insurance, Financial Services Vakrangee’s services under each vertical Vakrangee’s BFSI Vakrangee offers a bouquet of services offers Vakrangee Social and Digital aimed at Financial, operate We inclusion of our customers. franchisee-basedon an asset-light, the needs of its to cater business model to our franchisees a result, As stakeholders. capital fewer relatively and operate own convenience digital Our assisted assets. Kendras”, Vakrangee “Next-Gen called stores, act as one-stop multiple solutions for carefully have We products and services. offerings. an array of digital curated Our Products and ServicesOur Products 20
CORPORATE OVERVIEW
Our Esteemed alliances We not only collaborate with the best in the industry, but also assist our partners in reaching the underserved and unserved markets of India.
Banking Service Insurance service
Other PSUs
Financial Service Assisted online shopping Assisted Total Healthcare
Logistics
ATM
Telecom and Bill Payments Services
Assisted online travel services
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
21 21 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 >70% 27 510+ 4,580+ 11,730+ * As of 31st March, 2021 of 31st March, * As Operational outlets Operational Presence in Tier V & VI Cities V & Tier in Presence States & UTs States Districts Covered Covered Code Postal We are providing the nation with a myriad of assisted digital services digital of assisted with a myriad the nation Next-Gen our through providing Kendras, spread are We Most 510 districts than 4,580 postal codes. and union territories over 27 states covering including more over VI districts, thus servingV and underserved the in the remotest Tier in located of our Kendras (almost 70%) are than 11,730 outlets (Kendras) the nation with more also constantly expanding across are We India. of regions 2021. out until 31st March rolled OurReach 22
CORPORATE OVERVIEW
Launch of Digital Platform : BharatEasy Mobile Super APP
Vakrangee has recently launched an online By downloading a single Vakrangee’s To Download the BharatEasy Mobile Super digital platform to enable seamless services BharatEasy Super App mobile application, App - Scan the QR Code for the consumer at the comfort of their our customers can get access to a wide homes. Through this, company has evolved array of Products and Services which would into the unique O2O (Online to Offline) significantly reduce their requirement to platform, whereby there is Assistance avail- switch between multiple apps. This will able through the Physical Kendra network lead to superior customer experience and along with Digital Online Services. convenience for the customer.
The company has initiated this Unique The Mobile super app platform is offering Hybrid proposition with launch of first various consumer products and services Digital service of Total Healthcare services under one umbrella. Consumers would use The company plans to make many more it every day because our app would offer a existing Vakrangee services live through this seamless, multi-service, integrated, contex- platform. tualized and efficient experience.
The Company has now launched an All in one : “BharatEasy” Mobile Super App based business platform.
Business Model: Unique Competitive Advantages
Convenience: Strong Technology Expertise: All-in-one platform for all customer Technology and product-first needs approach to business
Vakrangee is a strong consumer Unique Proposition of Digital brand recognized across the along with Physical: “Phygital” length and breadth of India
Sustainable Advantages over the standard benchmarks apps: • Rural Focused Loyalty Program for • Store Pick Up Facility transition to Mobile Super App • Order Return Management • Unique Referral program for • Pay at Store Option Facility Vakrangee Franchisee network: • Courier Pick up/Drop To Help scale faster and reduce • Physical Assistance Available customer acquisition costs • Grievance/Helpdesk Facility
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
23 23 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 All in One Super App Platform network Store Physical to Access Customers & Comfort for Trust - especially in Rural India Up Facility Pick Store (Cash) at Store Pay ReturnOrder facility Facility up/Drop Courier Pick Available Assistance Physical Grievance/Helpdesk Facility Strong Value Proposition Value Strong • • Features: Unique Convenience Eco- Vakrangee the Leveraging System • • • • • • Store Network FY21 – 11,700+ outlets Network Store FY26 E – 75,000 outlets Network Store - US$5.2 BN Value Transaction FY21 Gross –US$ 50 BN Value Transaction FY26E Gross MN – ~30 of Customers FY21 No. MN - ~80-100 of Customers FY26E No. Vakrangee Kendra Network Kendra Vakrangee • • • • • • Customer BharatEasy Mobile Super App BharatEasy Super App : Multi Category Offering Super App Online shopping Healthcare Total Banking/Insurance/Money Transfer Bill Payments/Recharges Funds Products/Mutual Loan Products Agri ServicesCourier Online Education Service Partners • • • • • • • Travel/Entertainment/Events • • • Our Business Model: Understanding Our Offering Unique 24
CORPORATE OVERVIEW
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
25 25 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Telephone or video consultations with or video consultations with Telephone in-house primary doctors care vHealth’s Facility Test Home Blood Online Pharmacy Vouchers Launch of New servicesLaunch of New during Tele – Pandemic COVID-19 Medicine Services Vakrangee During pandemic: covid-19 by Rural Healthcare revolutionized (a CVS Aetna’s vHealth by introducing 500 Company) Fortune Health company, Vakrangee servicestelemedicine at Next-Gen kendras. ServicesThe Include: • • • Link - www.vakrangee.in/pdf/press_ release/Press%20Release%20-%20 Launch%20of%20Telemedicine%20 Services%20with%20vHealth%20-%20 March%202020.pdf Doorstep Banking Facility BankingDoorstep Facility Our BankingAmidst Lockdown, Business doorstep BCs provided Correspondents banking services Jan Dhan Account to especially for rural areas Holders in remote and old age pensioners. senior citizens Link - www.youtube.com/ watch?v=UJVzl5LTTDY Distribution of Government DistributionGovernment of Garib Mantri Subsidy (Pradhan COVID-19 during Yojna) Kalyan Period Pandemic in this difficult help poor women In to order most of of time when the livelihoods Minister had Finance disrupted, them are of Rs 500 announced an ex-gratia payment months starting three Aprilper month for the 2020 which was distributed through KendraVakrangee Network. At the same time, we also ensured the also ensured we the same time, At of our employees, health and safety maintaining by franchisees and customers and maintaining protocols safety complete at the outlets. hygiene proper country. services of the the citizens to emergency and essential be of service providing by Our Next-Gen identified as kendras were essential services Government of India by emergency and them providing due to Total essential services like Banking, ATM, of Groceries & Online ordering Healthcare, of the country, and thus helping the citizens servingthereby the nation. of IndiaWhen the Government issued than 11,700 more in the country, Lockdown operational KendrasVakrangee were of our the essential services. provide About to 4, 5 Tier in located 80% of our outlets are benefiting the & 6 Rural locations thereby unserved and underserved of the bottom the also reduced We Pyramid population. to make discounts these prices and offered for the citizens. servicesaffordable more but not only help our citizens would This panic like any avoid also help the nation to our towards committed are We situation. duty these make to and responsibility sure key in services the citizens to available are this moment of crises. made us one of the veryThis few operational companies globally who were during a lockdown while delivering essential services in the the citizens to partsremotest of the country. Vakrangee was ready to to was ready Vakrangee economy and way of life, of life, and way economy its subsequent impacts on COVID-19 pandemic and to cope with the ongoing cope with the ongoing to As the entire world struggled the entire As Our Efforts in Covid-19 Pandemic Covid-19 Our Efforts in 26
CORPORATE OVERVIEW
Board of Directors
Ramesh Joshi (Non-Executive Chairman) Dinesh Nandwana (Managing Director and Group CEO)
Ramesh Joshi has vast experience in Central Dinesh Nandwana holds a Chartered Bank & Capital Market and is a graduate in Accountant degree from the Institute of Economics and Law from the University of Chartered Accountants of India. He drives and Nagpur. In his long and illustrious career oversees the overall business at Vakrangee sprawling over 40+ years in the apex Bank, he since its inception in 1990. He has been has held several leadership positions in the instrumental in moulding Vakrangee from a Reserve Bank of India (RBI), such as General modest consultancy Company to a prominent Manager-Exchange Control Dept., Rural force to be reckoned with. He has scaled the Planning & Credit Dept., and also served as Company to a new orbit of growth. Astute Chief General Manager until year 2000, in the and dynamic leadership qualities back his vast financial regulator of the Country. Vakrangee is experience. Under his vision, the Company has also in the business of financial services such set a track record for consistent as Banking and ATM which is also regulated by and able growth. RBI and his vast experience in same industry in which our company is into and also has As a frontrunner of the organisation, he the financial experience which help us in our ensures a tone of integrity and ethics across business, processes, audit and other corporate the operations and establishes the highest governance practices. He has been Nominee standards of corporate governance. Director on behalf of RBI on the Boards of various banks and financial Institutions viz, State Bank of Mysore, (1996-1998) Ind Bank Dr. Nishikant Hayatnagarkar (Whole Time Director) Mutual Fund, Inter Connected Stock Exchange of India Ltd, Malaprabha Gramin Bank, Dr. Nishikant Hayatnagarkar is a Doctorate in Karnataka State Financial Corporation and Computer Science from IIT Powai, Mumbai and Maharashtra State Financial Corporation (1998- is associated with the Company since 1994. He is 1999) and retired as an Executive Director of a wellknown personality in the field of microchip SEBI in the year 2002. He has travelled abroad designing. He has also developed a voice widely and currently is serving as a senior recognition system, which was widely used in corporate consultant to multiple companies. various applications like Tele Banking, Tele Gas He is on the Panel of Arbitrators for NSE, BSE, Booking, amongst others. and has also designed and MCX. and developed a multi-lingual Keyboard and was a consultant to Media Labs Asia -Kamal Rekhi School for Information Technology (IIT Mumbai) for development of Multi-lingual data input device -Marathi language Key Board (Key -Lekh) and E-Lekh (Tablet based Marathi language Input).
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
27 27 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Sunil Agarwal his Bachelor of has completed of strong 35 years and has over Commerce experience in business management and administration. He is a successful businessman control with good leadership qualities to new business and explore projects massive opportunities. Hari with a Chand Mittal is a postgraduate and a certified in Master of Commerce degree Indian from Instituteassociate In of Bankers. his than 37 years of more long and illustrious career with Union Bank of India, he has held several Mumbaileadership positions including and as Zone Maharashtra under Pune then entire he retired where from General Manager, Field and on 31 July 2019. He possesses vast exposure practical experience in various fields of banking administration, enriched deep understanding by from ranging as finance, of operations as well and other fields like Agriculture MSME, Retail, Import Exchange, / Export & Financial Foreign Inclusion. He has not only been a passionate banker administrator, also a devoted but leader, mentor, guide, motivational speaker, visionary friend, and builder, team evaluator, his career. crisis manager throughout as IndependentHe has also been appointed of of Directors on the Board Director to Advisor The Chandigarh Smart City by Ltd Chandigarh- Territory, Union the Administrator, cum-Chairman vide notification No CSCL, 10.12.2020 15157-FII(9)-2020/15529 dated Secretary/Home-cum-Local Principal issued by Govt Local Govt, Chandigarh Administration, Chandigarh. Territory, Department, Union B. L. Meena has richB. experience of having departments Government worked in different including in the field of audit and accounting, of Indian Controller) (Financial being FNCO Service he served for 28 where Traffic Railway He has vast experience in the field of years. audit and accounting and is the guiding force of audit in the areas specially the Company to He also helped the Company and accounting. the accounting for in setting up processes and corporate affairs. Sunil Agarwal (Non-Executive Independent Director) Sunil Agarwal (Non-Executive Independent Director) Meena (Non-Executive B.L. Hari Chand Mittal (Non-Executive Independent Director) MittalHari Chand (Non-Executive He has extensive experienceHe has extensive in audit certificationfor externally funded aided projects Bank World agencies such as the foreign by and its extended JICA-japan international arms, KFW Germany amongst cooperation agency, in degree a bachelor’s He holds others. which (professional) L.L.B. and is Commerce He has been his business acumen. adds to part various companies and which of audit for He serves as Chief the Company. adds value to for Dinker Officer (CFO) IndustriesFinancial OPC His expertise Limited. the Private into financial industry. Sujata Chattopadhyay is a Fellow member of the member is a Fellow Sujata Chattopadhyay of IndiaInstitute Accountants and the of Cost Secretaries of India and of Company institute of She has 30 years an Insolvency Professional. rich various experience industries across and full time practice in as Presently geographies. She is an Independent Secretary. a Company Limited, Technologies at Polygenta Director and Industrial India Exchange Limited, Steel Limited IITL Projects Limited, Trust Investment Gruas India of Felguera and ResidentDirector Limited. Private Ranbir Datt joined Life InsuranceRanbir Corporation Datt joined Life of India Officer (LIC) Administrative as Assistant in 1984. He worked as the Head of various channels in LIC of India viz., Department Superannuation, & Group of Pension Micro Insurance, OfficeBancassurance, Service He also worked amongst others. in & Estates and Ltd LICs vertical like LIC Housing Finance in charge He was also LIC Nomura Mutual Fund. and Divisions at Nagpur of two most significant Karnal. He has experience of training at Director of Director as Executive He has retired level. Projects. Planning/New Corporate Ranbir (Nominee Director) Datt Sujata Chattopadhyay (Non-Executive Independent Director) (Non-Executive Chattopadhyay Sujata Avinash Vyas (Non-Executive Independent Director) (Non-Executive Vyas Avinash 28
CORPORATE OVERVIEW
Corporate Structure
MD & Group CEO
Director Research Company Secretary & Development
Business Head Online Chief Operating Officer Shopping and Insurance
Business Head Travel, Telecom & Chief Financial Officer E-Governance
Business Head Financial Service Chief Innovation & Technology Officer and Others
Head FLM Business Head Banking
Head MIS Business Head ATM
Head DMS Head Facility & Administration
Head of People, Performance & Head Marketing & Loyalty Programme Culture
Chief Strategy and Investor Head COCO & Master Franchisee Relations Officer
Head Sourcing & Procurement Respective State Heads
Head Legal, Compliance, Quality Head Stores and Infra Assurance & Risk Management
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
29 29 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Dr. Nishikant HayatnagarkarDr. is a Doctorate IIT-Powai, Science from in Computer with the Mumbai. He is associated 1994. He is a well-known since company personality in the field of microchip Nishikant a has developed Dr. designing. is widely which system, recognition voice Tele used in various like applications Gas Booking amongst others. Tele Banking, and developed He has also designed Multilingual Keyboard and is a consultant Media – Kamalto Labs Asia Rekhi School (IIT Mumbai) Technology Information for of Multilingual development data input for device – Marathi language Key (Key Board – Lekh) and E-Lekh (Tablet based Marathi language Input). Dr. Nishikant Hayatnagarkar Dr. & – Research Director Time Whole Development - Dinesh Nandwana CEO & Group Managing Director Mr 30 years Nandwana has over Dinesh He drives and of business experience. Vakrangee business at the overall oversees since its inception in 1990. He is fully com- an active play and will continue to mitted and operations. in Business strategy role Nandwana has been instrumental Mr. a modest from Vakrangee in moulding force consultancy a prominent to company with. He has scaled the be reckoned to Astute a new orbit to of growth. Company and dynamistic leadership qualities back his vast experience. has set a Under his vision, the Company and sustainable consistent for track record - of the organi a front-runner As growth. of integrity and a tone sation, he ensures operations and establishes the ethics across of corporate governance. highest standards Path a CA Entrepreneur He has received Institute 2017 by of Char Breaker Award of India Accountants and memento tered of Honourable President the former from India, Shri Late Shankar Sharma Dayal in of the he is a recipient 1996. Additionally, award Rank)’ - SME (3rd ‘CA Business Leader the Instituteby of Chartered Accountants 1997. Mr the year of India Nandwana for in Commerce degree holds a bachelor’s Rajasthanfrom University and a Chartered the Institute of from degree Accountant of India.Chartered Accountants
success and steady growth. success and steady deliverables, continuous deliverables, for our goals, focused focused our goals, for management is the backbone to the Company. The senior The Company. the to a definite management focus focus management a definite behind consistently providing providing behind consistently leadership and are the keyare leadership and demonstrate exceptional exceptional demonstrate consists of the people who consists of the people Our senior management team team Our senior management Our Key Management Our Key 30
CORPORATE OVERVIEW
Corporate Governance
Our robust philosophy of corporate Our Board of Directors oversees the governance is founded on a rich legacy of affairs of Company in the best interest of fair, ethical and transparent governance shareholders, providing necessary guidance practices. We believe that strong corporate and strategic vision. The Board meets at governance shapes a Company, and least 4 times in a year with a maximum time promotes ethics, accountability and gap not exceeding 120 days intervening transparency in an organization. It equips us between two consecutive board meetings for long-term success and strengthens trust as per Section 173 of Companies Act, 2013 of our shareholders, employees, business read with Regulation 17 of SEBI LODR 2015. partners, customers, franchisees and local We have identified following skills and community in our organization. With strong competencies for effective functioning of corporate governance structure, guided by the Company: our inclusive policy, we continue to go from • Knowledge on Company’s business, strength to strength. policies and culture, major risks, threats Through the Corporate Governance and potential opportunities of the structure, our Board, along with its Company Committees undertake fiduciary • Behavioral skills- attributes and responsibilities for all stakeholders competencies to use their knowledge by ensuring transparency, fair play, and skills to contribute effectively to the independence in decision-making. growth of the Company • Business strategy, sales and marketing, Adhering to our corporate governance corporate governance, forex policy, we respect and protect interests management administration, decision- of our stakeholders. Shareholder returns, making credit ratings, initiatives for Corporate Social Responsibility, Greenhouse gas • Technical / professional skills and emissions accounting and verification specialized knowledge in relation to are few instances of our commitment to Company’s business stakeholders and responsible business In this section, we present our corporate operations. governance framework aimed to maintain the highest standards in business operations.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
31 31 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Effectiveness of the Board shall be measured on the basis of ratings given by the by the given on the basis of ratings shall be measured of the Board Effectiveness each Director. to Committee Nomination and Remuneration and Compensation shall decide on appointment, re-appointment the Board and removal Accordingly, of the under-performing of the Company. Directors The Nomination and Remuneration and Compensation Committee shall Committee Nomination and RemunerationThe and Compensation Key and Senior Managerial the performanceevaluate Personnel of each Director, his/ her performance. and rate Management of the Company performance shall evaluate Board The of the Independent in the same Director of Company. Director as that of Executive way Board of Directors are the backbone of a Company. They not only provide overall overall They not only provide the backbone are of Directors of a Company. Board but also establish management Company, for strategy direction and formulate They business performance optimal effectiveness. overall govern for policies, They report serve business operations stakeholders. of ensure long-term interests of Company. on their stewardship shareholders to and Group Director Managing by driven are Day-to-day operations of Company who reports of Directors. the Board to CEO, Superior skills, expertisediverse of experience. years and extensive Directors and Non-Executive mix of both Executive with a good 9-member Board including Independent Directors. 1 Nominee Director), Independent (including 1 female Directors 6 Non-Executive Insurance holding equity Corporation Life of India Limited, (representing Director Directors. and 2 Executive in Company) investment Effectiveness of Board of Directors of Board Effectiveness • • Performance evaluation Performance • • Functions of Board Functions • • Composition of Board Composition • • • Corporate Governance Framework Governance Corporate 32
CORPORATE OVERVIEW
Board/Executive Committes Board and other Executive committees deal with particular issues requiring extensive knowledge and specialized areas of expertise. For smooth functioning of business, we have formed the following internal committees:-
Audit Committee Anti-fraud Committee • B.L. Meena • Dinesh Nandwana • Ramesh Joshi • Avinash Vyas • Avinash Vyas • Ammeet Sabarwal • Chetan Joshi Nomination and Remuneration and Compensation Committee • Ajay Jangid
• Avinash Vyas Board ESG Committee • Sunil Agarwal • Avinash Vyas • Hari Chand Mittal • Ramesh Joshi Stakeholder Relationship Committee • Sujata Chattopadhyay
• Ramesh Joshi Vishakha Committee • Nishikant Hayatnagarkar • Veena Shetty • B.L. Meena • Anagha Chitare Corporate Social Responsibility • Viral Majumdar Committee • Chetan Joshi • Dinesh Nandwana GHG Reduction Strategy Committee • Sunil Agarwal • Divya Nandwana • Ramesh Joshi • Ammeet Sabarwal Risk Management Committee • Ajay Jangid • Sujata Chattopadhyay • Dinesh Nandwana • Nishikant Hayatnagarkar • Prabodh Bhusari
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
33 33 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 9 6 3 5 No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Response - Particulars Size of Board of Board Size Number of Independent Directors orientation and education program Board Annual review of independence of the Board of independence Annual review Separate Board Chair and CEO/ MD Board Separate Independent Chair Board Charters for Board Committees Charters Board for Independent Committee Audit Number of financial expertsCommittee Audit on Nomination and Independent Committee/ Compensation Committee RemunerationCompensation and Number of Board meetings held in FY 2020-21 Number of Board Independent can hold meetings without the Directors of Management presence Tenure policy Independent for Directors Tenure Holders of 15% / 10% of outstanding shares can call a spe Holders of 15% / 10% of outstanding shares cial meeting Annual Board and Committee evaluations and Committee Annual Board Annual Individual evaluations Director Annual equity grant to non-employeeAnnual equity to Directors grant / ESOP and holding requirement ownership stock Director policy Executive stock ownership policy ownership stock / ESOP policyExecutive Corporate governance guidelines approved by the Board by guidelines approved governance Corporate Corporate compliance program Corporate Standards of business conduct Standards Finance code of professional conduct code of professional Finance 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 S. No. Factsheet 34
CORPORATE OVERVIEW
Rewards and Recognitions
Our prestigious rewards symbolize our commitment to a valuable and growing organization. We have elaborated few recent achievements below:
Vakrangee has been ranked Included in S&P Global Sustainability The Sustainability Yearbook 2021
Tackling parity, plastics and petroleum amongst Top 100 Franchisee Yearbook 2021 - reflecting on values, anticipating risks and identifying opportunities Opportunities for the year 2021 by the Franchisee India in the Franchising World’s Annual Survey.
Vakrangee has received Certificate of Excellence award for India Corona Warrior for social contribution towards serving the un-served community during the Pandemic
Membership of Association
We are member of the following major trade and chamber or association:
Associated Confederation Signatory CSC Signatory Member Member Chambers of of ATM Industry member of e-Governance member of of BCFI of NPCI Commerce and (CATMi) United Nations Services India United Nations Industry of India Women Limited Global Compact (ASSOCHAM) Empowerment principles (UN WEP)
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
35 35 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Registrar Services Bigshare Ltd. Pvt. M/s. Building, Works Tin Bharat 1st Floor, Vasant Oasis, Opp. Makwana Andheri (East), Marol, Road, Mumbai, Maharashtra - 400059 022- 62638200 : No. Telephone : 022- 62638299 No. Fax Email : [email protected] Vakrangee Corporate House, Corporate Vakrangee 16, 93, Road No. No. Plot Andheri (East), Marol, M.I.D.C. Mumbai, Maharashtra - 400093 : 022-28503412 / 67765100 No. Telephone Email : [email protected] : www.vakrangee.in Website Registered Office Registered Limited Vakrangee Statutory Auditor & Co. Sanzgiri M/S A.P. Mumbai Chartered Accountants, Bankers Union Bank of India HDFC Bank Limited Axis Bank Limited IndusInd Bank Limited Bank Yes SBM Bank (India) Limited IDBI Bank Limited Bank of Maharashtra Bank of India Allahabad Bank National Bank Punjab Bank of Baroda Purvanchal Bank Gramin Bank Uttar Pradesh Baroda Chhattisgarh Rajya Gramin Bank Rajasthan Marudhara Gramin Bank Chief Financial Officer Financial Chief Jangid Ajay Secretary & Company Officer Compliance Bhansali Jay
Nominee Director Non-Executive Independent Director Non-Executive Ranbir Datt Non-Executive Independent Director Non-Executive MittalHari Chand Avinash Vyas Avinash Independent Director Non-Executive Chattopadhyay Sujata B.L. Meena B.L. Independent Director Non-Executive Sunil Agarwal Independent Director Non-Executive Dr. Nishikant Hayatnagarkar Dr. Whole Time Director Dinesh Nandwana CEO & Group Managing Director Ramesh Joshi Chairman Non-Executive Board of Directors Board Corporate Information Corporate
CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS 38 42 44
Value Creation Model Creation Value Business Risks and Opportunities and Materiality Engagement Stakeholder Analysis
PERFORMANCE STRATEGY AND STRATEGY 38
STRATEGY AND PERFORMANCE
We have formal mechanisms in Stakeholder Engagement place to ensure continuous bilateral engagement with key stakeholders and Materiality Analysis to understand their expectations and concerns. We identify our key stakeholders based on their influence on our organization and extent of impact our operations have on them. All our key stakeholder groups participate actively in our materiality analysis exercise.
After identification of stakeholders, a formal engagement is carried out at a fixed frequency or as required. It also helps us in sharing information on its approach and actions in areas of stakeholder interest. We have multiple communication/ engagement channels mentioned in the stakeholder engagement framework below, which provide us with valuable feedback which are incorporated in our business decisions. We evaluate a variety of sources in order to obtain a precise picture of our stakeholder’s concerns. This involves various communication channels like customer and employee surveys, meetings, specialist unit workshops and discussions with individual stakeholder groups. Ongoing Stakeholder Engagement
An integral part of our values is trust, which acts as the foundation for the relationship we maintain with all our stakeholders including Government, Banks, Partners, Businesses, Franchisees and many more. Through our values and policies, we aim to foster entrepreneurial spirit in our employees as well as franchisees, who are our key partners. Our strategy is to develop effective engagements with our stakeholders to create long-term sustainable value.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
39 39 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 MarketingSupport & Strategy guidance and support Training, Satisfaction Franchisee Grievance addressal Human Rights issues Engagement & Feedback Employee Operational aspects review Performance skill development Training, development Talent of conductCode and policies and Business conduct processes and strategies business initiatives Company Company’s towards and response behavior and Customer Franchisee Business model Service locations availability in remote Guidelines ServiceTraining Manual and strategy and business sales targets reach Customer Business risks and their mitigation strategies Integration; Data privacyIT related and security Social strategy and Governance Environment, and developments Key Strategy level company Business Performance Company innovations Technological rights voting Shareholder New services and offerings and Satisfaction Grievance addressal Customer Queries Customer Data Privacy and Security generation Livelihood Social local rural communities Infrastructure for development inclusion social and Digital Financial, basic servicesEasy access to like Banking, Universal Insurance and social security benefit transfer) (Direct DBT benefits through and service Product requirement testing QualityCheck and Pilot certification) and of supplier and (EPEAT on the product ESG Compliance vendor and audit survey review Performance on supply chain monitoring review and service on product review Performance as per the requirement on support or service product of the respective and maintenance Feedback Grievance Addressal made Divyang as friendly as well ATM (Example Customization Product done as per our discussion with Supplier customization paperless ATM OEMs.) Key topics highlighted topics Key 1. 2. 3. 4. 1. 2. 3. 4. 5. 6. 7. 8. 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 1. 2. 3. 4. 1. 2. 3. 4. 1. 2. 3. Suppliers of Conduct for Code 4. 5. 6. 7. 8. Training & communications, Annual employee Annual employee & communications, Training affinity and Employee surveys, Mentorship programs schemes & Recognition Rewards groups, Regular Quarterly and ad hoc need based interactions with Business Service and senior Partners training webinars, management, team analysts releases, press call, Quarterly Conference meet, one-on-one presentations, Board meetings, Annual General Reports, Meetings, Investor on quarterlypresentations Domestic as well basis, & ESG Audits visits, as International Site Roadshows, Ratings surveys and franchisee owner Regular store ensure to Virtual Assistant, satisfaction,customer Chatbots and or service offers any for Campaign WHATSAPP SMS/ introduction Monitoring of community interventions, CSR of franchisee owners recruitment programs, meetings with regular Monitoring and review, meetings, review Contract Manager – progress and review longer-term meetings, review technical Supplier code of conduct undertakingaudits, the by suppliers and vendors A designated Relationship Manager present for each Relationship for Manager present A designated surveys Regular store ensure to franchisee cluster, on team satisfaction,franchisee and customer Field with Business ServiceWebinars and Heads Ground, meets with or District level State Franchisee level Senior Management including MD/CEO and State schemes & Recognition Rewards Heads, Engagement Method Engagement Employees Business Partners Shareholders and Investors Customers Community Suppliers and Vendors Franchisees Stakeholder Stakeholder Engagement Details for FY 2020-21 FY Details for Engagement Stakeholder 40
STRATEGY AND PERFORMANCE
Stakeholder Engagement Method Key topics highlighted Industry bodies Trade events, conferences, newsletter, publications, 1. ATM growth (Confederation Interaction with regulatory bodies on an on-going 2. Advocacy for best industry practices of ATM Industry, basis through Industry body membership such as CATMi) CATMI for ATM, BCFI, Meetings with NPCI (National 3. Technological innovations in ATM industry payment corporation of India), Meetings with RBI 4. Education and training 5. WLA initiatives and Financial Inclusion initiatives 6. Financial and social inclusion initiatives in Rural India. 7. Industry feedback and expectation management on White label ATM business and Business correspondent banking services in India. 8. Industry representation to Reserve Bank of India (RBI) and DFS (Department of Financial services) 9. Prevention of any unethical practices if any and corrective strategy being implemented 10. Digital India, RuPay cards and ATM expansion initiatives NGO, NPO and Monitoring of community interventions, CSR 1. Healthcare access civil societies programs 2. Promoting education 3. Youth employment 4. Environmental sustainability Government Meetings and representation to Regulatory bodies 1. Promotion of financial, social and digital inclusion and Regulatory on periodic basis, membership in associations 2. Industry feedback and expectation management on White label ATM bodies business and Business correspondent banking services in India. 3. Industry representation to Reserve Bank of India (RBI) and DFS (Department of Financial services) 4. Review discussion with National Payments Corporation of India (NPCI) 5. WLA License renewal and periodic Audit performed by RBI
Materiality internal policy drivers, peer performance Vakrangee is now offering even greater and stakeholder concerns. range of services in our last mile delivery This led to the generation of the materiality retail outlets. The main driver for our matrix, which is shown in this section. We evolving business strategy is ongoing have considered the topics in the high stakeholder engagement. Our continuous and medium priority zone to be our focus stakeholder engagement is crucial in material topics. Our strategies and progress assessing the materiality of risks identified are measured with respect to how well they by our stakeholders. Our materiality address the material issues identified. The exercise covered all our stakeholders identified material topics are mapped with who communicated the material topics GRI topics. in relevance to their relationship with Vakrangee. Based on this prioritization, we have considered only the topics in the high Materiality assessment was performed and medium priority zone to be our focus through engaging with all stakeholder material topics as detailed below. These groups and listing the material topics focus material topics have been classified identified by them. A rating exercise was into economic, environment, social and conducted to identify the material topics governance aspects which are aligned of high, medium and low priorities. The with our business principles. Various prioritisation considered importance to sections in our report details our strategies the stakeholders as well as importance to and progress with respect to these focus Vakrangee. The materiality assessment was material topics. The materiality matrix is carried out against the following filters given below. – financial impacts & risks, legal drivers,
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
41 41 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 High priority Business continuity & Integrity Business Ethics and engagement Community development regulations to Compliance Cyberattacks privacyData and security Digitization Inclusion and Diverisity wellbeing Employee Performance Financial Social and Digital Financial, Inclusion Human rights performanceOptimal franchisee and ServiceProduct Quality Robust Governance & Retention Attraction Talent Innovations Technological
Significance to Vakrangee Significanceto Company business initiatives and business initiatives Company strategy sustainability/Climate Environmental Change addressal Grievance access Healthcare Health Safety Occupational aspectsOperational Security Asset ATMs) (like Physical with Business partnersRelations Responsible marketing/advertising Responsible sourcing and support guidance Training, services Valuable Social Governance Environment Economic
Low priority Medium priority Low
priority Medium priority Low High priority High Influence on stakeholders on Influence 42
STRATEGY AND PERFORMANCE
Value Creation Model
Untapped Inputs rural market
1. Financial capital Business > Paid-up capital – INR 1,05,94.05 lakhs enablers > Capital work-in-progress – INR 461.82 lakhs
2. Human capital Geographical Strategic > 800 employee strength presence Business focus > 13.77% women at corporate HQ model in sync with > 1,100 hours of training for permanent government employees policies
3. Social and relationship capital 1. Asset-light business
> CSR expenditure – INR 94.99 lakhs Workforce > Efficient grievance redressal mechanism presence till 2. Diversified business units grass-root level 4. Manufactured capital 3. Exclusive technology platform > 11,730 Next-Gen Vakrangee Kendras as of FY 2020-21 > Introduction to services accessible through the digital platform Support from 5. Intellectual capital ancillary units like banks, petrol > Implementation of advanced technology pump, SHG - IoT, VA, AR, Virtual Assistance, AI, ML, blockchain and BharatEasy Super Mobile APP Rapid changes in 6. Natural capital technology Revenue-generating > Initiatives – Save paper, green building, capability of Next-Gen green data centres, ISO certifications Vakrangee Kendras
Heavy dependence on franchisee model
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
43 43 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Outcomes capital 1. Financial FY21 has been impacted > Revenue for & Lockdown Pandemic Covid-19 due to situation. 2. Human capital opportunity> Equal at work > Increase in motivation and employee satisfaction and proud happy feel > 82% employees working at Vakrangee capital 3. Social and relationship with all stakeholders relations > Strong > Enhanced trust of stakeholders 4. Manufactured capital among local community> Employment 5. Intellectual capital and processes > Robust systems capital 6. Natural conservation> Natural resource Outputs capital 1. Financial Revenue 38,395.13 lakhs – INR Total > INR 6,279.13 Lakhs – > PAT – 2.36% Worth > Return on Net 2. Human capital > Diversity at workplace Voluntary attrition – 4.83% rate > of association – 5.1 years years > Average capital 3. Social and relationship > 0 complaints concerning breach privacyof customer customers, from party, regulatorythird bodies and local community members > Support – CTVs in healthcare setup at the hospital > Support in education – IIIT Kota – Support education and infrastructure improving for 4. Manufactured capital essentialities such as > Accessibility to banking and doorstep telemedicine among others > Introduction a Unique Hybrid to Model with digital stores combining physical and multiple products offer to platform services 5. Intellectual capital > Monitoring 11,730 outlets with IoT capital 6. Natural financial > 40,816,785 paperless ATM transactions > 64,963,790 paperless Banking financial transactions High brand High brand in recognition rural semi-urban to region Rapid changes in policies government Young Young entrepreneurial workforce rural Unique features by offered business partners Numerous Numerous empanelment and licenses in insurance, banking and e-commerce 44
STRATEGY AND PERFORMANCE
Business Risks and Opportunities
Risk management framework Risk management is active identification, analysis, evaluation, In 2020, the pandemic of Covid-19 created havoc in the world treatment and documentation of risks that may pose a threat to our affecting millions of lives. The business environment also got business. Our Board of Directors quite a jolt, as there was a drastic shift from business as usual periodically review and evaluate risk management system of the scenario. With market conditions becoming more volatile company. Similarly, our Head and complex, it is imperative to identify risks proactively of Department is responsible for implementing the risk and respond to them suitably. To ensure sustainable and management system, as applicable, resilient business growth, and promote a proactive approach and report to the Board and Audit Committee. in evaluating, resolving and reporting risks associated with For a comprehensive management of risks business, we have formulated a Risk Management Policy. to organization, our Board shall:
Our policy adheres to Regulation 21 of SEBI LODR and RBI’s 1. Be responsible for framing, implementing and monitoring risk guidelines on Risk Management in Banking Correspondence management plan for the Company; and White Label ATM (WLA) business. 2. Ensure that SOPs of all departments and verticals are prepared as per the best global practices and are compliant with ESG parameters and UN-SDGs and are free from any business or legal risks;
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
45 45 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Risk of Directors risk review Board Risk Management Committee risk Risk Committee Management review Disclosure of risks to all stakeholders of risks to Disclosure Furthermore, the Committee shall review shall review the Committee Furthermore, the policy at least every it ensure to year and of legislation meets the requirements Once the risk the needs of the organization. they risks, reviews management committee all stakeholders. to disclosed are While we have been proactive in mitigating in mitigating been proactive have While we also been successful have we risks, business them into in transforming opportunities. In these pandemic times, serve to committed nation the were our essential servicesthrough like banking 11,700+ Next- over at facilities and ATM Our business Kendras. Vakrangee Gen banking offering are correspondents servicesdistributing by Government of Jan Dhan subsidies at the doorstep locations across holders in remote Account eliminate to Furthermore, the country. have we travel, to citizens the need for mobile van facilities successfully deployed to Mumbai Region Metropolitan across essential servicesprovide like banking, health telemedicine online pharmacy, ATM, and online services, mobile recharge extend plan to We shopping of groceries. mobile van services India across shortly. Board a dedicated constituted also have We ESG Committee. is to objective of the Committee The consider the material environmental, to relevant issues social and governance our business activities and support us in maintaining our position as a global leader in ESG performance. minimum frequency The of the committee the However, is once a quarter. review review is done on need basis to review key decisions and business strategic ESG of any implementation requirement initiatives. related To ensure that all the current and that all the current ensure To material risk-exposures of the future assessed, identified, are company mitigated, appropriately quantified, i.e to and managed minimized risk for systems adequate ensure management. the a framework establish for To riskmanagement process company’s its implementation. ensure and to enable compliance with To wherever regulations, appropriate the adoption of through applicable, best practices. with growth business assure To financial stability. actual evaluate and potential To data Human Rights to risk related privacy. verify the Human Rights Risk To to framework related Assessment data privacy. implementation of monitor To Human Rights Risk Assessment Data Privacy. to framework related report Human Rights Risk To of Directors the Board to Assessment Data Privacy. to related actual evaluate risk and potential To Capital. to Human related identified as the action plan created approve To per the risks identified. implementation of the monitor To detailed action plan. report the findings of Human To the Board Risk to Capital Assessment of Directors. Terms of references for the Risk for of references Terms are: Management Committee • • • • • • • • • • • • access free shall have Committee The management and management to Itinformation. shall meet at least once a seek it may as its authority, Moreover, year. advice of external experts or consultants, judged necessary. wherever Designation Chairperson Member Member Officer Define roles and responsibilities responsibilities roles and Define of Risk Management Committee monitoring and delegate and may of riskreviewing plan management and such other the Committee to functions deem fit; as it may systems that the appropriate Ensure in place; risk management are for Independent shall help in Directors an independent judgement bringing deliberations bear on Board’s to on issues of risk management and that the system satisfy themselves and robust of risk management are They shall also participate defensible. in major decisions affecting risk profile; organization’s of and continually awareness Have management of strategic monitor risks; and Be satisfied that processes managing in place for are controls risks; be satisfied less significant accountabilitythat an appropriate framework is working any whereby delegation of risk is documented and performance can be monitored accordingly; risk management ensure reporting board into is integrated and annual reporting mechanisms; board-committees that any Convene deemed necessaryare risk ensure to managed and resolved is adequately possible. where Name of Director Ms. Sujata Chattopadhyay Ms. Mr. Dinesh Nandwana Mr. Dr. Nishikant Dr. Hayatnagarkar Mr. Prabodh Bhusari Prabodh Mr. 1 2 3 4 S. No. 3. 4. 5. 6. 7. 8. a Risk constituted Management have We with majorityCommittee members of the of our Risk Composition of Directors. Board is: Management Committee 46
STRATEGY AND PERFORMANCE
The role of the Committee is to support the Business risks Board in:- For long-term value, we anticipate risks threatening our development and that of • Understanding how Vakrangee’s our stakeholders, while capitalizing on new ability to create value is impacted opportunities offered by a changing world. by environmental, social and At Vakrangee, we have adopted formal and governance issues - monitoring systematic approaches to mitigate our risks. external ESG trends and We conduct risk assessments to identify and understanding associated risks and evaluate risks. The risk assessment involves opportunities a detailed study on threats and vulnerability • Understanding the expectations of resulting in risks and having the potential key stakeholders to affect our organisation. Steps followed in assessing and evaluating risks are: • The Committee acknowledges that the Board People & Remuneration Committee and Board Corporate Social Responsibility Committee also Risk identification Once the potential risk is identified, it will be recognized as such and then assist the Board in meeting its ESG be described in terms of its potential effects. responsibilities. Composition of board ESG committee is: Name Designation Mr. Avinash Vyas Chairman Mr. Ramesh Joshi Member Risk analysis After risks are identified, the likelihood and consequence of each risk is Ms. Sujata Chattopadhyay Member found out. The exact nature of the risk and how it could affect organisation goals and objectives is determined. The Role and responsibilities of the Board ESG committee include-
• Reviewing the performance and results of key ESG investor initiatives Risk evaluation Risk evaluation determines the magnitude of risk, which is a combination / surveys and global benchmarks of the likelihood of the risk and the severity of its consequences. Once risk - Overseeing the implementation magnitude is established, a decision is made whether the risk is acceptable of key initiatives identified, or areas or not. If it is not acceptable, the next step will be to determine what needs to be done in order to mitigate the risk. for improvement identified from ESG investor surveys and global benchmarks Risk treatment Risk treatment involves assessment of all the risks identified, and then • Considering emerging ESG issues creating and implementing action plans that will mitigate the risks until to understand their materiality with they are at acceptable levels. However, focus is not only at minimizing the regard to Company’s long term value negative risks, but also at how the opportunities that have been identified creation can be enhanced. • Review and evaluate the overall business strategy from an ESG impact perspective Risk monitoring Once identifying details of risks and steps to mitigate them, it shall be used and review to regularly monitor, track and review risks. • To monitor and review if the sustainable development goals are integrated into any new business strategy or new business initiatives • Assist the NRC Committee to review the performance of senior management from an ESG deliverable perspective
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
47 47 Social and relationship Social and relationship 1. Human 2. Manufactured 3. 4. Financial All 1. Financial 2. 1. Intellectual 2. Natural 3. Financial Linkage with capital VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 We can opt for an alternate arrangement an alternate of franchisee can opt for We revenue- can easily deploy We as require. model in future, in Label ATMs White based banking and correspondence arrangement. as an alternate future and advisors Our experienced of professionals team risksevaluate of a contract, ascertain our responsibilities, and restrict that we our liabilities in a contract ensure to all contractual to commitments. adhere We proactively engage with various engage stakeholders, proactively We economic and India’s and monitor continuously review at trade and participaterepresentation financial policies, in bodies. understand the importance of a nextWe generation > with the align To age. digital business model in the the and leverage payment of digital mission government’s Platform Payment l;auncheda Unified have we advantage, UPI, payment, including card all payments process to It QR, amongst others. will enable our AEPS, Aadhaar Pay, our from Kendras payment accept Vakrangee to Next-Gen one of are We mode of payment. any through customers (AePS) System the pioneers of Aadhaar enabled Payment based banking. digital Implementation of an integrated make us to banking mechanism empowers payment in already are servicesWe every to available of India. citizen final stage of launching all mechanisms at types of payment our Kendras. obsolescence is a that technological understand We > technological continuously evaluate We practical reality. and makesobsolescence, necessary employ to investments policy Our procurement technology. the best available and capabilities of considers all regulatory requirements upgrades. future has further launched an online > Our Company recently enable seamless services to platform the digital for this, Through consumer at the comfort of their homes. Offline) to the unique O2O (Online into evolved have we the through available is Assistance there whereby platform, Kendra network Online ServicesPhysical along with Digital has Initiated this Unique Hybrid company The proposition Telemedicine services servicewith launch of first Digital of services make more plans to many company live The also launching a Mobile Super are We this platform. through India ka : BharatEasy App, App based business platform Super App. Mitigation measure Though franchisee model enables Though expansion, risks associated aggressive with the franchisee model persist. If reputation a franchisee suffers any our brand name and image may loss, on the margins take a hit. Moreover, less and legal issues franchisees are disrupt the smooth operations. may various by laws governed are we As exposed to are we and regulations, violation. legal risks in case of any Among others, our business is Among others, policy dependent on government for semi-urbanfinancial inclusion in and rural India. Changes in government our business. affect policies may company, a financial-technology As such as laptops, electronics use we and likeprinters and technology IoT biometric provide to identification, our services. innovations disruptive margins. hit company’s may Significance Legal risk Legal Heavy dependence on franchisee model Rapid technological transformation Risk Changes in government policies 4 3 2 S. No. 1 Risks identified and evaluated through these assessments are enumerated below: enumerated are assessments these through Risksevaluated and identified 48
STRATEGY AND PERFORMANCE
Linkage with S. No. Risk Significance Mitigation measure capital 5 Financial Changing laws, regulations and We maintain high standards of corporate governance and 1. Financial reporting standards in accounting, corporate public disclosure to abide by evolving laws, regulations and 2. Social and risk governance and public disclosure standards. relationship such as SEBI rules and Indian stock market listing regulations, create 3. Human uncertainty in business. Possible lack of specification in new laws, standards and regulations can lead to varying interpretations. Their application may evolve over time, as and when regulatory and governing bodies provide new guidance. This could result in continuing uncertainty regarding compliance matters and higher costs of compliance because of ongoing revisions to such corporate governance standards. 6 Corporate Accounting fraud or corporate We mitigate these risks by: 1. Financial accounting accounting fraud arise from misusing > Understanding applicable laws and regulations; 2. Social and fraud or misdirecting funds, overstating > Conducting risk assessment; relationship revenues, understating expenses, etc. pose a risk to business. > Enforcing and monitoring code of conduct for key 3. Human executives. > Instituting whistleblower mechanisms; > Deploying strategy and process for implementing new controls. > Adhering to internal control practices that prevent collusion and concentration of authority. > Employing mechanisms for multiple authorization of key transactions with cross-checks. > Scrutinizing management information to identify dissimilarity of comparative figures and ratios; > Creating a favorable atmosphere for internal auditors in reporting. > Highlighting any instance of minor non-adherence to procedures and manuals, and a host of other steps throughout the organisation.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
49 49 Social and relationship 1. Financial 2. 3. Human 4. Intellectual 1. Financial 2. Social and relationship 3. Human 4. Manufactured Linkage with capital VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 We prioritize privacy of our We and security of data. Few include: mitigation measures inputs- End-point and filtration of end-point Validation > the entrydevices are authentic and valid data into point for end-point legitimate use an authentic and We the system. device. > Mandatory limits the access of each (MAC) Control Access a set of tasks and timeframe. user to using asymmetric encryption: signatures > Digital regular practices keep to standard our hash chaining are audits, data secure. identify anomalies, basis to > Monitor logs on a real-time misuses and abnormality. trace unauthorized and time stamps to > Data tagging activity. > Encryption is a crucial part of maintaining confidentiality of data in-transit and integrity of data. Database contents for apply additional protection We is encrypted.and at rest SSL encryptiondata in-transit through connect to the client can access ensuring computers that only trusted and server, the encrypted data. Encryption of data within the database, masking data and stringent sensitive access control, keeping authorization security policies, date. up to patches Deploying encryption basis helps on all data on a granular the data itself breach, is a system if there that even ensure protected. remains > Key policy: exchange ATM and managing Loading encryption Security keys. Hardware Module (HSM) keyfacilitate life-cycle management, including generating, These encryption keys. distributing and injecting ATM serverstamper-evident, equipped are tamper-responsive cryptographic keywith an internal secure device storage for and comply with all other major industry like ISO, standards PCI, DSS, etc. at its ATMs reader” card “anti-skimming installed have We > skimming prevent to attacks. > We have implemented a master Insurance a master implemented policy have which We > of the Kendra, ATM hardware the entire covers now INR 10 cash-in-transit and cash at outlet up to machine, lakhs. a of by taken is completely care maintenance > ATM ATM along with year servicing all Herein, of unique offering. parts damage of spare of any of by is takencoverage care plus insurance product. simple maintenance Mitigation measure Breach of user data privacy, data of user data privacy, Breach leakage, reasons cyber-attacks are business of concern in today’s Increasing number of environment. devices the internet not connected to but only helps in data management and vulnerable also makes data more unprotected. Security of franchisee and safety and outlets is of utmost importance. risk theft, arising any from Hence, burglaryphysical attack, any be outlet has to damage or loss to is a valuable asset of ATM evaded. the to which is given the company, basis. franchisee on a custodian of the maintenance proper Therefore, as security asset as well of the ATM asset has been of prime importance the company. to Significance Cyber risk Cyber Risk Theft of physical assets 7 S. No. 8 50
STRATEGY AND PERFORMANCE
Risk indentified and mitigated for the current financial year
Risk Identified Mitigation Strategy
The COVID-19 pandemic has affected various business services. The Mitigation 1: Vakrangee being an essential service provider, our lockdown implemented across the country impacted customer visits services of banking and ATM have been operational during to outlets as well as field visits to monitor and train the franchisees. lockdown, which has benefitted our franchisees, as their core services were being operational. Mitigation 2: Doorstep banking facility: During lockdown, Vakrangee banking Business Correspondents (BCs) provided doorstep banking services to Jan Dhan Account Holders in remote rural areas especially for senior citizens and old age pensioners. Mitigation 3: Launch of Digital Vakrangee Kendra: Unique Hybrid Model (Online to Offline) • Vakrangee has entered online space with the launch of digital total healthcare services. Vakrangee has evolved into a unique Hybrid O2O (Online to Offline) platform, whereby there is assistance available through the physical store network along with digital online services. • With this, the company intends to offer its customers an option to utilize various partner services at company’s physical outlets as well as online digital platform. This would help customers to transact seamlessly. Further, the existing Kendra network acts as a unique offering of physical assistance being available for the customer which brings in more trust and comfort. This has evolved into a Unique Hybrid proposition whereby the customers can choose to avail Vakrangee services as per their own convenience. Mitigation 4: COVID-19 pandemic has caused unprecedented disruption in the world of work and thereby the company is leveraging technology, implementing process automation and innovative Digital initiatives as new ways of conducting everyday business and managing field operations. • There has been dedicated business vertical wise VC channels being set up whereby franchisees can login on daily basis and get online training sessions, communication sessions with direct business teams as well as centralized HO level relationship managers to resolve their queries on real time basis. The training calendar for all these sessions is communicated to the franchisees directly through VKMS portal, email as well as Whatsapp. • Additionally, dedicated centralized RMs at HO level are assigned to each franchisees and RMs have access to centralized CCTV monitoring systems for better monitoring as well as Troubleshoot helpdesk to resolve the issues and queries of the franchisees. • These initiatives have significantly reduced the man-power requirement at the field level as well as resulted into improved franchisee satisfaction and better centralized management of field operations. The company has also benefited of the same in overall cost reduction and enhanced profitability.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
51 51 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Mitigation 1: We have implemented a master Insurance policy, Insurance a master implemented policy, have We Mitigation 1: machine, of the Kendra, ATM hardware the entire covers which now 10 Lakhs. Rs. at outlet upto cash-in-transit and cash by a off taken is completely care maintenance Mitigation 2: ATM ATM along year servicing the all whereby of the unique offering parts damage of spare by the of any off is takenwith coverage care product. + insurance simple maintenance understand the importance a next of having We generation with the government’s align To age. digital business model in the we on the advantage, leveraging and payment mission of digital all payments to process Platform Payment launcheda Unified have QR amongst others. UPI, AEPS, Aadhaar Pay, payment, including card from Kendras accept payments Vakrangee to will enable our This one of the are We mode of payment. any through our customers banking based (AePS) System pioneers of Aadhaar enabled Payment payment digital implementation of an integrated The system. make us to the bankingmechanism is empowering services in already are We every to available of India, citizen till the last tier. final stage of launching all mechanisms at our type of payment Kendra. Mitigation Strategy Security its outlet is of utmost of the franchisee and and safety importance, risk arising any hence burglary out of theft, physical of. be takenattack, the outlet needed to care or loss to damage any to is given which of the company, is a valuable asset ATM Further, maintenance proper Therefore, basis. the franchisee on a custodian as security asset as well of the asset has been of prime of the ATM importance. Risk Identified payments on digital of India Government The has been focusing mechanism are not all payment Currently, the country. across enabled at the Kendra network QR code and UPI payments. such as 52
STRATEGY AND PERFORMANCE
Risk monitoring and 4. Surveillance Our Board of Directors communication Centralised closed-circuit surveillance (CCTV) is installed at all Next-Gen periodically review and The company has adopted well established Vakrangee Kendra, surveilling ATM process to monitor and identify any arising and banking operations round the evaluate risk management risk which are as follows: clock. In addition, our outlets are always manned during business system of the company. 1. Risk monitoring tool hours. Similarly, our Head of Granular auditing: We analyse network logs which is always 5. Risk Communication Department is responsible advantageous and helpful in After successful monitoring recognizing any kind of cyber-attack and identification of risk, the for implementing the risk or malicious activity. Risk Management Committee immediately informs the Managing management system, as Data provenance: We classify data Director and/or Compliance Officer to determine its origin accurately, so about risk identified and mitigation applicable, and report that it can be further validated and steps to be taken. Further, the same we can gain access control over it. is also communicated to the Board of to the Board and Audit 2. Periodic Audit Directors in Board meeting. Committee. Audits provide a disciplined In case of critical and significant risk, documentation process that it will be immediately informed to continually measures operational the Board for their deliberation and reality against stated policies and their opinion on mitigation steps to standards. It also helps in complying be taken. to regulatory requirement. Internal control system and 3. Training management adequacy To ensure effectiveness, learning We have always focused on maintaining and improvement of our employees. a strong internal control system, which is Our training programs are provided commensurate with the Company’s size through various media. Detailed and nature of operations. Vakrangee’s training is provided to staff, ATM internal controls are structured in a manner custodian and banking operator. to ensure reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorised use or losses, executing transactions with proper authorisation and ensuring compliance of corporate policies, laws and accounting standards.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
53 53 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Launch of Digital Platform : Platform Digital Launch of Mobile Super App BharatEasy launched has recently Our Company enable to platform an online digital seamless services the consumer for at the comfort of their homes. into evolved have we this, Through Offline) to the unique O2O (Online is Assistance there whereby platform, Kendra the Physical through available network Online Digital along with has Initiated company The Services this Unique Hybrid proposition servicewith launch of first Digital of company The services Telemedicine services make more plans to many also are We this platform. through live launching a Mobile Super App based : BharatEasy App, business platform India ka Super App. Vakrangee’s By a single downloading BharatEasy Super App mobile would application, our customers a wide array of get access to and ServicesProducts which would requirement reduce their significantly between multiple apps. switch to superior lead to customer would This for experience and convenience would Consumers the customer. use it every because our app day multi-service, a seamless, offer would and efficient experience. integrated 3. Vakrangee’s recent alliance with recent Vakrangee’s expands our Aetna vHealth by to the of essential products offerings underserved and unserved citizens of India. vHealth, a fully-owned subsidiary Inc of Aetna a CVS and is one of the world’s Health Company leading health services providers services. It offers Telemedicine of privileged its nationwide access to network of hospitals and clinics. service telemedicine The is set to patients in rural locations provide experience when they a different shall We consult a doctor virtually. arrangealso be able to blood home delivery doorstep of medicines tests, partner network. vHealth’s through this partnership, have we With expanded the bouquet of services Next-Gen at our exclusive available KendrasVakrangee making them into all the healthcare shop for one stop of our customers. requirements Business expansion expand our planning to are We Nadu Tamil Northbusiness to East, and Jammu & Kashmir and cater of the rural requirements the to in these regions. customers Revolutionizing rural healthcare rural Revolutionizing 2.
1. Business opportunitiesBusiness
CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS 56 60 68 86 92 102 114 116 120
Manufactured Capital Human Capital Intellectual Capital Social and Relationship Capital Natural Capital SDG Mapping IndexGRI Content Statement Assurance Financial Capital Capital Financial
OF CAPITALS PERFORMANCE PERFORMANCE 56
PERFORMANCE OF CAPITALS
Our Vakrangee Kendra serves as Financial Capital India’s largest network of last mile retail outlet available at every postal code. Our focus in on building largest network of last-mile retail outlets driven by technology and deliver services like real-time BFSI, ATM, e-commerce and logistics to the unserved rural, semi-urban and urban markets in the local/ state/national ecosystem providing financial inclusion in line with the government policies.
Over the last decade, there have been several initiatives by the government that has helped in accelerating the growth of financial inclusion in India. Initiatives like Pradhan Mantri Jan Dhan Yojana (PMJDY), Direct Benefit Transfer (DBT) and issue of RuPay cards etc have helped our business to align our financial inclusion goals with the policies of the government.
During the last three years, we have been on a transformational journey whereby Integrating Robustness of Financial Growth with we focussed to transform our Business model from old format of Non Exclusive Contribution to Financial Inclusion Vakrangee Kendras to a standardised and highly recognisable Exclusive “Next-Gen” We have reached an inflection point and from here on, format. They each became branded stores for delivering a consistent consumer we would witness strong growth momentum in terms of experience and well-defined service levels. financial as well as operational growth over the coming The financial year of 2020-2021 has been a crucial part of the transformational quarters and future years. journey of Vakrangee. We have expanded operations from 10,027 operational Next- Gen Vakrangee Kendras in the financial year of 2019-2020 to 11,730 in the financial year of 2020-2021, which is an increase by more SDGs Aligned than 16%.Our doorstep facility and access to services even in the most remote areas will ensure Indians to benefit from financial, social and digital inclusion. We aspire to have a Vakrangee outlet in each Gram panchayat in Rural India and in Each Urban ward in Urban India. Aligned to our goal, our long-term target is to reach 75,000 outlets by 2026. Our planned target is to reach at least 25,000 Next-Gen Vakrangee Kendras by FY 2022.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
57 57 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Returning to Pre-Covid Returning Pre-Covid to witnessing path, growth Business growth strong momentum. PAT in the has been a slight decrease There to the previous after tax as compared profit The lakhs. at INR 6,279.13 FY which stood and technology has leveraged company has which initiatives automation process and profitability enhanced into resulted has been margins the profit therefore improved. Return on Net Worth Return on Net the FY has slightly decreased for profit The on net worth a lesser return leading to which at 2.36%. stood EPS the face EPS (basic) for Earnings per share at INR 0.59 in FY21. value of INR 1 stood Total Income Total at INR 38,395.13 lakhs income stood total The for FY21 has Revenue year. the financial for & Pandemic Covid-19 been impacted due to situation. Lockdown EBITDA The at INR 9,762.32 lakhs. stood EBITDA The amount has been slightly in absolute EBITDA the previous to with respect decreased base. revenue to lower year due financial it has improved. in terms of Margins However, and technology has leveraged company The which has initiatives automation process enhanced operating margins. into resulted 0.00 0.00 54.34 Q4 503.41 2,079 (544.41) 9,155.26 2,027.26 7,128.01 7,182.35 8,651.86 7,747.82 1,488.60 8,651.86 68,522.16 10,140.46 (2,648.51) FY2020-21 1,91,811.00 1,87,875.91 2019-2020 00 Q3 0.00 0.00 0.00 1,680 88.50 FY2020-21 8,281.81 2,002.68 6,279.13 6,367.63 8,281.81 6,965.99 9,762.32 1,480.51 8,281.81 31,429.14 (2,648.51) 1,95,441.62 1,91,811.00 Consolidated (in lakhs) Consolidated 2020 - 2021 Q2 1,331 FY2020-21 0.00 0.00 18.42 503.41 (544.41) 8,170.76 1,718.38 6,452.38 6,470.80 7,667.35 7,599.58 9,153.39 1,486.04 7,667.35 62,335.23 (2,648.51) 1,90,153.46 1,86,894.00 2019-2020 Q1 1,189 FY2020-21 PAT (In ` Lakhs) PAT The Company’s return to growth path on growth to return Company’s The has been progressing the business front quartervery on quarter with growing well, in Revenues and profitability. improvement an inflection point and reached have We witness strong would on, we here from momentum in terms of financial as growth the coming over as operational growth well quarters years. future and 0.00 0.00 0.00 0.00 89.24 6,738.59 1,602.47 5,136.12 5,225.36 6,738.59 6,815.25 8,216.94 1,478.35 6,738.59 22,743.67 (2,648.51) Standalone (in lakhs)Standalone 1,92,641.07 1,90,153.46 Q4 2020 - 2021 1,1950 FY2020-21 Q3 9,217 FY2020-21 Q2 8,734 FY2020-21 Q1 8,494 FY2020-21 Less: Dividend paid on Equity Shares Less: Tax Dividend Distribution Less: Balance carried forward Profit /Loss before Tax Expense before /Loss Profit & Expense (Current Tax Less: Deferred) year (1) for the /Loss Profit (2) Income/Loss Comprehensive Total (1+2) Total for earlieryears /loss Balance of profit Reserves to Transfer Less: Profit /Loss before Exceptional items items Exceptional before /Loss Profit Expense and Tax Expense Exceptional Add/(Less): Particulars Revenue from Operations Revenue from OtherIncome Depreciation, Loss before / Profit and items Exceptional Costs, Finance Expense Tax Amortization/ Depreciation/ Less: Impairment Costs, Finance before Profit/Loss Expense Tax and items Exceptional Costs Finance Less: Quantifying Financial Performance Financial Quantifying performancerobustness and the into financial The and brought can be highlighted driving value and comparison inclusion the financial creating with the FY 20. Beyond which numbers, strong demonstrated have we the last mile, beyond reaching through year. the financial through and progress growth reflects on During the financial year 2021, outlet year 2021, outlet Duringthe financial Covid-19 impacted to due were revenues as only our keyinduced lockdowns, essential services such as Banking, ATM, Tele-medicine and Mobile recharges services On a operational. fully were as situation is improving, brighter note our key services, Online such as Assisted have Healthcare Shopping and Online gradually and are become operational, pre-COVID-19 back towards reversing levels. Total Revenue (In ` Lakhs) Revenue Total 58
PERFORMANCE OF CAPITALS
Operating with an asset light model CSR: Boosting the change and indicates the relatively lower ownership development of capital assets. We were focused on our capital management objectives to With respect to the unspent CSR amount safeguard our ability to continue as a for the financial year 2020-21, we would going concern, so that we can continue like to state that, the CSR Committee has We engage and interact to provide returns for shareholders and put in its best efforts, considered/evaluated benefits for other stakeholders and various proposals diligently, and selected with multiple stakeholders maintain an optimal capital structure to few of them like, Bharat Vikas Parishad Sewa reduce the cost of capital. The total net Sanstha and My Home India. through our CSR activities, borrowings of cash and cash equivalents The Board is fully confident that the overall bolstering our ability to stood at zero and thereby refrain from the CSR spends in these projects would fully exposure to the payment of interest making meet the guidelines. bring about change and our company debt free, which extrapolates, to us having zero interest coverage ratio However, the schedules of these projects development. and debt to equity ratio. are spread over 2 to 3 years, which would also cover the unspent amount of previous Standalone: years and will meet the future guidelines Our company’s total income during the too. year under review was INR 29,558.92 Lakhs as compared to INR 69,934.81 Lakhs in the Our CSR initiatives aim to create a positive previous year. The Profit after tax was INR impact within communities through 5,136.12 Lakhs as compared to INR 6,452.38 deeper engagements. During the past few Lakhs in the previous year. years, we have invested INR 94.99 Lakhs in FY 2020-21, INR 84.85 Lakhs in FY 2019-20 Consolidated: and INR 92.50 Lakhs in FY 2018-19. Towards Our company’s total income during the various social interventions like healthcare, year under review was INR 38,395.13 Lakhs education and other initiatives. as compared to INR 76,269.98 Lakhs in the previous year. The Profit after tax was INR 6,279.13 Lakhs as compared to INR 7,128.01 Lakhs in the previous year.
An amount of INR NIL lakhs is proposed to be transferred to the reserves.
Our Paid-up Equity Share Capital as on March 31, 2021 stands at INR 1,05,94,05,640/- comprising of 1,05,94,05,640 equity shares of INR. 1/- each.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
59 59 ------CSR number (INR In Lakhs) Registration Registration (8) Agency RVG Juhu VIPRA (India) VAKRANGEE LIMITED VAKRANGEE Name Integrated Annual Report 20-21 - Through - Through Implementing Mode of Implementation Mode of Implementation Wockhardt Wockhardt Foundation Foundation Foundation Foundation Foundation Educational Educational Kota Dall Mill Lions Club of Mental Health (7) No No No No No No Mode of - Direct (Yes/No) Implementation Implementation (6) 3.63 3.00 5.00 25.00 38.36 20.00 94.99 project Amount Amount (in ` Lakhs) spent for the for spent Kota INR 650.05 Lakhs INR 745.04 Lakhs INR 37,252 Lakhs INR 745.04 Lakhs Delhi District Mumbai Mumbai Mumbai Mumbai (5) Delhi State Rajasthan Location of the project. Location Maharashtra Maharashtra Maharashtra Maharashtra (4) No No No Yes Yes Yes (Yes/No) Local area area Local (3) Cl.(ii) Cl.(ii) Promoting Education Cl.(i) Cl.(i) Eradicating Hunger Cl.(i) Eradicating Hunger Cl.(ii) Infrastructure Education for Items from Items from the list of activities in Schedule VII the Act. to Cl.(i) Health Cl.(i) Care Cl.(ii) Cl.(ii) Infrastructure Education for (2) Amount unspent Total amount to be spent for the F.Y. 2020-2021 the F.Y. be spent for amount to Total TOTAL Promoting Promoting Education Eradicating Hunger Eradicating Hunger Education Name of the project Health Care Education 6. (2) (1) 3 4 5 Prescribed CSR Expenditure (two percent of the average net profit) net profit) of the average (two percent CSR Expenditure Prescribed Detailsyear of CSR spent during the financial (1) Average net profit of our company for last three financial years financial three for last of our company net profit Average Sr. Sr. No. 2 1 Below are the details of CSR expenditures: the details are Below FY 2020-21: 60
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Manufactured Capital
SDGs Aligned
By amalgamating innovation with our With a vision to expand our services till the last mile and vision to reach the last mile, we have building resilience across the Nation in the challenging introduced new service lines to cater to the essential needs of the population. time, we prioritised growing our geographical reach and A large percentage of the population were served by our consistent supply service offerings. Introduction to new and essential services of essential products and services even though lockdowns and restrictions reduced to contribute towards serving the citizens have helped us access to other stores and places for the population. Our doorstep facility and access build trust and ensured that people have improved access to our services even at the remotest part of to the facilities. We have expanded operations from 10,027 the Nation has helped us build resilience against disruptions and challenges. operational Next-Gen Vakrangee Kendras in the financial year We have also added to the resilience of the of 2019-2020 to 11,730 in the financial year of 2020-2021, Nation by building a more robust system and catering to the needs of the people. which is an increase by more than 16%. We have a proper quality management and monitoring mechanism achieved by ensuring unified consumer and service experience at each of our Vakrangee Kendra and franchisee.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
61 61 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Organization hierarchy till hierarchy Organization and Monitor to level ground and provide Franchisees the Train supportoperational/marketing organizational a robust have We with field staff till the structure an established have We block level. in place which design organizational Divisional Head, includes State District Manager and Block Manager, to on field Manager present Area the activitiesmonitor consistently. a dedicated have we Furthermore, managers at Head of relationship team Office to assist the franchisee in case of issues. any •
To ensure standardisation of the look standardisation ensure To of the outlet, availability of the and feel services and and validating customer franchisee satisfaction have index, we conduct to Thornton engaged Grant surveyan independent physical of Vakrangee and upcoming the current Next-Gen As outlets in the country. part GT periodically of the survey, availability of the verifies the physical and availabilityoutlet; exclusivity of services; the franchisee experience and of our outlets. feedback customer We have gone under major have We from the years over transformation offering being non-exclusive stores a single line of services, these have exclusive a multispecialty, into evolved with a multi-line of servicesstores in the presence with an enviable marketplace.
: To enable various kinds of payment modes at any Vakrangee Kendra Vakrangee any at modes kinds of payment various enable To payments card Credit Debit and RuPay, accepting start to in process Integration Centralised CCTV system Centralised store at the security Better backup video recording than 90 days more maintain to with RBI guidelines Full compliance campaigns advertisement monitored centrally enable to signage Digital consumer and partners between the interaction enhance To revenue advertising initiate to Focus Exclusive store model with same service level and same customer experience customer and same service with same model level store Exclusive Hickey) & L&H (Lewis by and design layout Standardised and visibility recall higher brand for branding and consistent Uniform outlet in installed ATM significantly footfall to enhance the Potential company the and franchisee for both – the revenue of stream Additional
Pin pad device • • Centralized monitoring system monitoring Centralized • • • advertising Digital • • • Store exclusivity and consistent branding and consistent exclusivity Store • • • in outlet ATM • • • Standardised & Exclusive Format Format & Exclusive Standardised & Consumer Unified for of Store Service Experience with digital assisted Our outlets are with a multi- stores convenience an by line of services, powered a modern and With model. exclusive look and a uniform format standardised levels they embody consistent and feel, of service customer and a uniform at all locations even experience across of operation. areas the remotest - https://vakrangee.in/pdf/Source reports_hub/Survey%20Report%20 by%20GT_December%202020.pdf Quality Analysis of Next-Gen Vakrangee QualityVakrangee Next-Gen Analysis of Bharat LLP Thornton Kendra Grant by (GTBL) BRANDING • Unique features and advantages of Next-Gen Vakrangee Kendra Vakrangee of Next-Gen and advantages Unique features 62
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Relationship Manager CORPORATE HEAD OFFICE TEAM Relationship Manager • Live CCTV with access to Dedicated Relationship Manager
Dedicated Dedicated support directly All the Vakrangee Kendra outlets are support directly from Head Office from Head Office enabled with IP based CCTV Cameras to franchisee to franchisee for all type of with 90 days back up. Real time CCTV for all type of Operations State Operation Head State Marketing Head Operations Feed has been setup and is available at our central office for all the outlets which helps in regular monitoring of the franchisees. Continuous Continuous support to support to • ISO Certifications – Franchisee Field Operation Team Field Sales Team Franchisee to to drive (Division and District) (Division and District) drive Sales Operations Our ISO 9001:2015 Quality Management Systems (QMS) policy.
BLOCK AREA MANAGER ISO 9001:2015 is an international
FRANCHISEES FRANCHISEES FRANCHISEES FRANCHISEES standard dedicated to Quality Management Systems (QMS). The QMS is the aggregate of all the processes, resources, assets, and cultural values • Robust infrastructure of technology systems in place that support the goal of customer satisfaction and organizational We have an advanced technology proprietary platform VKMS (Vakrangee Kendra efficiency. QMS outlines a framework Management system) that allows us to offer services through systematic real-time for improving quality and a vocabulary secured integration with our partner systems. We have a qualified team of professionals of understanding for any organization. to provide technical and quality assistance to our franchisees at any point of time. For every user we have a defined a user policy that ensures user authentication for We have been ISO 9001 certified navigating through the server. This enables safe and secured transactions even while QMS (Quality Management System) operating in the last mile. Company since 1998. We always put an effort to prove to our customers that we want to be the best at what we do Our Proprietary Technology Platform and we are committed to their needs by providing our quality services to SERVICES PROVIDED THROUGH REAL - TIME INTEGRATION WITH PARTNER SYSTEMS each of the citizens. ALL PARTNER SYSTEMS (E-Commerce, E-Governance, Bank-Core Banking Server Insurance, Financial Services & Logistics) The standard ISO 9001:2015 is used by us to demonstrate our ability to CUSTOMER consistently provide products and services that meet customer and regulatory requirements and to
Vakranagee Kendra Internet Vakrangee demonstrate continuous improvement. Management System Connectivity Kendra By being ISO certified, it sets us apart from the rest, bringing great value to our business. This standard focuses more on risk-based thinking, which Accounts To Be Maintained For Real-Time Settlement means it helps to address organizational risks and opportunities using a BANK SETTLEMENT ACCOUNT VAKRANGEE WALLET ACCOUNT ATM SETTLEMENT ACCOUNT systematic approach. It puts a greater emphasis on leadership engagement within the organization and aims to address supply chain management more effectively.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
63 63 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Banking Services Services ATM Online Pharmacy health Telemedicine - Healthcare Digital & Tele services – Including Unlimited with expert Consultation Video doctors facility& Home Blood test - Online E-Commerce Assisted & Othershopping of Groceries products Ticket Booking & Utility Bill Travel services. Payment increasing accessibility and affordability. accessibility and affordability. increasing at least reach is to Our planned target Kendras Vakrangee by 25,000 Next-Gen FY 2022. one stop KendraVakrangee outlets are key Essential and necessaryshops providing services of the country citizens the to in Rural India such as – • • • • • • our business strategy integrated have We and mapped our sustainability initiatives Sustainable Nation’s with the United a goals are These Development Goals. tomorrow a better blueprint achieve to efficiently adopt these and our aim is to the global challenges, goals and address financial inclusion, which includes poverty, environmental climate, social inequality, & economic growth degradation, and peace and justice. prosperity, Next-GenVakrangee across Kendras, the rural customers to caters various states, Our needs. meeting their regular by Next- Vakrangee purpose shape the is to which will enable Gen outlets as a source, every Indian seamlessly benefit from to financial inclusion; social inclusion; digital India; skill employment development; and programmes; generation; government basic goods and services,a wider access to at the urban bringing convenience thereby of rural dwellers. doorsteps continuously expanding its bouquet are We of services and expanding footprint such that the services to available are we Further, maximum number of people. last mile support providing through are dedicated as as well teams Field level State the Franchisees. Relationship Managers for IV<30% Tier I, II, III, Tier operational outlets operational postal codes and postal codes districts States and UTs States 11,730 4,588 518 across Spread 27* *26 States, UTs and 1 region (NCR) has been clubbed and 1 region UTs *26 States, and UTs as 27 States together VI>70% Tier V Tier and Our business model is led by innovation innovation Our business model is led by built last mile infrastructure and strong the countryacross in deep rural locations. our In-house leverage proprietaryWe built a one-stop provide to platform technology 100 over access to solution and real-time and 1,000 servicesmillion products under last mile creating thereby a single roof, distribution of various for infrastructure products and services. and continuously increasing are We Vakrangee expanding its network of Next-Gen Our business model Kendras. / servicesand the products provide we sustainable change by promoting are Geographical Presence Geographical Our Last Mile Infrastructure on focussed Our Business model is sustainability and enables Indians benefit to inclusion. social and digital financial, from bring aiming to our services are the to We of every drivingdoorstep thereby citizen Nation. and building a resilient growth the digital platform to drive resilience across across resilience drive to platform the digital the Nation. This achievement demonstrates to to demonstrates achievement This that the qualityour customers of the services them with, is provide we us and that they highly material for be a well-managed can trust us to Company. It know lets our customers care we about the quality of service we them. provide It choosing a are means you that puts the customer’s company need first. It our determination to represents service. our customer better It will get the means you your qualityhighest-possible for Information communication needs. Security management -System Development, and Acquisition, Maintenance. It to us because: is of high significance 1. 2. 3. 4. 5. Our FY2022 target is to reach 25,000 reach is to Our FY2022 target Operational Vakrangee Kendras. We aspire outlet in each Gram Vakrangee a have to in Rural Indiapanchayat and in Each Urban in Urban India. our goal, ward to Aligned 75,000 reach is to our long-term target FY2026. outlets by distance between two Next- average The 2-5 kmsGen Kendras is approximately of expand our reach which enables us to team and Field built state have We service. We India basis. Pan across in all the states of the in each state present currently are country including Jammu and Kashmir as as Northeastwell establishing India thereby till the last mile. our presence promoting towards approach Our strategic inclusion has benefitted social and digital The locations. several the people across in platform the digital introduction to has given stores the physical addition to our essential servicesthe people access to look We the comfort of their homes. from multiply our servicesforward to through Our Future Strategy for Next-Gen for Strategy Our Future Kendras Vakrangee 64
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Awards and Recognition We achieved ranking amongst the top 100 Franchisee Brands for the year 2021 in The Franchising World’s annual survey for the consistent efforts to expand our footprint and services.
Our Footprint and Expansion Number of Gold, Silver & Bronze operating models We have expanded geographically with our services such that it 7,201 would benefit the people and drive resilience across the Nation. Our presence of 11,730 Kendras were spread across six Tiers and 4,490 518 unique general, LWE, tribal and aspirational districts.
Number of Kendras in FY 21 across Tiers 39 Gold Silver Bronze 8,519 73% The total number of Kendras in each type of Operating model is depicted in the graphs. 39 Kendras with Gold Operating Model, 933 8% 352 3% 863 7% 1,063 9% 4,490 Kendras with Silver Operating Model and 7,201 Kendras with Tier I Tier II Tier III Tier IV Tier V & Tier VI Bronze Operating model is currently operational. Out of 11,730 Kendras, we have 39 Gold Operating Model (0.3%), The above graph elaborates our extended reach to the remotest 4490 Silver Operating Model (38.4%) and 7201 Bronze Operating parts of the Nation by offering more than 70% of our emergency Model (61.39%). Our presence across six Tiers for each of these three and essential services through our 8519 Kendras in Tier V and Tier VI types of Operating Models have been highlighted below: locations. Number of Kendras in each Operating Model across Tiers 5,487 Comparison with FY 20 across Tiers Number of Kendras in FY 20 Number of Kendras in FY 21 8,519 7,191 3,013
823 933 323 352 778 863 912 1,063 Tier I Tier II Tier III Tier IV Tier V & Tier VI 580 434 413 476 489 450 10 3 0 7 19 154 195 I II III IV V and VI I II III IV V and VI I II III IV V and VI There has been a rise in the number of operational Kendras from Gold Silver Bronze 10,027 in FY 20 to 11,730 in FY 21. Subsequently there has been a rise in the number of operational Kendras in each Tier. Compared to FY20, there has been a steady growth in the number of Kendras across all the Tiers. We look forward to add more Kendras thereby expanding our boundaries and serving the people.
Our franchisees have an option to establish gold, silver or bronze model outlet, as per their requirement. While these models differ in terms of financial investment, area of outlet and number of counters, they are common in terms of services offered, and look and feel of the outlet. The total number in each category of Operating Model is highlighted below:
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
65 65 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Our business model is led strong and innovation by built last mile infrastructure country the across in deep Our purpose locations. rural Vakrangee shape the is to Next-Gen as a outlets every enables that source Indian gain benefits to like social and financial inclusion, amongst others. 13% West Bengal West 13% Uttar Pradesh 26% Rajasthan 24% 8% 21% Others Odisha Other States 21% 35% 24% Maharashtra Uttar Pradesh Uttar Pradesh 8% 17% Pradesh Madhya Rajasthan 24% Rajasthan 3% 14% Jharkhand Maharashtra 21% 5% 5% Maharashtra Gujarat Pradesh Madhya 8% 5% 8% Bihar Bihar Operating Model: Bronze Operating Operating Model: Gold Operating Operating Model: Silver Operating Madhya Pradesh Madhya The above graph elaborates the expanse of our new Kendras for the “Bronze” Operating “Bronze” the the expanse of our new Kendras elaborates graph for above The Uttar operating in Uttar number of Kendras Pradesh. 35% of the total Model are category. 35% and 17% Kendras has the respectively and Rajasthan with approximately Pradesh Other Operating Model. including Andhra Pradesh, States “Bronze” maximum number of Chandigarh, Chhattisgarh, Goa, Gujarat, Haryana, Jharkhand, Himachal Karnataka, Pradesh, West Uttarakhand and Nadu,Telangana, Tamil Kerala, Delhi NCR, North East, Odisha, Punjab, model Kendras. operating Bronze 21% of the total Bengal have The above graph depicts the expanse of our new Kendras for the “Silver” Operating Model. Operating Model. “Silver” depicts graph the the expanse of our new Kendras above The for Rajasthan operating in Rajasthan number of Kendras48% of the total are and Uttar Pradesh. 24% Kendras each has the maximum number with approximately and Uttar Pradesh Chandigarh, Bihar, Other Model. Operating including Andhra Pradesh, States “Silver” of Chhattisgarh, Goa, Gujarat, Haryana, Jharkhand, Himachal Karnataka, Pradesh, Kerala, Delhi Bengal have West Uttarakhand and Telangana, Nadu, Tamil NCR, North East, Odisha, Punjab, Kendras. model operating Silver 24% of the total The above graph illustrates the number of Kendras for each type of Operating Model, spread each type the number of Kendras spread illustrates Model, of Operating for graph above The types Model of Operating of the three each for depicted, As operate. we the six tiers across VI locations. Tier V and Tier maximum number of Kendras is operating in have, we in the been represented have States major distribution across Models’ Each of the Operating below. graphs The above graph depicts the expanse of our new Kendras for the “Gold” Operating Model. Operating Model. “Gold” depicts graph the the expanse of our new Kendras above The for operating in Rajasthan. number of Kendras26% of the total are Rajasthan and Maharashtra Operating “Gold” leading with maximum number of are with 26% and 21% respectively Model. 66
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Our Presence in LWE, Aspirational and Tribal Districts healthcare services. By entering in the Our presence can also be felt across several Left Wing Extremist (LWE), Tribal and online space, we have transformed into Aspirational districts. The total number of districts with our presence is 518 out of which we a Unique Hybrid O2O (Online to Offline) have extended our reach to the following categories of districts: platform, whereby there is assistance available through the physical store network Count of District Type along with digital online services. With the 346, 67% introduction of this amalgamated platform, we intend to offer our customers an option to utilize various partner services at our physical outlets as well as online Digital platform which would help customers 36, 7% 53, 10% transact seamlessly. Additionally, we aim at 21, 4% 18, 3% 8, 2% 12, 2% 24, 5% bringing more trust and comfort through Aspirational LWE Tribal LWE and LWE and Tribal and LWE, Tribal General our unique offering of physical assistance Aspirational Tribal Aspirational and Aspirational in the existing Vakrangee Kendra network. The first step of implementation of this The distribution as illustrated in the chart, emphasize our effort in reaching the last mile unique proposition has been taken through across the Nation. With a total of 172 LWE, tribal and aspirational districts (more than 33% the launch of the first digital service of of the total districts) where we have extended our outreach, we look forward to further Telemedicine Healthcare services. We look accelerate our presence and service at each part of the Nation. Out of these 172 districts, ahead to offer more innovative essential 87 districts (50.1%) have 130 field staffs available, which showcases our employees’ intent to services, accessible through the platform. lead and implement our vision to reach the last mile. Doorstep Banking Facility Number of Kendras With our vision to create the last mile reach for our services, during restrictions 8,588 and lockdowns our Banking Business Correspondents (BCs) provided doorstep banking services to Jan Dhan Account Holders in remotest parts of the country especially 1,192 for senior citizens and old age pensioners. 825 313 217 422 87 86 This enabled the citizens to avail our services General Tribal LWE Aspirational LWE and LWE and Aspirational LWE, during the difficult period of Covid ’19 and Tribal Aspirational and tribal Aspirational promoted resilience across the Nation. and Tribal
As illustrated above, we have: 825 Kendras in aspirational districts; 422 Kendras in LWE Being one of the largest franchisee- districts; 1192 Kendras in tribal districts; 313 Kendras in LWE and aspirational districts; based, multi-service retail networks, we 87 Kendras in LWE and tribal districts; 86 Kendras in tribal and aspirational districts; 217 are focused on creating India’s extensive network of last-mile retail outlets at every Kendras in LWE, tribal and aspirational districts has helped us deliver quality services at the postal code in the country. underserved parts of the Nation. Expanding our network of outlets and the Our impacts on the communities impact on the community during the range of services, we are at the forefront through our business model and pandemic. of promoting financial, digital and social services inclusion in rural India. With a vision aimed Tele Medicine Services at benefitting the unserved population Creating a positive impact on the We have partnered with vHealth by Aetna by enhancing accessibility to the global community has always been the priority (Fortune 500 Company, Rank 5th) for Digital marketplace, we are taking strides by of our services. Our introduction to new Healthcare services in Rural India which bridging the gap between the urban innovative services and providing the is a subsidiary of CVS Health Corporation and rural India through financial, digital Nation with essentialities during the (largest Pharmacy Company globally). Our and social inclusion. Financial inclusion pandemic establishes our effort in bridging healthcare services include Unlimited Tele is achieved through the promotion of the gap between rural and urban India. consultation with Expert doctors, Home Government’s financial and social inclusion initiatives such as Pradhan Mantri Jan Dhan Due to the nature of our services which Blood test facility, Doorstep delivery of Yojna (PMJDY) and social security insurance are essential to the citizens, we are among medicines and Discount vouchers across schemes. Through our Kendras, we provide the very few companies globally who are partner network of hospitals. universal access to banking, insurance and fully operational during the lockdown. Launch of Digital Vakrangee Kendra: pension schemes as well as Direct Benefit We ensured to operate in the most Unique Hybrid Model (Online to Offline) Transfer of subsidies. environment friendly manner even while With our focus on digitising operation serving the remotest parts of the country. We are taking the financial and digital and bringing the services we offer at the Introduction to the following key initiatives literacy to the bottom of the socio- paved the way for increasing the positive doorstep, we have launched digital total
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
67 67
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Any visually challenged customer customer visually challenged Any can use the ATM accessing our headphone and transact on the ATM enabled pin pad with the help of Braille the and implemented followed have We our talking-ATMs IBA norms for our franchisees requested have We wherever install ramps in outlets, to the ATMs easy access to for feasible wheelchairs through • • • Kendra at Security available Measures Our line and location of business may business may Our line and location of fire theft,expose our outlets to burglaries, our Next-Gen instance, For outbreak, etc. at various located Kendras Vakrangee are which have V locations, Tier IV and Tier history In to of similar incidents. order non- of our financial and safety ensure we have financial assets and our employees, facilitate to various measures adopted safety Our effort in of operations. smooth flow security can also be promoting measures published our policy have on gauged as we KendraVakrangee outlets at measures safety implementation of best practices ensure to and security a safety from measures Itperspective. that is our duty ensure to at our customers by money deposited A snapshot of our safe. the outlet remains below: listed are initiatives Insurance Policy for Next-Gen Vakrangee Kendra Outlets Kendra Vakrangee Next-Gen for Policy Insurance as well KendraVakrangee Insurance at the outlet, ATM policy includes hardware 31st March lakhs, on date, including cash in transit. As Rs.10 up to as cash in ATM insurance This been included in this Insurance 2021, 5,576 outlets have scheme. is installed and machine policyand maintenance is mandatory once the ATM made live Locker Safety Facility Locker which is part of the Locker, Every KendraVakrangee has a Safe Next-Gen of the safety locker ensure to key of the safe The role mandatory kit. hardware at the outlet cash available CCTV Monitoring Surveillance Centralized CCTV installed Centralised have We enhanced security for at our store. system CCTV disk is partTB hard franchisee of our overall along with a NVR and a 2 video than 90 days maintain more RBI guidelines to to adhere We kit. hardware backup recording Extinguisher the Outlet at Fire Vakrangee outlet has an arrangementKendra every measure, safety a fire As against fire to prevent guidelines, design as per the store extinguisher, a fire for outbreak All our ATMs are talking-ATMs and have and have talking-ATMs are All our ATMs Braille friendly keypads the right product, placing the order and and the right placing the order product, making payment. the package Health a complete offer We our networkthrough the of Kendras across country prices with at the most affordable unserved on a focus and under-served India.communities in Rural Our assisted our provides platform online healthcare and telemedicine with access to customers pharmacyservices parts at the remotest of the country. towards business is focussed Our Entire Inclusion, Social Financial delivering Inclusion the inclusion to and Digital no current are there Thus, Communities. impactsor expected negative on the our services.communities due to the Next-Gen at Divyang Facility Kendra Vakrangee with our vision of social inclusion, Aligning equality all across promoting on focus we caste, of gender, our outlets irrespective more have currently We etc. race, creed, almost all out of which than 11,700 outlets, in other words, divyang-friendly, are ATMs speically abled persons for user-friendly unique Few impaired). and visually (disabled by our outlets are: offered features • Security Measures available at Kendra at Security available Measures Through its Assisted E-Commerce model E-Commerce its Assisted Through a providing are we online shopping, for option convenient and secure trusted, in the unserved its customers to and underserved get access rural locations to at the most a wide range of products to person at store The prices. competitive KendraVakrangee is able the Next-Gen the to millions of products showcase to consumer and assist him/her in selecting Our assisted online shopping platform online shopping platform Our assisted with access to our customers provides daily staples, multiple product options from Our business electronics. to fashion items, model acts as we as a Social Equalizer at affordable the same products provide partsprices in the remotest of the country. of getting the convenience also offer We our Kendra to from the products delivered can pick up the order. the customers where not only enhances accessibilityThis but also of the society. all levels across builds reliance economic pyramid and servingeconomic pyramid as the last- unserved and connectmile link to India’s underserved rural and urban communities and them the same products offering by services price competitive at the same time, actingare as We and same service levels. the gap bridging the biggest equaliser by between the urban and rural population in India. a franchisee-based follow model We of the the franchisee is a member whereby local community. at and Job creation Skill development level rural skillOur business model facilitates take ordinaryWe individuals enhancement. and train them with skill sets that help them yield remarkable Additionally, results. renderinga basic certification for is needed Banking and Insurance Services, which enhance their helps these individuals to furtherThis supports skills.technical in the of the local community economic growth poverty. and eradicates local work Our franchisees create opportunities and hiring by resources undertaking skill with development, certificationfor banking and IRDA We make certification for Insurance services. economic India’s people contribute to fair globalization and achieve to growth our through Therefore, poverty reduction. impact positive not have expansion we only in terms but also on the of business community at large. 68
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Our long-term success in today’s business Human Capital environment is closely linked to our human capital. We strive to become an employer of choice by providing a compelling employee value proposition and creating a safe as well as healthy workplace. Our strong workforce of 800 employees bear testimony to our commitment.
In this section, we aim to provide information on how we engage our human capital to translate our strategic priorities into action. We aim to explain both quantitative and qualitative details on our internal human capital or employees for a comprehensive understanding of our readers.
Organisational Culture We believe that a professional and respectful work culture supports productivity, growth and positivity. We aim to build a work culture of meaningful work as well as continuous engagement. We seek fair resolutions; base our decisions on merit, deal fairly and honestly with stakeholders, and maintain transparency in decision-making. For appropriate The year 2020 was a tough year as it showed us a world workplace decorum and employer- employee relationship, we have laid down grappling with the pandemic of coronavirus. This virus a code of conduct for all employees. affected thousands of people and country was put We maintain the highest standard of moral principles and ethics in the organisation. on lockdown to curb the spread of the virus. In these We preach and practise a defined code of ethics and moral values at workplace. tough times, our prime focus was the health and well- All employees are required to follow the being of our employees. To safeguard the health of our code of conduct irrespective of hierarchy and designation. The code of conduct employees, we shifted from an offline working model to includes terms such as alcohol and drug free workplace, health and safety an online working model. for all employees and the organisation, integrity, respect for individuals, protection of Company property, maintaining professionalism within office and while SDGs Aligned representing our Company outside office. For more details, please refer to Code of Conduct – for Employees.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
69 69 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 with labor laws: Compliance all applicable laws, abide by We overtime, work hours, namely wages, classification of practices, benefits; pay and job level to according employment data protect also commit to We status. and employees, vendors of customers, using by and retirees ex-employees protected password multi-layered automated authentication systems, trackingtools, mechanisms and on a need-to-knowinformation-sharing basis. Human Rights are there the model of our business, Given risks of human rightsinherent violation on our repercussions with potential responsible therefore are We reputation. upholding human and accountable for which our value chain, rights across but also of workforce, includes not only our other stakeholdersour communities and including our operations, impacted by partners. and business vendors franchisees, our Human RightsIn ourselves, addition to entities own, entities we applies to Policy hold a majority we interest, wherein International manage. and facilities we bodies and documents such as United Declaration of Human Nations Universal Nations Global Compact United Rights, and International Labor Organisation’s our deliver guide us to conventions, commitments well. Our Human Rights policy encourages socio-economic through empowerment It a broad provides growth. inclusive are that all employees ensure framework to In effect, and dignity. with respect treated assess and minimise identify, seek to we due impacts adverse through potential and diligence and management of issues, grievances of our stakeholders. resolving about the policy communicated have We and included it as part employees our to and code of conduct of of agreement our Corporate Moreover, franchisees. is responsible team Human Resources on and updating standards reviewing for support and providing all to social policies, concerned. adhering our human to Our initiatives rights policy: 1. Our IT platform, VKMS: Our IT platform, all accessible by It is also employees. keepa medium to updated employees and about Company its values. We have created created have We e-mailGroup id: all common e-mail for id groups important communicate to employees Information regularly. information updating notices, includes circulars, on norms or of behavior employees or processes. standards helps in improving performancehelps in improving of under- performing In addition, we employees. surveysconduct employees’ employee for on human capital; and publish feedback survey in our internal portal. results or any employees from take feedback We self-appraisal, As external seriously. source departmentour Human Resource regularly surveyconducts employee find out to leadership policies, gaps in management update we Thereafter, etc. methodology, on our human resource responses management portal, and work on key areas us to allow Such steps of improvement. bring of transparency high levels in the organisation. our broadcast to platforms use multiple We and norms to standards principles, values, Following the Company. across employees with our communicate to methods few are employees. group: Whatsapp broadcast We on all updates policies Company‘s and processes timely. Human resource Human resource management Portal system: Company’s provides policies, updated notices for circulars, reference. employees’ Handbook of Company’s policies, policies, HR manual: Handbook of Company’s regularly. updated and norms, standards values, Soft manual can be accessed by of the copy Moreover, on the internal server. all employees a print-out with the HR of manual is available department Department and respective Heads reference. employees’ for Induction program: equip to Designed new joiner with policies, Company’s and processes business conduct. To inculcate a transparent and progressive and progressive a transparent inculcate To our employees encourage we work culture, ideas new their and innovative share to at engagement employee improve to and consider their respect We workplace. often praise We views and opinions. ideas, inspiring them them thereby, and reward best at work. their give incentive Our to and recognition rewards schemes, engagement activities create programs, employees for a sense of belongingness If point, an and boost their morale. at any report he can to mistreated, feels employee or on (022) [email protected] 67765130. of open-door instilled a culture have We to free are policy employees wherein superior or peers at our any approach inputs and welcome invite We organization. They of employees. levels different from of their colleagues any to feedback can give Peer-to-peer of hierarchy. irrespective valued and feel makes employees feedback We conduct business on the principles of We We and respect. integrity, honesty, fairness, briberydo not tolerate and corruption in and franchisees Our employees form. any or offer or indirectly, should not, directly or payments or improper illegal any receive or perceived comparable benefits intended the conduct of for obtain undue favours to no In were our business. FY 2020-21, there confirmedrecorded incidents of corruption at the organization. 70
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2. Continuous engagement: We 4. Harassment-free workplace: We 6. Freedom of association: We respect create awareness of human rights commit to maintain a workplace free our employees’ right to form, join or among employees at various of violence, harassment, intimidation not join labour union without fear of levels of operations through and any other unsafe or disruptive reprisal, intimidation or harassment. We training and communication. conditions due to internal and external are part of the Information Technology For continuous improvement, threats. We prohibit child labour, forced/ industry, which typically has relatively we share our good practices, set trafficked labour including indentured fewer labour unions compared to and review targets, monitor and labour, bonded labour, military labour, manufacturing industry. Due to nature report on our performances. We modern forms of slavery and any form of our business, we do not have a establish accountability by assigning of human trafficking. In the reporting gathering of several employees under adequate responsibilities for effective year, we received zero complaints one roof, at a time, except corporate management of human rights risks. regarding child labour, forced labour or employees that contribute to only Any employee who believes there is a sexual harassment. 24.5% of total employees. Maximum conflict in our policy and practices can employees are field-employees spread 5. Support and Respect for raise concerns with the HR department, out in different locations across the internationally proclaimed Human legal department and the local country. Therefore, we do not face Rights: As part of our commitment to management. situations of freedom of association in the United Nations Global Compact, we business usually. 3. Diversity at workplace: We respect have a responsibility to uphold human rights of all our stakeholders. Our rights in our workplace and within our 7. Healthy and safe workplace: Our diversity philosophy celebrates sphere of influence. To this accord, we healthy and safe workplace aligns with the common values that bring joy, follow the below steps. our requirements as well as those of happiness, energy and enthusiasm applicable health laws and regulations. • Develop and encourage a transparent to the community and focuses on We consult employees to address and and rights aware approach in our bridging differences by enhancing remedy identified risks of accidents, business operations. commonalities among the diverse injury and health impacts. Moreover, work pool. To ensure diversity of • We also have also formed appropriate we encourage employees to highlight our workforce, we exercise positive grievance redressal mechanism to concerns or health and security hazards discrimination in favour of socially report any human rights concerns. to the management. disadvantaged communities provided potential employees • The Grievance redressal mechanism 8. Grievance redressal mechanism: fulfil its merit-based criteria. These ensures that no reprisal or retaliatory We have an online portal for open systems and processes are monitored action will be taken against any and structured discussions to address for compliance and are subject to employee or stakeholder for raising employees’ concerns related to human continuous improvement. concerns under this policy. rights and decent labour. We have also formed a Vishakha Committee to address incidents related to sexual harassment. For more details, please visit our Human Rights Policy.
Different business and functional leadership teams own our progress Our Human Rights policy encourages socio- on aspects of human rights. It is under constant review of the Board of economic empowerment through inclusive growth. Directors. During annual review system, we survey our employees each year. It provides a broad framework to ensure that all Thereafter, we provide each employee’s feedback to the Nomination, employees are treated with respect and dignity. Remuneration and Compensation Committee, for its review and further action.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
71 71 9 27 169 30% 6.26:1 13.77% 2020-21 79 24 221 2.79:1 VAKRANGEE LIMITED VAKRANGEE 26.33% 25.81% Integrated Annual Report 20-21 2019-20 Outcome of the initiatives Outcome the Nomination set by of the targets Outcome and Remuneration and Compensation Committee discrimination of unlawful made by Complaints partnersemployees, and thrid party personnels, our business and take to appropirate in relation action investigation after thorough Initiatives the organisation in implemented Diversity Monitoring or Audits Monitoring Diversity for and targets measures Our initiatives our diversity strengthen and inclusion Diversity The workplace impact. better for and Inclusion collects regularly Council data on diversity at the and monitors Itorganisation. reports its monitoring Remuneration the Nomination, to outcomes on a Committee and Compensation the Committee Thereafter, quarterly basis. of Directors the Board to results presents meetings held quarterly. during Board partyindependent third an Furthermore, Diversity The also conducts audits annually. and Inclusion the monitors Council following: KPI Male/Female ratio at corporate headquarter Male/Female Number of females at corporate HQ Number of females Number of males at corporate HQ Percentage of females at corporate HQ of females Percentage Number of women representing Company’s Company’s representing Number of women management council Percentage of women representing Company’s Company’s representing of women Percentage management council Employees hired in districts are local residents in districts local residents hired are Employees districts, especially in minorityof respective areas as per the set ratio and hired are Women equalitygender pay is maintained on of employees Number of hours of training diversity parameters and employees relevant to Mentors assigned guidance providing effectively are 3 1 2 4 5 6 S. No. We extend our diversity and inclusion We business our franchisees, to program partners In the past, we and customers. ensure taken to multiple intitiatives have and minority of women that voices groups in local empowered and they are heard, are operate. we community wherein Furthermore, in order to design, implement design, to in order Furthermore, diversity, for our initiatives and monitor the Nomination, Remuneration and a has formed Committee Compensation Council The Diversity and Inclusion Council. undertakes the agenda of building a safe workplace- and agricultural infrastructure privacyas addressing as well designs, reports Council The concerns of employees. Sub-committee the to and can be reached at [email protected]. as follows: key are in FY 2020-21 performance and their results Few (KPI) monitored indicators organization to the Board of Directors of Directors Board the to organization few are Following meeting. duringBoard Key Indicators Performance (KPIs) reviewed the Nomination, Remuneration and by committee: Compensation Diversity and InclusionDiversity as a truly diverse grow to committed are We embrace We Company. and inclusive encourage and people of varied culture to build a sustainable perspectives different helps us employees our Valuing business. high-performingcreate of individuals teams a responsible As backgrounds. diverse from discrimination prohibit we organisation, religion, colour, race, based on individual’s sexual national origin, gender, disability, or any genetic information orientation, age, In status. FY 2020- other legally protected instance of discrimination faced zero 21, we provide We aspects. on the aforementioned equal opportunities in all employees to talent promotion, of hiring, the process trainings, and retention, development affinity and employee program, mentorship group. accomplish our commitments In to order and Inclusion in Diversity Programme an independent formed have we Policy, sub-committee members, of Board called “Nomination, Remuneration Committee”, and Compensation of diversity. initiatives for responsible submits a quarterly committee The report of the on diversity initiatives 72
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Gender Equality 2. Encouraging salary negotiations by 8. Average increment of women In continuation to our stand for non- showing salary ranges: It has been employees: We monitor average discrimination, we are a supporter of observed that women are less likely increment of employees in the gender equality. Our recruitment policy to negotiate their pay. Therefore, we organisation and compare it with prioritises merit and skills of applicants clearly communicate the salary range the average increment across the irrespective of their gender. Similarly, on offer for a role to encourage women organisation. It helps us understand the remuneration offered to all employees is at to negotiate their salary. This helps gap in skillsets of women. Accordingly, par with industry standards irrespective of the applicant know what they can we plan additional workshops and race, gender, age, colour, religion, disability reasonably expect. training sessions to support women in performing better in their roles or genetic information. 3. Including multiple women in Nomination, Remuneration and shortlists for recruitment and Few KPIs to measure the gender pay Compensation Committee is also promotions: When putting together equality program are: responsible to ensure gender pay equality a shortlist of qualified candidates, we programs at our organisation. In order to make sure more than one woman Determine equal value design, implement, monitor and review is included. Shortlists with only one gender pay equality program, the sub- women do not increase the chance of a An effective tool to compare jobs and committee has formed a Pay Equity women being selected. determine its value is the ILO guide of Committee. The Committee comprises 4. Fair reward system: By fair reward Promoting Equity: Gender-Neutral Job of Head of Human Resources, Head of system, we set a threshold, target, and Evaluation. We determine the numerical Strategy, Chief Operating Officer and Chief maximum for pay increases or bonuses value of job on gender-neutral criteria such Finance Officer and reports to Nomination, to ensure equitable, merit-based reward as skills and qualification. Remuneration and Compensation distribution among men and women Committee. employees. Listing all jobs in organisation In addition, a global and independent firm 5. Promote and disclose pay audits our initiatives. The independent transparency: We disclose band-wise All details of job including qualification, firm audits our gender pay equality and designation-wise payment to males level, job band, in organisation are parameters and provides its findings and and female employees, on an annual studied, and department. Qualification is recommendations of compensation gaps, basis. further broken down into work-related, if any. The Nomination, Remuneration and knowledge-related, manual dexterity and Compensation Committee ensures that 6. Salary and bonus: We verify two inter-personal skills. all recommendations and findings are aspects to ensure that the practice presented to the Board of Directors and of disbursing salary and bonus is not are addressed in a timely and satisfactorily discriminatory. These are: Education level and field of study manner. • Regular basic salary for female and Basic educational qualification of all full- We have undertaken multiple initiatives to male-dominated jobs are in parity time employees is graduation or 10+2+3. improve gender equality parameters and All employees are paid equally, fairly, close the gender pay gap, if any. Following • Criteria for rewarding bonus is same and transparently based on their level of is a brief on our initiatives: for males and female employees education and additional qualification 1. Pay equity committee: Our vision 7. Promote and support flexibility: We such as post-graduation degree, paid work is to ultimately create an everlasting create equal access to opportunities experience in industry, informal training. workplace culture where teams work for women and men. We educate and are rewarded irrespective of their supervisors about how to manage gender. We proactively created the Pay flexible work schedules and balance Equity Committee to ensure the same. their work and familial responsibilities.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
73 73 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Targeted Recruitment Targeted an equal opportunity are employer. We best talent the employ aim to We the countryacross diverse from India, across Being present backgrounds. from with people work together we our achieve to backgrounds diverse Our recruitment goals. organisational criteria such as include parameters skill competencyaptitude, mapping, set benchmarking,and ability. Job Posting Internal can switch Our permanent employees departments enhance their internally to the InternalThrough skills. professional portal, they apply for can Job Posting departments vacancies at the different portalThe us allows of the organisation. within internal recruitment promote to Moreover, ranks within the organisation. by encourage internal referrals we permanentincentivising current with cash rewards. employees External Recruitment visits local team Our recruitment educational institutions in different diverse from hire We and regions. states including universities regional colleges, colleges and tribal colleges women’s 70% of our in rural India. over As in rural India, generate outlets are we talent and offer local employment have We opportunities.development educational with several collaborated institutions such as Chitkara University, Chandigarh, Indian Institute of Kota, and Balaji Technology, Information We Institute of Modern Management. minorityencourage applications from We at our corporate office. groups 31 individuals in 2020-21 as recruited 580 individuals in FY 2019- to compared the on-going 20. Due to we pandemic, underwent restructuring. man-power of staff at was less requirement There technology we leveraged as field level enhanced productivity and smooth for functioning operations. of our 1.01:1 0.85:1 1.21:1 0.97:1 0.86:1 1.19:1 0.95:1 0.92:1 2020-21 no female no female NA (as there are are NA (as there this designation) this designation) employees under employees Male: Female ratio Male: Female 0.95:1 0.72:1 1.45:1 0.93:1 0.77:1 1.11:1 1.12:1 2.35:1 1:1 by 2025 by 1.0006:1 2019-20 Male: Female ratio Male: Female 2:1 by 2024 by Male: Female ratio detail ratio Male:Female Average salary organisation Average across Median salary organisation across Median salary and ratio at male/ female corporate headquarter* Average salary ManagerAverage of Assistant salaryAverage of Manager salaryAverage of Deputy General Manager salaryAverage of General Manager President Vice salary Average of Associate President Vice salaryAverage of Academic or vocational training certified or vocational Academic by a diploma work experience in the industryPaid etc. Informal training, 1 3 4 5 6 7 8 9 2 S. No. Our planned targets regarding male: female ratio for the upcoming years are as follows: are the upcoming years ratio for male: female regarding Our planned targets *Only corporate headquarter staff is considered as field staff is primarily male. Nature of job Nature headquarter as field staff is primarily male. considered staff is *Only corporate to Mostly males prefer locations. 30-50 kms visit outlets in rural per day to travelling involves roles. apply for such field Pay is also defined for: defined is also Pay • • • Compensation and Nomination and Remuneration the startAt year, a financial of such that we our targets designed have We equality. gender pay for sets targets Committee ratios of few are 2025. Following by the organisation across 1:1 ratio of male: female reach salary of FY 2019-20 and FY 2020-21 as and designation male: female organisation across 74
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Permanent employees in FY 2020-21 Mentorship
501 For a smooth transition of new joiners in the organisation, we assign a mentor of the same work profile as the new joiner’s role. We impart training and seminars for new joiners to groom them as core team members. Mentors share their experience to guide employees 196 and help them to align their individual goals with career development with us. We also 103 conduct training programs for skilled employees interested in becoming mentors to employees of various mentorship programs, on a semi-annual basis. Following table Corporate HQ State Office Field staff outlines our mentorship programs:
Mentorship Age-wise breakup of permanent employees S. No. Function of program program
599 1 Minority group Special mentorship program for our employees from the program minority groups as several people are recruited from rural India. Mentor of the group helps employees gain a sense of 166 belongingness at workplace and excel in their career. 35 2 Women mentorship 100% women employees are mapped to a senior woman program mentor with a vast experience and insights. Mentor supports Under 30 Years 30-50 Years Over 50 Years mentees in enhancing their professional knowledge and expertise as well as guiding them in personal matters such as childcare, which may influence their productivity at Our business model involves a hierarchical work. We were earlier providing mentorship program only structure of block officer, district managers, to women at entry level but have now extended it to the state heads as on-field staff. Being a rural- middle management also. The mentor supports the mentee focused organisation, we hire our field staff by helping them grow their knowledge and professional from local communities, including minority experience. The mentor also guides their mentee in personal matters such as childcare, etc. which affects the productivity groups. As of FY 2020-21, we have a team of employees at work. Currently, we maintain a mapping of of 103 employees in state office and 501 maximum 3 mentees with each mentor, especially at the employees as local field staff. Moreover, our senior level. This helps the mentor in giving special attention to local field staff is available in 49 out of 90 individual mentee. Left-Wing Extremists (LWE) districts and 76 3 Specially-abled We have assigned mentors to our divyang staff to assist them out of 164 tribal districts in the country. mentorship program in carrying out their roles and responsibilities effectively. Mentors with similar job profile and activities guide their As a responsible organisation, we give mentees. special importance to women. During recruitment, we try to include multiple 4 Military mentorship Mentor guides former military professionals and their spouses. program The program facilitates a smooth transition from military life women in the hiring process to encourage to a corporate life and builds required skills of ex-military their selection for a vacancy. There are professionals to succeed in corporate roles. 13.77% of women in our corporate headquarters as of 2020-21. 5 New-joiner program A mentor is mapped to all employees joining the organisation. He/ she helps the new-joiner to understand the corporate In addition to minority groups and women, culture and take up their role more effectively. we also encourage employment of 6 Mentor and buddy This program is especially for State Heads (or Buddy) who divyang and retired military professionals. program have recently joined the organisation and require assistance We undertake recruitment from Armed in understanding the operations of the State. Each State Head Forces Recruitment Board and Indian Army is linked to a senior State Head who has been working with us for more than 5 years. Mentor State Head shares his knowledge Recruitment Board. For our divyang staff, and experience as well as guides the Buddy in achieving his we have facilitated special features in the targets. premises of our corporate office. We also have a ramp facility at various locations of office and Braille feature at most of our access points. As of FY 2020-21, we have 1 divyang individuals as permanent employees.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
75 75 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Our recruitment policies Our recruitment committees and various prioritise merit and skills of applicants of their irrespective also ensure They gender. equality gender pay that at our flourish programs organisation. Role of Affinity Group Role of Affinity Comprising 35% of employees, the group’s objective is to objective is to the group’s Comprising 35% of employees, Group workforce. of the female well-being overall ensure in balancing their work with personal members help women are Team Strategy in our Core 50% of females commitments. group. affinity Professionals Women the to mentors locations of employees- native groups categorised into Affinity Northern India, SouthernWestern India India, and Eastern India, India.Central Also referred to as “Working Parents Support Group”, the group the group “Working Support Group”, Parents as to Also referred We and supportsdiscusses needs of parenting its members. workingto the facility of an in-house crèche offer parents. The group represents employees from minority groups in our minority from groups employees represents group The Itcountry. various in attracting facilitates parts talent from underserved especially from of the country, and unserved a Co-ordinator by who represented are districts. Employees the management. to opinions of the group communicates With a talented pool of specially-abled professionals, this pool of specially-abled professionals, a talented With in opportunities drives growth for awareness, creates group the workplace. Members support and mentor one another in perform challenges to their tasks and in realizing overcoming their full potential. Group connects ex-military professionals at the organisation connects at the organisation ex-militaryGroup professionals of support an environment and empowerment. and fosters As we recruit resources fresh from educational institutes, we we institutes, educational from fresh resources recruit we As group This them as well. for a group having the need to realize 'freshers' in the who are and are comprises of employees takes initiatives group This less than 500 days. for organization skills and help required for freshers trainings to providing to path. their career them develop Affinity Group Affinity Regional affinityRegional groups Women professionals Women Working families Minority in India Specially-abled professionals Ex-military professionals Young professionals Young 1 2 3 4 5 6 7 S. No. Employee Affinity Group or NetworkingGroup Group Affinity Employee These ‘NetworkingGroups’. or Groups’ ‘Affinity can form with similar interests Employees group. a targeted for perspectives on techniques providing by in recruitment aid groups in the women and minorities employed number of groups can increase affinity Employee and fostering environment an inclusive Membership also helps in creating organisation. retaining developing, not only help in attracting, groups The of employees. retention new developing business opportunities, the brand and talent, but also facilitate promoting in the organisation. work culture and better enable harmony They community outreach. Groups: Affinity Employees few are Following 76
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Training and Development We believe that successful employees give rise to a successful organisation. The Diversity and Inclusion Council conducts multiple trainings for all employees at each level of the organisation- tactical, strategic and leadership levels. We regularly conduct seminars and knowledge- sharing sessions to improve knowledge base of employees. Additionally, we provide soft-skills training to employees to enhance their communication skills. Our competency programs include customized development programs, off-the-shelf training, and accredited development program.
We hold trainings as per the target of number of training man-hours set by the Nomination and Remuneration and Compensation Committee. We plan to conduct training sessions annually based on headcount of the organisation and training hours assigned to each employee per year. As per the training plan, every employee is enrolled for at least 2 training workshops or programs per year. Duration of each workshop is 6 hours, of which 1 hour is allocated for diversity-related session. In FY 2020-21, we conducted 1,100 hours of training for permanent employees on ISO, induction, behavioural aspects, etc. In the reporting year, all 800 employees, including 42 female employees and 1 divyang employee, were trained in induction, health and safety and ISO training. Following table represents a break-up of information related to training:
Type of training Employees joined Per employee Total training Course content Remarks training hours Mandatory training 31 3 Hours 92 1. All HR policies Total training hours of 2. Ethics and Moral Code of Conduct 1,100 which includes 3. Anti-corruption Policy training for 31 new joinees. 4. Prevention of Sexual Harassment 5. Human Rights Policy 6. Business Conduct Training 7. Data Privacy Refresher training 721 1 Hour 30 Min 1,081 1. All HR policies All employees were 2. Ethics and Moral Code of Conduct given refreshment 3. Anti-corruption Policy training on a variety of subjects. All 4. Prevention of Sexual Harassment these trainings were 5. Human Rights Policy provided virtually for 6. Business Conduct Training employees on term 7. Data Privacy & Security basis periodically Skill upgradation 36 8 Hours 288 Training were given training to CRM Team for sales and Business Development.Training were conducted through online session. Franchisees trained 11,730 4 Hours 46,920 1. On-Boarding Level Training We conducted training 2. Technical Training on the VKMS session service wise 3. ATM training (1 Hour each for Bank- 4. Service level training ing ATM, E-commerce 5. VC training and online health- care services) for all Franchises through VC session.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
77 77 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Retirement benefits: GratuityRetirement option (ESOP Benefits) Stock Insurance Mediclaim benefits: Group and Life, Term Group policy, insurance accidental cover balance: Annual leave, life Work with maternity leave public holidays, encashment, flexible leave full pay, working hours policy: break Career Medical higher education emergency, Talent Retention Talent is retention that talent believe We extremely important our long-term for engaged keep employees We growth. them assigning by in the organisation work,challenging setting achievable and targets, and cross-functional training them in cross-disciplinary skills. Inwellness addition, benefits such as support and parental program program, mobility benefits keep our employees the to actively committed engaged and organisation. an opportunity our employee give to We one department from another, move to of growth the professional enhance to is carried process out The the individual. Internal internal job posting. through job posting is important continuous for skill a fair acquisition and it creates opportunity apply for to employees for cost. Internal the open positions at zero internal promote job postings help us to within the organization recruitment within internal employees and recruit that networking believe We the ranks. of alliances is and building strong critical importance. that Employees skills, and demonstrate behaviours make a great attitude which already fit will likely with other people know we on this, To capitalize similar profile. which program, our internal referral have cash rewards. lucrative the referrals give amount is based on the referral The in the hierarchy open position and level referred. given is the list of benefits that are Below employees: to • • • • • Service the by training provided level the HO business heads from respective VC training direct online through level teams State as through sessions as well level at the ground ATM training provided by the OEM at by training provided ATM the field level Technical Training on the VKMS on the Training Technical (Vakrangee Kendra Management the Relationship by provided System) as as well manager at the HO level Block Officer ground level at the On-Boarding level training - Training Training training - level On-Boarding on the Franchisees to is provided of Conduct, best business the Code practices as induction as well ppt is run about awareness creating for through value system and its core the Company Wellness program: implementing a program: Wellness workplace program wellness COVID-19 pandemic has caused disruption in the world unprecedented is the Company of work and thereby implementing technology, leveraging digital and innovative automation process of conducting as new ways initiatives everyday field business and managing has been dedicated There operations. VC channels being business vertical wise on franchisees can login set up whereby daily basis and get online training sessions service two-way live as have wise as well communication sessions with direct HO as centralized as well business teams their resolve managers to relationship level calendar for The time basis. queries on real the to all these sessions is communicated VKMS Portal, through franchisees directly WhatsApp. e-mailas as well • • • In addition, our training programs specific In addition, our training programs service customer to department assisted service-related customer in resolving internal and externalThey increased issues. satisfaction 16.5% and customer by levels in FY 2020-21. 9.50% respectively our to also provided are Trainings franchisees. • 8. Alignment: aligning employee’s work employee’s aligning Alignment: targets with organisation’s parity: a fair Pay employees paying salary schedule on a regular Opportunities: opportunities creating do their best to employees for Safety: office a safe developing quality health providing environment a pension plan benefits and offering embracing and Belongingness: promoting celebrating diversity, and teams, collaboration across and to programs equal access offering initiatives employee team recognizing Esteem: employee providing contributions, exceptional feedback, and rewarding performanceemployee Self-actualization: personalized creating custom offering training plans, and providing management tracks, executives from mentorship high-level basis on a regular We hold special training programs on programs hold special training We senior level for culture team inclusive In conductedmanagers. we FY 2020-21, our women especially for training programs middle-management Training team. impartsessions aimed to to skills required leader. become an effective we In employees, women addition to holding by on minorityalso focus groups provide sessions to seminars and training the right skills succeeding and guidance in we our 11 security staff, For in their roles. conducted training sessions of 208 hours in FY 2020-21. programs and development Training in upskilling employees assisted their for hire able to were We skillsets. the within from managerial and senior roles rather than externalorganisation, sources. productivity of improve initiatives Following our employees: 1. 2. 3. 4. 5. 6. 7. 78
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Employee Satisfaction We offer aforementioned benefits to all • Wellness programs: Employee We have been an employee-friendly employees without any gender bias. As assistance program, Health and per our policy, 100% of employees are fitness initiatives, wellbeing and institution since inception. We focus on output and physical presence of staff. We eligible to receive Employee Stock Options cessation programs, further (ESOPs) as per their band level. We offer education programme follow flexible timing with a cut of 9 hours as per the prescribed law. If an employee ESOPs scheme at discounted rates. In the reporting year, we did not provide ESOP Our Early Interventions team focuses works for more than 8 hours, we then or performance related incentives to any on new joiners and conducts regular compensate him or her for the same. In employee due to the ongoing Covid-19. meetings to understand the gap in their addition, we provide 21 days of annual We also offer gratuity to employees at the orientation process and departments. leave and 9 days of public holidays. Up time of separation on completion of 5 These meetings are held periodically at to 30 days of annual leave can be carried years of continued service. We review these an interval of 45 days, 90 days, 125 days forward to the next year and pending benefits annually to adhere to industry’s and 180 days. Through our on-boarding leaves over 30 days get encashed to best practices. and joining process, we have been able employees. Also, 2nd and 4th Saturday of a to curb attrition among new joiners by month are holidays for all employees. We protect information generated within 8% in the first 180 days from the date of organisation or acquired through business joining. To facilitate a culture of work-life balance, we provide 184 days of maternity leave relations. We sign a Non-Disclosure Agreement (NDA) with employees for Employees receiving periodic trainings with pay to employees for each child. We maintaining confidentiality of their are likely to stay motivated and engaged offer maternity claim of up to INR 60,000 information, including information related in the organisation for longer time- for hospital expenses during pregnancy. to health. NDA also restricts employees period. On an average, employees We preserve their employment during to furnish any detail about the Company are associated with us for 5.1 years. In the agreed leave. Furthermore, we also to any individual, organisation or group. addition, average age of our employees offer a crèche facility to female employees Our HR department safeguards the signed in 35 years. Our initiatives have enabled who find it difficult to manage work with copy of NDA, along with other employee us to reduce attrition rate and retain children. In FY 2020-21, 7 female employees details. If at any point we come to know employees. In the reporting year, we availed parental leaves. 2 employees that confidential information has been recorded a voluntary attrition rate of returned to work after their parental leaves. compromised, we will initiate disciplinary permanent employees at 4.83%. Moreover, we provide in-kind benefits fully action against those responsible. Due to the on-going pandemic, there or partially financed by the Company, such was no promotions or increment in the as paid time-off, public holidays, career year 2020-21. break for purposes such as studies, medical emergencies or attending to household Our Head- People, Performance and duties, and fringe benefits like parking, and Culture department monitors retention mobile reimbursement. rate in organisation and strives to improve it on regular basis. Monitored findings are reported to the Nomination, Remuneration and Compensation Committee.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
79 79 72% 61% 68% 79% 69% 82% 45% VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Employees feel that they receive that they receive feel Employees their from constructive feedback manager and peers which help them performance their overall improve Employees feel that their manager feel Employees encourages collaboration in the team that their manager is feel Employees guidance and provide to committed motivation that they can count on feel Employees their peers in need of help that their manager feel Employees to assessments challenging assigns them and is successful in building members trust amongst the team The results of the survey results The in the depictedreporting are year below: and proud happy feel Employees and are Limited Vakrangee working at responsibilities satisfied with their job and inspired feel Employees connected with the co-workers Intention to stay with one’s employer employer with one’s Intention stay to Prospects for future growth with one’s with one’s growth future for Prospects employer Understanding the link between one’s Understanding the link between one’s mission job and the organization’s Effort the minimum beyond Personal support from one’s supervisor support one’s Personal from Recognition and positive feedback for for feedback and positive Recognition contributions one’s Opportunity perform to at well work challenging Job satisfaction Satisfaction with employer Pride in employer in Pride Navratri celebrations: Navratri is Vakrangee twice at celebrated in a year is filled with event The Limited. and grooving dancing over employees traditional beats of Navratri the to Itsongs. in which all the is a fun event active participation. show employees Independence and Republic Day the of employees The activities:Day OfficeCorporate and Regional Offices together sing the national anthem delectable by snacks and followed cultural activities in the evening. later with the is spent in the office day The of our national heroes. remembrance gratitude and accomplishment carries and accomplishment gratitude between work and home. over • • • • • • • • • Employee engagement survey engagement Employee is based Our engagement with employees two-way commitment on trust, integrity, and communication between the measure We and employees. organisation 10 common themes which are the below Engagement Survey Employee to related which are: • • • Zumba classes: We conduct the Zumba We classes: Zumba twice a all our employees classes for fit. keep to It is a the workforce week for and great powerful of exercise form loss. weight celebrations: Day Women’s International every Day year Women’s celebrate We games or sporting organizing by events and send employees the women for them a superwoman e-card reminding us every to them that they matter day. Inter-departmental The Tug OF War: sporting War of Tug interdepartmental all is a fun session wherein event departments actively participate as all in supporting involved are the teams their departments. Happiness sessions: Happiness sessions as we conducted once in a quarter, are that happier brains do better believe work. It the productivity maximizes of happiness workshop These the team. increase to activities help employees optimism, boost brain function, and shared trust through build team experiences. the invite We event: Day Mother’s our to mothers of all the employees we believe corporate office because opportunitythat it is great celebrate to and honour mothers and women that believe We in the workplace. it is important employees show to (including the mothers of the see and appreciate that we employees) feel good When employees their efforts. about their workplace, that sense of Employee engagement program engagement Employee extent engagement is the Employee passionate feel which employees to the to committed are about their jobs, and put discretionaryorganization, effort engagement between This their work.into is Ltd. Vakrangee and the employees business which increases an approach, organizational contributes to success, and enhances employee growth, performance, productivity and well-being. the engaged and keep our employees To carry we and healthy, live work atmosphere activities: given out the below • • • • • 80
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Retirement Policy Employee rewards and Our retirement policy is applicable to all recognition permanent employees working with us. We believe that along with fair The age of retirement for an employee is compensation, employees also want fair 58 years. However, the management may treatment and appreciation of efforts. extend retirement of an employee on a We recognize employees for especially: year-to-year basis based on the medical condition and performance in the previous 1. Ability to manage and champion year. The HR department notifies an change employee in this regard at least 30 days prior to his date of retirement. 2. Innovation Benefits upon Retirement: 3. Systems improvement • Upon retirement, we complete all 4. Customer or client retention necessary documentation for final 5. Significant personal development settlement within next 30 days for the retired employee; 6. Actions that embody the organisation’s core values • Permanent staff are entitled to retirement benefits such as gratuity, We reward employees for their which is processed within a period of exemplary performance, in the following 45 days from retirement date. They ways: are also eligible for a monthly pension under the Employee Pension Scheme 1. On the SPOT award (EPS);
2. Quality award • We provide retirement letters to retired employees stating their experience in 3. Performance of the quarter award the organisation;
4. Annual performance award or • Retired employee also receives a Employee of the year felicitation from the organisation on his 5. Internal employee award last day as a gesture of his invaluable service rendered to the organization. 6. Performance certificate
Moreover, employees present appreciation cards to appreciate work of peers. We celebrate wedding anniversaries of employees and award tenured talent for completing 5, 8, 10, 12, and 15 years at the organisation. We are committed to grow as a truly diverse and inclusive Company. As a responsible organisation, we prohibit discrimination based on individual’s race, colour, religion, disability, gender, national origin, sexual orientation, age, genetic information or any other legally protected status.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
81 81 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Human capital risk identification Classification of human capital risks Description human capital from of losses risks Description capital risk of human management strategy Sequence of actions necessary implement human capital riskto management strategy of human of implementation Timing capital risk management strategy for implementing Officials responsible human capital risk management strategy Evaluating human capital risksEvaluating makes it identify factors with a significant possible to impactnegative on the activities of Our Head- personnel and organisation. creates Culture and Performance People, human capital managing an action plan for such as: information risks and provides • • • • • • • Ineffective training due to all virtualIneffective training due development Talent for training programs Mental long video fatigue due to conferences depression going into Risk of resources the high panic due to to Risk of resources in the family infections of covid level Different standards for employees for employees standards Different performing the same work Risk 19 arising covid due to Risk of attrition poaching of due to experienced resources Factors affecting our human capital risks are our human capital affecting risks are Factors important Risks assessed in FY 2020-21: • • our human capital affecting risks are Factors highly critical Risks assessed in FY 2020-21: • • Factors affecting our human capital risks are human capital our affecting risks are Factors not very significant Risks in FY 2020-21: assessed • • • Medium • • High • • Low • • Human Capital RiskHuman Capital Assessment Our Risk Management Committee human capital risk for is responsible conduct capital human We assessment. Once basis. risk assessment on a regular and actual identified the potential have we human capital or talent, we to risks related medium and high. low, classify them into By committing to hire people from underrepresented groups, we are reducing inequalities present in the inequalities present reducing are we groups, underrepresented people from By hire committing to of discrimination form any prohibit We society availability of less opportunities due to these groups. for equal opportunities thereby and ensure all, to etc. age, nationality, gender, religion, color, based on race, inequalities. reducing This sustainable development goal focuses on achieving gender equality and empowering women. We We on achieving gender equality women. empowering and goal focuses sustainable development This that gender equalitybelieve a not only a human right is creating but also a necessary for foundation sustainable organization. Along with importance additional organization. in our of women give empowerment we to Hence, and programs them mentorship we provide to childcare, related women, specially to flexibilities providing maintain gender pay that we also ensure We in their tasks assigned. them excel help multiple trainings to all fairness paths with and equality. in their career progress to women thus encouraging equality, society the underrepresented back to and empowering of giving in our ethos believe we Vakrangee, At our part doing thereby in providing of these groups, the growth contribute towards to aspire We groups. creating by driving rural growth are We opportunities. them with decent work and economic growth and undertaking groups underrepresented local work opportunities skill from hiring by resources they in their local areas, while residing even work with our organization groups Since these development. in their area. appointing franchisees by of their localities contribute in the local upliftment and growth SDG 8 SDG 10 SDG 5 Reduced Inequalities Decent Work and Work Decent Growth Economic Gender Equality ISO 45001:2018 - Occupational ISO 45001:2018 - Occupational Health and Safety Management System certified are with ISO 45001:2018 We Occupational Health and Safety Our aim is to Management System. factor that can cause any mitigate and businesses irreparable employees harm. ISO 45000:2018 is concerned with either factor that are mitigating any harmful workers’ or pose danger to It and/ or mental well-being. physical satisfaction, employees’ has improved employees’ and improved retention productivity and health, increased absenteeism. reduced ISO 37001:2016 Anti-bribery System Management Our certification on Anti-bribery our demonstrates Management System ethical compliance and commitment to ISO 37001 provides business practices. practical on establishing, guidance maintaining, implementing, anti-bribery and improving reviewing management systems. In addition to UN-SDGs, we conform to to conform we In UN-SDGs, addition to of the International Labour conventions principles Nations of United Organisation, Global Compactall Labour Laws and undertaken have variousWe of India. ISO certifications our to strengthen performance. 1. 2. Our commitment to United Nations Sustainable Development Goals Sustainable Development Nations United to Our commitment 82
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Detailed action plan, also defining roles and responsibilities of officials and timelines for a task, is thereafter approved by the Risk Management Committee of the Board. We prepare an annual activity calendar for all activities for mitigating any kind of human capital risk. Few parameters for measuring effectiveness of activities of the plan are:
Number of candidates who applied for a role Vakrangee as the Associate Sponsor of Hiranandani Marathon
Number of candidates who appeared for Health and Safety “With the help of the role We safeguard health and safety of all employees at workplace, and ensure that ISO 45001:2018, safety tools and processes are always in place to combat any mishap. With the help we demonstrate Number of candidates selected for a role of ISO 45001:2018, we demonstrate our commitment to occupational health and our commitment to safety management as well as implement occupational health and robust health and safety measures. Our Feedback of benefits offered to employees commitment also improves employee safety management as well satisfaction and retention, and improved employees’ health, increased productivity as implement robust health and reduced absenteeism. Feedback of work culture by existing and safety measures.” employees We take measures to promote health and well-being of our workers. We continuously engage workers in development, turn any fatal incident. We encourage Number of people recommended for implementation and performance employees to always follow our guidelines promotion by their reporting managers evaluation of our occupational health and and standards. Similarly, employees at our safety policy, management systems and corporate office work on either laptops programs. We also offer healthcare services or desktops. They sit for long hours at or voluntary health promotion programs to workstations and tend to strain their eyes. Outcome to periodic reviews conducted post- workers, which help them to improve their In FY 2020-21, we recorded zero fatalities training sessions diet or quit smoking. because of work-related ill health.
Work-related hazards vary significantly We believe in the saying, “Health is Wealth”, Feedback of effective on mentorship program across different locations. We have grouped and therefore, conduct various initiatives given by mentees these incidents based on geographical to help employees stay fit physically and areas and business line. We have also remain stress-free. Our HR department is identified potential hazards or incidents responsible for executing and monitoring Number of incidents of employee causing high-risk injury. We classify high- fitness initiatives at our organisation. We misappropriation risk injuries as those, which could result in consider it our responsibility to provide fatality, and employee is not able to recover a diverse suite of well-being programs within 4 months. focused on physical, mental, financial and spiritual health of employees. We believe Number of employees retained We insist relevant field staff such, or Block that such programs drive employees’ Officers and Divisional Operating Managers productivity, retention and engagement. to travel on four-wheeler or book a taxi ride We have also communicated a help-line for business-related travel. While loading number to report all safety-related issues. cash in ATMs, we expect employees to strictly follow our Standard Operating Procedures to avoid any theft and in
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
83 83 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 We training: Health and safety for programs safety-training provide who should necessarily all employees include emergency action plan training while injured yourself treat to and how training program The and alone. well are that the employees ensures efficient at the time of crisis. and emergency safety drill: Fire is the key effective to Preparation drills Fire workplace to response fires. respond to employees help prepare give We and safely. calmly, quickly, opportunity to all our employees to in a practice emergency procedures and environment but safe simulated guide them so that they carry out are There emergency duties effectively. extinguishersfire on every to use floor been have Fireboxes in emergencies. extinguishers fire from prevent built to being misused. We believe in the believe We “Health saying, is and therefore, Wealth”, conduct various help to initiatives fit stay employees and remain physically stress-free. 13. 14. Lunch lunch and snacks: Lunch Healthy ensures in the organisation Committee nutritious, that lunch and snacks are and with less calories. Health monitoring and blood Health monitoring conduct health monitoring checks: We all for and blood checks once a year also provide We of cost. free employees additional support and guidance medical practitioner wherever from necessary. Parental support facility: and crèche Parental support parental and provide We who find it parents facility for crèche work to manage and children. difficult We provide flexible flexible provide We balance: Work-life help employees work schedules to and personal balance their professional responsibilities. Medical room facility with Company facilityMedical with Company room facility a medical room have We doctor: use Employees in our corporate office. when they relax to the medical room or experience un- well not feeling are ease at work.Our in-house doctor visits Head Office to from 11 am every Friday 1 pm. Yoga and and classes: Yoga Online yoga extremely effective meditation are scheduled 2 have We stress-relievers. employees. for classes per week Any employee found violating the found employee Any policy of other and endangering lives be will as himself, as well employees subject strict to disciplinary action. For a healthy a healthy For Workplace: Healthy a policy laid down workplace, have we consuming from employees prohibiting guthka, tobacco, or any alcohol, drugs, substance. 12. 11. 10. 9. 8. 7.
6. Employee Assistance Program Program Assistance Employee assistance Our employee (EAP): psychological provides program support facing issues in employees to lives their personal and professional EAP our counselling sessions. through make to smartercoaches employees improve exercise, health decisions, quit habits and nutrition, lose weight, like smoking or and chewing tobacco guthka. support: well-being Practical There employees be situations where may their best at work. give unable to are relocation, commitments, Familial financial and legal or household duties, or distract may employees matters in their absence at work. result even consultation, work-life provide We and resources research personalized balance work with employees help to on focused and stay personal matters their jobs. health promote We Health & Fitness: likeand fitness initiatives marathon, for and training programs Zumba, yoga, workplace happiness. and employee Program: Smoking Cessation are Smoking Programs Cessation carried out periodically help those to quit the smokers, who are employees habit of smoking. A trainer defines a and provides plan” “quit personalized chat coaching and text messaging live support. during Online Doctor Consultation doctor had a dedicated We Pandemic: tele online and digital for available all employees medicine consultation for pandemic period. during Covid-19 Following section at on benefits elaborates Following our organisation: 1. 2. 3. 4. 5. 84
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15. First aid box: Accidents are 17. Medical insurance policy: All Grievance Redressal unexpected - Being prepared can employees are covered under Health We treat sexual harassment as an act of reduce panic and provide the necessary and Medical Insurance policy of the unacceptable conduct and social crime. aid. We always check our inventory Company that protects employees from We have zero tolerance toward any act of monthly to make sure our First Aid Kit financial loss of costs incurred because sexual harassment. As per the regulatory is ready to use when the unexpected of sickness or injury. Group Term Life requirement, we have formed “Vishakha takes place. First Aid kit consists of Policy of the Company is designed to Committee” and an Internal Complaints gauze piece, cotton, spirit, scissor, offer life insurance to a group of people Committee to address such incidents as sticking plaster, bandages, anti- under a single policy. This policy covers and when reported. inflammatory, anti-pyretic, anti-emetic all ailments including Covid-19, for and anti-allergic medicines. both hospitalization as well as home We have a qualified team of professionals treatment. Apart from this all forms of for addressing grievances, of our 16. Self-defence training: At Vakrangee super annuity, benefits are provided permanent employees and franchisees. A Limited, we want our employees to to all employees. The policy ensures at query management system for employees, mentally, emotionally and physically least a basic insurance cover for those records employees’ grievances and reports healthy and are interested to invest who are without any life insurance them directly to the HR Head at corporate more in our own future as a Company. policy. As the insurance is offered to office. Additionally, the Internal Complaints We understand the short-term and all members of the group, irrespective Committee and Vishakha Committee also long-term value in providing important of their health condition, it is of great address concerns of permanent employees. life-saving skills for our employees. value to employees who belong to Self-defence training can prevent a high-risk group or find difficulty in workplace violence before it even buying a policy. happens. We conduct self-defence training periodically to make our 18. Special leave: In rare instances, employees self-equipped against our field staff have encountered any harmful incidents or physical injuries while travelling to outlets. We attacks. Employees who are capable provide Special Leave to employees of protecting themselves feel more who met with accidents on duty, confident which directly affects including travel to and from place of their level of performance and their work, life-threatening diseases like leadership potential. It also helps to cancer, dengue, malaria, typhoid, and develop assertiveness and reduce tuberculosis. aggressiveness.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
85 85 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 86
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Intellectual Capital
Our company has focused on building India’s largest network of last- mile retail touch points to deliver real-time banking,insurance, financial services, e-governance, e-commerce and ATM services to the unserved rural, semi-urban and urban markets. In this difficult time, people are placing orders online and companies are creating logistic operations to reach out to the larger portion of market. The pandemic accelerated growth in e-commerce sector and companies are moving towards last-mile deliveries. Last mile innovation has developed an approach to design and deliver its programmes to all the citizens. One of the priorities in these times is to expand our services so that every customer can get the benefits through contactless service, and technological innovation is the key to achieve that.
SDGs Aligned
For Vakrangee, a technology-driven We are not only expanding the business company, intellectual Capital is one of the geographically but also addressing the We come up with services most important assets of our business. For needs of the society by amalgamating which offers customers convenience of paying bills effective operations of last mile services, technology with innovation through without travelling much we are dependent on our employees and diversification of the services offered. With our intellectual capital revolves around the development of last mile delivery, the We have partnership with application of knowledge, tools and focus is on improving lifestyles and improve Netmeds and vHealth where software by customers, franchisees and customer satisfaction which describes citizens can meet uniques employees. Our intellectual capital covers the new ways of working and quickly requirements at discounted the standard operating procedures, policies, adapting to the changing environment. prices and cost effective software, tools, risk management strategies The advent of last mile innovation, helps telemedicine services. and Research and Development (R&D) that in transforming rural landscape of India by make us a unique enterprise. providing rightful access to wide range of We provide services to the products and services of high quality at customers in booking the travel fair prices and impacting the life of many tickets with the convenience citizens. of locality and payment mechanisms
We give customers access to millions of products at We strive to be a reliable organisation where our competitive prices customers trust us with the safety of their personal Our Last mile services information.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
87 87 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21
ISO/IEC 27001:2013 Information ISO/IEC 27001:2013 Information Security System Management ISO/IEC 27001:2013 Information Security protection provides Management System and our data of the company of sensitive for robust model It a customers. offers security risk assessment, security design, These implementation and management. to help certification intended are standards the highest-level achieve organisations performance data risk, reduce possible, of continuous an environment and create is certifiedVakrangee with improvement. ISO 27001:2013 certification (Information Security (ISMS)) since Management System 2009. with this internationally Compliance an by validated standard recognised independent third-party audit, validates and our security management program and confirms that it is comprehensive industry-leadingfollows At practices. be remain is to our focus Vakrangee, maintaining this certification. to committed our promise demonstrated have We in continuous improvement towards Information Security and further standards as a of our credentials strengthening An Information managed service provider. Security (ISMS) is a Management System and manage information protect to way business riskbased on a systematic Data Privacy Data We go beyond ensuring access to digital ensuring digital go beyond access to We The efficiency of and financial services. depends heavily the Data Privacy Program on the efficiency and visibility of the core be a to also strive We privacy strategy. our customers where organization reliable personal of their trust us with the safety Our Data Privacy program information. privacy and handles data protection by categorising on sensitivity data based (confidentiality), criticality (availability), This identifiability (privacy) and compliance. determine categorisation to is then used required. the safeguards been certified have with ISO standards. We Data QualityData complete, maintain accurate, Our company personal and relevant timely, consistent, the purposes identified in the for information Quality Data notice. model and operating operational. is defined and made processes and described analyzed Data is profiled, in Data Quality against the dimensions, for and golden sources. enterprise repositories will document data quality data owners The rules based on the characteristics of the The data controllers profiling. data from along with the senior management ensure extended andthat data elements are dataThe based on the context.enriched, delivery services will be ensuring adequate and requirements abstract environment The met. are requirements data transfer data quality that adequate function ensures maintain in place to are integrity controls the data while data privacy information and security that modification of data ensures dataThe is performed roles. designated by quality and monitoring assessment are performed of the data based on the nature Further, stage. operation and the lifecycle data by continuously monitored are the KCIs in the Control and data owners controllers in the data handled errors Any scorecard. function with the data remediation by cause analysis documented. root adequate Policies and Standards for for and Standards Policies Information Protecting well-defined policies designed have We and actions aid all major decisions to in a our rightsmanner that protect and those policies cover Our of our stakeholders. of business impact including all areas social and governance environment, operations. guidelines for out robust laying They also extend our supply chain, and to supportthereby rights equal along the value chain. Our collection of policies for privacyethical usage and data includes Data Privacy policy, Policy, Prevention Fraud Intellectual Property Use Policy, Acceptable Information Rights & Ownership Policy, Security & ManagementData and Policy In addition, Request Management Policy. certified are we with ISO/IEC 27001:2013 Information Security Management and ISO 20000-1:2011 Information System Service Management Technology our data security strengthen to and implement best practices. Access to financial products in all regions of regions in all financial products to Access India last mile services. through services digital to Access (e-commerce, personal and for etc.) telemedicine, logistics, of India business needs in maximum regions services all access to Equal all strata of to society stakeholdersEase of usage and trust by Services rural ignored previously to population of essential servicesPrevalence like banking, e-commerce, in and logistics insurance areas remote Hassle-free services time and increases saves productivity and franchisees of customers in society inclusiveness as servicesGreater like biometric-enabled banking help banking avail citizens serviceilliterate with ease long distances due to travel No need to banking of interoperable provision Presence in 27 states and UTs, over 510 over and UTs, in 27 states Presence than 4,580 postal codes districts, and more in India than 8,500 outlets Over 70% outlets or more VI locations in India Tier V and Tier in Data privacy and security Virtual Assistance Internet of Things InterfaceChatbot Conversational and Designs Incentives Financial Big Data and Data analytics Impact • • • • • • • • Outcome • Output • • • • • Blockchain • • • Input • Our Impact 88
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approach, to establish, implement, operate, ISO 27701 - Privacy Information The benefits of ISO 27701 are mentioned monitor, review, maintain, and improve Management System below: information security. Protecting information • Builds trust in managing personal is a top priority for Vakrangee and ISO We also have ISO 27701 - Privacy information 27001:2013 certification ensures protection Information Management System which of data that belongs to the Company, its ensure enforcement of compliance • Provides transparency between customers and its partners. with mandatory regulatory, internal stakeholders compliance, best practices, legal and • Facilitates effective business ethical requirements along with need for Our priority is to secure the valuable agreements information assets by putting in place managing risk. Appointed a Data Protection • Clarifies roles and responsibilities appropriate policies, procedures and Officer as a data controller who records controls with an objective to assess and the purposes of all the data processed • Supports compliance with privacy treat risks. The ISO 27001:2013 Information and implement measures to appropriately regulations Security Management System certification manage risks for the rights and freedoms of • Reduces complexity by integrating process requires Vakrangee to thoroughly data subjects. with the leading information security evaluate information security risks, standard ISO 27001 including the impact of identified threats As a commitment towards information and vulnerabilities, design and implement a security and data privacy, one ISO 20000-1:2011 Information comprehensive set of information security representative from the Board of Directors is part of Governance of Information Security Technology Service Management controls and other risk management System measures to address security risks within and Data Privacy Organisation Structure its own cloud infrastructure as well as its and held the key position. The involvement IT Management System. It benefits us with corporate environment. It implements an of all the stake holders for risk assessment improved IT service management, reliable overarching program to ensure that the (e.g. executive board, board of directors, top IT services with reduced downtimes, information security controls meet the management, HOD’s, other management minimal risk of errors, lower costs, security needs for both Vakrangee and its team) is essential. time-saving and increased customer customers, on an ongoing basis. confidence. The certification confirms that ISO 27701 is a privacy extension to ISO our management practices are tightly 27001 Information Security Management controlled and applied consistently. and ISO 27002 Security Controls. ISO 27701 is an international management system ISO 22301- Business Continuity standard which provides guidance on Management Systems the protection of privacy, including how organizations should manage personal Business Continuity Management information, and assists in demonstrating System specifies the requirements for a compliance with privacy regulations management system to protect against, around the world. reduce the likelihood of, and ensure that the organizations business recovers from disruptive incidents.
With the advent of technological advancements across the globe, the business landscape has transformed profoundly and will continue to evolve with time, as businesses keep on adopting advanced technologies to add value to the lives of consumers. Given its role in determining customer experience and satisfaction, an organisation cannot underplay the value, which technological advancements deliver to various businesses and customers. With a purpose of delivering convenience to our customers, we are regularly investing in best-in-class technologies and upgrading our systems so that we can seamlessly cater to our customers, while ensuring safety and protection of confidential data.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
89 89 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 behavioural insights. We are making are use We insights. behavioural of artificial and machine intelligence which considers historic data learning, make that help predictions to accurate us take actions. proactive Artificial and Machine Intelligence Learning Artificial(AI) and Machine intelligence components integral (ML) are Learning their due to corporate strategy of any of data. high volumes ability process to adopt AI and ML technologies We our business since they develop into leading abilities and are cognitive the next Industrial for technologies being Revolution. AI and ML are lines, our product improve to leveraged advanced business solutions, design big piles from information pull relevant assist the accuracy, improve of data to maximise of resources, in assignment and of existing processes, automation focus We countless human hours. save AI as an augmentation on deploying providing workforce, the current for tool with and other professionals engineers their added insights that will increase focus on efficiency to free them up and enriching experience. the customer Interface Conversational Chatbot and Designs NLP is the ability of the computer human language as understand to it is spoken. It deals with interaction and human between computer tryand the processor and read to Inunderstand the language. our of NLP with the help company, stakeholders will be able technology, their questions and to get answers to the understanding to better develop Inaspects. observed FY 2020-21, we 11,730 franchisees with the NLP all the employees where technology and franchisees can use NLP. 3. 4. Large sets of data are generated and generated sets of data are Large which need with us everystored day, be furtherto sorted, arranged and is not possible This methodically. stored database conventional through our adapted have we Hence, systems. understand We big data. to systems that the amount of data generated particularlywill increase the due to artificial in number of devices, increase and other data streams. intelligence started have workingWe with data utilise the data generated analytics to get and analysing it to processing by Big Data and Data Analytics and Data Big Data We have formed multiple teams to to multiple teams formed have We data smooth operations of ensure security Data Governance operations. that data classifications ensures team including data management characteristics, data security and privacy established. classification are and data governance Data owner that privacy ensure team design by security for for Controls is embraced. established at a data private data are service applicable wherever level rather than at an application level. security information Data privacy, and that the ensure team governance placed are data controls guidelines for existing new to changes or changes for of our efforts, a result As capabilities. in was no instance of data breach there or at the outlets. our organization We have security in place that have measures We with the sensitivity consistent of are Data privacypersonal information. and of security creation information calls for a communication and training program. it describes ensure the need to Further, compliance stakeholder understanding, data privacy the to and information security program. Committee is responsible for drafting for is responsible Committee performed, reviews having policy, to publication and communication Further, of enterprise. the grassroots to ensured policy are and standards Information by Security be reviewed Executive by and approved Committee Management as an extended Level responsibility.
2.
Data SecurityData with Our business model deals of our business information sensitive partners who access and customers our services various channels. through of digitally population a growing With is one of the most data citizens, literate organisation. valuable assets in our Utmost security this asset further to One builds trust of our stakeholders. of the biggest challenges faced by the industry is implementation of user privacy rights and data security. to threats Apart the growing from new data privacydata security, laws existing of enforcement and growing been challenging have regulations efficiencydata governance of the witness a rapid We organisation. the across in data proliferation growth regulations to conform To organisation. privacy information and ensure taken several have we and safety, meaningful steps. Our senior management has Vakrangee constituted Information Security is which Committee, and improving defining for responsible the Information Security Management reports team This (ISMS). System Chief Information the to Security Our Security Information Officer. 1. Our Proprietary Technology Our Proprietary Technology Platform 90
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5. Internet of Things (IoT) 8. Financial Incentives queries. Internet of Things (IoT) is a disruptive At Vakrangee, Employees earn a We also provide a separate support technology that connects multiple competitive salary and annual bonus desk for customers where they can devices like wearable devices, when they meet company’s ambitious register their complaints regarding any enterprise-wide physical assets, and goals. Salaries are reviewed each year, malpractices being conducted by the other electronic devices through with increases based on performance franchisees or any staff. sensors, actuators, amongst others. It and the market value of the position. records and transfer data to give new Annual cash bonuses and ESOPs are Licenses insights and allow companies to make based on performance (individual, We aim to provide opportunities to rural more informed decisions. We adopt company and, in some cases, business entrepreneurs and hence, go to great this technology in improving process unit). Our company provides generous lengths to make them feel at ease along efficiency, utilization of assets and benefits, including health coverage their journey with us. We ensure the Next- productivity. IoT enables us to monitor (on-site medical services), company- Gen Vakrangee Kendras are asset-light ATMs, electric surveillance and logistics matched retirement benefits, ESOP, investments owing to majority of outlets at corporate office. In FY 2020-21, we basic life insurance. Coverage is being in rural areas with a brick and mortar monitored 11,730 franchisees with the available to employees in all locations layout. We charge the franchisees only help of IoT which has increased from on the first day of employment. for the hardware and software licenses of the previous financial year which was our proprietary platform. We earn revenue 10,000 franchisees working with the 9. Virtual Assistance- Voice based from software usages and license where help of IoT. services customers obtain a “right to use”. Revenue Our company has adopted Natural from software and license is recognized 6. Augmented Reality and Virtual Language Processors (NLP) like voice- when the software and license is made Reality as a Mixed Reality based services for customers to make available to the customer, whereas, revenue Virtual Reality (VR) offers users to their day to day tasks much easier and from licenses, where the customer obtains experience spatial presence while convenient. The assistance is provided a “right to access”, is recognized over the Augmented Reality (AR) helps simulate in all our 11,730 franchisees. access period. We also own the license things that are not present in the from Reserve Bank of India (RBI) to set up real world. The advantage of this Technical Support Desk Process and and manage White Label ATMs, enabling technology is that the customer can Customer Support Process. real-time cash withdrawals from all the experience the product or services The Franchisee Technical Support Desk banks. Due to our continued efforts, we before buying and without its physical (TSD) is an important communications have crossed the 5000th white label ATM availability. All the employees at our link between the franchisees and the Milestone and currently are the 4th largest firm are trained on these technologies. Company. It will serve as a central ATM operator in Rural India. Our total 7. Block Chain point of contact for information and number of White Label ATM transactions support with regards to the Franchisees stood at 5,45,51,588 for FY 2020-21 which The company has leveraged blockchain Technical queries. is more than the transactions happened in the elimination of reconciliation, in the previous financial year which stood the real-time visibility to perform track The Technical Help desk manages all at 4,40,68,636. We have our own software and trace analysis, assess risks, End- calls centrally via a dedicated phone VKMS (Vakrangee Kendra Management to-end data encryption, protecting number 022 - 67765178 and toll-free system) which offers services through any kind of transactions, transactions number 18002744427. systematic real-time secured integration cryptographically secured, control with our partner systems. We also have personal data like identity proofs, • Description of Help Desk the Help mobile app for Franchisees and are in citizenships, financial and educational desk is operated for 12 hours (8 AM process to launch Vakrangee app for records, distributed public digital ledger to 8 PM) on working days and 8 customers. to devise solutions to record critical hours on non-working days of week information and transactions, such as with higher workforce present in Research and Development intellectual property management, day shift to address the Franchisee digital transactions, identity (R&D) and Achievements management, auditing, business The company is now using AR and VR, agreements and contracts. which are among the latest technology
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
91 91 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Courier Booking Online Agri Products – Seeds & Products Online Agri Pesticides Online Education Movie Tickets / Entertainment Movie Travel services (Bus / Train / Flights / / Flights Train services (Bus / Travel Bookings)Hotel Mobile / DTH recharges Mobile / DTH All type of Bill payments Mutual funds / Credit Cards Mutual funds / Credit Loan products / Financial products / Financial products Loan Money Transfer / Insurance Transfer Money Total Healthcare services Healthcare (Doctor Total Test consultation, Home Blood packages) Care Covid facility, Online Shopping • • • • • • • • • • • The Company would be providing be providing would Company The various services its through digitally such as : - Mobile app platform • The Mobile super app platform MobileThe super app platform various consumer be offering would products and services under one use it would Consumers umbrella. every offer our app would because day multi-service,a seamless, integrated, and efficient experience. contextualized / Services Our Product are offering personalized, highly customized, visually use, simple to intuitive, drive to designed appealing and are high engagement with our customers. All-in-one platform for all Customer all Customer for All-in-one platform needs - By a single downloading App BharatEasy Super Vakrangee’s get customers mobile application, our and a wide array of Products access to Services significantly which would switch to their requirement reduce lead would This between multiple apps. superior experienceto customer and the customer. for convenience Going forward, the company plans to to plans the company Going forward, servicesmake more this through live platform. The Company has also launched a has also launched a Company The Mobile based business Super App BharatEasy Mobile App. platform: • • • • Launch of Mobile Super App : MobileLaunch of Super App Super App BharatEasy • Vakrangee has entered online space online space has entered Vakrangee total with the launch of digital has Vakrangee services.healthcare a unique Hybrid into evolved O2O Offline) to (Online whereby platform, through available is Assistance there network along with store the Physical Online Services.Digital to intends the company this, With to utilize an option Customers its offer various partner services at company’s as online outlets as well physical help which would platform Digital transact to seamlessly. its customers the existing Kendra network Further, Physical acts of as a unique offering the for assistance being available trust which bringscustomer in more a into has evolved This and comfort. Unique Hybrid whereby proposition avail can choose to the customers servicesVakrangee as per their own convenience. Initiated this Unique proposition servicewith launch of first Digital of services Healthcare Telemedicine a CVS Aetna, (vHealth by Pharmacy 500 – Fortune Company Group company). • • trends in the financial year 2020-21. in the financial trends conversational introduced have We interfaces human like voice using NLP for play to which designed conversation, adopted We have assist. roles and different (IoT).Things Internetand implemented of Virtual Assistance for in process now are we voice-based servicesand integrated in make to customers our application for connectedtheir everyday and more lives our investments increased We convenient. more to technology in R&D and advanced INR 2 on FY 2020-21, from than INR 3 Crores in FY 2019-20. invested crore Digital a keyAs towards Innovative step has Launched the company initiatives, Kendra:Vakrangee Unique Hybrid Digital Offline).Model to (Online • 92
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Social and Relationship Capital
The Covid-19 caused an unprecedented interruption to physical-social interaction. We witnessed a significant proportion of India’s population under lockdown and isolation, with limited access to day-to-day activities and resources. The Covid-19 pandemic was unlike any other Pandemic the world had experienced till now, making use of advanced technologies and social networks indispensable. For India with nearly 68% of its population residing in the rural part of the country, building last-mile resilience is a necessity. Prime Minister’s initiative was focused on creating a Self- Resilient India, to help in building and strengthening the resilience of the nation. This allowed local players in boosting their business.
SDGs Aligned
Shareholders and Investors NGOs, NPOs, Civil Franchisees Society
We believe in giving back to society and empowering underprivileged communities, thus reaching people at the bottom of our Business Employees pyramid. We engaged in strengthening our Partners corporation by making Kendra’s operational across the country. This played a crucial role in providing key services and being Stakeholders able to serve the nation in the pandemic situation and contributing towards building a Self -Reliant India. We recognized the Industry Suppliers/ importance of contributing towards bodies Vendors building of a long-term relationship with all our stakeholders, by doing our part for the people during such a difficult time. We strived to integrate stakeholders in Local Community our business decisions while maintaining Customers transparent communications through Government and various channels, thereby strengthening Regulatory our relationship every step of the way. body
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
93 93 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Progress Review Meeting: Progress done with meetings are These management the supplier’s The basis. on a regular team these meetings agenda for well- is generally workers’ sourcing sustainable being, reduce to steps of products, impacts, environmental ESG performance trends, impending contract events changes of the or milestones, actions/contract, proposed or current to responses and similar problems potential the operation affecting matter of contract. Review Meetings: Technical between meetings are These representative our technical expert. technical and supplier’s these meetings agenda for The of technical is generally review reports, ESG performance data and discussion of the role and contribution of technical in achieving the ESG team parameters. Review and Audits: Long-term meetings determine the These of ESG requirements progress which are and the changes, be undertakento within the meet the to system supplier’s meetings are These if any. gaps, undertaken in a systematised that the ESG ensure manner to our objectives outlined for suppliers can be achieved. In our extended supply chain, suppliers’ and verify monitor we performance as and improvement will we Furthermore, per the policy. consider every effort of suppliers embrace sustainabilityto within reserve the right We their business. map supply ask suppliers to to We conduct regular meetings with conduct regular We our suppliers particularly the one a long-term have with whom we contract. Somecommon contract undertakenmanagement meetings with the suppliers include: • • •
2. Meeting Internal Audits Internal undertake we Under this, an of the independent review unbiased, of our suppliers against the systems identified key performance indicators and verify the strategies (KPIs) to the suppliers by adopted processes dealing with ESG risks. for Suppliers were assessed Suppliers were 9 based on social and impact in FY environmental 2020-21 Engagement with Suppliers/ with Engagement Vendors part an integral are Vendors Suppliers and to committed are we of our business, the help improve adopting policies that of all workers supply chain the lives across We help preserveand to the environment. one such policy developed have that is and Green Policy the Sustainable Sourcing which clearly Policy defines Procurement suppliers all our for the prerequisites expect all our suppliers We working with us. comply with necessaryto business social, sustainability and environmental integrity, policies defined in our supplier standards and adopt leading practices reduce to footprints. social impact and environmental expect and review our suppliers to We regularly and comply with these standards help to upon the parameters improve of society and the welfare contribute to policyThe all applies to the environment. of those of any workers and employees a provide Each supplier must suppliers. this policy our commitment to signing by of Conduct which will be Supplier Code during the supplier onboarding provided process. monitored regularly Our suppliers are on their performance ESG against the the following: through requirements 1. . Conference calls and Board calls and Board Conference presentation press through Business updated releases Analyst meets Annual general meetings • • • Roadshows • In publish annual reports, addition, we contacts to relation investor designate communication and queryfacilitate and a our shareholders for resolution For committee. stakeholder relationship please visit Shareholder information, more Engagement Policy Engaging in Constructive communication communication in Constructive Engaging vital in maintaining a is considered with our shareholders. relationship provides engagement Constructive us in valuable insight that assists of standards maintaining the high committed. are which we to governance Engagement this Shareholder adopted We open and sustained promote to Policy always We dialogue with our shareholders. interaction shareholders with welcome that it is importantand believe have to with them engagement direct regular exchange and encourage the allow to Our investor ideas. of new innovative is primarily for team responsible relations communications with keeping regular required and providing our shareholders in a timely the shareholders to information manner. and accurate channels of communication Various interaction with shareholders for adopted include: • Engagement with Shareholders Shareholders with Engagement and Investors 94
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chain back to origin, in order to Engagement with Franchisee Franchisees owned by: facilitate assessment of supply chain We are one of the largest franchisee-based, compliance. In addition, we reserve multi-service retail networks and are focused the right to audit any supplier’s on creating India’s extensive network of facilities periodically. We will provide last-mile retail outlets at every postal code results of audits, including areas of in the country, enabling Indians to benefit 1,241 947 improvement, to suppliers. from financial, social, and digital inclusion. Women Divyang For more information, please We direct our efforts towards empowering visit Sustainable Sourcing Policy, rural entrepreneurship, employment Engagement with Customers Supplier Code of Conduct and Green generation as well as skill development, We are a unique technology-driven Procurement Policy thereby bringing urban convenience to the doorsteps of rural dwellers. Amidst Pandemic company focused on building India’s Engagement with Business we made our Kendra Outlets accessible to largest network of last-mile retail outlets to Partners (No additional info was people, stores were Operational with all deliver real-time BFSI, ATM, e-commerce, and logistics services to the unserved provided for Business partner by Safety Protocols in place. During this difficult situation, we launched a new initiative to rural, semi-urban, and urban markets. The Vakrangee) cope with the times. Assisted Digital Convenience stores are One of our key stakeholders enhancing our called “Vakrangee Kendra” which acts as the “One-stop shop” for availing various services creation of value are Business Partners. We Doorstep Banking collaborate with industry leaders to deliver and products. Our Banking Business Correspondents BCs the best quality products and services provided doorstep banking services to Jan efficiently and effectively. Moreover, Our business model is completely Dhan Account Holders in remote rural areas we boost the reach to unserved and sustainable focused on enabling Indians especially for senior citizens and old age underserved markets of India. Following to benefit from financial, social, and digital pensioners. are few methods of engaging with our inclusion. Through our vast network of business partners: outlets, we are driving financial, digital, and Tele Medicine Services social inclusion in rural India. Our ultimate • Dedicated service or vertical head to We revolutionized Rural Healthcare by purpose is to ensure that every Indian has engage with business partners introducing vHealth by Aetna’s (a CVS the opportunity to benefit from financial, Health company, Fortune 500 Company) digital, and social inclusion and has access • Quarterly and ad-hoc or need-based telemedicine services at our Next-Gen to the global marketplace. interactions with business service Kendras. partners of senior management Our Entire Business model and the • Invite business partners once a • Telephone or video consultations products/services we provide are all month for state team webinars for with vHealth’s in-house primary care sustainability-related products and services. direct interactions, feedback and doctors to help reduce the need for Our Kendra outlets are One-stop shops question-answer sessions physical consultations by over 70%. providing key Essential and necessary services to the citizens of the country in • It provides access to professional • Joint marketing initiatives and Rural India such as: strategies for service activation and medical advice and the highest- quality healthcare at a time when sales targets • Banking Services governments and healthcare • Interaction with IT team for service authorities, across the globe, are • ATM Services integration as well as data security recommending social distancing, to strategy curb the spread of the virus. • Online Pharmacy • CRM team and Subject Matter Registration for 30 days free vHealth Number of outlets offering following Experts for service training and issue services services: redressal We facilitated free registrations for vHealth In order to be able to provide best-in-class by Aetna’s 30 days free virtual doctor 11,730 products and services to the underserved consultation service. This initiative focuses BFSI and unserved India, we continued to on providing free medical guidance to collaborate with leaders of diverse people visiting Vakrangee outlets for 5,414 industries. Keeping true to the motto of essential services. Thereby, ensuring people ATM “Sab Kaam Ek Dukaan”, we have built robust getting all essential services under one roof strategic alliances for all our services. and minimise their visits to multiple places 11,730 in the current lockdown situation. E-Commerce & Logistics
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
95 95 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Engagement with NGOs/NPOs/ Engagement SocietiesCivil contribute to strived continuously We betterment the of the countrytowards and upliftment underserved of the communities the facilities for them access to providing by recognized We lives. betterment of people’s the society. towards our responsibility Engagement with Industry with Engagement Bodies a member of various national As Chambers associations such as Associated and Industryof Commerce of India National Association (ASSOCHAM), of Software and Services Companies and Business Correspondent (NASSCOM) of India (BCFI), among others, Federation practices the best to of industries. follow we a signatory are member of we Additionally, are We Nations Global Compact. the United partnow 12,000 of a global network over of companies which includes 8,000 businesses and 3,000 non-business participants that building a sustainable to committed are future. interact with industryWe bodies on an on-going industry basis through body a part are of meetings We membership. Corporation of with National Payment cards India, Digital India RuPay (NPCI) for also We initiatives. expansion and ATM with monthly updates engage through partNPCI. As of industry are we bodies, participateable to in discussions as well economic addressing as contribute to among others. challenges, Since 2016 we are a member of are Since 2016 we industry of ATM Confederation The to was dedicated CATMi (CATMi). of the ATM the interests promoting Industry combined and through concerted efforts of liaison with and financial regulators government institutions/banks in India. a constructive role played have We Label White in promoting in CATMi (WLA) have We Business in India.ATM in the promotion supported CATMi Model in India of the Franchisee been partand have of various working on of CATMi committees WLA business. policy advocacy for Business The a member of are We of India Federation Correspondent BC bankingWe (BCFI) for services. also interact Payments with National Corporation our of India (NPCI) for service. ATM tie-ups have with all major Banks We such as SBM Bank (India) for Ltd Banking Business Correspondent appointing (BC), for Bank of Baroda BC Sakhis providing for Women Banking services in UttarPradesh, (TUCIBIL), CIBIL Limited TransUnion CIBIL easy access to providing by and Report,Score Lendingkart and Union Bank of India Ltd Finance loan facilities to providing (UBI) for also been given have We Kendras. In-principlegranted authorisation Bharat Bill set up and operate to Unit (BBPOU) Operating Payment Settlement and under the Payment Reserve Act, 2007 from Systems Bank of India (RBI). Our purpose is to provide a reliable network a reliable Our purpose provide is to to that helps the population of ATMs and non-financial do the basic financial service, Aparttransactions. the ATM from banks and an association with PSU have we RBI engages in yearly audits private players. with associate We business. the ATM for as private partnersGovernment as well to inclusion and digital social, drive financial, the rural communities in India.throughout • • • • Digital Healthcare - Telemedicine Telemedicine - Healthcare Digital health services – Including Unlimited with expert Consultation Video & Tele facilitydoctors & Home Blood test - Online E-Commerce Assisted & Othershopping of Groceries products Ticket Booking & Utility Bill Travel services Payment We continue maintaining no direct continue maintaining no direct We bodies; with Government relationship Label ATM White the own we however, the Reservelicense from Bank of India and set up and manage the ATMs (RBI) to Today cash withdrawals. enabling real-time label ATM White the 12th largest are we in India.operator than two-thirds More of in rural India are making us the our ATMs our vast Through operator. ATM 4th largest Kendras, networkVakrangee of Next-Gen every can provide the facilitywe citizen at every Vakrangee Next-Gen of an ATM Kendra. Engagement with Government with Government Engagement and Regulatory Authority Link: product & Sustainability related services - www.vakrangee.in/pdf/Policies- PDF/Sustainability%20related%20Services. pdf We leverage our technology platform to to platform our technology leverage We a one-stopprovide solution and real- 100 million products over time access to and 1,000 services under a single roof, for infrastructure last-mile creating thereby the distribution of various products and services. • • • tomorrow, a better achieve Our goal is to business our integrated have we which for sustainability and mapped our strategy Nation’s with the United initiatives aim to We Sustainable Development Goals. efficiently adopt these goals and address which include the global challenges, financial inclusion, social inequality, poverty, degradation, environmental climate, and peace & prosperity, economic growth and justice. 96
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Engagement with Local • Innovation and Infrastructure There are no current or expected negative Community for the communities- We leverage impacts on the communities due to our technology platform to provide new infrastructure investments/projects We have always been a Socially Responsible a range of solutions and real-time and services supported by us. Our Entire company. We are taking financial and access to over 100 million products business is towards delivering Financial digital literacy to the bottom of the and 1,000 services under a single Inclusion, Social Inclusion and Digital socio-economic pyramid and serving roof, thereby creating last mile inclusion to the Communities. by connecting India’s unserved and infrastructure for distribution of underserved rural and urban citizens. We various products and services. We CSR Policy have mapped our sustainability initiatives are building resilient infrastructure with the United Nation’s Sustainable We foster at an inclusive environment of and fostering technology innovation growth & sustainable development of the Development Goals. Our goal is to through real-time paperless achieve a better tomorrow. We aim to community, ensuring harmony between biometric-enabled banking. Inter- community & business operations. We efficiently adopt these goals and address operable banking is achieved by the global challenges, which include take major strides with a clear path connecting the core banking servers towards the development of the unserved poverty, inequality, climate, environmental of major banks. degradation, prosperity, and peace and section of the community. The CSR justice. • Clean water and Sanitation- Every committee is responsible for strategizing & Kendra has an arrangement of a implementation of the CSR practices in the The UN SDG goals are interconnected, and water cooler providing drinking Company. we intend to implement them to make water facilities to people at free of the world a better place. We believe that cost. 70% of our Kendras are centred CSR Committee businesses can have a positive impact on in Tier V and Tier VI cities, thus As per Section 135 of Companies Act, 2013, the societies they serve. Some of the key creating clean water drinking facilities a CSR committee has been constituted social impacts for the community through in remote areas. which comprise of following members of the Board: our business-as-usual activities include: At Vakrangee we believe in creating Financial Inclusion and Social Security, S. No. Name of member Designation • Reduced inequality- We aim to the initiative that Government of India 1 Mr. Dinesh Nandwana Chairman improve the standard of living of rural proposed is to work towards creating a 2 Mr. Ramesh Joshi Member citizens in the country. We are the universal social security system for all, 3 Mr. Sunil Agarwal Member human equalisers of life, bridging the especially the poor, underprivileged gap between India’s urban and rural and the workers in unorganized sector, The committee is responsible for population. using the bank accounts as the basis for formulating and recommending a • Gender equality- We provide launching the schemes. We were able Corporate Social Responsibility Policy to opportunity to own franchisees to provide people a platform to initiate the Board. The Policy shall indicate the by both women and men. We also financial inclusion through social security activities to be undertaken by the Company ensure full and effective participation scheme viz Pradhan Mantri Jeevan Jyoti as specified in Schedule VII; recommend the and equal opportunities for Beema Yojana (PMJJBY), Pradhan Mantri amount of expenditure to be incurred on leadership at all levels of decision- Suraksha Beema Yojana (PMSBY), and the activities referred to in clause (a); and making. Additionally, we adopt and Pradhan Mantri Mudra Yojana (PMMY). monitor the Corporate Social Responsibility strengthen sound policies for the Policy of the Company from time to time. promotion of gender equality and We aspire to contribute towards the growth women empowerment. of our economy, by making the world a better place to live. Through Assisted E • Enhancing skill – Involving ordinary commerce model for online shopping, we individuals and training them with a provided people with a trusted, secure and skill set and providing certification to convenient option to all our customers in yield remarkable results. rural location. Our customers have access • Decent work and Economic to multiple products; from daily staples, growth- We create local work fashion items, to electronics. Our Business opportunities by hiring resources model acts as a Social Equalizer as we and undertaking skill development, provide the same products at affordable with certification for banking and prices in the remotest parts of the country. insurance services. We are driving We also offer the convenience of getting rural consumption and rural growth the products delivered to our Kendra through our Kendras. whereby the customers can pick up.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
97 97 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Enhance capacity, skill and Enhance capacity, of employee, competence partners,development community and other stakeholders enable to in sustainable involve them to initiatives. development promote to local youths Organize Sports, Art and also and Culture opportunity an create them so for their country. that they can represent People/Community Ensure participation of CSR during execution activities. conservationEnvironment though sustainable initiatives. - Eradicating hunger, Healthcare poverty malnutrition, and promoting including preventive health care and sanitation including health care contribution the Swachh to Bharat Kosh the central setup by of the promotion Government for sanitation and availability of safe drinking water. bodies various to Contribution - Contributing or collaborating voluntary trust, with registered academic institutes, organisations, society Government or a registered undertakingor a company CSR activities. education, - Promoting Education including special education and enhancing vocation employment skills especially among children, elderlywomen, and the differently enhancement abled and livelihood projects. 21. 22. 23. 24. is a significant Sustainable development part social responsibility of our Corporate social include financial, areas Our focus adopt any may We inclusion. and digital and initiatives of the following one or more VII activities in Schedule as enumerated be Act, 2013 or as may of the Companies time under this CSR time to amended from Policy: 1. 2. 3. Work towards generating awareness generating awareness towards Work that public infrastructure creating for and enabling inclusive is barrier free, the elderly all including and the for disabled. towards awareness positive Create that adopt measures the need to carbon reducing lead towards on fossil dependence footprints, energy alternate fuels and promote approaches. and the well-being Promoting and of employees development an inspiring their families through that engenders corporate culture good values. participationEmployee is an important part of developing Our citizenship. responsible encourages and company spend to employees motivates on issues of their time volunteering interest. as a the time of national crisis, At us to for it is imperative company emergency to & situations respond timely help to providing by disasters victimsaffected families. and their social, economic, Promote infrastructural and educational, providing by health development active support local initiatives. to difference significant Create of stakeholders in the lives by with sustainable initiatives aligning development. Optimum use of physical, by resources financial and natural collaborating with Government community-based Organizations, donor agencies, organization, corporates and other foundations, development/likeminded partners. stakeholders participationEnsure of in planning and execution create to initiatives development and accountability. ownership 12. 13. 14. 15. 16. 17. 18. 19. 20. Using environment friendly and safe friendly safe and Using environment in production. processes within footprint a positive Create and inclusive the society creating by enabling infrastructure/environment communities. liveable for sustainability environmental Ensure practices adopting best ecological by conservation/and encouraging judicious use of natural resources. the mainstreaming towards Work of the segments marginalized providing society striving by towards equal opportunities and making in their lives meaningful difference child and the girl on educating Focus the underprivileged providing by and infrastructure, appropriate value creators. them as future groom in skillAssist by development and technical direction providing expertise the vulnerable thereby to a them towards empowering life. dignified basic on providing Emphasize facilities with nutrition/health care on establishing health special focus the mother and child as for centers as the elderly. well conservation water by Facilitate consumption at water reducing the plants and taking up rainwater harvesting projects. a business value chain which Create + is sustainable – environmentally socially + economically. work culture. an inclusive Promote Undertake engagement proactive with stakeholders actively to the socio-economiccontribute to of the periphery/development community in which it operates. 3. 4. 5. 6. 7. 8. 9. 10. 11. 2. Guiding Principles of CSR GuidingPrinciples Implementation some of the guiding also identified have We our CSR principles achieve that help us to and integrated objectives in a professional manner. 1. 98
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4. Equality - Promoting gender promoting Sustainable Development equality, empowering women, Goals (SDGs). setting up homes and hostels for 10. Contributions or funds provided to women and orphans; setting up old technology incubators located within age homes, day care centres and academic institutions which are other facilities for senior citizens and approved by the central Government. undertaking measures for reducing inequalities faced by socially and 11. Rural development projects; economically backward groups. 12. Slum area development 5. Environment - Ensuring Our aim is to undertake initiatives environmental sustainability, to eradicating hunger, poverty and ecological balance, protection of malnutrition, promoting preventive flora and fauna, animal welfare, health care, promoting education agro-forestry, conservation of natural including special education and resources and maintaining quality of employment enhancing vocation soil, air and water. skills etc to create a positive impact 6. Preservation of art and culture within the communities through - Protection of natural heritage, art such engagements. We have invested and culture including restoration a total of INR 745.04 lakhs in various of buildings and sites of historical initiatives for this FY 2020-21. The importance and works of art, setting break up of the amount spent during up public libraries; promotion and the financial year is detailed in the development of traditional arts and below table: handicrafts. CSR project Sector State and Amount Amount Cumulative 7. Armed forces - Measures for the or activity district where outlay spent on the Expenditure benefit of armed forces veterans, war identified projects or (budget) projects or upto the widows and their dependents. programs project or programs reporting were programs period 8. Sports - Training to promote rural undertaken wise sport, nationally recognised sports, VIPRA Cl.(ii) Mumbai 20.00 20.00 52.59 Paralympic sport and Olympic sports. Foundation Infrastructure (Maharashtra) 9. Contribution to incubators for Education - Contribution to incubators Mental Health Cl.(i) Health New Delhi 5.00 5.00 15.00 funded by central Government or Foundation Care state Government or any agency (India) or public sector undertaking RVG Cl.(ii) Mumbai 25.00 25.00 30.00 of central Government or state Educational Promoting (Maharashtra) Foundation Education Government, and contributions to Wockhardt Cl.(i) Mumbai 3.63 3.63 3.63 public funded universities, Indian Foundation Eradicating (Maharashtra) Institute of Technology (IITs), national Hunger laboratories and autonomous bodies Kota Dall Mill Cl.(i) Kota 38.36 38.36 38.36 (established under the auspices Eradicating (Rajasthan) of Indian Council of Agricultural Hunger Research (ICAR), Indian Council of Lions Club of Cl.(ii) Mumbai 3.00 3.00 12.50 Medical Research (ICMR), Council Juhu Infrastructure (Maharashtra) of Scientific and Industrial Research for Education (CSIR), Department of Atomic Energy (DAE), Defence Research and Development Organisation (DRDO), Department of Science and Technology (DST), Ministry of Electronics and Information Technology) engaged in conducting research in science, technology, engineering and medicine aimed at
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
99 99 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Moreover, we have also committed also committed have we Moreover, research contributingto towards faculty and internships, projects, labs, amongst others with an aim to chairs, further objectives the of the scheme upon in the tripartite as agreed MoU between central Government, signed and various Government state industrypartners. Mechanism Redressal Grievance that the valuable role recognize We in the longer-term businesses play rights of the human protection of all to committed are We our employees. the human rightsrespecting of our those affected and communities, workforce, believe We all our business operations. by is the best workforce that an empowered and identify feedback receive to way employee address To areas. improvement concerns and complaints on human rights a Grievanceand decent labor practices, with appropriate Procedure Redressal and mechanisms has been placed systems and is backed policies and statutory by an online Implemented through provisions. open and structured portal, for it allows discussions on grievances raised on these fairly. issues and their resolution 0 complaints In recorded FY 2020-21, we parties, third regulatory customers, from bodies and local community members, privacy. of customer concerning breach was no theft, identified leak or loss There In data in the reportingof customer year. has been no instance of FY 2020-21, there fines or non-monetarysignificant sanctions non-compliance and/or for with laws in the social and economic regulations 0 complaints received We domains. unethical and unlawful regarding been Both complaints have behaviour. and duly resolved. addressed assessed 100% of our operations for We we corruption. to Inrisks this regard, related also conducted Anti-bribery management audit and compliance management audit did not face any we Moreover, successfully. for corruption, case of confirmed incidents corruption or any public cases regarding anti-competitivelegal action regarding and violation of anti-trust. behaviour To make it the foremost make it the foremost To institution in information and allied fields technology of knowledge in the global context. and competent develop To imbued with capable youth the spirit and of innovation with the entrepreneurship social and environmental orientation meet the to knowledge of the needs country. global leadership provide To and technology in information allied fields and promote. transparency of the ensure To of in matters highest order admission, appointment to academic various positions, evaluation, administration and finance. that enables about 40- 50 bypass 50 bypass that enables about 40- in a surgeries and valve surgeries month. the industry are partnerWe for setting up of IIIT Kota and have contributed INR 320 lakhs or 2.5% of capital cost of INR 12,800 the total lakhs. Objectives of this scheme are: • • • • 1. Education Healthcare running a multi-speciality are We hospital in the city of Kota, Rajasthan. hospital performsThe all the such multi-speciality treatments urology, neurology, as cardiology, gynaecology, general surgery, orthopaedic, gastroenterology, amongst others on a no-profit no- Medical servicesloss basis. provided 30-40% in this multi-speciality are rates cheaper than the prevailing patients Furthermore, in the town. bear the cost of unable to who are of charge free provided are treatment costing Treatments medical services. INR 50 lakhs are approximately Cost of year. of cost in a free offered indoor patients stood facility for food at INR 10 lakhs 2020-21. in the year us is used for by donation given The setup (CTVS)cardiac at the hospital Well- Being Well- or health of a person in The has become environment given this sensitive With unpredictable. physical own our towards nature that believe and mental health, we of a person is of the well-being paramount importance. this has and sponsor marathons led us to be a to encourage our employees part activity a physical of such to of an active the significance promote of the benefits recognised We life. marathons include long-lasting on individuals with improved effects mental health, immune system, amongst others. destressing, sponsor been the associate have We the Hiranandani Marathonfor and registration free also provided have at the marathon run employees to events.
2. Key CSR initiative undertaken: CSR initiative Key 1. 100
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We maintain a “Zero Tolerance” approach reported. Further to address any act of to Sexual harassment. Also, as per misconduct, we have the internal complaint the regulatory requirement, we have committee which takes up the matter. The formulated a “VISHAKHA COMMITTEE” composition of the committee is as well as and an Internal Complaint Committee the contact details are as below: to address such incidents as and when
S. Name Designation Role Contact Details No 1 Mrs. Veena Shetty General Manager Special Counselor 9167766761 2 Mrs. Anagha Chitare Deputy General Head – Complaint 9167766768 Manager Committee 3 Mr. Viral Majmudar General Manager Member 9167766732 4 Mr. Chetan Joshi Head HR Member 9167766721 5 Mrs. Poonam Tiwari Deputy General Member 9702300045 Manager
We have a well-defined whistle-blower our ecosystem whether financially or policy that provides a platform for otherwise. For more details, please visit franchisees, our employees, business Whistle-blower Policy. The Whistle-blower partners, or any other third party to can report any issue either of the below raise concern regarding any irregularity, members: misconduct, or unethical matters within
Committee Name Designation E-mail Id Contact No Group Ethics Officer Mr. Chetan Joshi AVP-HR [email protected] 022- 67765100 Compliance Officer Mr. Jay Bhansali Company Secretary [email protected] 022- 67765100 Audit Committee Mr. B.L Meena Chairman of the committee [email protected] -
CERTIFICATE OF REGISTRATION SHAMKRIS GLOBAL certify that the Sustainable Procurement Management System of
VAKRANGEE LIMITED
"Vakrangee Corporate House", Plot No. 93, Road No. 16, M.I.D.C. Marol, Andheri (East), Mumbai — 400 093
Complies with requirements of ISO 20400:2017
Scope of Certificate Delivering Banking, e-Governance, e-Commerce, Insurance and other strategic alliances and partner's services/products by creating franchisee network and monitoring the performance, impact of our outreach and roll-out initiative by insuring front-end service delivery points within the reach of each and every citizen with prompt, accurate, secure and reliable integrated services/products to end customers through online devices with strong management and field team till the block level end by being the last-mile link connecting India's rural and urban citizens with the modern ecosystem and by its sustainable procurement activities, balance meeting its needs for products and services with minimizing environmental, social and economic impacts. Certificate Number : SPM 1323 Date of Last Issue : 12/03/2020
Date of Initial Registration: 12/03/2020 Date of Expiry : 11/03/2023
Surveillance Audit 1st Year: 12/2020 2nd Year: 12/2021
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
101 101 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 . ISO Policy for more information. more for . ISO Policy ISO Certification 2020 a Milestone consider the year We International achieved have us to for certified are with ISO We Standards. 37001:2016 Anti-bribery Management our compliance demonstrate to System business ethical and commitment to Our certificationpractices. of ISO 45001:2018 Occupational Health and Safety mitigate equips us to Management System cause employees which may factors, harm. irreparable ISO and business any Management19600:2014 Compliance establishing, guidance for provides System evaluating, implementing, developing, an effective maintaining and improving compliance management and responsive Similarly, within the organization. system ISO 20400:2017 Sustainable procurement assist organisation Management to system implementation and with the development In strategy. sourcing of a responsible with other ISO accredited are addition, we certifications our business that strengthen performance our service and improve visit our https://vakrangee. Please delivery. in/pdf/Policies-PDF/Vakrangee%20ISO%20 Flag.pdf To enhance transparency across business enhance transparency across To made operations and stakeholders are All franchisees and of all our policies. aware a code of sign also made to suppliers are conduct in line with our policies. We even provide an Independent provide even We Reporting 24- Hotline which is available questions or raise concerns share hour to by a or file complaints. It is administered raise issues people to party, it allows third local country where law anonymously, contact you When you the Hotline, permits. number an identification will be assigned (a unique tracking may number) that you additional up or provide follow use to and All reports promptly information. are fully investigated. 102
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Financial inclusion has been a concern for both the government and the economic development leaders. Even though several policies and legislation have been implemented, they have only served to inspire historically under- banked communities to seek formal financial institutions. In India, digitisation took a U-turn by being more inclusive to individuals. The Centre had proactively attempted to integrate the population into the broader financial system. Now, a majority of the population has access to open a bank account, and a portion of them even know how to conduct cashless transactions using UPI. This is a positive trend in recent years, resulting in increased confidence in digital platforms.
Natural Capital The year 2020 had been teething troubles for every individual across the world. SDGs Aligned In India, low-income and underserved people were struggling to cope with the catastrophic collapse of the Covid-19. The existing challenge of developing a financially inclusive system had never been more challenging or more significant. Identifying people’s financial needs was the first step towards financial inclusion. Having access to a transaction account to enable people to store money and send and receive payments, was the first step toward In a matter of just few months, the COVID-19 crisis has broader financial inclusion. By introducing the Jan Dhan Aadhaar Mobile by the brought about years of change in the way companies’ government positively affected the banking sector and financial inclusion in India. This function. In order to survive and succeed in such led to a significant change in targeted and reliable payments since the introduction of volatile markets, it is important to rapidly adapt business JAM services. It has also aided in eliminating duplicate entries and the reduction of strategies to address both challenges and opportunities dependency on cash payments and has helped create a trust factor with the created by the crisis. The Indian business recognises the customers.
need for resilience in operation and the need to meet Alongside expanding the business constantly changing consumer behaviour to be the key geographically, we are also addressing the need of the society by amalgamating parameters for continued growth of an entity. technology with innovation through diversification of the services offered. Our
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
103 103 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 policy System Alongside expanding the the expanding Alongside business geographically, also addressing are we societythe need of the by technology amalgamating the through with innovation of our servicesdiversification offered. Procurement Management Management Environmental Environmental Periodic Review Review Periodic of environmental of environmental
and train and train monitoring parameters Continuous Continuous Consult with Consult improvement Targets and its Targets Environmental environmental environmental stakeholders on stakeholders Waste Waste Protection Obligations Compliance Compliance Environmental Policy: Our business Environmental sense of model is based on the a responsible As responsibility. fulfil our aim to we organisation, commitments environmental assessments and regular through identify any monitoring operations to risk and opportunitiesenvironmental them with our business and integrate aim at making our We strategy. friendly value chain environmentally our engaging by and responsible business franchisees, employees, partners, and shareholders customers in adhering with our environmental- working are We friendly practices. lifecycle integrating towards our environmental perspective into Our management practices. commitments include environmental action areas: the following management Environmental 1. We are committed to integrate integrate to committed are We sustainability in all our business of paperless Our initiatives operations. services, Next- banking, - ATM Go Green KendrasVakrangee is aimed at Gen and footprint minimising environmental a sustainable planet. in turn creating sustainability is Our commitment for and risksupported governance a robust by management mechanism. Furthermore, to our approach detailed have we and degradation environmental prevent adopt sustainable operations in business of operations in our Communication section describes Following policy. Progress protection. environmental our policies for Our Policies for Sustainability for Our Policies Thinking Global, Acting Local Thinking Global, Our sustainability framework focuses of the on sustainable development dedicated are We as a whole. economy our through protection environmental to practices. Our policies good governance Nations Sustainable line with United in are Development Goals (UN SDG). Our goal is to our implement the SDGs effectively to business practices fight the and help to change and of climate problem growing fully commit To degradation. environmental labour of human rights, protection towards have we and environment, standards Nations Global Compact. the United signed that our ensure to strive we Moreover, complementarybusiness operations are Voluntary Guidelines National the to of the Indian Government (NVGs). Our enabling alliances and commitments are goal of a the broader us contribute to sustainable nation. focus on creating India’s extensive network extensive India’s on creating focus at every outlets retail of last-mile postal code in the country Indians enable would social and digital financial, benefit from to inclusion. 104
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2. Sustainable Sourcing Policy: We Social generated due to traveling long recognise environmental effects and We conduct business activities with respect distances. Our aim is to bring financial climate change as the key sustainable for human rights and require our suppliers and digital literacy to everyone in a challenge to a business and to the to adhere to the same. We expect our sustainable manner, and thus serve as society at large. We understand that suppliers to comply with all applicable the last mile link that excludes no one. these challenges impact economic laws, in accordance with the principles of stability, ecology and vulnerable the International Labor organisation, the 4. Green Procurement Policy: We are communities. We are committed to UN Global Compact and the UN Universal committed to sustainable growth Declaration of Human Rights. sustainable growth by implementing which is why we have aligned our policies that support sustainable policies with regards to the Sustainable Business Ethics Sourcing Policy. Environmental growth of the planet. Our Sustainable We conduct our business in an ethical manner consideration is an important criterion Sourcing Policy ensures we adopt the and require our suppliers to also follow ethical best practices and in turn reduce our business operations while being mindful in procurement decisions related to environmental footprint. We expect of aspects like conflcits of interest, bribery purchase of products and office related all our suppliers to comply with corruption, gifts and donations, maintenance products as it will have positive impacts necessary standards and minimize of confidentiality, anti-competitive across the lifecycle of the products and the environmental impact across the behaviour, fraudelent activities, regulatory services, which we procure. compliance, fair compensation, greivacne and lifecycle of the products and services whistleblower mechanisms By abiding by our procurement which we procure. Our sustainable standards, we expect all our suppliers to sourcing policy is built on the following Environmental Sustainability comply with necessary environmental guiding principles: We aim at making our value chain sustainability standards defined in environmentally friendly and responsible. this policy and adopt best practices We are committed to comply with the requirements of local laws for environment to reduce our environment footprint. in the countries and regions where suppliers We also expect our suppliers to review operate and from where they source these standards, ensure adherence and material, product or services. We commit improve up on parameters on a regular to give preference to suppliers with lower basis to help contribute to the welfare environmental impact of products and of the society and environment. As a services. process, the entire hardware kit for our franchisee outlets is procured centrally Quality Focus by our procurement team who ensure We are ISO 9001 certified QMS (Quality that all the products are in alignment Management Systems) company since 1998. with our Green procurement policies. We always strive to be the best at what we do. ISO 9001:2015 is used to demonstrate our Through our Green Procurement ability to consistently provide products and Policy, we aim to reduce use of toxic services that meet customer and regulatory requirements and to demonstrate continuous substances, conserve natural resources, improvement. minimise waste generation and release of pollutants/emissions and maximise reusability and recyclability across the 3. GHG Reduction Program: We consider value chain of our product or service. climate change as the defining issue of our time that calls for immediate action by all. In order to address the problem of climate change, we have incorporated sustainable practices into our business model. Our products and services at our Next-Gen Vakrangee Kendras are made available in the most eco-friendly manner. We strive to reduce carbon footprint at our Office and across all our Next-Gen Vakrangee Kendras. With our extensive network of Vakrangee Kendras, we are within reach of every citizen of the country, thus reducing the carbon footprint
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
105 105
Grid 51,214 84.6% 2,81,180 2020-21 3,32,394 57,960 4,31,822 2019-20 4,89,782 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21
Solar 15.4% Grid Solar Total Energy Consumption Energy Electricity consumed in corporate office in FY 2020-21 (Kwh per annum) Energy and Greenhouse Gas and Greenhouse Energy Emissions (GHG) change is a seriousClimate environmental, for that calls and economic threat social, and concertedimmediate action among to committed are We all sectors of society. operate We minimizing our GHG emissions. Through business model. an asset-light we and material policies, waste our rigid is almost no unfavourable that there ensure in course of our on the environment effect managing to committed are We operations. by emissions gas (GHG) our greenhouse carbon intensity the company’s lowering of our use cost, increasing at the lowest support to energy renewable our business targeting in the future, and investing detailed Targets technologies. breakthrough been set on our emissions have below Since FY in 2019, which is the baseline. newyear of our business 2018-19 is the first Kendras, Vakrangee model with Next-Gen with respect monitored is being all progress We have performanceto year. in the first which has initiatives, ‘Go Green’ adopted helped the business go paperless which in turn in has helped in huge reduction Carbon emissions. Electricity consumed in corporate office office Electricity in corporate consumed per annum) in FY 2020-21 (Kwh Responsibility The table below lists the governance the governance lists table below The management for bodies responsible of sustainable and achievement aims to committee The operations. considerations environmental integrate and our business operations into leverage and take steps proactive energy & Innovationtechnology for conservation our throughout our lower to operations with an aim Carbon and save carbon footprint Emissions.
Accountability starts with our Board, which provides governance governance Accountability starts which provides with our Board, and management. operations, the strategy, over and oversight enterprise actively reviews and regularly risk, Board The which includes business continuity climate risk among which are factors, factors. related priorities determines its own Board and considers enterpriseThe including climate- on continuity, review regular risk a key for area if identified as significant. risks, related whom it has our senior management; to oversees Board The authoritydelegated manage the day-to-day to climate-related matters. is a there most senior management group, the company’s Within GHG ReductionThe Committee, Strategy – committee dedicated strategies. keywhich determines and monitors environmental or the Nominating and Governance Management the Board briefs issues. -related / environment on climate as applicable, Committee, & Business strategy goals into sustainable development integrate To Operations. risks and opportunities and manage ESG-related Assess on regular periodic quarterly basis. a objectives from against company-wide Sets progress and drive business different including through general business perspective, groups. risks and opportunities on and manage Environment-related Assess a Quarterly basis. Business Initiatives across related implement the Environment To level. operations at the Field needed the operational progress Drive Team, Along with Admin by supporting for example efficiency meet Resource to targets, efficiency energy and improve to our facilities management teams resourced. appropriately are programs ensure make progress enables to two-pronged faster This approach and articulate and other employees our journey to consistently stakeholders. related Regularly discuss and identify the various Environment of the those initiatives & measures monitor initiatives, Issues, time. time to from company reporting is done on an annual basis. The and disclosure 1. 2. 3. 4. 5. 6. 1. 2. 3. 1. 2. 3. 4. 1. 2. Our commitment for sustainability Our commitment for governance is backed a robust by impact the mechanism that oversees of our business operations areas and major global risks faced by tried to have We all businesses. implement sustainability throughout is managed by our operations which and teams. multiple roles Robust Governance Personnel Oversight:Board Board- Responsibilitylevel Chief Executive OfficerChief Executive (CEO) Chief Operating Officer (COO) GHG Reduction Strategy Committee
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Fuel consumed by company-owned cars for transportation in FY 2020-21 are:
2020-21 Fuel consumed by company-owned cars for transportation in FY 2020-21 Diesel 9422.44 (Kwh per annum) Petrol 1,163.60
Total 10,586.04 Petrol 11%
Diesel 89%
Solar Electricity Consumption in KwH (FY 2020-21)
7620 7785 6594
4962 4101 3432 3730 3832 3718 3455
1985
0 Apr 20 May 20 June 20 July 20 Aug 20 Sep. 20 Oct. 20 Nov. 20 Dec. 20 Jan21 Feb21 Mar 21
We also ensure that we keep a track of the energy consumed at our Kendras, to be up to date on the environmental impacts of our Kendras. Since our Kendras are asset light, the energy consumption of our Kendras is generally low.
Energy Consumption in Next-Gen Vakrangee Kendras FY 2020-21 S. No. Consumption Count 1 Total Electricity Consumption (Kwh) 7,48,262 2 Total Solar Consumption (Kwh) 23,205 3 Total Diesel Consumption (L) 1,675 4 Total Diesel Consumption (Kwh) 17,996 Energy Consumption in Next-Gen 5 Total Consumption (Kwh) 7,89,463 Vakrangee Kendras FY2020-21 – Data received from 560 kendras.
S. No. Consumption Count Energy Consumed in Next-Gen Nendra 1 Total Electricity 12,93,687.67 FY 2020-21 Consumption (Kwh) 2 Total Solar 2,45,478 Total Diesel Consumption Consumption (Kwh) Total Solar Consumption 2% 3% 3 Total Consumption 15,39,174.67 (Kwh)
The coverage of above data is for 560 Next-Gen Vakrangee Kendras in all locations of India. Total Electricity Consumption 95%
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
107 107 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21
Green Data Centres Data Green a paperless economy, towards move we As storing information, the need for computing and analysis has increased capacities of existing data centres leading to optimise the In to being expanded. order we Data centres, consumption by energy facility ‘Data Centre’ the optimized have a single facility system leverage into to on control better exercise efficiencies and performance.energy enhance In to order performance the energy of the data centre, been undertaken. have various initiatives High and medium density server rooms, server virtualization, server consolidation, optimal cold aisle containment, managing some of the are of inlet temperature levels to yielded good results that have initiatives intensity of Data Centre the energy reduce environmental and contribute towards sustainability. Green building offices Green Our new corporate building is built office green The building concept. on a green energy-efficient building concept offers (PV) solar photovoltaic rooftop design, solar thermal energy, renewable panels for heat recovery chiller waste installations, and solar PV peripheral panel-based units, which in turnlighting systems help in In building a sustainable ecosystem. order the building is use of electricity, reduce to mainly constructed glass walls that with We penetrate. maximum sunlight to allow ensure also installed LED lightings to have electricity. consumption of responsible
Uttarakhand
Uttar Pradesh Uttar
Tellangana
Tamil Nadu Tamil
Rajasthan
Odisha Maharashtra
GHG Emission Reduction Initiatives fight climate to fully committed are We operating with the most change by Our aim friendly methods. environmentally our environmental reduce is not only to availability of but also ensure footprint, products and services at our outlets in manner. the most environment-friendly and carbon footprint reduce strive to We at our corporate health safety improve all our Next-Genoffice and across Kendras. Vakrangee networkOur extensive of outlets and helped in have initiatives “Go Green” our Keepingminimising carbon footprint. offer we our sustainable goals in mind, biometric enabled paperless banking financial services, insurance services, ATM, transactions, real-time services, eKYC, e-Governance services, services logistics and e-CommerceWe products and services. a variety our customers of products offer and services within walking which distance, fuel. and saves is time effective of B in the CDP’s a grade scored We is higher than the Asia This report.Score and higher than the of D, average regional services professional sectorSpecialized the that of B indicates A score of D. average is taking actioncompany on coordinated issues. climate Report CDP Score The companies to allows which and indicate understand their score higher reach to attention categories require enables companies This scoring levels. environmental towards progress to benchmarking through stewardship in order and comparison with peers, their climate continuously improve to governance.
Madhya Pradesh Madhya Karnatka 291,589
50,453.35 19,003.45 30,903.35 Jharkhand 2,22,132.20 10,22,013.26 2,91,589.00
13,44,505.61
Haryana
Gujarat Delhi- NCR Delhi-
Scope 2 Emissions Scope Chhattisgarh
1 2 Bihar Scope3 Total Total Guest House Total Corporate OfficesCorporate OtherOffices Scope 1 Scope2
Emission Factor for Scope 2 GHG Emissions is 0.82 MTCO2e per Scope 2 GHG Emissions is 0.82 MTCO2e for Emission Factor 560 from based on data received Scope 3 emission is calculated
Mwh for India’s National Grid, Source CEA Source National Grid, India’s Mwh for Next-Gen Kendras 1 2 GHG Emissions our table elaborates Following gas emissions (kgCO2e): greenhouse Total Annual Energy Consumption from grid (kwh) grid from Consumption Energy Annual Total We do not own any diesel generator in the diesel generator any do not own We fuel consumption corporate office; hence, tracked have We this activityfor is zero. the distance from the emissions covered which cars, owned company by travelled 30,903.35 kgCO2e. makes up for within walking located Our outlets are communities our customer, distance to in low results This as franchisees. as well commuting gas emissions from greenhouse transport motor Vakrangee by Next-Gen to Kendras. Andhra Pradesh Andhra 108
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Targets on Greenhouse Gas • Long-term goals on reduction of anthropogenic sources of greenhouse Emissions Reduction GHG emission gases included within the organisation’s boundary and is based on ISO 14064- At Vakrangee, we are constantly working at Our Long-term targeted goal is a 3: 2006. To elaborate, it covers physical formulating programs that would help in 25% reduction in absolute Scope 1 infrastructure, activities, technologies reducing GHG emissions. Our greenhouse and 2 GHG emissions from our own and processes of the organisation. The gas emission reduction program, which operations, compared to a 2020 boundary of the inspection was Vakrangee is headed by the GHG Reduction Strategy baseline, by 2025. Additional focus is to Corporate House, Marol, Andheri (E), Committee, is rigorously monitored also reduce Scope 3 Emissions. Mumbai. and cross-checked with our targets. The committee’s major objective is to regularly We understand the importance Achieving Short-term GHG discuss and identify various initiatives and of certifications as it aids us in our monitor & measures those initiatives of the sustainability journey. An Independent Reduction Target – 2021 company from time to time. Reporting and third-party audit had been conducted in In 2020-21, we have collectively saved disclosure of the same is done on an annual the corporate office in the month of March 222.98 metric tonnes A4 size papers basis. 2021 to cover verification of emission from through our initiative of paperless ATMs and banking transactions We focus on bettering ourselves in environmental performance and overall Environmental impact– Savings in GHG emissions due to paperless banking and environmental management system, ATM services in 2020-21 and thus our environmental targets are set, benchmarked and reviewed against Particulars Energy/ resources Energy/resources Energy/ resources environmental objectives and targets on saved in banking saved in ATM saved by Digital an ongoing basis. We also continuously Annual Report monitor and measure the progress of the Year 2019-20 2020-21 2019-20 2020-21 2019-20 2020-21 various key initiatives taken to reduce the GHG Emissions. Goals provide observable A4 size paper saved 65 39.92 55.11 32.72 39.87 (in million) and measurable results to be achieved within a specific timeframe, thus we have Quantity of paper 335 199.63 275.57 23.35 163.61 199.36 set of short-term and long-term goals that saved will help us achieve our environmental (in metric tonnes)
goals: CO2 equiv. of 44,10,000 39,60,000 49,50,000 4,97000 29,40,000 39,50,000 greenhouse gas • Short-term goals on reduction of emissions avoided GHG emission (in pounds) Wood saved 1,340 878 1,100 53.7 653 877 Our Short-term Yearly targeted goal (in U.S. short tonnes) is a 5% reduction per year in absolute Scope 1 and 2 GHG emissions from our Water saved 71,60,000 47,10,000 59,00,000 10,70,000 35,00,000 4,77,00,000 own operations, compared to a 2020 (in gallons) baseline. Additional focus is to also Solid waste avoided 3,94,000 2,59,000 3,24,000 20,400 1,93,000 2,59,000 reduce Scope 3 Emissions which are (in pounds) indirect emissions throughout the value Energy saved 8,530 5610 7,020 724 4,170 5600 chain of the company through offering (in million BTU) and usage of services and products. Trees saved from 8,020 5270 6,600 322 3,920 5,260 being cut for paper (in number)
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
109 109 300 320 380 550 536 650 590 680 655 770 835 815 7,081 (in kg) Waste Wet 350 450 480 550 650 750 735 780 835 760 860 790 7,990 (in kg) VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Dry Waste May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Total Month April-20 Waste aimed at InitiativesOur Go are Green Our a paperless economy. creating paperless banking services and electronic In ink and paper wastage. reduces KYC, that use advanced features addition, we beneficial such as environmentally are paperless banking banking, real-time and biometric evaluation that curbs generation Next- at our paper or plastic waste of any Gen Vakrangee Kendras. recycling reduction, prevention, Through minimise the able to are we and reuse, Our on the environment. effects adverse waste outlets also minimise hazardous ink cartridges. using refillable by Hence, in our operations generated waste total our efforts in E-waste Through is minimal. the been awarded have recycling we recycling India Green for E-waste Certificate disposed that certifies safely we have that friendly manner. in an environment E-Waste in office corporate at generated Waste FY 2020-21 85 24 32 49 102 113 122 126 114 186 164 131 1,248 Usage (Kilo Litres) Usage We are focusing to achieve our goal our goal achieve to focusing are We efficiencies energy designing is by our facilities such as usage of into at our last mile Renewable energy as well franchisee infrastructure lead to technology as leveraging transactions and get digital innovation minimal paper waste, leading to GHG emissions. reducing thereby To reduce use of plastic, we have have we use of plastic, reduce To restricted use of plastic package have We drinking bottles. water started bottles for glass water use of adopted have We office meetings. management a sustainable waste concept in line with the philosophy waste of circularity of through management, re-cycling and eco- Industryfriendly disposals through best practices; Period of Billing Period April-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Total • • Water the importance understand of having We which is water clean and safe access to parts in several lagging of rural India. Every KendraVakrangee an arrangement has drinking cooler providing of a water of cost. people free facilities to water network extensive The of the Next-Gen access to KendrasVakrangee providing is of Since almost 70% water. clean and safe in centred KendrasVakrangee are Next-Gen clean creating are we VI cities, V and tier tier drinkingwater areas, facilities in remote at which can be accessed without charge time. any report office MIDC Consumption Water FY 2020-21 Designing energy efficient solutions, efficient solutions, energy Designing to energy, such as usage of renewable as consumption specific energy reduce lead to technology as leveraging well transactions and get digital innovation minimal paper waste, leading to GHG emissions; reducing thereby of our share increase plan to We power through energy renewable with private agreements purchase our for generators energy renewable corporate office; Support and carbon our energy focus through management process usage of clean infrastructure, on green IT-enabled and IT, green technologies, operational efficiencies; procurement on sustainable Focus policy. procurement our green through only EPEAT procure to Preference certified products; Our corporate been built office has building. on the concept of green buildings of our green Key features include energy-efficient onsite design, rooftop through energy renewable (PV)solar photovoltaic daylight panels, harvesting usage glass walls, through of recycled material and net-zero initiatives; discharge bike, carpool/vanpool, by Commute and public transit, which helps to has Scope 3 GHG emissions, reduce employees; been incentivised for to encourage employees In to order set up plan to we sustainable, be more stations at electric charging vehicles our facilities; (video technology Leveraging local and reduce to conferencing) educating customers inter-city travel, paperless to transactions, move to internet and biometric through the avoiding enabled banking, thereby usage of paper; chieving Long-term GHG Long-term chieving • • • • • • • Reduction Targets - 2025 Targets Reduction reduce to our long-term targets achieve To focusing are we gas emissions, greenhouse strategies: on the following • A 110
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Dry and Wet Waste
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0 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21
Dry Waste (in kg) Wet Waste (in kg)
Green India - E-Waste Recycling We have been credited with the E-waste recycling certificate. This certifies that we have safely disposed E-Waste in an environment friendly manner.
E-Waste Recycled
Month E-Waste Location Recycled (Kgs) January 7027 Jaipur February 34.70 Bhubaneshwar 54 Indore 83.80 Lucknow March 2471 Jaipur 441.6 Bhiwani 201 Marol
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
111 111 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Technologies: Energy-saving establishing outlets on focus We helping in sustaining the that are and implement energy- environment We policies. control and waste saving that technologies latest introduce help in minimising the negative would and create impacts on the environment We the local ecology. protect to ways energy- several implemented also have and reducing technologies saving load at our offices environmental such as Technology and the Kendras. data centres green sensor based lights, in our offices and and solar power to helped significantly franchisees have consumption. bring energy down Paper: Saving Biometric- through Paper Save Banking enabled Paperless journey continue our towards We our through a paperless economy of saving endeavours various green such as initiatives paper through and real- interoperability, eKYC, Furthermore, time transactions. that are use advanced features we such as paperless environment-friendly, banking,banking, and real-time biometric and evaluation. Being digital our Kendras helped paperless in nature, of paper waste. in huge savings undertaken major initiative The in FY opening of for 2012-13 is using e-KYC Bank accounts and Biometric enabled enabled Payment (Aadhaar AePS paperlesssystem) banking services. in saving has resulted initiative The papers per new A4 size five approx. paper account opened and one A4 size per 3 financial banking transactions. in last one-year the initiatives Through collectively saved have 2021, we i.e. 39.92 Million A4 size approximately 10,000 outlets. its approx. papers from 39.92 million of approximately Saving in the papers has resulted A4 size following: 2. 3. Employees: Training it is be truly sustainable, In to order important are that our employees of individual and collective fully aware environment towards responsibilities partas an integral of their jobs. that established systems have We training and delineation of provide and accountabilities responsibilities the environment. to with respect each purchasing category. The ensuringThe category. each purchasing of stake: levels matrix distinguished three to is related This medium and high. low, social, the impact in terms of environment, product, service supply chain and use, business integrity. performance emphasise on supplier’s We selectionas key criterion.score for pillars: is built on four scorecard The fair business labour practices, environment, practices and supply chain management. an in-depthAfter assessment, suppliers that detail their scorecards receive performance as against other suppliers, and of improvements as lists areas well also performing Suppliers are areas well. to consider feedbacks encouraged to to (CAP) Action Plan implement Corrective their performance. improve also undertakeWe audits of on-site low-performing their suppliers through objective The ContractDedicated Manager. help suppliers audits is to of these on-site their practices getting by improve to of ways and proving involved them more actionThis is taken as part of improvement. our risk management program. Our Initiatives - Reducing our Our Initiatives Impact on Environment limited our planet’s on pressures The and the challenge natural resources and prompt change require of climate fully are We concerted action us all. from and environmental towards committed our that will strengthen social responsibility sustainable business operations. drive for our vision through translated have We aimed at mitigating various initiatives impacts through environmental negative our business and our supply chain operations. 1. emissions green Adopting Reuse and Recycle initiatives and practices initiatives at manufacturingat plants Reduction gas of Greenhouse priciples of Reduce, Applying emissions and other harmful air Environmental management principles principles management Environmental Our supplier contracts our monitored Our supplier contracts our monitored contract dedicated managers who by ESG continuously assesses and verify by the organisation. defined parameters An in-depth assessment is conducted ethical and social, assess suppliers’ to practices guarantee to environmental expertise, transparency and independence of assessments. have of the company All procurements termsbeen identified and mapped in of as opportunitiesrisks as well to related Our sustainable procurement policy Our sustainable procurement aspects of the following governs sustainability at our environmental operations sites. suppliers’ Working with our Suppliers with our Working makeIn to our value chain order that our suppliers ensure we sustainable, our sustainable procurement abide by conduct our business activities We policy. social rights, with compliance to and business protection environment integrity and expect do the our suppliers to policy all workersThe and for holds same. of our suppliers including of any employees contractpermanent, temporary, agency reserve the right We workers. and migrant full supply create the supplier to ask to facilitate to origin chain mapping back to To assessment of supply chain compliance. must commitment, each supplier ensure of Conduct. our Supplier Code sign 112
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Energy/Resources saved from Banking service in FY 2020-21: Global Recognition for S. No. Particulars Energy/resources saved Sustainability – ESG Focus 1 A4 size paper saved (in million) 39.92 • At Vakrangee, we have always attempted 2 Quantity of paper saved (in metric tonnes) 199.63 to be a Responsible and Socially 3 CO equiv. of greenhouse gas emissions avoided (in pounds) 39,60,000 Conscious company. Through our 2 network of kendras, we are taking the 4 Wood saved (in U.S. short tonnes) 878 financial and digital literacy to the bottom 5 Water saved (in gallons) 47,10,000 of the socio economic pyramid and 6 Solid waste avoided (in pounds) 2,59,000 serving as the lastmile link to connect 7 Energy saved (in million BTU) 5,610 India’s unserved and underserved rural 8 Trees saved from being cut for paper (in number) 5,270 and urban citizens by offering them the Source: Paper Calculator TM same products and services at the same time, competitive price and same service levels. We are acting as the biggest Save Paper through Go-Green via SMS to customers. We are working equaliser by bridging the gap between the urban and rural population in India. Initiative at ATM towards achieving environmentally sound management of paper through prevention, • Company has been successful in Our ‘Go Green’ initiative for our ATM reduction, recycling and reuse, in order benchmarking its performance on a wide services, have helped in reducing paper to minimise their adverse impacts on the range of industry specific ESG criteria consumption as the ATM transactions environment. Saving of approximately 23.35 that are relevant to the growing focus do not generate printed receipts. metric tonnes A4 size papers has resulted in on Business sustainability and financially Transaction acknowledgments are sent the following: relevant to the corporate success. • Global recognition reflects company’s commitment to further Energy/resources saved from ATM service in FY 2020-21: enhance its corporate governance Source: Paper Calculator TM and transparency standards. Company has achieved Global S. No. Particulars Energy/resources saved recognition across various platforms 2 Quantity of paper saved (in metric tonnes) 23.35 for its superior ESG performance and
2 CO2 equiv. of greenhouse gas emissions avoided (in pounds) 4,97,000 long term Business sustainability. 3 Wood saved (in U.S. short tonnes) 53.7 • Vakrangee ranked World’s No.1 4 Water saved (in gallons) 10,70,000 Company in the Software and 5 Solid waste avoided (in pounds) 20,400 Services industry based on 6 Energy saved (in million BTU) 724 Sustainalytics ESG Assessment. 7 Trees saved from being cut for paper (in number) 322 • Globally Ranked 1st out of 816 Companies in Software & Services (Industry Group) Energy/resources saved from Digital Annual Report in FY 2020-21: • Sustainalytics is the leading Source: Paper Calculator TM independent global provider of ESG S. No. Particulars Energy/resources saved and corporate governance research and ratings to investors. Sustainalytics 1 A4 size paper saved (in million) 39.87 is also the Rating partner to National 2 Quantity of paper saved (in metric tonnes) 199.36 Stock Exchange (NSE). 3 CO equiv. of greenhouse gas emissions avoided (in pounds) 39,50,000 2 • S&P Global - RobecoSAM ESG 4 Wood saved (in U.S. short tonnes) 877 Rankings : Vakrangee ranked No. 5 Water saved (in gallons) 4,77,00,000 13 Company in the global industry 6 Solid waste avoided (in pounds) 2,59,000 ranking and ranked No. 9 Company 7 Energy saved (in million BTU) 5,600 in the Corporate Governance global 8 Trees saved from being cut for paper (in number) 5,260 industry raking based on RobecoSAM – S&P Global ESG Score. • CDP Environmental Ratings: Vakrangee has demonstrated robust Environmental transparency and achieved “B” Score from CDP for Environmental practices. This is higher than the Asia regional average
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
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VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 ISO 50001 provides a framework of ISO 50001 provides to: organizations for requirements Develop a policy for more efficient Develop a policy more for use of energy Fix targets and objectives to meet the and objectives to targets Fix policy Use data to better understand and better Use data to make use energy decisions about Measure the results Measure Review the policy well how works Continually improve energy energy improve Continually management ISO 14001:2015 - Environmental ISO 14001:2015 - Environmental Management System We have been certified have with ISO 14064- We 1:2006, ISO 14064-2:2006 & ISO 14064- House Gas Emission on 3:2006 - Green helps standard This 2021. March 23rd gas and report quantify to greenhouse Scope 1, reduce emissions with the aim to Scope 2 and Scope 3 emissions. Management System ISO 50001 - Energy ISO 50001 is based on the management model of continual improvement system other well-known standards also used for This such as ISO 9001 or ISO 14001. to organizations makes it easier for their management into energy integrate quality and effortsto improve overall management. environmental We underwent IndependentWe ISO Audit and got certified with ISO 14001:2015 on Management System Environmental helps to standard This 2020. 12th March performance environmental by improve monitoring and managing, identifying, issues and environmental controlling resources, efficient use of enables a more advantage and thus gaining a competitive the trust of stakeholders. ISO 20400:2017 - Sustainable Procurement Management System with ISO been credited have We 20400:2017 Sustainable Procurement 2020. on 12th March Management System with assists organisations standard This of a and implementation development strategy. sourcing responsible ISO 14064-1:2006, ISO 14064-2:2006 & ISO Gas House Emission 14064-3:2006 - Green • • • • • • • we have been credited with Certificate of been credited have we certified also been have by We Conformity. recycling. India E-waste Green for 1. 4. 2. 3.
) https:// ) within the top 15% of ) within the top www.spglobal.com/esg/scores/ https://vakrangee.in/pdf/press_ vakrangee.in/pdf/Policies-PDF/S&P%20 Global_Sustainability-Yearbook-2021.pdf the industry. 2021, published Yearbook SustainabilityThe most S&P Global is one of the world’s by in- publications providing comprehensive This depth analysis on corporate responsibility. annual ranking the sustainability showcases companies largest performance of the world’s in each industry their score as determined by Sustainability Corporate in the annual SAM which acquired S&P Global, (CSA). Assessment the ESG Ratings RobescoSAM, business from 7,000 companies in 2021 assessed over with the goal 61 industries this year across leading of identifying those that exemplify corporate sustainability practices and a Only 630 drivers. on long-term growth focus been selectedsustainability for leaders have based on their S&P Global Yearbook this year’s the CSA. from calculated ESG Scores Link: ISO Certifications Maintaining certificationsfor a essential are are and processes systems ensure business to in place and in line with the environmental Hence, commitments of the organization. with relevant be accredited to ensure we certifications sustainable that promote get some to ensured have We operations. ISO related of the major environmental certifications - such as ISO 20400:2017 Management Sustainable Procurement ISO 14064-1:2006, ISO 14064-2:2006 & System, House Gas Emission, ISO 14064-3:2006 - Green Management ISO 14001:2015 - Environmental ISO 45001:2018 - Occupational Health System, ISO 50001:2018 Management& Safety System, and ISO 9001 Management System – Energy have - Quality we As Management System. norms, comply with ISO 14064 to been found Vakrangee Limited Included Limited Vakrangee in S&P Global Sustainability 2021 Yearbook S&P be part to honoured of this year’s are We 2021 ( Yearbook Global Sustainability release/Press%20Release%20-%20 Vakrangee%20included%20in%20S&P%20 Global%20Sustainability%20Yearbook%20 2021.pdf results?cid=4969832 for the first time. Vakrangee has earned a spot time. the first for (S&P Global in the yearbook and has score - Scores
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www.vakrangee.in/pdf/ PoliciesPDF/2020_CDP_ Supplier%20Engagement%20 Report_Vakrangee_Ltd.pdf Also, Vakrangee achieves “A-” Also, Vakrangee “A-” achieves suppliers CDP for from score Engagement which is the than the better leadership band, is higher This industry’s average. average regional than the Asia of C and of B-, global average Higher than the specialized servicesprofessional sector of B-. It and average is a proof and of the concrete recognition constant commitment of the engagement with its Company change. suppliers on climate the report:Link for of D, Global Average of C and Higher Global Average of D, professional than the specialized services of D. sector average • www.vakrangee.in Vakrangee is also now a Signatory is also now Vakrangee Women Nations member of United Empowerment WEP) Principles.(UN Vakrangee Limited has been included Limited has Vakrangee 2021 Yearbook S&P SustainabilityThe in Sustainabilitybased on RobeccoSAM ratings. sustainabilityVakrangee performance is 15% of the industrywithin the top and is highest performing among the world’s 630 Only sustainable companies. been selectedsustainability leaders have this assesed for out of 7,000 Companies based on their S&P Global Yearbook year’s the CSA. from calculated ESG Scores in the 13 Company rankedVakrangee No. global industry ranking 9 and ranked No. Governance in the Corporate Company global industry raking based on – S&P Global ESG Score. RobecoSAM and a Participant is now Vakrangee Signatory member of UNGC (United Nations Global Compact) and also our with compliance in Full is now Company the ESG Framework. ( • • • • • S&P Global RobecoSAM S&P Global RobecoSAM Sustainability Yearbook
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SDG Mapping
UN SDG Goal Report sections describing activities Page no
Healthcare: Nutrition & Sanitation 97 Social and relationship capital Ensure healthy lives and Healthcare 97 promote well-being for all at Health and safe workplace 70 Human capital all ages ISO certification 82
Education 97 Social and relationship capital Ensure inclusive and Training & Development 76 Human capital equitable quality education and promote lifelong learning opportunities for all
Gender Equality 72 Human capital Achieve gender equality Equality 98 Social and relationship capital and empower all women and girls
Healthcare: Nutrition & Sanitation 97 Social and relationship capital Ensure availability and Clean water and Sanitation 96 sustainable management of Water 109 Natural capital water and sanitation for all
Energy Saving Technologies 111 Natural Capital Ensure access to affordable, reliable, sustainable and modern energy for all
Integrating Robustness of Financial Growth with 56 Financial Capital Promote sustained, inclusive Contribution to Financial Inclusion and sustainable economic Organisational Culture 68 Human capital growth, full and productive employment and decent Decent work and economic growth 96 Social & Relationship Capital work for all ISO Certification 81,101 Social & Relationship Capital Human Capital
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
115 115 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Manufactured capital Intellectual Capital Manufactured Capital Intellectual Capital Natural Capital capital Social & relationship Manufactured capital capital Social & relationship Human capital Capital Financial Natural capital Natural capital Natural Capital Human capital capital Social & relationship Human capital
PERFORMANCE OF CAPITALS
GRI Content Index
GRI Standard Disclosure Reference Page Number 102- General 102- 1 Name of the Organization Vakrangee Limited 1 Disclosure 102- 1 Name of the Organization Business Responsibility Report 204 102- 2 Activities, brands, products and services About Vakrangee 16 102- 2 Activities, brands, products and services Business Responsibility Report 204 102 -3 Location of headquarter Business Responsibility Report 204 102- 4 Location of operations Business Responsibility Report 204 102- 5 Ownership and legal form Message from the Chairman 10 102- 5 Ownership and legal form Letter from the Managing Director & Group CEO 12 102- 6 Markets Served About Vakrangee 16 102- 7 Scale of the organization About Vakrangee 21 102- 8 Information on employees and other workers Performance of Capitals – Human Capital 68 102- 9 Supply Chain Letter from the Managing Director & Group CEO 12 102- 9 Supply Chain Performance of Capitals – Social and Relationship 93 Capital 102-11 Precautionary Principle or approach Strategy and Performance – Business Risk and 44 Opportunities 102-12 External initiatives Strategy and Performance – Value Creation Model 42 102-13 Membership of associations Corporate Overview 34 102-14 Statement from decision-maker Message from the Chairman 10 102-14 Statement from decision-maker Letter from the Managing Director & Group CEO 12 102-15 Key impacts, risks, and opportunities Strategy and Performance – Business Risk and 47 Opportunities 102-16 Values, principles, standards and norms of behaviour About Vakrangee 15 102-17 Mechanisms for advice and concerns about ethics. Performance of Capitals – Human Capital 68 102-17 Mechanisms for advice and concerns about ethics Performance of Capitals – Social and Relationship 93 Capital 102-18 Governance structure Corporate Governance 30 102-19 Delegating authority Corporate Governance 30 102-20 Executive-level responsibility for economic, Corporate Governance 32 environmental and social topics 102-21 Consulting stakeholders on economic, Performance of Capitals – Social and Relationship 93 environmental and social topics Capital 102-22 Composition of the highest governance body and Corporate Governance 32 its committees 102-23 Chair of the highest governance body Message from the Chairman 10 102-23 Chair of the highest governance body Letter from the Managing Director & Group CEO 12 102-24 Nominating and selecting highest governance body Corporate Governance 32 102-25 Conflicts of interest Corporate Governance 32 102-25 Conflicts of interest Strategy and Performance – Stakeholder Engagement 38 102-26 Roles of highest governance body in setting Corporate Governance 32 purpose, values, and strategy.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
117 117 32 31 31 47 31 31 10 12 40 40 31 31 57 57 39 39 39 39 57 Content Content page 40 Content Content page Content Content page 40 Content Content page Content Content page Content Content page 35 Content Content page 116 120 Page Page Number VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Corporate Governance Corporate Corporate Governance Framework Corporate Corporate Governance Framework Corporate Strategy and Performance – Business Risk and Performance Strategy and Opportunities Corporate Governance Framework Corporate Corporate Governance Framework Corporate Message from the ChairmanMessage from Letter from the Managing Director & Group CEO & Group the Managing Director from Letter Strategy And Performance - Materiality And Performance Strategy Analysis Strategy And Performance - Materiality And Performance Strategy Analysis Corporate Governance Framework Corporate Corporate Governance Framework Corporate Performance of Capitals – Financial Capital – Financial of Capitals Performance Performance of Capitals – Financial Capital – Financial of Capitals Performance Strategy and Performance – Stakeholder and Performance Strategy Engagement Strategy and Performance – Stakeholder and Performance Strategy Engagement Strategy and Performance – Stakeholder and Performance Strategy Engagement Strategy and Performance – Stakeholder and Performance Strategy Engagement Performance of Capitals – Financial Capital – Financial of Capitals Performance About the report, Reporting Scope, Framework, Reporting Boundary Strategy And Performance - Materiality And Performance Strategy Analysis About the report, Reporting Scope, Framework, Reporting Boundary Reporting Boundary Strategy And Performance - Materiality And Performance Strategy Analysis Reporting Period Reporting Period Reporting Period Corporate InformationCorporate About the report, Reporting Scope, Framework, Reporting Boundary GRI Content IndexGRI Content Assurance Statement Assurance Reference 102-27 Collective knowledge102-27 Collective body of highest governance 102-28 Evaluating the highest governance bodies the highest governance 102-28 Evaluating performance 102-29 Identifying and managing economic, environmental environmental economic, 102-29 Identifying and managing and social impacts 102-30 Effectiveness of risk management process 102-30 Effectiveness 102-31 Review of economic, environmental and social 102-31 Review environmental of economic, topics 102-32 Highest governance body’s role in sustainability role 102-32 Highest body’s governance reporting 102-33 Communicating critical102-33 Communicating concerns 102-33 Communicating critical102-33 Communicating concerns 102-33 Communicating critical102-33 Communicating concerns 102-34 Nature and total number of critical and total concerns 102-34 Nature 102-35 Remuneration policies 102-36 Process for determining remuneration. for 102-36 Process 102-38 Annual total compensation ratio 102-38 Annual total 102-39 Percentage increase in annual total compensation in annual total increase 102-39 Percentage ratio 102-40 List of stakeholder groups 102-42 Identifying and selecting stakeholders 102-43 Approach to stakeholder to engagement 102-43 Approach 102-44 Key and concerns topics raised 102-45 Entities included in the consolidated financial 102-45 Entities included in the consolidated statements 102-46 Defining report102-46 Defining topic boundaries. and content 102-47 List of material topics 102-48 Restatements of information 102-48 Restatements 102-49 Changes in reporting 102-49 Changes in reporting 102-50 Reporting period 102-51 Date of most recent report of most recent 102-51 Date 102-52 Reporting cycle 102-53 Contact point for questions regarding the report questions regarding 102-53 Contact point for 102-54 Claims of reporting with the GRI in accordance Standards. 102-55 GRI content index 102-55 GRI content 102-56 External assurance Disclosure GRI Standard 118
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GRI Standard Disclosure Reference Page Number 201- Economic 103-1 Explanation of the material topic and Economic Performance 57 Performance its Boundary 201-1 Direct economic value generated and distributed Financial Capital 57 203 – Indirect 103-1 Explanation of the material topic and Indirect Economic Impact 57 Economic its Boundary Impacts 203-1 Infrastructure investments and Financial Capital 57 services supported 203-2 Significant indirect economic impacts Social and Relationship Capital 95 205 – 103-1 Explanation of the material topic and Anti-Corruption 50 Anti- its Boundary corruption 205-1 Operations assessed for risks related Strategy and Performance- Business risk 50 to corruption 205-2 Communication and training about Human Capital 76 anti-corruption policies and procedures 302 – Energy 103-1 Explanation of the material topic Energy 105 and its Boundary 302- 1 Energy consumption within the organization Natural Capital 105 302- 5 Reductions in energy requirements Natural Capital 106 of products and services 303 – Water 303-5 Water Consumption Natural Capital 109 305 – 103-1 Explanation of the material topic and Emissions 107 Emissions its Boundary 305-1 Direct (Scope 1) GHG Emissions Natural Capital 107 305- Energy indirect (Scope 2) GHG Natural Capital 107 Emissions 305-3 Other indirect (Scope 3) GHG Natural Capital 107 Emissions 305-5 Reduction of GHG Emissions Natural Capital 107 306 – Waste 306-2 Management of significant Natural Capital 109 waste-related impacts 306-3 Waste generated Natural Capital 109 306-4 Waste diverted from disposal Natural Capital 109 308 – Supplier 103-1 Explanation of the material topic and Supplier Environmental assessment 93 Environmental its Boundary Assessment 308-1 New suppliers that were screened Highlights of Value Creation on FY2020-21 9 using environmental criteria 308-1 New suppliers that were screened Social and Relationship Capital 93 using environmental criteria 308-2 Negative environmental impacts in Social and Relationship Capital 93 the supply chain and actions taken 401 – 103-1 Explanation of the material topic and Employment 76 Employment its Boundary 2016 401-1 New employee hires and employee turnover Human Capital 76 401-2 - Benefits provided to full-time employees that are Human Capital 77 not provided to temporary or part-time employees 401-3 - Parental Leave Human Capital 78
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
119 119 81 45 82 83 83 81 82 82 76 71 76 76 74 71 71 74 73 71 71 45 45 69 47 47 Page Page Number VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Human Capital Human Capital Business Risks and Opportunities Human Capital Human Capital Human Capital Human Capital Human Capital Human Capital Human Capital Human Capital Human Capital Human Capital Human Capital Human Capital Training and Education Training Human Capital Human Capital Human Capital Human Capital Human Capital Human Capital Human Capital Human Capital Diversity and equal opportunity Human Capital Human Capital Human Capital Human Capital Human Capital Human Capital Non-discrimination Human Capital Human Capital Human Rights Assessment Business Risks and Opportunities Human Capital Human Capital Customer Privacy Customer Business Risks and Opportunities Reference 403-1 - Occupational management health and safety system 403- 2 - Hazard identification, and incident risk assessment, 403- 2 - Hazard investigation 403-3 - Occupational health services 403- 5 - Worker training on occupational health and safety training on occupational health Worker 403- 5 - 403- 6 - Promotion of worker of health 403- 6 - Promotion 403- 7 - Prevention and mitigation of occupational health and 403- 7 - Prevention impactsand safety directly linked relationships business by 403- 9 - Work-related injuries Work-related 403- 9 - 403- 10 - Work-related ill health Work-related 403- 10 - 103-1 Explanation of the material topic and its Boundary103-1 Explanation of the material topic 404- 1 - Average hours of training per year per employee hours of training per year 404- 1 - Average 404- 1 - Average hours of training per year per employee hours of training per year 404- 1 - Average 404- 2 - Programs for upgrading employee skills employee upgrading and for 404- 2 - Programs transition assistance programs 404- 3 - Percentage of employees receiving regular regular receiving of employees 404- 3 - Percentage performance reviews development and career 103-1 Explanation of the material topic and its Boundary103-1 Explanation of the material topic 405- 1 - Diversity of governance bodies and employees 405- 1 - Diversity of governance 405- 1 - Diversity of governance bodies and employees 405- 1 - Diversity of governance 405- 2 - Ratio of basic salary of women and remuneration men to 103-1 Explanation of the material topic and its Boundary103-1 Explanation of the material topic 406- 1 - Incidents of discrimination actions and corrective taken 103-1 Explanation of the material topic and its Boundary103-1 Explanation of the material topic 412- 1 - Operations that have been subject human rights to 412- 1 - Operations that have or impactreviews assessments 412- 1 - Operations that have been subject human rights to 412- 1 - Operations that have or impactreviews assessments 103-1 Explanation of the material topic and its Boundary103-1 Explanation of the material topic 418- 1 - Substantiated complaints concerning breaches of complaints concerning418- 1 - Substantiated breaches privacycustomer data and losses of customer Disclosure 403 – Occupational Health and 2018 Safety 404 – Training and Education 2016 405 – Diversity and Equal Opportunity 2016 406 – Non- discrimination 2016 412 – Human Rights Assessment 2016 418 – Customer Privacy 2016 GRI Standard 120
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Assurance Statement
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Management Discussion and Analysis
Overview Economic performance
India is one of the fastest growing major economy and the sixth largest economy globally. In five years, the country has grown from USD 1.85 trillion in 2014 to USD 2.7 trillion in 2019 1. India’s GDP contracted at a rate of 7.97%.
in 2020 against 5.02% in 2019 2. The GDP gravely suffered due to the pandemic of Covid-19. As per the Union Budget 2020-21, the GDP growth will be a V-shape recovery3 (see graph below). The pandemic may have slowed India’s economic performance; it has however presented the country with opportunities to become a self-reliant nation. With positive stimulus for growth, India is poised to play a major role in the revival of global economy.
Real GDP growth rate (in%)
World AEs Euro area EMDE India
10
5
0
-5
-10 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E 2021F
1Union Budget of India 2019-20. Last accessed on 9th July 2020. https://www.ibef.org/economy/union-budget- 2019-20#:~:text=The%20Union%20Budget%20for%202019,by%20the%20end%20of%20FY20. 2 Last accessed on 19th May 2021.https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=IN 3 Union Budget of India 2020-21: https://www.indiabudget.gov.in/doc/bh1.pdf
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133 133 7,667.35 8,170.75 7,128.00 76,269.98 FY 2019-20 10,124.45 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Further the company has leveraged has leveraged the company Further automation and process technology enhanced into which has resulted initiatives returnto Company’s The profitability. normalcy has been on the business front with month-on-month well progressing in the sales. improvement situation, In of COVID-19 spite Pandemic kendraVakrangee network throughput than US$ 5.2 BILLION more crossed FY2021 year in the Full (` 37,600+ crore) Number of transactions Total and Our transactions 126.8 mn (~12.6 crore) crossed on a Annual basis which has been very encouraging. “Over 11,700 physical “Over 11,700 of Vakrangee kendras across are operational providing the country, serving key services and the the nation through pandemic” 6,738.59 6,738.59 6,279.13 38,395.13 FY 2020-21 9,762.32 Particulars EBITDA tax (PBT) before Profit after tax (PAT) Profit Total income Total tax (PBT), before exceptional Profit before Our operational performance Our operational KendraVakrangee serves as India’s Our network outlet largest of last mile retail at every available Our focus postal code. network in on building largest of last-mile and technology by driven outlets retail servicesdeliver BFSI, ATM, like real-time e-commerce the unserved to and logistics semi-urban and urbanrural, markets ecosystem in the local/state/national line with the financial inclusion in providing policies. government of figures and profit/(loss) turnover The below: given are Limited Vakrangee Our financial performance was impacted & the pandemic of Covid-19 due to have revenues situation. Outlet Lockdown been impacted our key as only essential Mobile recharges services like Banking, ATM, services been fully have Tele-medicine and other key servicesoperational however like services Travel shopping, Online Assisted significantly been have and Logistics impactedthe on-ground because of field deliverylevel services challenges and travel the lockdown situation. being closed due to is behind that the worst believe we Now, growth better showcasing are us and we financials everyand improved quarter on growth has been robust There quarter basis. on a QoQ as Profitability in Revenue as well situation and Lockdown basis as the COVID normalizes. Economy Demand Demography System Infrastructure The Prime Minister also announced a Prime The special economic package Self-Reliant for This Bharat’. ‘Atmanirbhar India named help in building and surely would initiative of the nation. It resilience strengthening lot of an encouragement to give would and boost their business. local players is also doing its bit by Limited Vakrangee of pyramid. the bottom out to reaching Vakrangee kendrasOver 11,700 physical of the country, operational across are key servicesproviding and serving the Of 80 the pandemic. these, nation through in rural locations, per cent of the outlets are unservedThe like6 towns. tier 4, 5 and and underserved of the pyramid bottom undertakebasicpopulation can now financial and non-financial transactions these outlets. through Building Resilience by redefining redefining by Resilience Building the last mile when the times, In unprecedented these building world is battling a pandemic, important. becomes quite resilience Minister Shri Prime Keeping this in mind, the Nation to Modi in his address Narendra a self- a call for on May given 12, 2020 had five Indiareliant the following based on pillars: 134
MANAGEMENT DISCUSSION AND ANALYSIS
Our operations “Our doorstep facility and Particulars FY 2020-21 FY 2019-20 access to services even in Operational Next-Gen Vakrangee Kendras 11,730 10,027 the most remote areas will No of kendras offering following services: BFSI 11,730 10,027 ensure Indians to benefit ATM 5,414 4,506 from financial, social and E-commerce & Logistics 11,730 10,027 digital inclusion” Our doorstep facility and access to services Industry’sperformance and even in the most remote areas will ensure outlook 1.2 Atal Pension Yojana (APY): APY Indians to benefit from financial, social 1. E-Governance was launched in 2015 and can be availed and digital inclusion. We aspire to have a We are proud to be a link for social, digital by saving account or post office saving Vakrangee outlet in each Gram panchayat and financial inclusion in India. Services account holders in the age group of 18 in Rural India and in Each Urban ward of Next-Gen Vakrangee Kendras not only – 40 years. Subscribers or their nominees in Urban India. Aligned to our goal, we present social schemes of GoI but also offer (upon demise of subscriber) would receive have recently launched our Strategy 2.0 modern services of the private sector. a guaranteed monthly pension from the Document. The Strategy 2.0 Document age of 60 years. As of February 2021, the highlights our Next 5 year growth targets Financial inclusion is an imperative for number of subscribers under the scheme and operational and financial deliverables in holistic socio-economic growth of a has crossed the 40-million mark with the detail. This document focuses on the Core country. The Government of India has addition of 6.2 million subscribers in the last Business of Physical network of NextGen launched several noteworthy schemes one year. Kendra outlets. This strategy plan document to promote financial inclusion within does not include any contribution from the the country. Following are highlights of 1.3 Pradhan Mantri Jeevan Jyoti Beema digital mobile app platform. Government’s push for financial and social Yojana (PMJJBY): Life insurance scheme inclusion: for individuals of the age group of 18 years Our vision is now set to create the world’s to 50 years. Gross enrolment for PMJJBY (as largest franchisee based distribution 1.1 Pradhan Mantri Jan Dhan Yojana reported by banks, subject to verification channel in India with a strong focus on (PMJDY): Launched in 2014, PMJDY of eligibility) stood at over 5.91 crore as of Rural India. We are confident to deliver promotes universal access to banking March 20197. very strong growth over the next 5 years services, financial literacy, and access to as our network would grow from 11,700+ credit, insurance and pension facilities. 1.4 Pradhan Mantri Suraksha Beema to 25,000+ outlets by March 2022 and to Until date, 39.95 crore PMJDY accounts had Yojana (PMSBY): An insurance scheme 75,000 outlets by March 2026. We estimate been opened4. While 20.9 crore (60%) of open to individuals of 18 to 70 years with a that our Gross Transaction value would the account holders are in rural areas, 18.74 bank or post office account. Risk coverage cross US$50 Billion on an Annual basis over crore (over 53%) of account holders are under PMSBY includes accidental death, the next 5 years and no of transactions women5. Moreover, total deposit in PMJDY full disability and partial disability. Gross would cross a billion transactions annually. accounts stood at INR 96,107 crore, with an enrolment for PMSBY (reported by banks, This would result into significant growth in average deposit per account doubling to subject to verification of eligibility) was Revenues and profitability as our business INR 2,725 in 2019 from INR 1,064 in 20156. recorded at 15.47 crore as of March 20198. model is asset light franchisee based model As of January 27, 2021, the number of bank with strong operating leverage. Our Cash accounts opened under the Government’s 1.5 Capital Infusion Scheme: The Finance Adjusted Return on Capital would improve flagship financial inclusion drive- Pradhan Ministry announced its plan to infuse Rs. significantly. More details regarding Mantri Jan Dhan Yojana (PMJDY) reached 14,500 crores (US$) as capital infusion in financial performance in under Vakrangee’s 41.75 crore and deposits in Jan Dhan bank public sector banks in the fourth quarter of Performance Highlights. accounts stood at more than Rs. 1.37 lakh FY21. crore (US$ 18.89 billion).
4 https://pmjdy.gov.in/ 5 Last ac5cessed on 21st May 2021. https://financialservices.gov.in/banking-divisions/Important-Schemes 6 Last accessed on 21st May 2021. https://financialservices.gov.in/banking-divisions/Important-Schemes 7 Last accessed on 21st May 2021. https://financialservices.gov.in/banking-divisions/Important-Schemes 8 Last accessed on 21st May 2021. https://financialservices.gov.in/banking-divisions/Important-Schemes
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. 135 135 . 17 16 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Further more, internet banking, more, Further
. 15 of credit massively. In 2020, transactions massively. of credit Payments Interface Unified (UPI) through of INR 2.06 at 1.24 billion at a value stood lakh crore 2. Insurance insurance industryThe of India comprises of 24 companies Out of these, 57 companies. while businesses, insurance in the life are Government’s The insurers. non-life 33 are policy has of insuring the uninsured pushed the insurance penetration gradually of the and proliferation within the country, insurance schemes. insurance industry life The is expected to of 5.3% between the at a CAGR increase insurance period 2019 and 2023. India’s penetration was pegged at 3.76% in FY20, 2.82% and insurance penetration at with life insurance penetration at 0.94%. In non-life overall India’s terms of insurance density, density at US$ 78 in FY20. stood marketThe of private sector share in the general and health Companies 47.97% in insurance market from increased insurance 48.03% in FY20. InFY19 to the life held a market private players segment, of 33.78% in premium-underwrittenshare services in FY20. In FY21 (until January from 2021), premium insurance Companies new business of life in India at US$ 29.3 billion. stood insurers written of non-life premiums Gross in India US$ 22.5 billion in FY21 reached (between April and January 2020 2021), US$ 21.9 billion in FY20 (between April from 2019 and January strong by 2020), driven general insurance Companies. from growth Amidst COVID-19, economic activities have In Government 2020, largely. down slowed of India package announced a relief worth as partINR 1.7 lakh crore of its Pradhan mitigate to MantriYojana, Garib Kalyan difficulties of vulnerable communities GoI classified amidst lockdown. Moreover, BC outlets as an essential service and servepermitted them to unbanked areas Biometric enabled AEPS Banking, mobile operational will improve banking ATMs and efficiency and supplement increasing Rising number of transactions. income in rural India drive the need is expected to and further bankingfor in rural areas, of banking sector the growth accelerate
. 12 179.35 814.42 FY 20 . . 14 11 1529.72 Less than 15% villages have than 15% villages have Less
. 13 151.2 Of these, 66,459 branches are present in present Of are 66,459 branches these, rural India In its National Strategy for Financial Financial In for National Strategy its the periodInclusion 2019-24, the for Reserve of India Bank recommended (RBI) financial services. access to universal In financial service a formal other words, everyto should be accessible provider of 5 km.village within a distance report the efforts emphasizes Furthermore, for on customers on-boarding digital for financial services As of December 2020, IndiaAs had 1,58,296 banks branches functioning commercial Digital payment in current times is set to times is set to in current payment Digital and disbursement payments revolutionize a brick-and-mortar bank branch in India, and banking (BC) correspondents the are only financial service in several providers 8,00,000 agents serve Close to villages. a in face-to- 34 crores population of around face transactions 758.04 FY 19 1454.13 Private sector Private 16.18% Foreign sector Foreign Public sector Public 8.82% 134.3 May 2021. https://rbidocs.rbi.org.in/rdocs/content/pdfs/NSFIREPORT100119.pdf 2021. https://dbie.rbi.org.in/DBIE/dbie.rbi?site=publications#!17 May. 2021. https://dbie.rbi.org.in/DBIE/dbie.rbi?site=publications#!17 May, July 2021. https://www.ibef.org/industry/banking-presentation May,2021. https://www.rbi.org.in/commonman/English/Scripts/BanksInIndia.aspx#SBIA May,2021. th th th th st May, 2021. https://niti.gov.in/we-are-looking-business-correspondents-pandemic-what-are-they-looking May, Private sector Private th . 721.34 FY 18 10 41.18% While deposits grew at a CAGR of at a CAGR While deposits grew
. 1557 33.82% 9 Last accessed on 19th May. 2021. https://www.npci.org.in/product-statistics/upi-product-statistics Last accessed on 19th May. Public sector Public
Last accessed on 20 Last accessed on 20th May 2021. https://www.ibef.org/industry/banking-presentation 2021. https://niti.gov.in/we-are-looking-business-correspondents-pandemic-what-are-they-lookingLast accessed on 20th May. Last accessed on 24 Last accessed on 24 Last accessed on 20 Last accessed on 20 Last accessed on 21
Foreign banks Foreign 13.93% during the period 2016-20, credit of 13.93% in the at a CAGR off-takegrew deposits Insame period. other words, USD 1.9 trillion credit total and reached billion USD1,698.97 to extended increased FY 2020 by 2. Banking Indian banking sector comprises of 12 22 private sector banks, public sector banks, rural banks and 44 foreign 43 regional banks 14 15 16 17 9 10 11 12 13 Source: IBEF Source: Source: IBEF Source: Regional rural banks Regional Total banking sector assets (USD billion) Total Composition of Indian BankingComposition Sector 136
MANAGEMENT DISCUSSION AND ANALYSIS
Union Budget 2021 increased FDI limit Share of various segments in At Vakrangee, our assisted online shopping in insurance from 49% to 74%. India’s e-commerce retail by value (2020) platform provides our customers with Insurance Regulatory and Development Consumer electronics Apparels Food & Grocery access to multiple product options from Authority (IRDAI) has announced the Jewellery Furniture Others daily staples, fashion items, to electronics. issuance, through Digilocker, of digital We also offer the convenience of getting 4% 2% insurance policies by insurance firms. 7% the products delivered to our Kendra. In February 2021, the Finance Ministry 7% In partnership with Amazon, we are announced to infuse Rs. 3,000 crores (US$ 40% 413.13 million) into state-owned general providing a trusted, secure and convenient insurance Companies to improve the option to our customers in the unserved overall financial health of the Companies. and underserved rural locations to get 40% access to a wide range of products at the Post COVID-19, market conditions look Source: IBEF most competitive prices. The store person promising for life insurance industry due to at the Nextgen Vakrangee Kendra is able several changes in regulatory framework, 4. E-commerce to showcase millions of products to the which will further lead to a change in the E-commerce is the fastest growing consumer and assist him in selecting the way the industry conducts its business and market in India and is projected to reach right product, placing the order and making engages with its customers. Traditional USD 84 billion in 2021, further growing the payment. practice of not purchasing insurance will by approximately 1200% by 202622. The slowly fade away with health risks posing industry is supported by rising income, In partnership with Augmont we are threat to society. Overall, insurance industry increase in number of internet users, providing a secure option to the unserved is expected to reach USD 280 billion by high smartphone penetration, policy and underserved customers to buy purest 2020. In addition, India’s life insurance reforms, government initiatives and young gold and silver coins and jewellery at the industry is expected to increase by 14% to demography. most competitive prices in the industry. 15%, annually for the coming 3 to 5 years18. With Augmont’s backing and Vakrangee’s While a section of India relies on the physical presence, customers feel secure. At 3. ATM world of e-commerce for items such as Vakrangee Kendras, customers can choose from a large variety of gold and silver In India, cash is a favored means of toothbrush, mobile phones, electronics, coins, jewellery such as rings, pendants, payment. An increase in issuance of debit furniture and other products, there bracelets, chains, earrings, and bangles. cards has not witnessed a commensurate still remains a large population that is Customers also get an option to buy coins increase in number of ATMs. Cash unexposed to online shopping. The need and jewellery on EMI and can pay for their withdrawals from ATMs in the country are to bridge this gap between exposure and purchases over the period of 3, 6, 9 months. second only to China. As of March 2021, non-exposureto e-commerce requires They also have the option of cancelling India had 2,38,588 ATMs19. Out of this, the access to all products and services at the their orders during the EMI period. With country has 47,490 ATMs in rural India20. same price across India. trust of a brand, range of quality options, Share of White Label ATMs (WLA) in the The Indian online grocery market is ease of buying through EMI, and the country is 25,013 with 13,187 WLAs in rural estimated to reach US$ 18.2 billion in 2024 right pricing, it is easily the best way for India21. from US $1.9 billion in 2019, expanding at customers to purchase and invest in gold a CAGR of 57%. India’s e-commerce orders and silver. volume increased by 36% in the last quarter of 2020, with the personal care, beauty Despite depressed consumer spending, and wellness (PCB&W) segment being the economic slowdown and uncertainty largest beneficiary. created due to covid-19, e-commerce players are expecting strong sales growth in 2021. Online grocery, e-pharmacy and social commerce are expected to see a bulk of action in 2021.
18https://www.ibef.org/industry/insurance-sector-india.aspx#:~:text=The%20insurance%20industry%20of%20India,the%20non%2Dlife%20insurance%20segment. 19https://www.rbi.org.in/Scripts/StateRegionATMView.aspx 20Last accessed on 24th May 2021. https://www.rbi.org.in/Scripts/StateRegionATMView.aspx 21Last accessed on 24th May 2021. https://www.rbi.org.in/Scripts/StateRegionATMView.aspx 22Last accessed on 21st May, 2021. https://www.ibef.org/industry/ecommerce-presentation#:~:text=In%20 19%2C%20it%20was%20estimated,1%2C200%20per%20cent%20by%202026.
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137 137 25 rank th VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Investments in logistics, in logistics, Investments rank in 2016. Department 24 th in 2017 to 80 in 2017 to The global pandemic has affected the global pandemic has affected The as sector Even in the country. logistics Government of India announced relief of volume in the country, measures can we Overall, fall. may inland logistics of and innovations notice responses As industriesto the pandemic. different will there gradually, reopens the economy mold our business model be a need to ahead in our growth stay to accordingly sections our elaborate curve. Following in the and resilience corporate strategy uncertain,volatile, and ambiguous complex business environment. 6. Logistics and Indian is a fast-paced logistics market.competitive of Emergence government e-commerce, GST, streamlined development projects on infrastructure the domestic propel factors to few are India a vital has played sector. logistics its global ranking improving in on role 146 from borders trading across including infrastructure, is expected to is expected to including infrastructure, 2025. USD 500 billion, annually by touch of Commerce is working hard towards is working towards of Commerce hard the costs from the logistics reducing 10% by almost to 14% of the of GDP current approach adopting an integrated 2022 by portal a logistics of developing which will marketplacebe a single window all the to stakeholders. Telemedicine is also effective solution is also effective Telemedicine in delivery challenges to of healthcare, low-costtraining, and consultation facilities in rural India.diagnostic It is 2020, USD 32 million by reach expected to of 20% between FY at a CAGR growing factors, FY 2019-20. Favorable 2015-16 to footprint, digital robust particularly, biometric and digital initiatives government fueled market have identification programs in India. healthcare digital for growth the healthcare COVID-19 is overburdening closing out- Temporarily in India.system patient departments up doctors and free to left patients with other medical staff have Regular check-ups ailments unattended. diseases are chronic and therapies for restrictions either travel on halt due to or temporary closed services. Amidst has telemedicine restrictions and closures, serve in to stepped patients in India. In partnership are with vHealth, we professional our customers providing servicestelemedicine in the underserved rural locations in a very cost-effective revolutionize plans to Vakrangee manner. rural across is delivered healthcare the way serviceThe patients, give is set to India. a very in rural locations, residing different experience when they see a doctor, and do a virtualdiscuss their concerns, also arrange home blood We consultation. delivery doorstep of medicines tests, partner network. vHealth’s through “Vakrangee plans to “Vakrangee way revolutionize the healthcare is delivered The across rural India. to give service is set in rural patients, residing different locations, a very they experience when their discuss see a doctor, concerns, and do a virtual consultation” May, 2021. https://pib.gov.in/newsite/PrintRelease.aspx?relid=186255 May, 2021. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1540616 May, th th . 23 Last accessed on 24 National Health Portal- https://www.nhp.gov.in/e-health-india_mty National Health Portal- Last accessed on 24 23 24 25 5. E-health Welfare Ministry of Health and Family (MoHFW) has started various e-Gov sector in India.initiatves in healthcare the defined as is broadly E- healthcare use of Information and Communication (ICT)Technology in health. It a potential has in makeIndia to a world of difference been have mobile technologies where India As has a rate. penetrating at a rapid health the integrated in IT, presence strong serves system information the needs of all stakeholders contributing by approximately e-healthThe has initiatives the GDP. 8% to health outcomes better deliver a vison to affordability, quality, in terms of access, and efficient of disease burden lowering monitoringentitlements to of health to are scope of these initiatives The citizens. make all the all medical facilities available part any from of the world through tome services,web mobile services, SMS or call servicescenter At Vakrangee, our assisted online healthcare online healthcare our assisted Vakrangee, At with our customers provides platform and pharmacy telemedicine access to services. Our Kendras meet the unique people of numerous medical requirements our servicethrough partners who offer pricemedicines at a discounted and cost- telemedicine services. effective In partnership are we with Netmeds, can citizens where a platform providing and collect pay a wide range of order, other medicines and OTC prescription, Nextgen at their nearest health products can also customers The Kendra.Vakrangee and make various avail discount offers of on their purchases savings significant Netmeds is medicines and health products. with pharmacies, most trusted one of India’s of experience in dispensing years 100 over quality medicines. 138
MANAGEMENT DISCUSSION AND ANALYSIS
Vakrangee’s Performance Highlights In the new norm of volatility, uncertainty, complexity and ambiguity, our Next-Gen Vakrangee Kendras have proved to be a remarkable symbol of evolution, resilience and stability, repeatedly. In other words, our outlets are powerhouses of minimal footprint and maximum value. This section provides an overview on how we are sustaining value across different stakeholders.
Performance of our Next-Gen Key Financial Ratios* Vakrangee Kendras S. No. Particulars FY 2020-21 Explanation Product-wise performance 1 Debtors Turnover 0.19 It is assumed that the entire revenue from operations Our 11,730 Next-Gen Vakrangee Kendras (%) represents total credit sales less sales return and have been operating exceptionally to allowances. The ratio between the average trade deliver our promise of convenience and receivables and the revenue from operations is considered inclusion to the underserved and unserved 2 Inventory The ratio between the revenue from operations and citizens of India. Whether it is keeping 46.23 Turnover (%) the average inventory between beginning and end outlets open till late at night or helping of FY 20 is taken. The net sales is considered in this citizens during the COVID-19 pandemic, regard our franchisees proudly support building 3 Interest Coverage NA We have not incurred any ‘Finance Cost’ during the of a resilient India. Our product-wise Ratio (%) FY and thus, the ratio is not applicable performance results present our hard work, 4 Current Ratio (%) 10.2 There has been aincrease in current assets as well as sincerity and endurance to achieve our an increase in current liabilities and the value signifies mission. the ratio between the current assets to the current liabilities In FY 2020-21, our ATMs recorded total 5 Debt Equity Ratio NA Considering we are unlevered, i.e. we have no long number of transactions as more than (%) term/short term borrowings, the ratio may not be 4,08,16,785, while gross value of ATM considered. However, it can still be presented by transactions stood at over taking the ratio between the total liabilities to total INR 1,03,17,72,07,500. Similarly, number of equity transactions for our banking service was 6 Operating Profit 22.58 For the computation of the ratio, EBIT is taken around 6,49,63,790.00 recording a gross Margin (%) without considering the exceptional items value of INR 2,84,44,63,64,438.18 in the 7 Net Profit Margin 17.38 An increase in the profit level for this FY has anchored reporting year. (%) the growth in the net profit margin which is the ratio of the net profit and the revenue from operations Capital-wise performance 8 Return on Net 1.95 The net profit for the FY has increased leading to a worth (%) greater return on net worth, which is calculated by In the financial year 2020-21, the total taking into consideration the ratio between the net Income of our company stood at INR profit and the shareholder’s equity. 29,558.92 lakhs while the EBIDTA stood at INR 9,762.32 lakhs in FY2020-21. The PAT * The above figures and calculations are on standalone basis. stood at INR 6,279.13 lakhs in FY2020-21 and the EPS (basic) for the face value of INR 1 stood at INR 0.59 in FY2020-21.*
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
139 139 V and VI 5,487 IV 580 III 450 Bronze VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 II 195 I 489 3,013 V and VI IV 476 authorization to set up and operate Bharat authorizationand operate set up to have We operating unit. Bill payment BCFI and NPCI, well- membership of CATMi, industryrecognized bodies in the country. are: human capital Our drivers of value for believe We culture: Organizational work and respectful that a professional and supports growth culture productivity, build a work culture aim to We positivity. as continuous of meaningful work as well seek fair resolutions; We engagement. base our decisions on merit, deal fairly and and maintain honestly with stakeholders, transparency in decision-making. technology: The Leveraging on-going has caused pandemic of Covid-19 disruption in the world unprecedented technology, leveraging are We of work. and automation implementing process as new ways initiatives digital innovative of conducting everyday business and has There field operations. managing VC business verticalbeen dedicated wise franchisees channels being set up whereby on daily basis and get online can login They can also training sessions service wise. two-way communication sessions live have as as well business teams with direct managers relationship HO level centralized time basis. their queries on real resolve to human for Our initiatives Human rights: rights include compliance with labour about human awareness creating laws, equal providing rights among employees, opportunity harassment- employment, for workplace, of free health and safety and grievance redressal employees, employees. mechanism for III 413 Silver II 154 I 434 19 V and VI 7 IV 0 III Gold II 3 I 10 Number of Kendras across Tiers across Number of Kendras By being ISO 9001:2015 certified since 1998, our strong demonstrated always have we while changes in drivingintent innovative and the products improving consistently Our servicesto our customers. offer we technology and robust approach strategic bridgeenabled us to between the gap the rural and urban India look as we furtherahead to serve the unserved and underserved build a Nation population to disruption. to resilient Human capital been one always have Our employees the of the most valued stakeholders for continuously endeavor We Company. their knowledge upgrade to and skills, enhancing their ability value perform.We to and their motivation to our employees purpose serving of the shared achieve the underserved and unserved of India. citizens of 800 employees workforce Our strong our commitment. to bear testimony have we in human capital, By investing experienced a gain in productivity, work. loyalty and motivation to employee the United In signed FY 2019-20, we our Nations Global Compact and showed support principles the ten of UNGC to and environment labor, on human rights, making to committed We anti-corruption. the UN Global Compact and its principles and day- culture as part of our strategy, and to to-day operations of our company, which projects, in collaborative engaging goals development advance the broader particular Nations, United the Sustainable Development Goals. tie-ups also have with major We and in principle banks, nationalized 25,000 FY 22 E FY 21 11,730
FY 20 10,027
>70% VI Tier V and Tier Next-Gen Outlets in 11,730 KendrasVakrangee of Next-GenNo. Number of operational Vakrangee Kendras Vakrangee Number of operational The above graph highlights our growth in highlights our growth graph above The aim to FY 22 as we for FY 21 and the target further our range of services diversify and endured have We our outreach. increase while servingthe pandemic strategically the Nation with the essentialities such as banking. and doorstep Our telemedicine 24 across spread presence geographical 518 DistrictsStates, and 4588 postal codes V and Tier than 70% of the more covered VI locations (depicted in the graph Tier tribal and served have 172 LWE, We below). aspirational districts than 33% of the (more districts),total among which 87 districts working. had 130 field staffs Manufactured capital in moving taken steps significant have We the last our vision of reaching towards quality the people with mile and providing in the our presence Through services. partsremotest of the country and evolution of our services benefit the community, to financial, through growth ensured have we have We and social inclusion. digital the Unique Hybridintroduced Model supportto outlets with a physical our our which has made platform, digital services during accessible even the more We lockdown and restrictions. nationwide new innovative not only introduced have service but also expanded our offerings 11,730 reaching by presence geographical KendrasVakrangee in operational Next-Gen 10,027 in FY19. to FY20 compared 140
MANAGEMENT DISCUSSION AND ANALYSIS
Diversity and inclusion: We prohibit Health and safety: Few of our initiatives partners, local community wherein we discrimination based on individual’s race, to promote health and safety in the operate, shareholders, suppliers and color, religion, disability, gender, national organization are Employee Assistance government or regulatory bodies. We origin, sexual orientation, age, genetic Program, practical well-being and support, seek opportunities in maintaining a information or any other legally protected yoga classes, fire-safety and emergency relationship of cooperation and trust with status. Because of our efforts, 13.77% of drills, etc. We had a dedicated doctor all our stakeholders. In this regard, we employees are women. available for online and digital tele- have released policies such as Sustainable medicine consultation for all employees Sourcing Policy, Green Procurement Gender equality: Our initiatives for gender during Covid-19 pandemic period. Policy, Corporate Social Responsibility equality include Pay Equity Committee, Policy, Political Involvement Policy and salary negotiations, fair reward system, Grievance redressal: We have a qualified Shareholder Engagement Policy, among pay transparency, bonus, flexible work team of professionals for addressing others, concerning different stakeholders. schedules, and average increment of grievances, of all our stakeholders. Policies represent not only our commitment women employees. We have designed our towards strengthening our relationships but targets such that we reach 1:1 ratio of male Social and relationship capital also guide us in engaging and adapt with and female across the organization across In the social and relationship capital, we the changing times and to the needs of our the organization by 2025. encouraged ourselves to rise and share the stakeholders. burden with the people towards building Targeted recruitment: We are an equal each other. We focused on assessing our Following is a snapshot of how we opportunity employer. We aim to employ relationship with various key stakeholders interacted with each identified stakeholder: the best talent across the country from such as franchisees, customers, business diverse backgrounds. Being present across India, we work together with people from diverse backgrounds to achieve our Shareholders organizational goals. Our recruitment y We interacted with shareholders through conference calls, business updates through press releases, criteria include parameters such as roadshows, analyst meetings, and Annual General Meeting. We have recorded and uploaded the sessions on aptitude, competency mapping, skill set our website benchmarking, and ability. Franchisees Mentorship: Mentorship programs y We empower rural entrepreneurship, employment generation as well as skill development. like minority group program, women y Kendra outlets were made operational amidst Pandemic with all Safety Protocol in place mentorship program, specially-abled y Introduction of Doorstep Banking was made especially for senio citizens and old age pensioners mentorship program, military mentorship y Tele Medicine Services which provided professional medical consultations by doctors and reducing physical consultantions by 70%. program, new-joiner program, mentor and y Free registrations for vHealth for virtual doctor consutation buddy program guide our employees in professional aspects of their lives. Suppliers/ Vendors y Assessed 9 suppliers on the basis of their social and environmental impact. Moreover, we conducted regular Training and development: We have meetings and held internal audits to monitor their performance on our ESG requirements. imparted 1,100 hours of training on ISO certifications, induction, behavioral aspects, Customers etc., to permanent employees. y We have completely focused in providing sustainable business model to enable indians to benefit from financial, social and digital inclusion. Talent retention: Employees are associated with us for 5.1 years. Our on-boarding and joining process has helped us curb attrition Government and Regulatory Authority among new joiners by 8% in the first 180 y We have no direct relationship with Government bodies, however, we own a license from Reserve Bank of th th days of joining. We recorded a voluntary India to set up and manage White Label ATMs. We are the 12 largest and 4 largest ATM operator in India and rural India, respectively. attrition rate of permanent employees at y Tie-ups with major nationalised banks, and in principle authorization to set up andoperate Bharat Bil 4.83% in FY 2020-21. payment Operationg Unit y Member of CATMi, BCFI and NPCI, well-recognized industry bodies in the country Employee satisfaction: We conduct various employee engagement activities Local community like motivational programs, sponsorship, y Creating clean water drinking facility in remote area as as 70% of Kendra are centred in Tier V and Tier VI cities family events, and competitions. We also y Adhered to Corporate Social Responsibility Policy for harmony between business and community conduct employee engagement survey y Key CSR initiatives include being associate sponser ifor the Hiranandani Marathon, providing multi-speciality hospital in Kota and collaboration in establishment of IIIT Kota and offer services to employees from the in-house store.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
141 141 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 We also launched a mobile super app- also launched a mobile We BharatEasy based business platform: Super Mobile App. Go-Green Initiatives in all ATMs aimed Go-Green Initiatives in all ATMs in paper consumption by at reduction has This paperless ATMs. introducing paper consumption and paper reduced almost nil; to waste Biometric-enabled paperless banking of paper consumed aimed at reduction in our Next- generated and waste has also This Kendras. Vakrangee Gen in paper major reduction contributed to consumption and paper waste; expand Next- Our commitment to KendrasVakrangee in rural India Gen by the distance travelled has reduced and franchisees drastically, customers contributing in reduction to thereby and associated travel fuel consumed for gas emissions; greenhouse • Impact of initiatives adverse reducing for Our initiatives impact on is based directly environmental our business model such as location of our well- by guided Our activities are outlets. defined corporate policies. • • • Natural capital Natural stewardship with environmental Growth the months, In of just few a matter COVID-19 about years crisis brought has function. companies’ of change in the way surviveIn to order and succeed in such markets,volatile it is important rapidly to both address to adapt business strategies challenges and opportunities by created IndianThe business recognises the crisis. in operation and resilience the need for meet constantly changing the need to be the key to consumer behaviour of an continued growth for parameters in line with this growing are We entity. grow to committed sentiment and have We footprint. with minimal environmental set short-term have and long-term targets we curb Moreover, to our carbon emissions. to devised a set of initiatives carefully have our environment-related help us achieve the best means of while providing targets to our social and financial inclusion digital, customers. As a key Innovative step towards a keyAs towards Innovative step has the company initiatives, Digital Kendra:Vakrangee Launched Digital Unique Hybrid Offline) Model to (Online available is Assistance there whereby network store the Physical through Online Services;along with Digital We monitored 11,730 franchisees with monitored We in FY Things the help of Internet of 2020-21; As a result of strengthening data of strengthening a result As faced 0 security we in our operations, in our corporate instance of data breach office and outlets; We have trained all the employees trained all the employees have We advanced and 11,730 franchisees for technologies; Our investment in R&D and advanced Our investment FY 2020-21 was more for technology than INR 3 crores; ISO 22301- Business Continuity the Management Systemspecifies system management a for requirements the likelihood against, reduce protect to that the organizations and ensure of, disruptive from business recovers incidents; ISO 20000-1:2011 - IT Management IT benefits us with improved System service IT services management, reliable minimal risk downtimes, with reduced time-saving costs, and lower of errors, confidence; customer increased ISO 27701- Privacy Information which ensure Management System of compliance with enforcement mandatory internal regulatory, legal and best practices, compliance, along with need ethical requirements risk; managing for We are certified are relevant ISO in the We certificationsstandard that that ensure and processes systems proper have we ISO/ run our operations. in place to IEC 27001:2013 Information Security provides Management System data of the of sensitive protection and our customers; company • • • • • • • • Few highlights in FY 2020-21 are: highlights in FY 2020-21 Few • Big data and data analytics and data Big data Chatbot Conversational Interface Conversational Chatbot and Designs Blockchain Internet of Things of Internet Virtual Assistance Next-Gen systems payment Artificial and Natural Intelligence Language Processing Data privacyData and security Our company is putting continuous efforts is putting continuous Our company the gap betweenin bridging the rural and urban of India. population mile Our last services ways innovative on bringing focus the servicesin offering sectionto a larger of society especially during times tough of COVID-19Tele such as services like the facilities likemedicine which includes medical deliveries doctors, consultation by has discovered company The at homes. its services of offering new ways to like facilitycustomers doorstep and Digital all the can enjoy customers Kendras where services at their homes. Intellectual Capital Intellectual 142
MANAGEMENT DISCUSSION AND ANALYSIS
• Our corporate office has been built on the concept of green building. Key features of our green buildings include energy-efficient design, onsite renewable energy through rooftop solar photovoltaic (PV) panels, daylight harvesting through glass walls, usage of recycled material and net-zero discharge initiatives;
• Commute by carpool/vanpool, bike, and public transit, which helps to reduce Scope 3 GHG emissions, has been incentivised for employees;
• Our Next-Gen Vakrangee Kendras are established in existing infrastructure to reduce the need to acquire and clear new piece of land. It has avoided adverse impact on biodiversity due to construction, as well reduced pressure on land utilization; • We are focusing to achieve our goal “The company has is by designing energy efficiencies • Since almost 70% of Next-Gen into our facilities such as usage of Vakrangee Kendras are centered in tier discovered new ways of Renewable energy at our last mile V and tier VI cities, we are creating clean franchisee infrastructure as well offering its services to water drinking facilities in remote areas, as leveraging technology to lead which can be accessed without charge innovation and get digital transactions customers like doorstep at any time; leading to minimal paper waste, facility and Digital Kendras • To reduce use of plastic, we have thereby reducing GHG emissions. restricted use of plastic package • We have also received ISO certifications where customers can drinking water bottles. We have on ISO 14001:2015 - Environmental started use of glass water bottles for enjoy all the services at Management System, ISO 20400:2017 - office meetings. We have adopted Sustainable Procurement Management a sustainable waste management their homes” System, and ISO 14064-1:2006 & philosophy in line with the concept ISO 14064-2:2006 - Green House of circularity of through waste Gas Emission to strengthen our management, re-cycling and eco- performance in environmental friendly disposals through Industry best stewardship, ISO 50001 – Energy practices. Management System.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
143 143 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Billion on an Annual basis over the nextBillion on an Annual basis over 5 and no of transactions cross years would would This a billion transactions annually. in Revenues growth significant into result as our business model and profitability is asset light franchisee based model Our Cash operating leverage. with strong Return improve would on Capital Adjusted significantly. behind the Company’s strategy The on Pan a presence have is to planned target India basis in every code District and Postal of the country so that every can citizen key access to essential serviceshave within Vakrangee walkable distance at the nearest become to intends Vakrangee Kendra. innovative offering by 1 retailer No. India’s for modern technologies ideas and proven and digital financial, facilitating universal social inclusion. aim we experience, seamless customer For quotient of Next- convenience improve to Kendras unifying our Vakrangee by Gen all our franchisee brand experience across categories within the marketplace. Our top- become the world’s objective is to store convenience digital assisted notch unified and one-lookwith standardised, making infrastructure, our branding for “assisted Kendras distinctly identifiable as stores”. convenience digital our unique business model with Through driving are a vast network we of outlets, and social inclusion in rural digital financial, that India. purpose ensure Our ultimate is to every Indian has the opportunity benefit to and social inclusion digital financial, from the global marketplace.and has access to Government’s financial schemes and the Government’s as PMJDY such social inclusion initiatives We and social security insurance schemes. banking, access to universal providing are insurance and pension schemes alongside of subsidies. Transfer Direct Benefit on expansion focus continues to Vakrangee based Light Franchisee its Asset through Itmodel. has a short term and medium- March of 25,000 outlets by term target of 75,000 2022 and long-term target We Kendra 2025. Vakrangee by outlets 2.0 launched our Strategy recently have Document 2.0 Strategy The Document. targets highlights our Next growth 5 year in and operational and financial deliverables on the Core document focuses This detail. network of NextGenBusiness of Physical set to Our vision is now Kendra outlets. franchisee based largest the world’s create distribution channel in India with a strong that our estimate We on Rural India. focus US$50 cross value would Transaction Gross the length and breadth of the country. of the country. breadth the length and a better for In our endeavour parallel to the to committed India, have we a Sustainable Development Goals for adopt these Goals to aim We world. better such as global challenges, and address change and climate inequality, poverty, incorporate We degradation. environmental Social and Governance Environmental, in our fundamental (ESG) initiatives sustainable for business process development. taking are digital the financial and We literacy the socio- of the bottom to and servingeconomic pyramid as the unserved connect link to India’s last-mile and underserved rural and urban citizens them the same products offering by and services at the same time alongside act as the biggest We pricing. competitive the gap of financial, bridging equaliser by inclusion in urban and social and digital aim at achieving financial rural India.We of the promotion inclusion through business model includes a vast network of outlets spread across includes a vast networkbusiness model across of outlets spread to benefit from financial, digital and social inclusion. Our unique and digital financial, benefit from to Our purpose is to ensure that everyOur purpose ensure is to Indian has an opportunity Business Outlook – Our Corporate Strategy – Our Corporate Outlook Business 144
MANAGEMENT DISCUSSION AND ANALYSIS
We are taking the financial and digital The “Vakrangee Effect”: adopting Our aim is to efficiently adopt these literacy to the bottom of the socio- economic, social and governance goals, Integrate them into our strategy economic pyramid and serving as the aspects and Business operations, and address last-mile link to connect India’s unserved Our vast network financially empowers the global challenges, which includes and underserved rural and urban citizens a large section of society that, until now, poverty, inequality, climate, environmental by offering them the same products and were excluded from mainstream activities degradation, prosperity, and peace and services at the same time, competitive of an emerging economy, inclusive of justice. Vakrangee Limited has been prices and same service levels. We are consumption, savings, insurance and accepted as a Signatory of the United acting as the biggest equalizer by bridging investment. We have mapped our Business Nations Global Compact. We are now part the gap between the urban and rural growth strategy with the Sustainable of a global network of over 9,500 companies population in India. Our overall objective is development goals as well as doing and 3,000 non-business participants that to deepen our presence in India and keep Responsible business. We engage with are committed to building a sustainable enhancing our service portfolio to create a Government and private partners to drive future. Increased participation of people will seamless customer experience. Financial, Social and Digital inclusion further support industrialisation, agriculture throughout the Rural communities in India. and create a wider market for goods and We have a strategy to keep improving services. Subsequently, with potential our convenience quotient by unifying our financial and social inclusion of a large brand experience across all our franchisee section of society responsible for more than categories within the marketplace. Our half of India’s GDP, the Indian economy can objective is to become the world’s top- be further enlarged and energised. We call notch assisted digital convenience store this “The Vakrangee Effect”. with standardised, unified and one-look branding for infrastructure, making our As a company, we are always planning and Kendras distinctly identifiable as “assisted our strategy is always to grow the business digital convenience stores.” organically. We plan to grow and expand our network to 25,000 Vakrangee kendras Our service offering strategy is to keep by March 2022 and on a long term basis to expanding the service offering bouquet to reach 75,000 outlets by 2025. make sure maximum services are available to citizens under one roof. Our motto for Resilient business model customers is to become the Store of choice We believe practising inclusivity can help for their daily usage and convenience any business to sustain and prosper in services. As we say, “Sab Kaam Ek Dukaan” or the long-term. At Vakrangee, our ultimate “Ab Poori Duniya Pados main”. purpose is to ensure that every Indian gets the opportunity to benefit from financial, digital and social inclusion and has access Huge untapped market: overall market potential to the global marketplace. Through our vast network of outlets, we are driving financial, digital and social inclusion in rural India. Our Jammu & Kashmir Population 1,25,48,926 focus on inclusiveness enables us to reach the last mile and create value. Himachal Pradesh 1.35 Billion 68,56,509 Punjab 2,77,04,236 Uttarakhand Chandigarh 1,01,16,752 1. Social inclusion Haryana 10,54,686 Total no. of village 2,53,53,081 Arunachal Pradesh NCT of Delhi Sikkim 13,82,611 • Enhancing skills: Our business model 1,67,53,235 6,07,688 Rajasthan Uttar Pradesh Assam 6,86,21,012 19,95,81,477 Nagaland 3,11,69,272 6,62,986 facilitates skill enhancement. We on 19,80,602 Bihar Meghalaya 10,38,04,637 29,67,007 Manipur 27,21,756 board ordinary individuals and train Tripura Jharkhand 36,71,032 Mizoram Total no. of Gujarat Madhya Pradesh 3,29,66,238 West Bengal 10,91,014 them with skill sets to yield remarkable 6,03,83,628 7,25,97,565 9,13,47,736 Gram Panchayat Chhattisgarh results. Additionally, these individuals Daman and Diu 2,55,40,196 2,42,911 Odisha Dadra & Nagar Haveli Maharashtra 4,19,47,358 are encouraged to complete a basic 3,42,853 11,23,72,972 2,53,268 certification to enhance their technical
Telangana Total no. of skills for rendering Aadhaar and & Goa Andhra Pradesh POPULATION 1 00 00 000 AND BELOW Urban Wards Banking Services, 14,57,723 8,46,65,533 1 00 00 001 - 2 50 00 000 2 50 00 001 - 5 00 00 000 5 00 00 001 - 10 00 00 000 Karnataka 10 00 00 001 AND ABOVE 6,11,30,704 Total Population 1,21,01,93,422 Males 62,37,24,248 75,535 • Creating employment: Our business Puducherry Females 58,64,69,174 Puducherry 12,44,464 64,429 Tamil Nadu model is a pure franchisee-based. Kerala 7,21,38,958 Total Outlet Potential 3,33,87,677 Apart from creating employment 3,79,944 3,28,803 opportunities within the Company,
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
145 145
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Insurance ATM Services Financial Financial We have adapted and enhanced the and enhanced the adapted have We services our Next-Gen by provided meet them to Kendras align Vakrangee to the demands of rural India, which requires to when compared approach a different IndianThe Government’s urban India. payments, digital encouragement for a our outlets into develop us to motivate one-stop various products and for shop services. Support the Government’s from financial inclusion has towards initiatives helped almost every Indian household at least one bank account and own to Direct Benefit a debit card. access to have (DBT)Transfer scheme has helped deepen penetration of banking services rural into parts Increasing access to of the country. hasmultiplied demand platforms the digital banking digital options and platforms for the country. across digital introduced Our Kendras have to rural markets.and financial inclusion liketechnologies disruptive offer We (AePS), Systems Aadhaar enabled Payment inter-operabilitye-KYC, time and real banking transactions our customers. to insurance with several collaborate We to as their corporate agents, Companies, general and health insurance. life, provide
Banking
& Logistics E-Commerce E-Commerce Total Total Healthcare E-Governance Our range of services offered at our Next-Gen Kendras of servicesOur range offered We, through our Next-Gen through We, 26 Vakrangee Kendras, aim to connect aim to Kendras, the Vakrangee rural population of India and map them social and of financial, under the umbrella the Next-Gen of today, inclusion. As digital as one considered KendrasVakrangee are in rural points of consumption of the centre economy. form of ‘One Stop Shop Digital Convenience Convenience Shop Digital Stop ‘One of form the urban citizens and rural offering Stores’, goods and services same at the same price, Out of our quality. time and of the same tribal in 164 1,469 outlets are 10,027 outlets, in 90 Left-Wing districts, and 614 outlets are districts. Extremism (LWE) and economic work decent 5. Promoting growth right opportunities provide people to We stable, get work that is productive, – to local Our franchisees create paid. and well work opportunities local recruiting by and undertakingpeople, skill development - certificationfor banking, insurance and services.UIDAI a – Bringing “Sab Kaam Ek Dukaan” doorstep your at of convenience world 65% of 1.3 India has approximately living in rural partsbillion citizens of the country. July 2020. http://statisticstimes.com/demographics/ th each franchisee is also providing is also providing each franchisee 2 of 1 to minimum to employment further creating thereby resources, opportunitiesemployment and Our people. for local financial stability business to distinguished approach for generating ripple a effect creates in society. employment e-Governance: Social inclusion through in Social inclusion helps a resident getting an identity; his/her recognizing in helping the Government existence; delivery for the resident out to reaching It initiatives. furtherof various welfare drive financial inclusion and enables to loans. easy access to in providing Last accessed on 13 country/india-population.php 26 • inclusion 2. Financial basic banking access to and provide We enable we insurance services. Additionally, directly subsidies of Government transfer through the bank accounts of citizens into Transfer Benefit Direct the Government’s (DBT) financial inclusion of With scheme. sectiona larger for of society responsible the Indian GDP, than half of India’s more can be furthereconomy and enlarged energised. inclusion 3. Digital taking are literacy the bottom digital to We of the socio-economic and serving pyramid connect link to India’s as the last-mile unserved and under-served rural and them biometric- offering by urban citizens enabled banking, e-commerce assisted services e-governance and digital services taking are we Furthermore, at our Kendras. literacy of the socio- the bottom digital to assisted offering by economic pyramid e-commerce services our Kendras. through link and last-mile ensure enables us to This to rural and urban citizens connect India’s modern e-commerce sites. 4. Reducing inequalities reduce one of our major goals to As the gap bridging are we inequalities, urban and rural population. between India’s KendrasVakrangee are Our Next-Gen Poori “Ab with the theme, coordinated a setup in the have We Mein”. Duniya Pados 146
MANAGEMENT DISCUSSION AND ANALYSIS
Through our Kendras, we have established a Alongside banking services, our delivering utmost convenience at minimal network of easily accessible ATMs, provided Kendras serve as technology-intensive or no charge. Our Next-Gen Vakrangee communities convenience of withdrawing retailers providing multiple services Kendras cater to the day-to-day needs of cash within their own neighbourhood, and such as e-commerce, online healthcare, the rural people. We provide services like eliminated the need to travel long distances telemedicine, and online travel bookings booking of train and bus tickets, electricity for essential services. Approach of our under one roof. Indirect access to modern bill payments, and courier and logistics Kendras helps us act as a Cash-in Cash-Out services by rural citizensand availability of services, amongst others. With the help of point for local area. few products in rural areas, are bundled these services, our objective stands to reach with a premium price primarily because of remote areas of India and connect with the high transportation costs. Our philosophy unserved sections of society. of being the biggest equaliser franchisee- based, a multi-service retail network, we have inclined our efforts towards
Unique features and advantages of Next-Gen Vakrangee Kendra
Store exclusivity and consistent branding • BRANDING Exclusive store model with same service level and same customer experience • Standardised layout and design by L&H (Lewis & Hickey) • Uniform and consistent branding for higher brand recall and visibility
ATM in outlet • ATM installed in outlet • Potential to enhance the footfall significantly • Additional stream of revenue for both – the franchisee and the company
Centralized monitoring system • Centralised CCTV system • Better security at the store • Full compliance with RBI guidelines to maintain more than 90 days video recording backup
Digital advertising • Digital signage to enable centrally monitored advertisement campaigns • To enhance the interaction between consumer and partners • Focus to initiate advertising revenue
PIN pad device • To enable various kinds of payment modes at any Vakrangee Kendra • Integration in process to start accepting RuPay, Debit and Credit card payments
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
147 147 VAKRANGEE LIMITED VAKRANGEE been granted In-principlebeen granted Integrated Annual Report 20-21 Rank), health services one of leading th of hospitals and clinics. Aetna is a CVS Aetna and clinics. of hospitals 500 Enterprise, (Fortune Health Company 5 providers in the world. providers with 2. Banking collaborated service: We Banking for SBM Bank (India) Business Ltd. (BC)Correspondent point service for India, Pan KendraVakrangee for Nextgen Women appointing for Bank of Baroda BC Sakhis Banking providing and services and Chhattisgarh Rajyain Uttar Pradesh Gramin Bank (CRGB) (a Government-owned of Bank State by scheduled bank sponsored India) Banking for Business Correspondent (BC) point serviceVakrangee Next-Gen for Kendra in Chhattisgarh. a corporate have service:3. Insurance We agency tie-up Insurance with Life Corporation of India (LIC) distribute to Next- through insurance products micro KendraVakrangee network.Gen 5. Distribution of business loans: We with Lendingkart collaborated have Finance distribution of business offering for Ltd., Vakrangee its Nextgen loan through We Kendras. have authorisation to set-up and operate Bharat operate and authorisation set-up to Operating Unit (BBPOU) under Bill Payment and Settlement Systems the Payment ReserveAct, 2007 from Bank of India handle directly can now Vakrangee (RBI). of payment and aggregation payment services bills under the scope of to relating BBPS. services: Limited Vakrangee 6. Financial (VL) a partnership into has entered CIBIL Limited TransUnion with agreement credit largest (TUCIBIL), one of the India’s Reserve by regulated company information Bank of Indiaby drive financial inclusion to and CIBIL Score easy access to providing Report Nextgen consumers through to KendraVakrangee network. loans: 7. Distribution of franchisees (VL) Limited Vakrangee into has entered a partnership arrangement with Union the loan Bank of India provide (UBI) to Vakrangee India Nextgen Pan facility for BothKendra new and existing franchisees. loans avail to be eligible franchisee would a special bank is offering The UBI. from KendraVakrangee franchisee product for under Union Mudra Scheme. of data. We have initiated adopting AI adopting initiated have We of data. since they build and ML technologies make use of AI and We abilities. cognitive lines and our product improve ML to solutions; obtain advanced business design accuracy; improve to information relevant maximise of resources; assist in assignment and of existing processes; automation Our focus hours. minimise countless human AI as an augmentation is on deploying providing workforce, the current to tool with and other professionals engineers their increase added insights that will focus on efficiency to free them up and enriching experience. the customer Internet (IoT): Things of of 4. Internet is one of the top world, in today’s Things, that enables management technologies Itof devices and applications. connects enterprise-wide devices, wearable physical and other electronic devices through assets, These amongst others. actuators, sensors, across data from help in gathering real-time lines. or business departments, processes, adopting and are as an organisation We improved for implementing this technology asset utilization and efficiency, process are we the use of IoT, With productivity. electric surveillance and monitoring ATMs, logistics. interface and conversational 5. Chat-bot become a prominent chat-bots As design: industries, different across technology conversational introduced have we interfaces human-like voice using NLP for different play to designed conversation, and customers. and assist employees roles A personal assistant performs instant two- queries, answering by conversation way or taking running video on demand, notes, who provides a customer-service executive, all sorts or on products of information services. alliances Our strategic new opportunities continuously explore We and business tie-ups expand our world to Our strategic customers. for of convenience as alliances during 18 months are last 12 to follows: tied have We service: 1. Telemedicine a offer to Aetna up with vHealth by servicescombination of telemedicine and networkprivileged its nationwide access to Robust technological innovations for for innovations Robust technological businessmodel our promising with a is integrated Our business strategy We innovations. on technology focus strong of technology in the power believed have various implemented and have innovations, such as biometric-enabledinnovations banking, and transactions, paperless digital constantly We Customer). Your (Knowe-KYC with latest our technologies upgrade of our solutions are: Few innovations. 1. Next-Gen solution: The payment on Government of India has been focusing We the country. across payments digital understand the importance of adopting a next business model in the generation with the government’s align To age. digital are we payment, mission of digital Platform Payment a Unified developing including card all payments process to and QR UPI, AEPS, Aadhaar Pay, payment, will enable our Next-This amongst others. Kendras payments accept Vakrangee to Gen mode of any through our customers from one of the pioneers of are We payment. (AePS) System Aadhaar enabled Payment digital based banking An integrated system. make us to mechanism empowers payment banking services every to available citizen of India the last tier in the country. across analytics: We and data 2. Big data proportion a great and store generate data This of data on a daily basis. sorting, storing and arranging requires is not possible which methodically, database system. a conventional through of data, we volumes manage large To the use of transitioned towards have understand that number of We big data. devices connected and amount of data with the use of will increase generated we have Therefore, artificial intelligence. incorporated data analytics – processing insights. behavioural and analysing data for make we use of artificial results, better For which and machine learning, intelligence considers the historical data and provides which comes handy predictions, accurate action. proactive for (AI) and Machine 3. Artificial Intelligence an integral (ML): AI and ML form Learning due corporate strategy component of any their ability manage high volumes to to
CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS 163 165 166 168 173 179 150-183 Annexure to the Directors’ Report the Directors’ to Annexure - 1 Annexure - 2 Annexure - 3 Annexure - 4 Annexure - 5 Annexure - 6 Annexure DIRECTORS REPORT 150
DIRECTORS’ REPORT Directors’ Report
Dear Shareholders,
Your Directors are pleased to present 31st Annual Report on the affairs of the Company together with the Audited Statement of Accounts for the year ended March 31, 2021.
1. PERFORMANCE OF THE COMPANY The Company’s performance is summarized below:
FINANCIAL RESULTS (` in Lakhs) Particulars Standalone Consolidated 2020 – 2021 2019-2020 2020 - 2021 2019-2020 Revenue from Operations 22743.67 62335.23 31429.14 68522.16
Other Income 6815.25 7599.58 6965.99 7747.82 Profit / Loss before Depreciation, Finance Costs, 8216.94 9153.39 9762.32 10140.46 Exceptional items and Tax Expense Less: Depreciation/ Amortisation/ Impairment 1478.35 1486.04 1480.51 1488.60 Profit/Loss before Finance Costs, Exceptional items 6738.59 7667.35 8281.81 8651.86 and Tax Expense Less: Finance Costs 0 0 0 0 Profit /Loss before Exceptional items and Tax 6738.59 7667.35 8281.81 8651.86 Expense Add/(Less): Exceptional Expense 0 503.41 0 503.41 Profit /Loss before Tax Expense 6738.59 8170.76 8281.81 9155.27 Less: Tax Expense (Current & Deferred) 1602.47 1718.38 2002.68 2027.26 Profit /Loss for the year (1) 5136.12 6452.38 6279.13 7128.01 Total Comprehensive Income/Loss (2) 89.24 18.42 88.50 54.34 Total (1+2) 5225.36 6470.80 6367.63 7182.35 Balance of profit /loss for earlier years 190153.46 186894.00 191811.00 187875.91 Less: Transfer to Reserves 0 0 0 0 Less: Dividend paid on Equity Shares 2648.51 2648.51 2648.51 2648.51 Less: Dividend Distribution Tax 0 544.41 0 544.41 Balance carried forward 192641.07 190153.46 195441.62 191811.00 PERFORMANCE Standalone: Your Company’s total income during the year under review was ` 29558.92 Lakhs as compared to ` 69934.81 Lakhs in the previous year. The Profit after tax was ` 5136.12 Lakhs as compared to ` 6452.38 Lakhs in the previous year.
Consolidated: Your Company’s total income during the year under review was ` 38395.13 Lakhs as compared to ` 76269.98 Lakhs in the previous year. The Profit after tax was ` 6279.13 Lakhs as compared to ` 7128.01 Lakhs in the previous year.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
151 151 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 on Corporate governance standards. governance on Corporate th This financial year has been challenging for all businesses for year has been challenging financial This and slackened growth the globe as Covid-19 around Resilience in millions of families. affected negatively the key been have approach operation and innovative entity and serving continue as a growing to parameters Limited Vakrangee humanity in the best possible way. multiple same and through of the has been a facilitator the last mile service. redefine been able to have initiatives but the business geographically not only expanding are We the need of the society amalgamating by also addressing of diversification through with innovation technology Vakrangee has served by the people the services offered. and services the essential products bringing at at doorstep the time of crisis. has been successful in benchmarking Company your Further, performance on a wide range of industryCompany’s specific and social criteria governance that environmental, economic, on Business sustainability focus the growing to relevant are Global to the corporate success. relevant and financially to further commitment company’s reflects recognition and transparencyenhance its corporate governance across Global recognition achieved has Company standards. its superior ESG performance for various platforms and long term Business sustainability. extremely are gone which is FY2021, we During the year & included was recognized Vakrangee that share to proud Vakrangee Gender-Equality Index.in 2021 Bloomberg Also, in the Sustainalytics ESG Riskhas been globally ranked No.1 rating rankings out of the 816 companies assessed in the Software and Services industry Further, worldwide. across as S&P Global CDP as well through recognition received we Global S&P rankings ranked 13 on overall have we whereby as rankedas well 9 At Vakrangee, we have always attempted to be a Responsible to attempted always have we Vakrangee, At rating is a validation This company. and Socially Conscious of our Business model of our belief and commitment to our network of Through Kendras. Vakrangee Nextgen taking are literacy we kendras, to the the financial and digital and serving of the socioeconomic pyramid bottom as the unserved and underserved connect link to India’s last-mile them the same products offering by rural and urban citizens and services price and same competitive at the same time, acting by as the biggest equaliser are We service levels. the gap betweenbridging the urban and rural population in India. mapped our sustainability with the initiatives have We goals The Sustainable Development Goals. Nation’s United Our aim is tomorrow. a better a blueprint achieve to are the global efficiently adopt these goals and address to climate, inequality, which includes poverty, challenges, and peace and prosperity, degradation, environmental justice.
STATE OF COMPANY’S AFFAIRS OF COMPANY’S STATE of Building Resilience FY2021 was a year Vakrangee, For Vakrangee is one of the Redefining by the Last Mile. franchisee-based,largest multi-service network. retail network extensive of India’s on creating focused are We outlets at every retail last-mile postal code in the country, digital social and financial, enabling Indians benefit from to lies in its unwavering Vakrangee essence of The inclusion. see that everydetermination to Indian has the opportunity to the global financial inclusion and access benefit from to have we our goal, achieve marketplace. a means to As our newbundled modern-day franchisee- into conveniences its through Vakrangee Kendra.Vakrangee model of Next-Gen services has tried bridge to the gap between the rural and urban essentialities such as Banking India providing by and services, health services telemedicine online pharmacy, ATM expert & video consultation with tele – including unlimited facility delivery home blood test and doorstep doctors, of the health and to threat the potential minimize medicines to at present franchisees and customers Vakrangee of the safety locations. remotest scaled up our highly recognisable we During the year, Kendrathan 11,700+ format network more to “Next-Gen” 27 covering across spread Operational outlets which are 510 districts over and 4,580 Territories and Union states Tier in 70% outlets are Out of these outlets, postal codes. a have is to planned target Company’s The VI cities. V & each covering all postal codes, across last mile presence move we As in the country. and every Gram Panchayat expand our networkforward to of NextGen Kendras across network will benefit India, our growing that believe we of standardization degree a regimented immensely from in terms of the quality of our facilities, and consistency, and in terms of the service our customers. offer we levels 25,000 Next-Gen reach is to Kendras target Our Planned by FY2022 and 75,000 Next-Gen Kendras FY2025. Our aim is by rural distribution platform. largest become India’s to has done key the Company During the last 12 months, Services the Bankingalliances for & Financial such as the Banking as NSDL BC tie up with SBM Bank (India) as well Ltd has further a into Company The entered bank. Payment partnership appointing for arrangement with Bank of Baroda BC Sakhis Banking and providing Women services in Uttar a partnership into has entered the Company Also, Pradesh. (TUCIBIL), CIBIL Limited TransUnion one of with agreement by regulated company information credit largest the India’s Reserve Bank of Indiaby providing drive financial inclusion to and Report CIBIL Score easy access to consumers through to KendraVakrangee network.Nextgen
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Vakrangee Limited has been accepted as a Signatory of the Based on the essential services we provided during the United Nations Global Compact. We are now part of a global pandemic, we are amongst the very few companies globally network of over 9,500 companies and 3,000 non-business who were operational and brought our services to the participants that are committed to building a sustainable unserved and underserved population in the remotest parts future. of the country and redefined the last mile service during the time of crisis. We introduced new facilities such as Doorstep The UN SDG goals are interconnected, and we intend to banking and Digital Vakrangee Kendras whereby customers implement them in order to make the world a better place. could avail the facilities from the comfort of their homes We believe that businesses can have a positive impact on the and reduce possibilities of getting affected by Covid-19. societies they serve. Our principles of sustainability define Amidst Lockdown, Our Banking Business Correspondents how Vakrangee delivers responsible and sustainable growth. BCs provided doorstep banking services to Jan Dhan • Your Company’s Membership number for United Account Holders in remote rural areas especially for senior Nations Global Compact is as follows: Participant ID – citizens and old age pensioners. We look forward to serving 138851 the community while expanding our operation through a sustainable approach and driving resilience by incorporating • Vakrangee’s Impact Sustainability & ESG (Impact - ESG) leading edge technology and innovation. - https://vakrangee.in/overview.html We believe our Brand awareness and store awareness has • COP (Communication on Progress) Policy - increased significantly during this period of COVID-19 https://vakrangee.in/pdf/Franchisee/overview/ pandemic as our kendras have been open and are providing Communication%20of%20Progress%20(COP)%20 key essential services in their neighborhoods, due to which Policy.pdf we believe we shall emerge as the store of choice for our COVID-19 Pandemic - Update on Business Operations customers for all their Essential needs. Further, we expect our services to normalize over the next couple of months During COVID pandemic, we have been successful in and business growth momentum to improve going forward. opening of our outlets during this period of lockdown since Due to our enhanced visibility during this lockdown period we have been providing essential services. However, the and an aggressive marketing campaign done over the last service offering at our outlets was limited as majorly only 6 months, the Company has received an overwhelming Banking and ATM services were operational whereas other response on the same and has received huge number of key services like Online shopping, online pharmacy, Travel new enquires for NextGen Vakrangee franchisee model. services and Logistics were closed due to on ground delivery challenges and travel ban amidst Lockdown. Further in Further, Under Pradhan Mantri Mudra Yojana (PMMY) the Banking services, we witnessed lower ticket size transactions Banks have started to extend finance to the micro enterprises and absence of deposit transactions whereby only which are in the business of manufacturing, trading and withdrawal transactions were in focus during the said period. service sector in rural, urban & metro areas. In spite of COVID-19 Pandemic situation, Vakrangee kendra Union Bank of India is now offering a special product for our network throughput crossed more than US$ 5.2 BILLION franchisees under Union Mudra Scheme. Union Bank of India (` 37,600+ crore) in the Full year FY2021 and Our Total has an overall planned outley of ` 2,000 crore and sanctioned Number of transactions crossed 126.8 mn (~12.6 crore) the outlay of ` 800 Crores (first tranche) under Union Mudra transactions on a Annual basis which has been very Scheme for Nextgen Vakrangee Kendra franchisees. The encouraging. Loans covered under MUDRA scheme are collateral free loans. This is a huge boost to our potential franchisees, This makes us one of the very few companies globally thereby easing the On-Boarding process for our potential who are operational during a lockdown and providing key franchisees. The Company believes and is very confident to emergency and essential services to the citizens in the most achieve its store expansion targets well before the stated environment friendly manner at the remotest parts of the timelines. Due to the overwhelming response received on country thereby serving unserved and underserved parts the new enquiries, the Company has already initiated the on- of the country. At the same time, health of our franchisees boarding to Go-live process of these outlets and have already and customers is important to us and all our Vakrangee begun the preparation on key requirements to achieve this Kendras are maintaining complete safety protocols and also feat. maintaining proper hygiene at the outlets.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
153 153 June 2021 th VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 had approved a scheme of arrangement for demerger a scheme of arrangement for demerger had approved undertaking) division (Demerged of digital Vakrangee of Limited Ventures Digital Vakrangee into (“VL”) Limited with section under Sections 66 and 232 read to 230 (“VDVL”) The Act, 2013. of the Companies other applicable provisions Division of Digital transfer for alia provides Scheme inter undertaking)(Demerged would the Company whereby enable seamless services to platform the digital for provide consumers at the comfort of their homes. Vakrangee of the said scheme the shareholders to Pursuant VDVL of the face of will get One (1) new EquityLimited share every 1/- each fully paid up for value of Re. One (1) Equity each fully paid up held by of the face value of Re.1/- Share VDVL arising out of the Scheme will of shares The VL. them in with the applicable on BSE and NSE in accordance be listed of after complying with the formalities and regulations laws exchanges. the said stock of the National approvals SchemeThe is subject requisite to Exchange National Stock BSE Limited, Tribunal, Law Company of India Securities Board of India and Exchange Limited, and other statutory / regulatory including those authorities, of the Demerged and/or creditors the shareholders from Company. 2.0 Launch of Strategy the Company that now believes Company of your Board The growth a strong a clear visibility for poised and have is well has Company The come. journey to in the next years few plan and Future launched its nextnow growth 5 year 2.0 Document. Strategy Business guidance through Next 5 year 2.0 Document highlights Company’s Strategy The and operational and financial deliverables targets growth Business of on the Core document focuses This in detail. strategy This network of NextGenPhysical Kendra outlets. Company”) and VAKRANGEE FINSERVE LIMITED (“the Second VAKRANGEE Company”) and Company”) subsidiaries the wholly owned with Transferor Company’). Transferee LIMITED (“the VAKRANGEE with the Application Company had filed a Company The Mumbai Bench; Mumbai Tribunal, Law National Company seek necessary to directions. (“NCLT”) substantial changes in business due to However, of the of Directors during the Board FY 2020-21, environment considering was of the opinion that, the present Company with proposed proceed to not be prudent it would scenario, and Limited Private Logistics Vakrangee Amalgamation of Hence, Limited. Vakrangee with Limited Finserve Vakrangee of the Scheme was filed with withdrawal an application for on December 3, NCLT by and the same was approved NCLT 2020. demerger for on Scheme of Arrangement Update meeting held on 19 at its Board Company The
New Initiatives – Launch of Digital Vakrangee Kendra Vakrangee – Launch of Digital Initiatives New digital launched an online recently has Company Your enable seamless services to platform at the the consumer for into evolved have we this, Through comfort of their homes. there Offline) to the unique O2O (Online whereby platform, Kendra network the Physical through available is Assistance has Initiated Company The Online Servicesalong with Digital this Unique Hybrid with launch of first Digital proposition make plans to Company The services Telemedicine service of also are We services more this platform. many through live launching a MobileSuper App based business platform: India kaBharatEasy App, Super App. BharatEasy Super App Vakrangee’s By a single downloading a get access to would mobile application, our customers and Services wide array of Products significantly which would between multiple switch to their requirement reduce superior experience lead to customer and would This apps. use it every would Consumers the customer. for convenience multi-service, a seamless, offer because our app would day and efficient experience. integrated & ServiceAll the Product and Relationships Partnerships Built the Mobile App years, the last many over the company by the technology them. Further access to direct have would all these various services for Integration and API integration a lot of costs as saves thereby been done and has already Market Mobile to Time App venture. the Digital for well Competitive and a Sustainable A unique differentiator would Super App platform our Digital advantage is whereby Eco-system OnGround Vakrangee the leverage be able to pan diversified 11,700+ physical – a vast well India level Assistance as point of Physical Vakrangee network of store Semi Urban consumers to especially to and rural remote locations. along with Physical: of Digital Unique Proposition This scale up fast channel to Digital help the would “Phygital” to acquiring related reduce the costs significantly and would fulfilling and Return order assistance, physical customers, physical leveraging Further, management of online orders. interaction, customer better into result would presence Trust service and better Brand recall strong experience and the customers. for on Scheme of Merger/Amalgamation Update meeting held on 13th February, at its Board Company The the Scheme of Amalgamation pursuant 2020 had approved of Section 232 of the Companies 230 to the provisions to Company National from Act, 2013 subject the approval to jurisdiction Mumbai the Company having over Tribunal, Law and also the necessary the concerned from approvals the regulatory where authorities exchanges including stock Amalgamation of M/s for listed, were of the Company shares Transferor (“the LIMITED First PRIVATE LOGISTICS VAKRANGEE
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plan document does not include any contribution from the 5. PUBLIC DEPOSITS digital mobile app platform. During the year under review, the Company has not Board’s vision is now set to create the world’s largest accepted or renewed any deposits falling within the purview franchisee based distribution channel in India with a strong of provisions of Section 73 of the Companies Act, 2013 read focus on Rural India. The Board of Directors are confident with The Companies (Acceptance of Deposits) Rules, 2014. to deliver very strong growth over the next 5 years as our 6. SUBSIDIARIES network would grow from 11,700 to 25,000 outlets by March As on March 31, 2021, the Company has three wholly owned 2022 and to 75,000 outlets by March 2026. It is estimated subsidiaries viz, Vakrangee Finserve Limited, Vakrangee that the Gross Transaction value would cross US$50 Billion Logistics Private Limited and Vakrangee e-Solutions INC. on an Annual basis over the next 5 years and number of transactions would cross a billion transactions annually. Further on June 14, 2021, the Company has incorporated a This would result into significant growth in Revenues and wholly owned subsidiary in the name and style as “Vakrangee profitability as your Company’s business model is asset light Digital Ventures Limited”. franchisee based model with strong operating leverage. Your There are no associate or joint venture companies within the Company’s Cash Adjusted Return on Capital would improve meaning of Section 2(6) of the Companies Act, 2013 (“Act”). significantly. There has been no material change in the nature of the 3. DIVIDEND business of the subsidiaries. Your Company is focussing on key growth initiatives of In accordance with Section 129(3) of the Companies Act, Strategy 2.0 such as scaling to 75,000 Next-Gen Vakrangee 2013, the Company has prepared consolidated financial kendras as well as Digital strategy for enabling Offline to statements of the Company, which forms part of this Annual Online platform through Bharat Easy Mobile super App. Report. Further, a statement containing the salient features Therefore the Board is of the view that it would be in the of the Financial Statements of Subsidiary Companies in best interest of the company and its shareholders that the prescribed Form AOC – 1 is annexed herewith as maximum amount of free cash flows of the business is re- “Annexure 2”. invested and the profits are ploughed back in the business for future growth. In accordance with Section 136 of the Companies Act, 2013, the Audited Financial Statements, including the Consolidated Therefore, the Directors, keeping in view the future Financial Statements and related information of the company expansion plans of the Company, are pleased to recommend and its subsidiaries are available on the website of the a dividend of Rs. 0.10/- per equity share of Re.1/- each fully Company at www.vakrangee.in. paid up of the Company (previous year Rs. 0.25/- per equity share of Re.1/- each fully paid up of the Company), subject to As on March 31, 2021, as per the provisions of Listing the approval by the shareholders at the forthcoming Annual Regulations, as per immediately preceding accounting year General Meeting. 2019-20, the Company does not have any material subsidiary companies. However, the Company has adopted Policy The total dividend payout will be of ` 1059.41 Lakhs. No on determining Material Subsidiaries which is available on amount is proposed to be transferred to the reserves. the website of the Company at https://www.vakrangee.in/ The dividend payout is in accordance with company’s policies_and_guidelines.html. Dividend Distribution Policy. The Dividend Distribution Vakrangee e-Solutions INC Policy as adopted by the Company is annexed herewith as The Company holds 100% of Equity Share Capital of “Annexure 1”. The policy is also available on the web-site Vakrangee e-Solutions INC which was incorporated in the of the Company, https://www.vakrangee.in/policies_and_ financial year 2009-10 in Philippines for exploring various guidelines.html. e-Governance opportunities in Philippines. The first contract under the initiative was “Land Titling Computerization 4. SHARE CAPITAL Project”, under which it completed scanning, digitization The Paid-up Equity Share Capital of the Company as and encoding of more than 15 million title deeds for the on March 31, 2021 was ` 105,94,05,640/- comprising of Government of Philippines. The prestigious LTCP project was 105,94,05,640 equity shares of Re. 1/- each. successfully executed, through deployment of world class technology and more than 8500 manpower resources to digitize land titles from 168 Districts of Philippines.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
155 155 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Conservation of Energy Conservation not energy are Operations of the Company The taken been have measures However, intensive. using efficient consumption by energy reduce to with latest and other Equipments IT Assets computers, technologies. they have taken proper and sufficient care for the taken and sufficient care they proper have in records accounting of adequate maintenance of the Companies with the provisions accordance the assets of the Company safeguarding Act, 2013, for and detecting and other fraud preventing and for irregularities; the annual accounts on a going prepared they have concern basis; for internal financial controls laid down they have are and such internal financial controls the Company and operating effectively;adequate and ensure to systems devised proper they have of all applicable compliance with the provisions and operating adequate are and such systems laws effectively. CORPORATE GOVERNANCE CORPORATE Report The Governance as per the requirement on Corporate part 2015 forms of this Annual Report.of SEBI LODR Practicing S.K. certificate M/s. Co., requisite from The Jain & confirming compliance with the the Secretary, Company has been included in Governance conditions of Corporate the said Report. CEO and & Group A Certificate Director the Managing from alia, 2015, inter in terms LODR of SEBI CFO of the Company and Financial Statements confirming the correctness of the adequacy for Statements, of the internal control Flow Cash reporting,reportingAudit financial and the to of matters part also forming is of this Annual Report.Committee, ABSORPTION, TECHNOLOGY OF ENERGY, CONSERVATION EARNINGS AND OUTGO FOREIGN EXCHANGE of SectionIn 134(3)(m) of the with the provisions accordance with Rule 8(3) of the Companies Act, 2013 read Companies the to relating information 2014, required Rules, (Accounts) Absorption and Foreign Technology Conservation of Energy, as hereunder: Earnings is given and Outgo Exchange • c) d) e) f) 9. 10. in the preparation of the annual accounts, for the for of the annual accounts, in the preparation 31, 2021, the applicable year ended financial March and that no been followed have accounting standards the same; material departures been made from have selected such accounting policies and they have and and made judgments applied them consistently and prudent so as to reasonable that are estimates of affairs of the a true and fair view of the state give year and of the at the end of the financial Company for that period; Company of the profits b) Vakrangee Logistics Private Limited Private Logistics Vakrangee incorporated in March Limited, Private Logistics Vakrangee Limited. Vakrangee subsidiary2016, is a wholly owned of its alliance partners, is building for Logistics Vakrangee deliveryan unparalleled last-mile and thus capabilities unserviceable to the expanding their reach where pincodes, logistics traditional the maximum for challenges are logistics the physical leverages Logistics Vakrangee companies. delivery the last-mile Kendras offer Vakrangee to of presence VakrangeeLogistics keyThe by services services. offered courier and pick-ups reverse include forward delivery, its network a through ensures Logistics Vakrangee booking. hassle-free experience its partners to and end-customers. Limited Finserve Vakrangee Subsidiary is a 100% Limited Finserve Vakrangee of the 2011 with incorporated in September Limited, Vakrangee various on working for a focus as Business Correspondent (BC)Banks under the Business Correspondent Model of Reserve Inclusion. Bank of India of Financial (2006) in the area with various agreements signed has already Company The carrying banks for PSU Banks and their Rural Regional out BC services Semi-Urban these banks in identified Rural, for servicesThe include bank activities such and Urban areas. and Withdrawals Deposits, as opening of Bank Accounts, provide would the Company Besides, etc. Remittances, Services these Banks which involve to Business Facilitator mobilization of deposits and loans. REPORT ANALYSIS DISCUSSION AND MANAGEMENT Management discussion and Analysis Report the for Securities under the and as required under review, year of India Board Disclosure (Listing Obligations and Exchange 2015), is 2015 (SEBI LODR Regulations, Requirements), partforming of this Annual Report. RESPONSIBILITY STATEMENT DIRECTORS’ that: state hereby of Directors Board Your a) 7. 8.
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• Technology Absorption (b) Resignations during the year: Since business and technologies are changing • Mr. Anil Khanna resigned as Non – Executive Director constantly, investment in research and development of the Company w.e.f. September 11, 2020. activities is of paramount importance. Your Company • Mr. Subhash Singhania resigned as CFO of the continues its focus on quality up-gradation of products Company w.e.f. December 20, 2020. and services development. It has helped maintain margins. • Mr. Mehul Raval resigned as Company Secretary & Compliance Officer of the Company w.e.f. December • Foreign Exchange Earnings and Outgo 20, 2020. (` in Lakhs) None of the Independent Directors had any pecuniary Particulars 31st March, 31st March, relationship or transactions with the Company during 2021 2020 Financial Year 2020-21. In the opinion of the Board, they Foreign Exchange Nil Nil fulfill the conditions of independence as specified in the Earnings Companies Act, 2013 and Listing Regulations and are independent of the management. Foreign Exchange Nil Nil Outgo In the opinion of the Board, the independent director 11. PARTICULARS OF EMPLOYEES AND OTHER DISCLOSURE appointed during the year possesses the required qualifications, integrity, expertise and experience (including Disclosures relating to remuneration and other details as proficiency) for the position. required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of They also bring in the required skill, competence and Managerial Personnel) Rules, 2014 are annexed herewith as expertise that allow them to make effective contributions to “Annexure 3”. the Board and its committees. In terms of Section 136 of the Act, the Annual Report and None of the Directors or Key Managerial Personnel (KMP) of Accounts are being sent to the Members, excluding the the Company are related inter-se. information on employees’ particulars which is available In terms of Section 203 of the Companies Act, 2013, the for inspection by the Members at the Registered Office of following are the Key Managerial Personnel of the Company: the Company during the business hours on working days of the Company. Any member interested in obtaining such - Mr. Dinesh Nandwana, Managing Director & Group CEO particulars may write to the Company Secretary at the Registered Office of the Company. - Dr. Nishikant Hayatnagarkar, Whole Time Director - Mr. Ajay Jangid, Chief Financial Officer 12. DIRECTORS AND KEY MANAGERIAL PERSONNEL (a) Appointments during the year: - Mr. Jay Bhansali, Company Secretary & Compliance Officer • Mr. Hari Chand Mittal (DIN: 08797386) was appointed Pursuant to the provisions of Section 152(6) of the as Additional Independent Director for a period of Companies Act, 2013 Mr. Dinesh Nandwana, Managing five years w.e.f. July 31, 2020. The shareholders in the Director & Group CEO, retires by rotation and being eligible, Annual General Meeting held on September 28, 2020 offers himself for reappointment at the ensuing Annual approved the appointment of Independent Director. General Meeting. • Dr. Nishikant Hayatnagarkar (DIN: 00062638) was re- As per the information available with the Company, none appointed as Whole Time Director of the Company for of the Directors of the Company are disqualified for being a further period of five years w.e.f. October 1, 2020. appointed as a Directors as specified in Section 164(2) of the • Mr. Ajay Jangid was appointed as Chief Financial Companies Act, 2013. Officer (CFO) of the Company w.e.f. December 21, 2020. • Mr. Jay Bhansali was appointed as Company Secretary & Compliance Officer of the Company w.e.f. December 21, 2020.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
157 157 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Mr. Avinash Vyas – Chairman Avinash Mr. Sunil Agarwal – Member Mr. Hari Mittal Chand – MemberMr. The Board has well-qualified Audit Committee, the Committee, has well-qualifiedAudit Board The is in line with the requirements composition of which with of Section Act, 2013 read the Companies 177 of 2015. All the Members, Regulation 18 of SEBI LODR are Committee including the Chairman of the Audit possess sound knowledgeThey on Independent. InternalControls Taxation, Finance, Audit, Accounts, of meetings, number details viz, Composition, The etc. at such of Directors of meetings and attendance dates Governance included in the Corporate meeting are Report. has accepted the Board under review, During the year Committee. Audit of the all the recommendations Secretary acts Company as The of the Company Secretary of the Committee. AND & REMUNERATION NOMINATION COMMITTEE COMPENSATION The Board has framed a Nomination and Board The including Policy RemunerationCompensation and for selectionfixation of criteria and appointment Key and Senior Managerialof Directors, Personnel same has been annexed The Management Personnel. herewith is also uploaded Policy The . 4” as “Annexure at link: https:// on the web-site of the Company vakrangee.in/policies_and_guidelines.html. number of meetings, details viz, Composition, The at of Directors of meetings and attendance dates Governance in the Corporate given such meeting are Report. The Company has duly constituted Nomination and has duly constituted Company The as per Committee RemunerationCompensation and under the provisions prescribed the requirements of Section Act, 2013 and 178 of the Companies 2015. Regulation LODR 19 of SEBI was re-constituted composition of the Committee The members: 29, 2020 with the following on August 1. 2. 3. AUDIT COMMITTEE AUDIT c. d.
BOARD MEETINGS BOARD met five your Board Duringyear 2020-21, the financial SEBI/HO/ No. times in compliance with SEBI Circular 19, 2020 and March CFD/CMD1/CIR/P/2020/38 dated SEBI/HO/CFD/CMD1/CIR/P/2020/110 No. SEBI Circular 11/2020 No. June 26, 2020 and MCA Circular dated time gap of relaxation 24, 2020 wherein March dated meetings was granted. between two Board number of meetings, details viz, Composition, The at such of Directors of meetings and attendance dates Governance included in the Corporate meeting are Report. EVALUATION PERFORMANCE Act, of the Companies the provisions to Pursuant 2015, the Nomination and 2013 and SEBI LODR (NRC) Committee RemunerationCompensation and evaluation of has carried i.e. Evaluation out Board the performance of: as a whole and its (i) the Board (including and (ii) individual directors Committees, independent directors). performanceThe evaluation of the Independent excluding Board was carriedDirectors the entire out by being evaluated. the Directors performanceThe evaluation of the Chairman, Non- Independent as a whole was and the Board Directors carried the Independent out by at their Directors meeting. separate evaluation The has been done as per the process of performance Evaluation for of “Policy laid in the (herein Limited” Vakrangee of of Directors the Board “Charter”) the Board, by adopted as to after referred performance for questionnaires based on structured evaluation. b. DECLARATION OF INDEPENDENCE OF DECLARATION declarations affirming given All Independent have Directors that they meet the criteria of independence as laid down under Section Act, and 2013 of the Companies 149(6) has there 2015 and Regulation 16(1)(b) of the SEBI LODR their affect which may circumstances been no change in the all Further, status as Independent during Directors the year. complied with the Code the Independent have Directors Independent in Schedule prescribed the IV of for Directors Directors of Conduct for Act, 2013 and the Code Companies and senior management. COMMITTEES AND BOARD, TO RELATED DISCLOSURES POLICIES a. 14. 13. 158
DIRECTORS’ REPORT
e. RISK MANAGEMENT COMMITTEE The Company has always adhered to the main Pursuant to Regulation 21 of SEBI LODR 2015, the thrust and spirit of the law to generate conducive Company have constituted a Risk Management environment for enabling corporates to conduct Committee to review and mitigate risk factors. The themselves in a socially responsible manner, while Company has laid down the procedures to inform to contributing towards human development goals of the Board about the risk assessment and minimization the country. procedures and the Board has formulated Risk Further, the Company’s business model itself was in Management Policy to ensure that the Board, its the nature of providing services to the unserved & Audit Committee and its Executive Management underserved rural, semi urban and urban markets. should collectively identify the risks impacting the Company’s business and document their process of The Company’s 70% retail outlets are concentrated risk identification, risk minimization, risk optimization in tier V and tier VI cities. Company’s technology as a part of a risk management policy/ strategy. intensive, retail distribution platform for last mile touchpoints deliver services across Banking, Financial The common risks associated with the Company Services, ATMs, Insurance, E-governance, E-Commerce include Rapid Changes in Technology, Heavy and Logistics services on a real time basis across the Dependence on Franchisee Model, Legal Risk, under-served rural and urban India. Financial Reporting Risk, Risk of Corporate Accounting Fraud, Cyber attack and data leakage. The details viz, We take seriously our responsibility to Our Submission Composition, number of meetings, dates of meetings the call of those who aspire a better tomorrow – even and attendance of Directors at such meeting are given as we constantly innovate to solve the challenges of in the Corporate Governance Report. tomorrow. f. CORPORATE SOCIAL RESPONSIBILITY COMMITTEE Company’s Business model is franchisee based, who (CSR) preferably is a localite. In addition, each franchisee In accordance with the provisions of Section 135 read employs minimum of 1-3 resources, creating with Schedule VII of the Companies Act, 2013 the employment opportunities and financial stability. The Company has adopted a CSR Policy outlining various Company’s business model thus creates a ripple effect CSR activities to be undertaken by the Company. The in the larger society. It facilitates skill enhancement. Company during FY 2020-21 undertook CSR activities We take ordinary individuals and train them with skill- by spending the earmarked amount in the fields of sets that helps them yield remarkable results. There is Social Awareness, Health Care and Education. The CSR basic certification needed for rendering banking and Committee evaluates various proposals diligently and insurance services, thereby enhancing his skill-sets. then selects few of them. Therefore, the Company’s business model is totally Based on the recommendation of the CSR Committee, focused on financial and social inclusion of the society. in respect of unspent CSR amount, the board has With respect to the unspent CSR amount for the identified following projects as Ongoing Project which financial year 2020-21, the Board of Directors would are in the nature of multi-year projects. like to state that, the CSR Committee has put in its best 1. Bharat Vikas Parishad Sewa Sanstha. efforts and considered/evaluated various proposals diligently and also had selected few of them viz, Bharat 2. RVG Educational Foundation Vikas Parishad Sewa Sanstha, My Home India, RVG 3. IIIT Kota Educational Foundation and IIIT Kota. 4. My Home India The Board is fully confident that the overall CSR spends in these projects would fully meet the guidelines. With respect to the ongoing projects, the Company in compliance with section 135(5) and 135(6) of the However, the schedules of these projects is spread Companies Act, 2013 has transferred an unspent over 2 to 3 years which would also cover the unspent amount of ` 650.05 Lakhs in a separate Unspent CSR amount of previous years and will meet the future Account. guidelines too.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
159 159 3 3 3 No. of No. attended meetings 3 3 3 held No. of No. Designation Chairman Member Member meetings VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Member Member Chairman Category Understanding the expectations of key stakeholders. Reviewing the performance of key and results Initiatives / surveysESG investor and global benchmarks - Overseeing the implementation for or areas of key identified, initiatives ESG investor identified from improvement surveys and global benchmarks. understand to ESG issues Considering emerging long Company’s to their materiality regard with term value creation. Review the Overall Business and Evaluate an ESG impact perspective. from strategy if the Sustainable and review monitor To new any into integrated goals are development or new business initiatives. Business strategy the review to the NRCAssist Committee performance an from of senior management perspective. ESG deliverable of key being initiatives the progress review To the GHG Reduction by implemented strategy Committee. The committee currently comprises of following comprises currently of following committee The members of the Board: Ms. Sujata Ms. Chattopadhyay During the year under review, total 3 meetings of the total under review, During the year held on 30.07.2020, 30.10.2020 were ESG Committee is the table showing and 08.02.2021 and following details of meeting The the same. for attendance its members is as follows: by attended Vyas Mr. Avinash Ramesh Joshi Mr. • • • • • • • Name Vyas Mr. Avinash Ramesh Joshi Mr. Sujata Chattopadhyay Ms. Name of the Director
Designation & Managing Director CEO Group Independent Director Independent Director . Understanding how Company’s ability to create ability create to Company’s Understanding how social and environmental, value is impacted by issues - monitoring externalgovernance ESG risks and understanding associated and trends opportunities. The CSR Policy of the Company is available on the is available of the Company CSR Policy The https://www.vakrangee.in/ website Company’s policies_and_guidelines.html inter- a CSR committee has constituted Board The to carry budgets define and monitor alia to out CSR or activities decide CSR projects be to activities, to undertaken such projects. oversee and to comprises of following: CSR Committee Further, the disclosures as required under Rule 8 of as required the disclosures Further, Social Responsibility (Corporate Companies Policy) this Report to 2014 has been enclosed Rules, in 5”. “Annexure COMMITTEE RELATIONSHIP STAKEHOLDERS of Section 178 of the per the requirements As Act, 2013 and RegulationLODR 20 of SEBI Companies Stakeholders has constituted 2015, the Company details viz, Composition, The Relationship Committee. of meetings and dates number of meetings, in given at such meeting are of Directors attendance Governance Report.the Corporate ESG COMMITTEE BOARD meet UN Sustainable DevelopmentIn Goals to order has the Company (UN-SDG) and Best Global Practices, ESG Committee. the Board constituted will work with all the other ESG Committee Board The in fulfilling its assist the Board to Committees Board is objective of the Committee The responsibilities. and social consider the material environmental, to business the Company’s to issues relevant governance activities and support in maintaining its the Company position as a global leader in ESG performance. support is to in: - of the Committee the Board role The • Name Dinesh Nandwana Mr. Ramesh Joshi Mr. Sunil Agarwal Mr.
g. h.
160
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15. AUDITORS AND REPORTS We hereby state and confirm that, the Company has The matters related to Auditors and their Reports are as constituted an internal complaints committee to redress under: complaints received regarding sexual harassment under provisions of Sexual Harassment of Women at Workplace Statutory Auditor (Prevention, Prohibition and Redressal) Act, 2013. M/s A.P. Sanzgiri & Co., Chartered Accountants, Mumbai (Firm Regn. No.116293W) were appointed as the Statutory 18. MATERIAL CHANGES AND COMMITMENT IF ANY Auditors of the Company at the Annual General Meeting AFFECTING THE FINANCIAL POSITION OF THE COMPANY held on 28th September, 2018 for a period of 4 years i.e. from No material changes and commitments affecting the the conclusion of the said Annual General Meeting until the financial position of the Company have occurred between conclusion of Thirty Second Annual General Meeting. the end of the Financial year of the Company to which the Financial Statement relate and the date of this report. The Auditor’s Report do not contain any qualifications, reservations, adverse remarks or disclaimer. There was no change in company’s nature of business during the FY 2020 - 21. Secretarial Auditor M/s. S. K. Jain & Co., Practicing Company Secretary, was 19. CONTRACTS OR ARRANGEMENTS WITH RELATED appointed to conduct Secretarial Audit of the Company for PARTIES the financial year 2020 - 2021 as required under Section 204 During the year, all contracts / arrangements / transactions of the Companies Act, 2013 and the rules thereunder. The entered by the Company were in Ordinary Course of the Secretarial Audit Report for the financial year ended March Business and on Arm’s Length basis. There were no material 31, 2021 is annexed herewith as “Annexure 6” to this Report. transactions with any related party as defined under Section 188 of the Companies Act, 2013 read with Companies The Secretarial Auditor’s Report do not contain any (Meetings of Board and its Powers) Rules, 2014. qualifications, reservations, adverse remark or disclaimer. During the year, the Company had not entered into any 16. VIGIL MECHANISM / WHISTLE BLOWER POLICY contract / arrangement / transaction with related parties As per the provision of Section 177 (9) of the Companies which could be considered material in accordance with Act, 2013, the Company is required to establish an effective the Policy of the Company on materiality of related party Vigil Mechanism for Directors and Employees to report transactions. Accordingly, the disclosure of Related Party genuine concerns. In line with this, the Company has framed Transactions as required under Section 134(3)(h) of the a Vigil Mechanism /Whistle Blower Policy through which Companies Act, 2013 in Form AOC-2 is not applicable. The the Directors and Employees, Franchisees, Business Partners, members may refer Note. 42 to the Financial Statements Vendors or any other third parties making a Protected which sets out Related Party disclosures pursuant to Ind AS. Disclosure under this Policy may report concerns about There are no materially significant related party transactions unethical behavior, actual or suspected fraud or violation that may have potential conflict with interest of the of the Company’s Code of Conduct & Ethics without fear of Company at large. reprisal. The Policy provides for adequate safeguards against The Policy on materiality of related party transactions and victimization of employees who avail of the mechanism and on dealing with related party transactions as approved also provides for direct access to the Chairman of the Audit by the Board may be accessed on the Company’s website Committee. It is affirmed that no personnel of the Company https://vakrangee.in/policies_and_guidelines.html. The have been denied access to the Audit Committee. The Whistle Policy intends to ensure that proper reporting, approval and Blower Policy is placed on the website of the Company at disclosure processes are in place for all transactions between https://vakrangee.in/policies_and_guidelines.html the Company and related parties. 17. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF 20. BUSINESS RESPONSIBILITY REPORT WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013 A separate section on Business Responsibility Report forms part of this Annual Report as required under Regulation 34(2) The Company has in place an Anti-Sexual Harassment Policy (f) of SEBI LODR 2015. in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. All women employees (permanent, contractual, temporary and trainee) are covered under this Policy. During the year 2020 - 21, no complaints on sexual harassment were received.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
161 161 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 The Company is committed to nurturing, to is committed enhancing Company The and superior Learning talent through top and retaining is a partThis HR of Corporate Development. Organizational function and is a critical support pillar to the Organisation’s and its sustainability in the long run. growth OF SECRETARIAL ON COMPLIANCE AFFIRMATION STANDARDS affirms year under that during the hereby Company The with all the applicable has complied the Company review, to relating SS-1 and SS-2, i.e. Secretarial standards ‘General Meetings’ and of Directors’ ‘Meetings of the Board modifications or amendments any respectively(including Secretaries of the Institute issued by of Company thereto) India. REPORTING OF FRAUDS under review, during was no instance of fraud the year There the Statutory report to the Audit to which required Auditors under Section and / or Board the Act 143(12) of Committee and the rules made thereunder. OF COST MAINTENANCE TO WITH RESPECT DISCLOSURE RECORDS fall within the scope of Section doesn’t Company Your Act, 2013 and hence does not 148(1) of the Companies Central by the as specified maintain cost records to require Government. AND PROTECTION EDUCATION INVESTOR TO TRANSFER FUND section under Act, 124 of the Unclaimed required As ` 7,42,151/- pertaining to dividend amount aggregating 31, 2013 lying with the year ended on financial March to was transferred a period years of seven for Company Education to year 2020-21, during the financial Investor the Central (IEPF) established by Fund and Protection Government. under section 124 of the Act, 1,28,551 as required Further, of which dividend has not been in respect equity shares, or years consecutive seven the members for claimed by the Investor to the Company by been transferred have more, Authority during the financial Fund and Protection Education been have transferred 2020-21. Details of shares year as the Company. as well of IEPF uploaded on the website Bhansali, as the Nodal Jay Mr. appointed have Company The Officer with the IEPF Rules. compliance to ensure details of unpaid and unclaimed amounts lying with The www. website:- the Company’s is availableon the Company vakrangee.in 27. 28. 29. 30. . www.vakrangee.in SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE BY ORDERS PASSED SIGNIFICANT AND MATERIAL OR COURTS REGULATORS material and no significant under review, During the year Securities Exchange the Regulators, passed by were orders or Courts which Tribunal of India,Board Exchanges, Stock impact concern the going Company’s status and the operations in future. AND INDUSTRIAL RESOURCES DEVELOPMENT HUMAN RELATIONS takes pride Company in the commitment, competence The of in all areas its employees by and dedication shown Business. PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE, MADE, GIVEN, INVESTMENTS OF LOANS PARTICULARS THE BY GIVEN OR SECURITIES PROVIDED GUARANTEES COMPANY covered and Investments Guarantees of Loans, Particulars in given are of section 186 of the Act, if any, under provisions Statements. the Financial to the notes THEIR ADEQUACY AND CONTROL INTERNAL FINANCIAL commensurate System, has an Internal Control Company The scale and complexity of its operations. with the size, comprisingof policies and systems, internal control The sound management of ensure to designed are procedures optimal of its assets, safekeeping operations, Company’s your of its financial information reliability utilization of resources, Based on the reportand compliance. of Internal Audit function, undertaken actions corrective are in the respective the controls. strengthen and thereby areas the statutory has audited The of the Company auditors report included in this annual financial statements and over has issued a report on our internal controls financial reportingfinancial as defined in Section 143 of the Act. OPTION SCHEME STOCK EMPLOYEES Option Scheme Stock has in place Employees Company The ESOP scheme 2014. namely, Scheme’’) (‘‘ESOP is in compliance with the ESOP SchemeThe Company of the 2014 (“the Benefits) Regulations, Based Employee SEBI (Share and no material changes in the scheme was Regulations”) carried under review. out during the year be disclosed under SEBI Guidelines are to details required The . web-site www.vakrangee.in on Company’s available RETURN EXTRACT OF ANNUAL of Section 134(3)(a) of the the provisions to Pursuant Act, 2013, ExtractCompanies of the Annual Return for 31, 2021 made under the year ended the financial March of Section Act, 2013 is 92(3) of the Companies provisions on website placed at Company’s 26. 25. 22. 23. 24. 21. 162
DIRECTORS’ REPORT
31. INTEGRATED REPORT The Company being one of the top 500 companies in the country in terms of market capitalization as on financial year end, has voluntarily provided Integrated Report, which encompasses both financial and non-financial information to enable the members to take well informed decisions and have a better understanding of the Company’s long term perspective. The Report also touches upon aspects such as organisation’s strategy, governance framework, performance and prospects of value creation based on the six forms of capital viz. financial capital, manufactured capital, intellectual capital, human capital, social and relationship capital and natural capital.
CAUTIONARY STATEMENT Statements in the Board’s Report describing the Company’s objectives, expectations or forecasts may be forward looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Company’s operations include global and domestic demand and supply, input costs, availability, changes in government regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations.
ACKNOWLEDGEMENT AND APPRECIATION The Directors thank the Company’s employees, customers, franchisees, vendors, investors for their continuous support. The Directors regret the loss of life due to COVID-19 pandemic and are deeply grateful and have immense respect for every person who risked their life and safety to fight this pandemic. The Directors appreciate and value the contribution made by every employee of the Vakrangee family.
On behalf of the Board of Directors
Dinesh Nandwana Nishikant Hayatnagarkar Managing Director & Group CEO Whole Time Director (DIN: 000062532) (DIN: 000062638)
Place: Mumbai Date: July 26, 2021
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
163 163 Annexure - 1 Annexure VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 DIVIDEND DISTRIBUTION POLICYDIVIDEND DISTRIBUTION ANNEXURE TO THE DIRECTORS’ REPORT DIRECTORS’ TO THE ANNEXURE Out of the profits of the company for that year arrived at after providing for depreciation, or out of the profits of the or out of the profits for depreciation, arrivedyear at afterfor that providing of the company Out of the profits with the in accordance for depreciation years arrived at afteryear or providing financial previous any for company of that sub-section or out of both; or undistributed, provisions and remaining the of dividend by the payment Government for or a State Government the Central by Out of money provided that Government: by given in pursuance of a guarantee company of its profits percentage such transfer year, financial dividend in any the declaration of any before may, company The - reservesto the of the company. consider appropriate year as it may that financial for its reserves reserves. from other than free a company or paid by - No dividend shall be declared Liquidity: The liquidityLiquidity:The position of the Company. that restrict the dividends that can be paid if the debt is outstanding. covenants negative are – often there Debt repayment retain earningsto finance to the need greater of expansion of the firm, the rate the greater The of asset expansion – rate The the expansion. ownership. causing a dilution of to be sold in the future equity have may today, paid out of the firm – if dividends are Control For the purposes of clause (a) of sub-section (1), depreciation shall be provided in accordance with the provisions of with the provisions the purposes in accordance of clause (a) of sub-section shall be provided (1), depreciation For Schedule II. and year out of the surplus in the profit financial interim dividend during any declare may of a company of Directors Board The to be declared. year in which such interim dividend is sought of the financial loss account and out of profits (b) No dividend shall be declared or paid for any financial year except financial any or paid for No dividend shall be declared (a) To define the policy and procedures in relation to the calculation, declaration and settlement of Dividends and the to relation in define the policy and procedures To paid. time periods and which Dividends are within determination of the form a reserves, review of the determined by profits and/or general as has sufficient distributable Company that the ensure To of Dividends. declaration and/or payment priorto any financial statements, audited Company’s with any on annual basis, which will be required to adherence policy, Dividend and methodological a transparent create To stakeholders. to appropriate deviations communicated clearly identified and promptly 2. 3. 4. Factors to be considered to Factors dividend distribution: the for factors be considered need to broad below The 1. 3. 2. Provisions of Companies Act, 2013 Act, of Companies Provisions Section of Dividend: - Declaration 123 1. • • Vakrangee Limited is committed to create sustainable shareholder wealth for all its shareholders. We shall strive to distribute an to shall strive We all its shareholders. for wealth sustainable shareholder create to is committed Limited Vakrangee form of “Dividend”. in the to the shareholders, earnedby it in its business of the profits level optimal and appropriate (Declaration Act, and Payment 2013 and Companies of Companies the applicable provisions by dividend is governed Corporate The to time. time from modifications made therein 2014 and any of Dividend) Rules, Limited. Vakrangee to refers “The Company” an interim either or final Dividend(s). to refers (s)” “Dividend objectives of this policy broad The are: •
5.
4.
2. Interpretation 3. Objectives 1. Introduction 164
DIRECTORS’ REPORT
5.1 Financial Parameters / Internal Factors The Board of Directors of the Company would consider the following financial parameters before declaring or recommending dividend to shareholders: 1. Consolidated net operating profit after tax. 2. Working capital requirements. 3. Capital expenditure requirements. 4. Resources required to fund acquisitions and / or new businesses. 5. Cash flow required to meet contingencies. 6. Outstanding borrowings. 7. Past Dividend Trends.
5.2 External Factors: The Board of Directors of the Company would consider the following external factors before declaring or recommending dividend to shareholders: 1. Prevailing legal requirements, regulatory conditions or restrictions laid down under the Applicable Laws including tax laws; and 2. Dividend pay-out ratios of companies in the same industry.
6. Circumstances under which the Shareholders may or may not expect Dividend The Board of Directors of the Company, while declaring or recommending dividend shall ensure compliance with statutory requirements under applicable laws including the provisions of the Companies Act, 2013 and Listing Regulations. The Board of Directors, while determining the dividend to be declared or recommended shall take into consideration the advice of the executive management of the Company apart from other parameters set out in this Policy. The Board of Directors of the Company may not declare or recommend dividend for a particular period if it is of the view that it would be prudent to conserve capital for the then ongoing or planned business expansion or other factors which may be considered by the Board.
7. Utilization of retained earnings The Company may declare dividend out of the profits of the Company for the year or out of the profits for any previous year or years or out of the free reserves available for distribution of Dividend, after having due regard to the parameters laid down in this Policy. This Policy will be reviewed periodically by the Board.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
165 165
VAKRANGEE LIMITED VAKRANGEE
Integrated Annual Report 20-21
Names of subsidiaries which have been liquidated or sold during the year - NIL - year the during sold or liquidated been have which subsidiaries of Names 2.
Names of subsidiaries which are yet to commence operations - NIL - operations commence to yet are which subsidiaries of Names 1. Note:
Limited
Logistics Private Private Logistics 2021
Vakrangee Vakrangee 3 March 31, 31, March 18/03/2016 100% Nil -0.22 -0.26 -0.48 Nil Nil 907.40 907.40 -294.59 1200 INR
e-Solutions Inc. e-Solutions 2021
Vakrangee Vakrangee 2 100% 0.00 0.78 - 0.78 Nil Nil 1973.89 1973.89 126.66 96.00 1.51 = PHP 1 31, March 08/05/2009
2021 Limited Finserve
100% Nil 1191.03 400.48 1591.51 9045.85 Nil 5893.85 5893.85 3491.81 1500 INR 31, March 11/09/2011 Vakrangee 1
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FORM AOC-I FORM Annexure - 2 - Annexure 166
DIRECTORS’ REPORT
ANNEXURE TO THE DIRECTORS’ REPORT
Annexure - 3
DISCLOSURE UNDER SECTION 197 (12) OF THE COMPANIES ACT, 2013 READ WITH RULE 5(1) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014 ARE GIVEN BELOW:
1 The ratio of the remuneration of each Director Executive Directors to the median Remuneration of the employees of the company for the financial year; Mr. Dinesh Nandwana (Managing Director & Group CEO) – 125.34:1 Dr. Nishikant Hayatnagarkar (Whole-time Director) – 26.99:1 Non-Executive Directors** Mr. Ramesh Joshi (Chairman) – 1.54:1 #Mr. Hari Chand Mittal – NA Mr. Babu Lal Meena –1.41:1 Mr. Avinash Vyas – 1.67:1 Mr. Sunil Agarwal –1.44:1 Mrs. Sujata Chattopadhyay – 1.31:1 Mr. Ranbir Datt – 1.44:1 2 The percentage increase in remuneration Mr. Dinesh Nandwana –Managing Director & Group CEO - NIL of each Director, Chief Financial Officer, Dr. Nishikant Hayatnagarkar - Whole-time Director - NIL Chief Executive Officer, Company Secretary or Manager, if any, in the *Mr. Jay Bhansali – Company Secretary - NIL financial year; *Mr. Ajay Jangid – Chief Financial Officer –NIL *Mr. Mehul Raval – Company Secretary – NIL *Mr. Subhash Singhania – Chief Financial Officer - NIL 3 The percentage increase in the median remuneration of Employees in the NIL financial year; 4 The number of Permanent Employees on 798 (excluding Managing Director & Group CEO and Whole-time the rolls of the Company; Director)
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
167 167 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Whole Time Director Time Whole There have been no increase in the salaries of the employees as well as as well in the salaries of the employees been no increase have There year. last to as compared managerial remuneration The Company affirms remuneration is as per the remuneration policy remuneration is as per the affirms of the Company The Company. Nishikant Hayatnagarkar Nishikant Average percentile increase already already increase percentile Average other made in the Salaries of Employees in the last than the Managerial Personnel and its comparisonyear with financial the managerial in increase the percentile and justification thereof remuneration exceptional any are and point out if there in the increase for circumstances managerial remuneration; Affirmation that the remuneration is Affirmation that the policyas per the remuneration of the Company. 5 6 July 26, 2021 Mumbai CEO & Group Managing Director Dinesh Nandwana Nandwana Dinesh For and on behalf of the Board of Directors of the Board and on behalf For * Mr. Jay Bhansali, Company Secretary and Mr. Ajay Jangid, Chief Financial Officer has been appointed w.e.f. December 21, 2020 in the place of 21, 2020 in the place December w.e.f. Officer has been appointed Chief Financial Ajay Secretary Jay Bhansali, Company Jangid, and Mr. * Mr. December 20, w.e.f. Company Officer of the cease the office who Chief Financial Subhash Singhania, Secretary Company and Mr. Mehul Raval, Mr. 2020. # Since the remuneration of the Director is only part of the year, the ratio of his remuneration to median remuneration is not comparable. Mr. Hari Mr. is not comparable. to median remuneration of his remuneration the ratio is only part of the Director of the year, the remuneration # Since July 31, 2020. appointed as Non-executiveChand Mittal w.e.f. Independent Director was **Non-Executive Directors of the Board were paid only sitting fees. were Directors of the Board **Non-Executive 168
DIRECTORS’ REPORT
ANNEXURE TO THE DIRECTORS’ REPORT
Annexure - 4
A. Nomination and Remuneration and Compensation Policy 1. Introduction This Nomination and Remuneration & Compensation Policy is formulated in compliance with Section 178 of the Companies Act, 2013 read along with the applicable rules thereto and SEBI (Listing Obligations & Disclosure Requirements) 2015 as amended from time to time. This policy on nomination and remuneration of Directors, Key Managerial Personnel and Senior Management has been formulated by the Nomination and Remuneration and Compensation Committee (NRC or the Committee) and has been approved by the Board of Directors. 2. Definitions “Remuneration” Means: Any money or its equivalent given or passed to any person for services rendered by him and includes perquisites as defined under the Income-tax Act, 1961; “Key Managerial Personnel” means: a. Managing Director, or Chief Executive Officer or Manager and in their absence, a Whole-time Director; b. Chief Financial Officer; c. Company Secretary; and d. such other officer as may be prescribed. “Senior Management” Means: Vakrangee employees who are members of its core management team excluding board of directors and shall comprise all members of management one level below the Chief Executive Officer / Managing Director / Whole time Director / Manager (including Chief Executive Officer/Manager, in case they are not part of the Board) and shall specifically include Company Secretary and Chief Financial Officer. 3. Objective The objective of the policy is to ensure that: a. The level and composition of remuneration is reasonable and sufficient to attract, retain and motivate directors of the quality required to run the company successfully. b. Relationship of remuneration to performance is clear and meets appropriate performance benchmarks. c. Remuneration to directors, key managerial personnel and senior management involves a balance between fixed and incentive pay reflecting short and long-term performance objectives appropriate to the working of the company and its goals. 4. Role of the Committee The role of the Nomination Remuneration and Compensation Committee is: a. To formulate criteria for determining qualifications, positive attributes and independence of a Director. b. To formulate criteria for evaluation of Independent Directors and the Board. c. To identify persons who are qualified to become Directors and who may be appointed in Senior Management in accordance with the criteria laid down in this policy. d. To carry out evaluation of Director’s performance. e. To recommend to the Board the appointment and removal of Directors and Senior Management.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
169 169 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Managing Director/Whole-time Director: Director Chairman, or Executive Managing Director shall appoint or re-appoint person as its Executive any Company The re-appointment the expiry No years at a time. shall be made earlieryear before than one five a term not exceeding for of term. Independent Director: and will Company of the years on the Board five consecutive term to for a up An Independent shall hold office Director of such appointment and disclosure the Company re-appointment by resolution for on passing of a special be eligible report.in the Board's years each, terms maximum of 5 of upto thantwo consecutive for more No Independent shall hold office Director appointment after expiry become an but such Independent of ceasing to for years shall be eligible Director of three Independent Director. in or be associated be appointed that an Independent shall not, during years, Director the said period of three Provided either directly or indirectly. other capacity, in any with the Company on which such that number of Boards the time of appointment of IndependentAt it should be ensured Director Independent serves Director listed companies as an Independent listed and three seven is restricted Director to companies as an IndependentWhole-time or in case such person is serving Director company of a listed Director as a under the Act. be prescribed such other number as may The Committee shall identify and ascertain the integrity, qualification, expertise qualification, shall identify and ascertain Committee for The and experience the integrity, of the person his / her appointment, as per Company’s KMP or at Senior Management and recommend level appointment as Director, HR Policy. for qualification, expertiseA person should possess adequate for the position he / she is considered and experience has authority decide whether qualification, expertise Committee The to and experienceby a possessed appointment. person is sufficient / satisfactory position. for the Whole-time who has attained Director person as of any shall not appoint or continue the employment Company The be extended the age that the term of the person holding this position may beyond Provided the age of seventy years. passing a special resolution. by of shareholders of seventy approval with the years To recommend to the Board policy relating to remuneration for Directors, Key and Senior Managerial Directors, Personnel for policy remuneration the Board to to relating recommend To Management. size. composition, devise policy a diversity, on Board To and overseeing. Key replacing Executives Succession planning for statutory any by carry time and / or enforced time to from the Board function other by out any as is mandated To may be applicable. or modification, as notification, amendment perform such other functions be necessary the performance as may for of its duties. appropriate or To 2. Term / tenure / tenure Term 1. b. c. Appointment and removal of Director, Key Managerial Personnel And Senior And Management Managerial Personnel Key of Director, and removal Appointment a. g. h. i. j. f. 6. 5. 170
DIRECTORS’ REPORT
7. Evaluation The Committee evaluates of performance of Director, Key Managerial Personal and Senior Management Personnel yearly or at such intervals as may be considered necessary. The portion of incentive pay, and variable pay is quantitatively determined using pre-established parameters such as Outlet Onboarding Targets, Revenue targets, Materialty Issues KPI targets and ESG performance targets released by the Company. The targets are also mentioned in the HR Manual of the Company. We believe linking Materialty Issues KPI targets and Environmental, Social and Governance (ESG) performance to pay can help hold executive management accountable for the delivery of sustainable business goals. Executive pay should be aligned with performance and long-term strategy in order to protect and create value which is in the interest of both companies and their investors. This alignment presents opportunities for engagement to promote the consideration of ESG issues when setting pay. We have released a detailed quantitative ESG performance Target of Vakrangee on the website giving emphasis on reduction of Green House Gases emissions from our own operations. Weightage of ESG performance target will be of 33.33 % of the variable pay of the employee. The variable pay of 33.33% will be paid to the employee in the proportion of target achieved by the Company, capped to the 33.33% of the total variable pay. Eg: If the company achieves 60% of the target of ESG Performance, variable pay of employee linked to the ESG target will be 33.33% X 60% = 20%. Variable Pay calculation for an Employee Scenario % of ESG Target Achieved Variable Pay assigned to ESG Variable Pay linked to ESG 1 60% 33.33% 20% 2 110% 33.33% 33.33% (Maximum Variable Pay for ESG performance is capped at 33.33%) Weightage of Materiality Issues KPI Targets will be of 33.33 % of the variable pay as well as long term incentives (Stock Option) of the Employees. The variable pay of 33.33% will be paid to the employee in the proportion of target achieved by the respective Executive. 8. Removal The Committee may recommend with reasons recorded in writing, removal of a Director, KMP or Senior Management subject to the provisions and compliance of the Companies Act, 2013, rules and regulations and the policy of the Company. 9. Retirement The Director, Key Managerial Personnel and Senior Management shall retire as per the applicable provisions of the Act and the prevailing policy of the Company. The Board will have the discretion to retain the Director, Key Managerial Personnel, Senior Management in the same position/ remuneration or otherwise even after attaining the retirement age, for the benefit of the Company. 10. Remuneration to Directors/KMP/Senior Management Personnel 1. Remuneration to Managing Director / Whole-time Directors: a. The Remuneration/ Commission to be paid to Managing Director / Whole-time Directors, etc. is governed as per provisions of the Companies Act, 2013 and rules made there under or any other enactment for the time being in force and the approvals obtained from the Members of the Company. b. The Nomination Remuneration and Compensation Committee shall make such recommendations to the Board of Directors, as it may consider appropriate with regard to remuneration to Managing Director / Whole-time Directors.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
171 171 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 The Services are rendered by such Director in his capacity as the professional; and in his capacity Director such Services as the professional; by The rendered are for the practice of that qualification possesses the requisite the director In the opinion of the Committee, profession. The remuneration to Key Managerial Personnel and Senior Management shall consist of fixed pay and incentive and incentive Key and Senior pay to Management Managerial shall consist of fixed remuneration The Personnel Policy. the Company’s with Act, 2013 and in accordance of the Companies in compliance with the provisions pay, the purpose of for constituted of the Company, Committee Nomination RemunerationThe and Compensation share- options and other shall determine the stock Schemes, Option/ Purchase Stock administering the Employee Key and Senior be made to Management. to Managerial based payments Personnel contribution to Fund, contribution Provident to employer’s shall include monthly remuneration, pay Fixed The time. to from as decided etc. pension schemes, pension fund, Incentive shall be decided based on the balance betweenThe performance pay which includes Company of the of the Key Performance and Managerial targets. Personnel such as ESG performance revenue parameters targets, incentive The Senior Management, be decided annually or at such intervals to appropriate. be considered as may to time. time from Company by the as defined Targets ESG Performance shall be based on the Integrated pay any recoup to us officers allow the executive terms of all compensation held by The Clawback:Compensation the individual engages in certain be paid in the event or other amount that may shares acts of misconduct. any misconduct officer commits while the named executive compensation in the event recover may Vakrangee the individual engages time thereafter, or at any Vakrangee by while employed or, Vakrangee by employed Vakrangee, commits an act of theft, with agreement any materially breaches of confidentiality, in a breach of the named as a result an accounting restatement prepare to is required Vakrangee or if embezzlement or fraud, misconduct. officer’s executive The Nomination Remuneration and Compensation Committee of the Company, constituted for the purpose of for constituted of the Company, Committee Nomination RemunerationThe and Compensation share- options and other shall determine the stock Schemes, Option/ Purchase Stock administering the Employee than Independent (other Directors Directors). be made to to based payments The Non-Executive / Independent Directors may receive sitting fees and such other remuneration as permissible and such other remuneration sitting fees / Independent receive may Directors Non-Executive The be recommended be such as may shall amount of sitting fees The Act, 2013. of Companies under the provisions of Directors. the Board by and approved the Nomination and Remuneration Committee by attending for remuneration / Independent (excluding Directors of the Non- Executive All the remuneration Section under meetings as prescribed Act, 2013) shall be subject ceiling/ limits as 197 (5) of the Companies to being the time other enactment under or any for Act, 2013 and rules made there under Companies provided the Nomination and by be recommended such as may shall be of such remuneration amount The in force. or shareholders. of Directors the Board by and approved Remuneration Committee participate to Options and also shall not be eligible in get Stock An Independent to shall not be eligible Director share-based schemes of the Company. any payment of professional services / Independent which are for Directors Non- Executive rendered paid to remuneration Any if the following the purposes as part of clause (b) above shall not be considered for in nature of the remuneration satisfied: conditions are i) ii) b. c. d. e. Remuneration to Key Managerial Personnel and Senior Management: Managerial Personnel Key to Remuneration a. e. b. c. d. Remuneration to Non- Executive / Independent Directors: Non- Executive to Remuneration a. 3. 2. 172
DIRECTORS’ REPORT
11. Implementation The Committee may issue guidelines, procedures, formats, reporting mechanism and manuals in supplement and for better implementation of this policy as considered appropriate. The Committee may delegate any of its powers to one or more of its members. Appointment Policy The Appointment Policy for Independent Directors, Key Managerial Personnel & Senior Executives will be as under- a. Independent Directors: Independent Directors will be appointed based on the criteria mentioned under section 149(6) of the Companies Act, 2013 and in accordance with other applicable provisions of the Companies Act, 2013, rules made thereunder & Listing Agreements entered with Stock Exchanges. b. Key Managerial Personnel (KMP): KMP will be appointed by the resolution of the Board of Directors of the Company, based on qualifications, experience and exposure in the prescribed field. Removal of the KMP will also be done by the resolution of Board of Directors of the Company. Appointment/ Removal will be in accordance with the provisions of the Companies Act, 2013, rules made thereunder and Listing Agreements entered with Stock Exchanges. c. Senior Executives: Senior Executive will be appointed by the Chairman and the Managing Director and/or Executive Director of the Company based on their qualifications, experience and exposure. Removal of the Senior Executives will also be by Chairman, Managing Director and/or Executive Director. Further, appointment and removal will be noted by the Board as required under clause 8(3) of Companies (Meeting of Board and its Powers) Rules, 2014.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
173 173 ANNEXURE – 5 - - - year VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Number of meetings of CSR Committee attended during the attended Committee - - - year The objectives of Company’s CSR Policy are to: (1) Demonstrate (1) Demonstrate to: are CSR Policy objectives of Company’s The business responsible good through the common commitment to support (2) Actively practices and good governance. the Nation’s (3) Set high change. sustainable ensure agenda to development of quality delivery in the standards of services in the social sector models. and replicable processes robust creating by has undertaken the Company projects The to / proposes povertyundertake and is mainly in eradicating hunger, promoting health care, preventive malnutrition, promoting employment education including special education and sustainability, skills,enhancing vocation ensuring environmental conservation of natural resources. forestry, agro ecology balance, art of natural heritage, protection balances, Ecology and culture, promote to training forces, armed of the benefit of the measures rural sports etc. https://vakrangee.in/board_committees.html https://vakrangee.in/our_initiative.html Not Applicable Committee held during the Committee Number of meetings of CSR ANNEXURE TO DIRECTOR’S REPORT DIRECTOR’S TO ANNEXURE Directorship Designation / Nature of / Nature Designation Chairman & Director (Managing CEO) Group Member (Non-Executive Chairman) Independent Director, Member (Non-Executive Independent Director) Name of Director Mr. Dinesh Mr. Nandwana Ramesh Joshi Mr. Sunil Agarwal Mr. Brief Outline on CSR Policy of the Company Brief Outline Policy on CSR Provide the details of Impact assessment of CSR projects Provide carried out in pursuance of sub-rule (3) of rule 8 of the Rules, Social Policy) responsibility (Corporate Companies 2014, if applicable. Provide the web -link where Composition of CSR committee, of CSR committee, Composition -link where the web Provide are the board by approved and CSR projects CSR Policy of the company. disclosed on the website Composition of CSR Committee: Composition 1 Sr. No. Sr. 1 2 3 4. 3. 2. Annual Report on Corporate Social Responsibility (CSR) activities for the Financial Year 2020-21 Year activities Social the Financial Responsibility Report for (CSR) Annual on Corporate 174
DIRECTORS’ REPORT
5. Details of the amount available for set off in pursuanceof sub-rule (3) of rule 7 of the Companies (Corporate Social responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any. Amount available for set-off from Amount required to be set off for the Sr. No Financial Year preceding financial years (in Rs) financial year, if any (in Rs) 1 2017-18 - - 2 2018-19 - - 3 2019-20 - - Total - -
6. Average net profit of the company as per section 135(5). ` 37,252 Lakhs
7. a. Two percent of average net profit of the company as per section 135(5) ` 745.04 Lakhs b. Surplus arising out of the CSR projects or programmes or activities of the previous financial years. NIL c. Amount required to be set off for the financial year, if any NIL Total CSR obligation for the financial year (7a+7b- 7c) ` 745.04 Lakhs
8. (a) CSR amount spent or unspent for the financial year:
Total Amount Amount Unspent (in ` Lakhs) Spent for the Financial Year. (in Total Amount transferred to Unspent Amount transferred to any fund specified under Schedule VII as per ` Lakhs) CSR Account as per section 135(6). second proviso to section 135(5). Date of Amount (in ` Lakhs) Name of the Fund Amount. Date of transfer. transfer. 94.99 650.05 28.04.2021 Not Applicable
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
175 175
VAKRANGEE LIMITED VAKRANGEE
Integrated Annual Report 20-21
**Represents budget for the financial year 2020-21. year financial the for budget **Represents
*Project duration is from the year of commencement of the project. the of commencement of year the from is duration *Project
TOTAL - 25.00 25.00
Education
Foundation Promoting Education
RVG Educational Educational RVG No - 25.00 25.00 years 5 Mumbai Maharashtra Yes Cl.(ii) Promoting 1
number.
District State Name Name
CSR Registration Registration CSR
Lakhs)
Act. (in 135(6) `
Lakhs) Lakhs)** `
VII to the the to VII per Section Section per
Agency Year (in (in Year (in `
No) Schedule Schedule - Direct (Yes/No) Direct - project as as project
project duration* Project Project Through Implementing Implementing Through financial financial
Location of the project. the of Location (Yes/ area in in Sr. No Sr. Implementation Implementation for the the for
for the the for Project Project Name of the the of Name Implementation - - Implementation the current current the
Local Local activities activities Mode of of Mode CSR Account Account CSR
allocated allocated Mode of of Mode spent in in spent
the list of of list the to Unspent Unspent to
Amount Amount Amount Amount
Items from from Items transferred transferred
Amount Amount
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
(b) Details of CSR amount spent against ongoing projects for the financial year: financial the for projects ongoing against spent amount CSR of Details (b) 176
DIRECTORS’ REPORT CSR Registration number. - - - - - (8) Agency - Through - Through Implementing Mode of Implementation Mode of Implementation Name VIPRA Foundation Mental Health Foundation (India) Wockhardt Foundation Kota Dall Mill Lions Club of Juhu (7) No No No No No Mode of - Direct (Yes/No) Implementation Implementation (6) 5.00 3.63 3.00 69.99 20.00 38.36 Lakhs) the project (in ` Amount spent for for spent Amount District Mumbai Mumbai Delhi Mumbai Kota NIL NIL NIL ` 94.99 Lakhs (5) Location of the project. Location State Maharashtra Maharashtra Delhi Maharashtra Rajasthan (4) (Yes/No) Local area area Local No Yes No Yes No (3) Act. Items from the Items from list of activities in Schedule VII to the VII to Schedule Cl.(ii) InfrastructureCl.(ii) Education for Cl.(ii) InfrastructureCl.(ii) Education for Cl.(i) Health Care Cl.(i) Cl.(i) Eradicating Hunger Cl.(i) Eradicating Hunger (2) Name of the project Education Education Health Care Eradicating Hunger Eradicating Hunger TOTAL 1 5 2 3 4 (1) Sr.No. Sr.No. (e) Amount spent on Impact(e) if applicable Assessment, (8b+8c+8d+8e) Year the Financial (f) amount spent for Total if any set off, amount for (g) Excess (d) Amount spent in Administrative Overheads Amount spent in Administrative (d) (c) Details of CSR amount spent against other than ongoing projects for the financial year: the financial against other than ongoing projects spent for (c) Details of CSR amount
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
177 177
**Represents budget for the financial year 2020-21. year financial the for budget **Represents
*Project duration is from the year of commencement of the project. the of commencement of year the from is duration *Project
TOTAL 30.00 25.00 25.00
Ongoing 30.00 25.00 25.00 years 5 2019-20 Education Promoting - 1
VAKRANGEE LIMITED VAKRANGEE
Lakhs) (in ` Integrated Annual Report 20-21
Lakhs). `
Ongoing. Financial Year. Year. Financial Lakhs) ** Lakhs) commenced.
Financial Year (in (in Year Financial
Completed / Completed of reporting reporting of (in project the duration* was project `
in the reporting reporting the in Name of the project the of Name ID. Project No Sr.
project – – project at the end end the at allocated for for allocated Project the which in
on the project project the on
Status of the the of Status amount spent spent amount Total amount amount Total Year Financial
Amount spent spent Amount
Cumulative Cumulative
(9) (8) (7) (6) (5) (4) (3) (2) (1)
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s): financial preceding the of projects ongoing for year financial the in spent amount CSR of Details (b)
- - - - 601.35 - TOTAL
- - - - 424.00 - 2017-18 3
- - - - 92.50 - 2018-19 2
- - - - 84.85 - 2019-20 1
Lakhs) transfer fund
(in Amount Date of of Date the of Name `
Lakhs) Lakhs)
Lakhs). any. `
(in (6) 135 section under Year. (in years. financial ` `
Sr. No Sr. reporting Financial Year (in (in Year Financial reporting under Schedule VII as per section 135(6), if if 135(6), section per as VII Schedule under
Unspent CSR Account Account CSR Unspent Financial Preceding be spent in succeeding succeeding in spent be
Amount spent in the the in spent Amount Amount transferred to any fund specified specified fund any to transferred Amount
Amount transferred to to transferred Amount Amount remaining to to remaining Amount
9. (a) Details of Unspent CSR amount for the preceding three financial years: financial three preceding the for amount CSR Unspent of Details (a) 9.
Amount available for set off in succeeding financial years [(iii)-(iv)] years financial succeeding in off set for available Amount NIL (v)
if any if
Surplus arising out of the CSR projects or programmes or activities of the previous financial years, years, financial previous the of activities or programmes or projects CSR the of out arising Surplus (iv) NIL
(iii) Excess amount spent for the financial year [(ii)-(i)] year financial the for spent amount Excess NIL
94.99 Lakhs 94.99 (ii) Total amount spent for the Financial Year Financial the for spent amount Total `
(i) 745.04 Lakhs 745.04 Two percent of average net profit of the company as per section 135(5) section per as company the of profit net average of percent Two `
) (in Amount Sr. No Sr. Particular ` 178
DIRECTORS’ REPORT
10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR spent in the financial year(asset-wise details).
(a) Date of creation or acquisition of the capital asset (s) Not Applicable (b) Amount of CSR spent for creation or acquisition of Not Applicable capital asset (c) Details of the entity or public authority or Not Applicable beneficiary under whose name such capital asset is registered, their address etc. (d) Provide details of the capital asset(s) created or Not Applicable acquired (including complete address and location of the capital asset)
11. Specify the reasons(s), if the company has failed The reasons for not spending the CSR amount have been explained in the to spend two percent of the average net profit as per main Directors’ Report. Section 135(5).
Mr. Dinesh Nandwana Dr. Nishikant Hayatnagarkar Chairman of CSR Committee Whole Time Director (DIN: 00062532) (DIN: 00062638)
Place: Mumbai Date: July 26, 2021
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
179 179 Annexure 6 Annexure VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 March, 2021 (“the March, reporting st April, 2020 to 31 2020 to April, st MARCH, 2021 MARCH, ST Form No. MR-3 No. Form Personnel) Rules, 2014] Rules, Personnel) Secretarial Audit Report Audit Secretarial March, 2021 according to the provisions of: the provisions to 2021 according March, st FOR THE FINANICAL YEAR ENDED 31 YEAR THE FINANICAL FOR April, 2020 to 31 2020 to April, st The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011; Regulations, Takeovers) and of India of Shares Securities Board The (Substantial Acquisition and Exchange 2015; Regulations, of India Requirements) Securities Board The (Listing Obligations and Disclosure and Exchange 2015; Regulations, Trading) of Insider of India Securities Board The (Prohibition and Exchange the 1993, regarding Regulations, Agents) Transfer of India an Issue and Share Securities Board The to (Registrars and Exchange Act with client; and dealing Companies b) c) d) The Companies Act, 2013 and the Rules made thereunder; Companies The Rules made thereunder; and the SecuritiesThe Contracts (Regulation) Act, 1956 (‘SCRA’) DepositoriesThe Act, 1996 and Regulations & the Bye-laws, 1996 thereunder; the extent Management under to of External Act, 1999 and the Rules and Regulations Exchange made there Commercial Foreign during the period the Company and Overseas Direct Investment to Applicable (Not Investment; Direct Foreign Borrowings, under Audit) of India Regulations under the Securities Board and Guidelines prescribed Act, 1992 (‘SEBI Act’):- and Exchange following The a) [Pursuant to section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and Remuneration of Managerial (Appointment 9 of the Companies section Act, 2013 and Rule No. to 204(1) of the Companies [Pursuant I have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company as given in given as Company by the maintained records filed and other and returns forms books, minute papers, examined the books, I have the period 1 I, for Annexure period”) generally complied with the statutory provisions listed hereunder and also that the Company has proper Board–processes and Board–processes proper has period”) and also that the Company generally complied with the statutory hereunder listed provisions compliance-mechanism extent, the in place to and subject in the manner the reporting to made hereinafter: (b) (c) (d) (v) (a) Based on my verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained by the maintained records returnsforms filed and other and books, minute papers, books, Company’s verification of the Based on my during the conduct representatives of Secretarial agents and authorized its officers, the Company, by provided the information Company by the relaxations made Management and considering the representations to us and the given the explanations and clarifications Audit, the Ministry by COVID-19granted of the of and spread to the Board Affairs Securities warrantedIndia due of Corporate and Exchange during the audit period has, 1 report opinion, the Company that in my I hereby pandemic, I have conducted the Secretarial Audit of the Compliance of applicable statutory provisions and the adherence to good Corporate good Corporate to of applicable statutory of the Compliance and the adherence conducted the Secretarial Audit I have provisions LIMITED (hereinafter was conducted that in a manner Governance practice”). Secretarial Audit VAKRANGEE by called “ the Company evaluating the corporate conducts/statutory basis for me a reasonable our opinion thereon. expressing compliances and provided To, Members, The Limited Vakrangee House, Corporate Vakrangee 16, No 93, Road No. Plot Marol, M.I.D.C. Andheri (East), Mumbai - 400093 180
DIRECTORS’ REPORT
e) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 and amendments made from time to time; (Not applicable as the Company has not made any further issue of Shares)
f) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999. Now known as The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014;
g) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008; (The Company has not issued any Debt Securities during the financial year under review)
h) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; (Not applicable as the Company has not delisted/propose to delist its Equity Shares from any Stock Exchange during the Financial Year under review)
i) The Securities and Exchange Board of India (Buy Back of Securities) Regulations, 1998 and The Securities and Exchange Board of India (Buy Back of Securities) Regulations, 2018; (Not applicable as the Company has not brought back/propose to Buy-back any of its securities during the Financial Year under review)
vi. The Company has complied with following specific laws applicable to the Company
i. Information Technology Act, 2000;
ii. Payment and Settlement Systems Act, 2007;
iii. Insurance Regulatory and Development Authority Act, 1999.
I have relied on the representation made by the Company and its Officers for systems and mechanism formed by the Company for compliances under other applicable Acts, Laws and Regulations to the Company. The list of major head/groups of Acts, Laws and Regulations as applicable to the Company is given in Annexure II.
I have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards issued by The Institute of Company Secretaries of India with respect to Board and General Meetings.
(ii) The Listing Agreements entered into by the Company with National Stock Exchange of India Limited and BSE Limited read with The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
During the period under review the Company has complied with the provisions of the Acts, Rules, Regulations, guidelines, Standards etc.
I further report that: The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act.
Adequate Notice was given to all Directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.
Majority decision is carried through and recorded as part of the minutes.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
181 181 Dr. S. K. Jain Dr. COP No. 3076 No. COP For S. K. & Co. Jain For VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Membership No. FCS 1473 Membership No. Practicing Company Secretary Company Practicing
29th June, 2021 29th June,
part an integral and forms of this report. - III” “Annexure as which is annexed date of even with our letter reportThis be read is to Place: Mumbai Place: Date:
I further report has no specific duringevents. the audit period that the Company I further has not undertaken report during the Company the audit period, that event/action a major bearing having on the Company’s etc. Standards, Guidelines, Regulations, Rules, laws, referred the above affairs in pursuance of In case of Direct and Indirect Tax Laws like Income Tax Act, Goods and Service Tax Act, I have relied on the Reports relied the Statutory by Act, I have given Tax Act, Goodsand Service Tax like Laws Income Tax In and Indirect case of Direct of the Company. Auditors I have relied on the representation made by the Company and its Officers for systems and mechanism formed by the Company for Company formed by the and mechanism and its Officers for systems the Company made by on the representation relied I have the Company. and Regulations to Laws applicable Acts, compliances under other there are adequate systems and processes in the Company commensurate with the size and operations of the and with the size commensurate in the Company and processes I further systems adequate are report there that and guidelines. regulations rules, compliance with applicable laws, and ensure monitor to Company 182
DIRECTORS’ REPORT
ANNEXURE - I In my opinion and to the best of my information and according to the examinations carried out by me and explanations furnished and representations made to me by the Company, its officers and agents, I report that the Company has, during the financial year under review, complied with the provisions of the Acts, the Rules made thereunder the Memorandum & Articles of Association of the Company with regard to:-
1. Minutes of the Meetings of the Board of Directors, Committee meetings held during the Financial Year under Report;
2. Minutes of General Meetings held during the Financial Year under report;
3. Maintenance of various Statutory Registers and Documents and making necessary entries therein;
4. Notice and Agenda papers submitted to all the Directors for the Board Meetings;
5. E-Forms filed by the Company, from time-to-time, under applicable provisions of the Companies Act, 2013 and attachments thereof during the financial year under report;
6. Intimations / documents / reports / returns filed with the Stock Exchanges pursuant to the provisions of Listing Obligations and Disclosure Requirements during the financial year under Report;
7. Disclosure of Interest and Concerns in contracts and arrangement, shareholdings and Directorships in other Companies and interest in other entities by Directors;
8. Declarations received from the Directors of the Company pursuant to the provisions of Section 184 of the Companies Act, 2013 and attachments thereto during the Financial Year under Report;
9. Appointment and remuneration of Statutory Auditor;
10. Closure of Register of Members/record date for dividends;
11. Declaration and payment of dividend.
For S. K. Jain & Co. Place: Mumbai Date: 29th June, 2021 Dr. S. K. Jain Practicing Company Secretary Membership No. FCS 1473 COP No. 3076 ANNEXURE - II
List of applicable laws to the Company 1. The payment of Bonus Act, 1965
2. The payment of Gratuity Act, 1972
3. The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal ) Act, 2013
4. The Maternity Benefits Act,1961
5. The Employees Provident Fund and Miscellaneous Provision Act,1952
6. The Professional tax Act, 1975
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
183 183 Dr. S. K. Jain Dr. COP No. 3076 No. COP For S. K. & Co. Jain For VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Membership No. FCS 1473 Membership No. Practicing Company Secretary Company Practicing Annexure - III Annexure
Maintenance of Secretarial Record is the responsibility of the management of the Company. My responsibility is to express an My express responsibility is to of the management of the Company. is the responsibility Maintenance of Secretarial Record audit. based on my opinion on these Secretarial Records about the correctness assurance of the reasonable obtain to appropriate were as the audit practices and process followed I have reflected that correct in Secretarial facts to ensure basis test are was done on verification The of the Secretarial Records. contents opinion. my basis for a reasonable provide and practices I followed that the process I believe Records. Company. Accounts of the and Books of Financial Records of the correctness not verified and appropriateness I have and rules and regulations laws, of about the Compliance obtained the Management representation I have required, Wherever etc. happening of events responsibility of is the and standards regulations rules, and other applicable laws, of Corporate of the provisions Compliance The test basis. on of procedure the verification management. My to examination was limited Report nor of the efficacy Secretarial Audit effectivenessThe viability with of the Company the future or is neither an assurance as to Company. which the management has conducted the affairs of the 29th June, 2021 29th June, 1. 2. 3. 4. 5. 6. My report of even date is to be read along with this letter. along with this letter. My be read report is to date of even To, Members, The LIMITED VAKRANGEE Place: Mumbai Place: Date: CORPORATE GOVERNANCE CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS 186
STATUTORY REPORTS Corporate Governance Report
PHILOSOPHY OF THE COMPANY ON THE CODE OF CORPORATE Over the years, governance processes and systems have been GOVERNANCE strengthened and institutionalized at Vakrangee. Your Company Vakrangee’s philosophy on Corporate Governance is founded upon is committed to maintain the highest standards of Corporate a rich legacy of fair, ethical and transparent governance practices. Governance. Your directors adhere to the stipulations set out in the Corporate Governance is that crucial muscle which encourages Securities and Exchange Board of India (Listing Obligations and and moves a viable and accessible financial reporting structure Disclosure Requirements) Regulations, 2015 (SEBI LODR 2015). and which enables a transparent system. Through the Governance mechanism in the Company, the Board along with its Committees Your Board of Directors present the Corporate Governance Report undertake its fiduciary responsibilities to all its stakeholders by for the year 2020-21: ensuring transparency, fair play and independence in its decision making. BOARD OF DIRECTORS Composition: Corporate Governance signifies acceptance by management of The Board comprises of majority of Independent Directors. It has the inalienable rights of shareholders as the true owners of the a good mix of Executive and Non-Executive Directors including organization and of their own role as trustees on behalf of the Independent Directors with more than fifty percent of the board shareholders. Strong corporate governance is indispensable to comprising of non-executive Independent Directors. As on date resilient and vibrant capital markets and is an important instrument of this Report, the Board consists of Nine Directors comprising of investor protection. six non-executive Independent Directors (including one women director), one Nominee Director representing Life Insurance At Vakrangee, our aspirations have always been of protecting, Corporation of India Limited (LIC), holding equity investment in the strengthening and aligning together the interest of all the Company and two Executive Directors. stakeholders and to satisfy that we strive hard to implement and continue to follow our core values which are “Belief in people, None of the Directors of your Company are inter-se related to each Entrepreneurship, Customer orientation and pursuit of excellence”. other. The profiles of the Directors can be found on https://www. Your Company endeavors to put in the right pedestal blocks for vakrangee.in/board_of_director.html. The composition of Board is future growth and ensuring that we achieve our ambitions in a in conformity with the SEBI LODR 2015. prudent and sustainable manner with strict adherence to best corporate governance practices. The Chairperson of the Board is a Non-Executive Independent Director and not related to any of the Directors of the Company. Corporate Governance is a set of systems and practices to ensure that the affairs of the Company are being managed in a way None of the Director on the Board is a Member of more than ten which ensures accountability, transparency, and fairness in all Committees or Chairman of five Committees (committees being its transactions in the widest sense and meet its stakeholder’s Audit Committee and Stakeholders Relationship Committee) aspirations and societal expectations. across all the Indian public companies in which he/she is a Director. Necessary disclosures regarding their committee positions have At Vakrangee, we are committed to meeting the aspirations of all been made by all the Directors. our stakeholders. This is demonstrated in shareholder returns, our credit ratings, governance processes and an entrepreneurial and None of the Directors hold office in more than ten public performance focused work environment. companies and seven Listed entities. None of the Independent Directors of the Company serve as an Independent Director The Board of Directors manages the affairs of the Company in the in more than seven listed companies. All Directors are also in best interest of the shareholders, providing necessary guidance compliance with the limit on Independent Directorships of Listed and strategic vision. The Board is also responsible to ensure that the Companies as prescribed under regulation 17A of the SEBI (Listing Company’s management and employees operate with the highest Obligation and Disclosure Requirements) Regulations, 2015. degree of ethical standards. None of the Whole-time Director/Managing Director is an Independent Director in any other listed companies.
Board is of the opinion that the Independent Directors fulfil the conditions specified in the SEBI LODR 2015 and are independent of the Management.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
187 187 2 NIL NIL NIL NIL NIL NIL NIL NIL NIL Membership in Committees of Boards of other companies 1 VAKRANGEE LIMITED VAKRANGEE NIL NIL NIL NIL NIL NIL NIL NIL NIL Integrated Annual Report 20-21 Chairmanship Chairmanship in Committees of Boards of other companies$ Nil NIL NIL NIL NIL NIL NIL NIL NIL IITL Projects Limited Limited IITL Projects – Non- Executive, Independent Director Industrial Investment – Limited Trust Non -Executive, Independent Director India Exchange Steel Limited - Non-Executive, Independent Director
Directorship in other and Company Listed category of Directorship 1) 2) 3) 4 1 3 NIL NIL NIL NIL NIL NIL NIL Name of Directors who have such skills/expertise/competence such Name of Directors who have No. of other No. Directorship held # Mr. Ramesh Joshi, Mr. Dinesh Nandwana, Mr. B.L. Meena, B.L. Dinesh Nandwana, Mr. Ramesh Joshi, Mr. Mr. Mrs. Chattopadhyay Sujata Vyas, Avinash Mr. Nishikant Hayatnagarkar, Dinesh Nandwana, Dr. Mr. Sunil Agrawal Ranbir Datt, Mr. Hari Mittal, Chand Mr. Mr. 31/07/2020 28/06/2002 25/10/2010 12/02/2018 14/11/2014 25/01/2019 31/03/2015 27/08/1999 20/10/2006 28/05/1990 Date of of Date appointment Designation Director Director Director Director Nominee Director, representing LIC of India Director Director Director Whole-Time Whole-Time Director Chairman Managing & Director CEO Group Category Non Executive, Non Executive, Independent Non Executive, Independent Non Executive, Independent Non Executive Non Executive, Independent Non Executive Non Executive, Independent Executive Executive Non Executive, Non Executive, Independent & Promoter Executive Name Skills /expertise/competencies as identified by the Board in the by SkillsBoard as identified /expertise/competencies of its businesses and sector’s the context Mr. Hari Chand Mittal* Mr. Sunil Agarwal Mr. L. Meena B. Mr. Ranbir Datt Mr. Vyas Mr. Avinash Anil Khanna** Mr. Mrs. Sujata Chattopadhyay Dr. Nishikant HayatnagarkarDr. Mr. Ramesh Joshi Mr. Dinesh Nandwana Mr. Finance, Law, Management, Administration, Corporate Governance Governance Corporate Management, Administration, Law, Finance, business the Company’s to related Technical Marketing, Sales, Administration Management, Strategy, business the Company’s to Operations related below: given 31, 2021 are as on March of Directors details of the Board The consists of 9 directors. Board The The following are the skills the are /expertise/competencies following The by the Board: as identified Chart of Directors:- out the skills/expertise/competence setting the Board of / matrix education/qualifications, age, of diversity by a high degree ensure to structured is highly of the Company of Directors Board The sector expertise background, and special skills. professional *With effect from July 31, 2020, the Board has appointed Mr. Hari Chand Mittal as Non-Executive Independent Director of the Company. Independent Company. Director of the Hari Chand Mittal as Non-Executive effect July 31, 2020, the from has *With Board appointed Mr. Anil resignedKhannaas a Company. Director effect of the from ** With 11, 2020 September Mr. Section by 2013. Act, 8 of the Companies governed and Companies Companies Private Companies, directorship and directorship alternate in Foreign # Excludes in public limited Committee Relationship and Stakeholders Committee only Audit membership and total chairmanship, $ for the purpose of calculating 2015. 26(1) of the SEBI LODR as per Regulation considered or not are whether listed companies, 188
STATUTORY REPORTS
BOARD MEETINGS: AUDIT COMMITTEE During the financial year 2020-21, your Board met five times on The constitution of Audit Committee is in compliance with the 31/07/2020, 30/10/2020, 19/12/2020, 08/02/2021 and 27/02/2021 requirements of Section 177 of Companies Act, 2013 read with in compliance with SEBI Circular No. SEBI/HO/CFD/CMD1/ Regulation 18 of SEBI LODR 2015. CIR/P/2020/38 dated March 19, 2020 and SEBI Circular No. SEBI/ HO/CFD/CMD1/CIR/P/2020/110 dated June 26, 2020 and MCA Terms of reference Circular No. 11/2020 dated March 24, 2020 wherein relaxation of The Audit Committee of the Company is entrusted with the time gap between two Board meetings was granted. The necessary responsibility to supervise the Company’s internal controls and quorum was present for all the meetings. All the Board meetings financial reporting process and, inter alia, performs the following were held at the Company’s registered office at Mumbai, India, functions: through video conferencing. • overseeing the Company’s financial reporting process and The attendance of the directors at the Board Meeting and Annual disclosure of financial information to ensure that the financial General Meeting (AGM) held during the year is given below: statements are correct, sufficient and credible;
Number Shareholding in • reviewing and examining with management the quarterly of Attended the Company as of Name of the Director financial results before submission to the Board; meetings Last AGM March 31, 2021 (no. attended of shares) • reviewing and examining with management the annual Mr. Ramesh Joshi 5 Yes 500 financial statements before submission to the Board and the auditors’ report thereon before submission to the board for Mr. Dinesh Nandwana 5 Yes 69107095 approval with particular reference to: Dr. Nishikant Hayatnagarkar 5 Yes 149288 Mr. Sunil Agarwal 5 Yes NIL (a) matters required to be included in the director’s responsibility statement to be included in the board’s Mr. B. L. Meena 5 Yes 36812 report in terms of clause (c) of sub-section (3) of Mr. Avinash Vyas 5 Yes NIL Section 134 of the Companies Act, 2013; Ms. Sujata Chattopadhyay 5 Yes NIL (b) changes, if any, in accounting policies and practices Mr. Ranbir Datt 5 Yes NIL and reasons for the same; Mr. Hari Chand Mittal 4 Yes 330623 (c) major accounting entries involving estimates based on Mr. Anil Khanna NIL N.A. N.A. the exercise of judgment by management; MEETING OF INDEPENDENT DIRECTORS (d) significant adjustments made in the financial As stipulated by the Code of Independent Directors under the statements arising out of audit findings; Companies Act, 2013 and the SEBI LODR 2015, a separate meeting (e) compliance with listing and other legal requirements of the Independent Directors of the Company was held on July 31, relating to financial statements; 2020 to review the performance of Non-Independent Directors, Chairman and the Board as whole. The Independent Directors (f) disclosure of any related party transactions; also reviewed the quality, quantity and timeliness of the flow of (g) modified opinion(s) in the draft audit report; information between the Management and the Board and it’s Committees which is necessary to effectively and reasonably • scrutiny of inter-corporate loans and investments made by perform and discharge their duties. the Company; • reviewing with management the annual financial statements BOARD COMMITTEES as well as investments made by the unlisted subsidiary The Board Committees are set up under the formal approval of the companies; Board to carry out clearly defined roles which are considered to be performed by members of the Board, as a part of good governance • reviewing, approving or subsequently modifying any Related practice. The constitution of the committees and their terms of Party Transactions in accordance with the Related Party reference are set out as below: Transaction Policy of the Company; • approving the appointment of Chief Financial Officer after assessing the qualifications, experience and background, etc. of the candidate;
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
189 189 4 4 4 No. of No. attended meetings 4 4 4 held No. of No. meetings VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Designation Independent Director (Chairman) Independent Director Independent Director Category Independent (Chairman) Director Independent Director Independent Director Name of the Director Mr. Vyas Mr. Avinash Sunil Agarwal Mr. Hari Chand Mittal Mr. To formulate criteria for determining qualifications, positive positive determining qualifications, criteria for formulate To attributes and independence of a Director. evaluation of performance criteria for formulate of To Independent of Directors. and the Board Directors to become Directors qualified identify persons who are To in Senior Management be appointed and who may in with the criteria in this policy. laid down accordance carry performance. out evaluation of Director’s To the appointment and removal the Board to recommend To and Senior Management.of Directors Sr. Sr. 1. 2. 3. No Name of the Director Mr. B. L. Meena B. Mr. Mr. Ramesh Joshi Mr. Vyas Mr. Avinash AND COMPENSATION REMUNERATION AND NOMINATION COMMITTEE Committee Nomination and RemunerationThe and Compensation non- consists of three of the Company (NRC Committee) Independent and its composition is as per the Directors executive with of Section Act, 2013 read 178 of the Companies requirements 2015. Its on March composition as Regulation SEBI LODR 19 of the 31, 2021 is as follows: Terms of Reference of the committee inter-alia includes: inter-alia of the committee Reference of Terms • • • • • Meetings & Attendance during the year Meetings & Attendance viz. on July 31, Committee meetings of the Audit four were There 2020, October 30, 2020, December 08, 2021 and February 19, 2020, The same. the for attendance is the table showing and following The SecretaryCompany acts as the Secretary the Committee. to SEBI/HO/ No. with SEBI Circular held in compliance meetings were SEBI Circular 19, 2020 and March dated CFD/CMD1/CIR/P/2020/38 The June 26, 2020. dated SEBI/HO/CFD/CMD1/CIR/P/2020/110 No. its members is as follows: by details of meeting attended Designation Independent Director (Chairman) Independent Director Independent Director Name of the Director Mr. B. L. Meena B. Mr. Ramesh Joshi Mr. Vyas Mr. Avinash reviewing the utilization of loans and/or advances from/ the utilization reviewing in subsidiaries; investment Reviewing of Anti-Money implementation Laundering and processes. Program Compliance recommending the appointment, remuneration and terms the appointment, remuneration recommending and of appointment of Statutory of the Company Auditors other services; of any payment for approval independence and and monitoring the auditor’s reviewing performance, of audit process; effectiveness and of internal control / letters management letters reviewing weaknesses the Statutory issued by Auditors; the before discussing with Statutory Auditors, audit and scope of on the nature commencement of audit, ascertain discussion to post-audit of as having area as well concern, if any; Statutory with management, reviewing and Internal Auditors adequacy the systems; internal of control Auditor, the in particular, statements, the financial reviewing subsidiaries; the unlisted made by investments and terms of remuneration appointment, recommending of the Company;appointment of Internal Auditor the adequacyreviewing of internal audit function and finding and significant any discussing with Internal Auditor actions of corrective on such issues; the progress reviewing and evaluatingrisk management internalfinancial controls systems; wherever the Company, of ‘undertaking or assets’ evaluating it is necessary; reviewing the functioning of the Whistle Blowing mechanism; Blowing Whistle the functioningreviewing of the Sr. Sr. 1. 2. 3. No • Composition 31, 2021 is as as on March Committee composition of Audit The follows: • • • • • • • • • • • • 190
STATUTORY REPORTS
• To recommend to the Board policy relating to remuneration Non-Executive Directors have been paid sitting fee as per the limit for Directors, Key Managerial Personnel and Senior prescribed under the Companies Act, 2013 for attending Board Management. Meetings and the meetings of the committees thereof. • To devise a policy on Board diversity, composition, size. The Directors, whether whole-time or not, but excluding • Succession planning for replacing Key Executives and Independent Directors and Promoters of the Company and overseeing. its subsidiaries, working in India or abroad shall be eligible to participate in the ESOP Schemes of the Company, provided that • To carry out any other functions as is mandated by the a director holding, either by himself or through his relative or Board from time to time and / or enforced by any statutory through anybody corporate, directly or indirectly, more than 10% of notification, amendment or modification, as may be the outstanding equity shares of the Company shall not be entitled applicable. to participate in the ESOP Schemes of the Company. • To perform such other functions as may be necessary or appropriate for the performance of its duties. Performance Evaluation of Board of Directors Pursuant to the provisions of the Companies Act, 2013 and SEBI Meetings & Attendance during the year LODR 2015, the Board has carried out an Annual Performance During the year under review, total two meetings of the NRC Evaluation of its own performance, the Directors individually as well Committee were held on July 31, 2020 and December 19, 2020 and as the evaluation of the working of its various Committees. following is the table showing attendance for the same. The details of meeting attended by its members is as follows: A separate exercise was carried out to evaluate the performance of individual Directors including the Chairman of the Board, who No. of No. of Name of the were evaluated on parameters such as level of engagement and Category meetings meetings Director contribution, independence of judgment, safeguarding the interest held attended of the Company and its minority shareholders etc. The performance Mr. Avinash Vyas Independent 2 2 evaluation of the Independent Directors was carried out by Director the entire Board excluding the Directors being evaluated. The (Chairman) performance evaluation of the Chairman and Non-Independent Mr. Sunil Agarwal* Independent 1 1 Directors was carried out by the Independent Directors at their Director separate meeting held on July 31, 2020. Mr. Hari Chand Independent 1 1 Mittal* Director Remuneration of Directors The details of remuneration paid to Directors during the financial Mr. Ramesh Joshi* Independent 1 1 year 2020-2021 are as under: Director Mr. Ranbir Datt* Non – Executive 1 1 (a) Non - Executive Directors Director (` in Lakhs) *The composition of the committee was re-constituted on August Name of Directors Sitting Fees 29, 2020 and Mr. Sunil Agarwal and Mr. Hari Chand Mittal were Mr. Ramesh Joshi 2.95 appointed as Members of the Committee in place of Mr. Ramesh Mr. Sunil Agarwal 2.75 Joshi and Mr. Ranbir Datt. Mr. B. L. Meena 2.70 The Board of Directors has framed the Nomination and Mr. Avinash Vyas 3.20 Remuneration and Compensation Policy on Nomination and Mrs. Sujata Chattopadhyay 2.50 remuneration of Directors, Key Managerial Personnel and Senior Management and the same is available on https://www.vakrangee. Mr. Ranbir Datt 2.75 in/policies_and_guidelines.html. The remuneration paid to the Mr. Hari Chand Mittal 2.25 Executive Directors is in accordance with the provisions of Section 197 and Part II of Schedule V of Companies Act, 2013.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
191 191 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Designation Independent Director (Chairman) Independent Director Director Executive Name of the Director Mr. Ramesh Joshi Mr. Mr. B. L. Meena B. Mr. Nishikant Dr. Hayatnagarkar De-materialization of Shares. Resolving the grievances of the security holders of the transfer/ to including complaints related Company of annual report, non receipt transmission of shares, issue of new/duplicate dividends, of declared non-receipt certificates, meeting etc. general voting of exercise effective taken for measures review To rights shareholders. by the service to the by adherence adopted review standards To entitylisted various of in respect service by being rendered Agent. Transfer and Share the Registrar taken the and initiatives by various review measures To quantum of unclaimed dividends the reducing for Company of dividend warrants/annualand ensuring timely receipt reports/statutory of the the shareholders notices by company. issue. related other Any Sr. Sr. 1. 2. 3. No The composition of the Committee as on March 31, 2021 is as 31, 2021 is as as on March Committee composition of the The follows: The Terms of Reference of the committee include: of the committee of Reference Terms The • • • • • • functions Secretary, as Compliance Bhansali, Company Jay Mr. LODR 2015 and also acts as Nodal under SEBI Officer required as Officer with IEPF Rules. compliance to ensure received were 3 complaints review, year under During the financial the to been redressed All complaints have the shareholders. from pending as and none of them were satisfactionshareholders of the 31, 2021. on March pending at the close of 31.03.2021. had no transfers Company The -- -- 5.31 13.27 32.99 51.67 Dr. Nishikant Dr. Hayatnagarkar -- -- 48.00 96.00 96.00 240.00 Mr. Dinesh Mr. Nandwana Executive Directors Executive Particulars As per the requirements of Section Act, 2013 178 of the Companies per the requirements As constituted has Company the 2015, Regulationand LODR SEBI of 20 Stakeholders Relationship Committee. STAKEHOLDERS’ RELATIONSHIP COMMITTEE RELATIONSHIP STAKEHOLDERS’ one meeting of review, year under During the financial 08, Stakeholders was held on February Relationship Committee meeting at the present 2021 and all the members were Total Nishikant Nandwana and Dr. Dinesh serviceThe Mr. contracts for from HayatnagarkarOctober years effective a period of five is for notice periodThe is 1, 2019 and October 01, 2020 respectively. Dr. months for Dinesh Nandwana and three Mr. six months for fees. no severance are There Nishikant Hayatnagarkar. Perquisites on account Perquisites Options of Stock exercised Others (Bonus & Leave Others (Bonus & Leave Encashment) (b) (` in Lakhs) Sitting fees paid to Independent paid to and Non - Independent Directors Sitting fees within the regulatory are limits. Directors Non - Executive Independent and Non – Independent, Directors Non - Executive each attending of ` 50,000/- for paid sitting fees are Directors are Committee Members and Meeting of the Audit of the Board Members of `5,000/- per meeting and of the paid sitting fees are Committee Nomination and Remuneration and Compensation of ` 25,000/- per meeting. paid sitting fees HRA Allowances Basic 192
STATUTORY REPORTS
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE RISK MANAGEMENT COMMITTEE As per the requirements of Section 135 of the Companies Act, 2013, As per the requirements of Regulation 21 of SEBI LODR 2015, the the Company has, constituted a Corporate Social Responsibility Company has constituted Risk Management Committee. Committee (the “CSR Committee”). The company has adopted a CSR Policy which is available on the website of the Company. During the financial year under review, one meeting of Risk Management Committee was held on February 08, 2021 and all the The composition of the committee as on March 31, 2021 is as members were present at the meeting. follows: The composition of the Committee as on March 31, 2021 is as Sr. Name of the Director Designation follows: No Sr. Name of the Director/ 1. Mr. Dinesh Nandwana Managing Director & Group Designation CEO (Chairman) No Member 2. Mr. Ramesh Joshi Independent Director 1. Ms. Sujata Chattopadhyay Chairperson, Independent Director 3. Mr. Sunil Agarwal Independent Director 2. Mr. Dinesh Nandwana Managing Director & Group CEO The role of Corporate Social Responsibility Committee is as follows: 3. Dr. Nishikant Executive Director • formulating and recommending to the Board the CSR Policy Hayatnagarkar and activities to be undertaken by the Company; 4. Mr. Prabodh Bhusari Officer • recommending the amount of expenditure to be incurred on CSR activities of the Company; The brief Terms of Reference of the committee include: • monitoring CSR Policy of the Company from time to time; • Review of strategic risk arising out of adverse business decisions and lack of responsiveness to changes; • formulate and recommend to the Board an Annual Action Plan in pursuance of the CSR Policy; • Review of operational risks; • analyse the need of an impact assessment, if any, for the projects undertaken by the Company. • Review of financial and reporting risks;
• Review of compliance risks;
• Review of risk related to Data Privacy;
• Review the Company’s risk philosophy and the quantum of risk, on a board level that the Company, as an organization, is willing to accept in pursuit of stakeholder value;
• Review the extent to which the management has established effective enterprise risk management at the Company;
• Inquiring about existing risk management processes and review the effectiveness of those processes in identifying, assessing and managing the Company’s most significant enterprise - wide risk exposures;
• Review periodically key risk indicators and management response thereto.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
193 193 2 7 2 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Likely Board Meeting Board Likely Schedule On or before August 14, 2021 August On or before 14, November On or before 2021 14, February On or before 2022 May 30, 2022 On or before 30, September On or before 2022 Special Resolutions passed Time 10.00 AM 10.00 AM 11.00 A.M. Payment date: Payment will be paid within 30 at the AGM, when declared Dividend, of AGM. the date from days Tentative Schedule Tentative BSE Ltd. Mumbai – 400 001 Dalal Street, Towers, Jeejeebhoy Phiroze of India Ltd. Exchange Stock National C/1, G Block, No. Bandra East, Plot 5th Floor, Plaza, Exchange Mumbai - 400 051. Financial reporting for the quarter reporting for Financial ending June 30, 2021 half year reporting for Financial 30, 2021 ended September the quarter reporting for Financial ending December 31, 2021 the year reporting for Financial 31, 2022 ended March the Annual General Meeting for 31, 2022 ending March year Book Closure: mentioned in the Notice of this AGM. As Dividend payment: i. Exchanges: Listing on Stock stock on the following listed securities are company’s Your exchanges. Financial Calendar for 2021-22 for Calendar Financial Venue Through Video Video Through Conferencing/Other Visual Audio Company. office of the Means at registered Courtyard Marriott by Mumbai International Airport, CTS Carnival Cinemas, 215, Opposite Andheri Kurla Andheri Road, East, Mumbai, 400059. The Lalit Plaza, Sahar Airport Lalit Plaza, The Andheri Road, (East), Mumbai – 400059. September 28, 2020 September 25, 2019 September Date September 28, 2018 September General BodyGeneral Meetings Annual General Meetings. three the last for Time and Venue Date, Financial Year Financial 31. is Aprilto 1 March Company year of the financial The GENERAL SHAREHOLDERS INFORMATION Meeting General Annual be will of the Company 31st Annual GeneralThe Meeting (AGM) is conducting Company The 30, 2021 at 11 AM. held on August the MCA Circulars pursuant to VC / OAVM meeting through May 5, 2020 and Januarydated is no 13, 2021 and as such there to details please refer For the AGM. for a venue have to requirement the Notice of this AGM. EQUITY SHARES IN THE SUSPENSE ACCOUNT EQUITY SHARES IN lying in suspense account. are 31, 2021, no shares on March As Detailed Investor’s presentations on the Company’s quarterly, quarterly, on the Company’s presentations Detailed Investor’s available on the results are as annual financial half - yearly as well the also sent to and are www.vakrangee.in. website, Company’s Exchanges. Stock MEANS OF COMMUNICATION: Company results of the and annual financial half-yearly Quarterly, after immediately exchanges the stock to communicated are published in and those are the Board by approved the same are Journal) and Marathi Shakti) (Nav Press English (Free prominent on also posted are and other news releases results The newspapers. www.vakrangee.in. website, the Company’s RESOLUTION(S) PASSED THROUGH POSTAL BALLOT BALLOT POSTAL THROUGH PASSED RESOLUTION(S) No postal ballot was conductedyear 2020-21. during the financial be conducted through to proposed None of the businesses are Ballot. Postal 194
STATUTORY REPORTS
Listing fees as applicable have been paid to the above Stock Exchanges.
Stock Code Stock Exchange Code BSE Ltd. 511431 National Stock Exchange of India Ltd. VAKRANGEE ISIN no. for Equity Shares (NSDL & CDSL) INE051B01021
Stock Market Data relating to Equity Shares listed in India: Price on BSE Price on NSE Month during each month Volume traded during each month Volume traded (2020-21) High Low High Low April 28.60 17.10 78,15,464 28.65 17.15 3,79,10,127 May 29.20 23.95 36,54,588 29.00 23.90 2,52,01,785 June 41.15 26.15 89,22,868 41.25 26.15 7,22,06,500 July 36.15 25.10 72,08,518 36.00 25.30 5,67,46,882 August 33.95 27.85 61,85,341 33.95 27.85 4,87,39,318 September 29.85 24.40 50,66,091 29.95 24.50 3,63,46,741 October 31.30 28.05 38,87,910 31.25 28.00 3,61,86,385 November 39.70 26.00 85,77,290 39.75 26.00 6,28,58,111 December 69.85 39.70 3,18,54,875 69.85 39.75 24,97,82,531 January 69.40 52.25 95,82,534 69.70 52.25 9,22,88,681 February 61.00 49.05 72,38,083 61.05 48.95 7,29,43,303 March 56.05 50.10 55,45,601 56.05 50.30 3,99,76,811
Stock Performance of Vakrangee Limited v/s. BSE Sensex & Nifty: Price on BSE Price on NSE Month Volume Volume during each month Sensex during each month Nifty (2020-21) traded traded High Low High Low April 28.60 17.10 78,15,464 33,717.62 28.65 17.15 3,79,10,127 9859.90 May 29.20 23.95 36,54,588 32,424.10 29.00 23.90 2,52,01,785 9580.30 June 41.15 26.15 89,22,868 34,915.80 41.25 26.15 7,22,06,500 10302.10 July 36.15 25.10 72,08,518 37,606.89 36.00 25.30 5,67,46,882 11073.45 August 33.95 27.85 61,85,341 38,628.29 33.95 27.85 4,87,39,318 11387.50 September 29.85 24.40 50,66,091 38,067.93 29.95 24.50 3,63,46,741 11247.55 October 31.30 28.05 38,87,910 39,614.07 31.25 28.00 3,61,86,385 11642.40 November 39.70 26.00 85,77,290 44,149.72 39.75 26.00 6,28,58,111 12968.95 December 69.85 39.70 3,18,54,875 47,751.33 69.85 39.75 24,97,82,531 13981.75 January 69.40 52.25 95,82,534 46,285.77 69.70 52.25 9,22,88,681 13634.60 February 61.00 49.05 72,38,083 49,099.99 61.05 48.95 7,29,43,303 14529.15 March 56.05 50.10 55,45,601 49,509.15 56.05 50.30 3,99,76,811 14690.70
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
195 195 4.8639 1.5101 1.6320 0.9575 0.7342 0.7907 1.9809 87.5307 100.0000 % total equity% total % 0.01 6.32 9.68 VAKRANGEE LIMITED VAKRANGEE 42.60 41.39 Integrated Annual Report 20-21 100.00 7778656 8376599 51528396 15998198 17289024 10143533 20986077 927305157 No. of shares No. 1059405640 20503 1.6289 0.9005 0.3124 0.1684 0.1371 0.2164 0.3779 96.2585 66976981 451353165 102569647 438485344 100.0000 1059405640 No. of Shares No. % of shareholders 410 221 180 284 496 2138 1182 126345 131256 No. of shareholders No. Category Category (No. of Category (No. Shares) Promoters Distribution of shareholding as on March 31, 2021: - (Face Value Re. 1/- per Share) Re. Value 31, 2021: - (Face as on March Distribution of shareholding The Company obtains half-yearly certificate from a Company Practice that all certificatesSecretary certificateto the effect Company within have been issued obtains half-yearly a in from Company The under Regulation 40(9) of SEBI as required sub division, consolidation and renewal thirty of lodgement of the transfer, of the date days of the said certificate 2015 and files a copy Exchanges. with the concernedStock LODR All requests for dematerialisation of shares are processed and the confirmation is given to respective National SecuritiesDepositories i.e., to given and the confirmation is processed are dematerialisation of shares for All requests Depository Depository and Central Limited Services within 21 days. generally (India) Limited, Share Transfer System Transfer Share April 1, 2019, w.e.f. form only in dematerialized securities can be transferred 2015, as amended, In terms of Regulation 40(1) of SEBI LODR requested are form in physical Members of securities. transmission or transposition holding shares for received in case of request except the through effected are electronic form of equity in shares Transfers form. converting consider dematerialized to their holdings to Company. of the depositories with no involvement Registrar and Share Transfer Agent: Transfer and Share Registrar ServicesBigshare Pvt. Ltd. Building, Works Tin Bharat 1st Floor, Makwana Andheri Oasis, (East), Mumbai, Maharashtra, Marol, 400059. Road, Vasant Opp. 022-62638200 No.: Telephone 022-62638299 No.: Fax Email: [email protected] 0-5000 Institutions/Banks Financial 5001-10000 10001-20000 Insurance Companies 20001-30000 Foreign Portfolio Investors Portfolio Foreign 30001-40000 Public 40001-50000 Total 50001-100000 100001- above Total Category wise Shareholding as on March 31, 2021 as on March Category wise Shareholding 196
STATUTORY REPORTS
Dematerialization of Shares and Liquidity: The Company’s shares are traded in dematerialized form and are available for trading with both the depositories, namely, National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL).
No. of shares (as on March 31, Mode of Holding % 2021) Held with NSDL 785345663 74.13 Held with CDSL 272658953 25.74 Held in Physical Form 1401024 0.13 Total 1059405640 100.00
Outstanding GDRs, ADRs, warrants or any convertible instruments. The Company has not issued any GDRs/ADRs/Warrants.
Commodity Price Risks or Foreign Exchange Risks and Hedging Activities: The details of foreign currency exposure have been disclosed in standalone notes to accounts of the Annual Report.
Plant Locations: In view of the nature of the Company’s business viz. Specialty Retail, the Company operates from various offices in India and does not have any manufacturing plant.
Address of Correspondence: The address of correspondence:
Vakrangee Limited “Vakrangee Corporate House”, Plot No. 93, Road No. 16, M.I.D.C. Marol, Andheri (E), Mumbai – 400 093.
Shareholders can contact the following officials for Secretarial matters related to the Company:
Name Telephone No. Email ID Jay Bhansali 022 - 67765100 [email protected]
Credit Ratings: During the year under review, the Company has not obtained any credit ratings.
DISCLOSURES Disclosure on materially significant Related Party Transactions with its Promoter, Directors or Management, their subsidiaries or relatives etc. that may have potential conflict with the interest of the Company at large.
During the year there were no material significant transactions with the related parties viz. Promoters, Directors and their relatives, their Subsidiaries, conflicting with the Company’s interest. The policy as to Related Party Transactions as approved by the Board, is available on the Company’s website, https://vakrangee.in/policies_and_guidelines.html.
Necessary disclosures as to Related Party Transactions, as required have been made in the standalone notes to accounts of the Annual Report.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
197 197 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 . MATERIAL SUBSIDIARIES MATERIAL any do not have the company under review, During the year 2015. material subsidiaries under the SEBI LODR as stipulated a policy determining Material has adopted company for The of the Company, subsidiaries on the website and is available https://vakrangee.in/policies_and_guidelines.html. PROGRAM DIRECTORS FOR INDEPENDENT FAMILIARIZATION at its various meetings held during the Financial Company The Independent the 2020-21 had familiarize year with Directors nature in the Company, responsibilities rights, the roles, to regard the Business of the industry operates, in which the Company been IndependentThe have Directors etc. models of the Company with necessaryprovided reports documents, and internal policies and procedures policies, Company’s them with the familiarize to practices. Committee Board and the Board made to are presentations Periodic meeting on Business and performance of the Company, updates and risksBusiness strategy involved. Quarterly statutory on relevant updates judicial changes and important and encompassing pronouncements amendments are the Directors. to briefed along with the details of familiarization Policy Familiarization The imparted the Independent on program to is available Directors at https://vakrangee.in/policies_and_ of the Company the website guidelines.html of Conduct Code Vakrangee’s a code of has laid down of the Company of Directors Board The and all senior management employees the Board conduct for of on the website same has been posted The of the Company. https://vakrangee.in/policies_and_guidelines. the Company members and senior confirms that all Board Company The html. affirm shall continue to and management personnel have compliance with the code on an annual basis. Trading Insider Preventing for Code Vakrangee’s of Insider Prevention of Conduct for has Code Ltd Vakrangee line which is in of the Company (‘VL in the shares Code’) Trading 2015 and Regulations, Trading) of Insider with SEBI (Prohibition in spirit. followed . Audit Qualifications: The Company’s financial statement financial statement Company’s The Qualifications: Audit audit year 2020-21 does not contain any the financial for qualification. Reporting of the InternalThe Auditor of Internal Auditor: Committee. reports directly the Audit to Company Shareholders’ Rights: the quarterly As and half yearly financial Shareholders’ also posted published in the newspapers and are are results the not sent to the same are website, on the Company’s shareholders. • • Vigil Mechanism / Whistle Blower Blower Whistle Mechanism / Vigil In Company practices, Governance line with the best Corporate and which the Directors through has put in place a system other third or any Vendor Business Partner, Franchisee, Employees, report may parties Policy under this Disclosure making a Protected actual or suspected fraud or concerns about unethical behavior, of Conduct without & Ethics Code violation of the Company’s report may the and Directors to Employees The of reprisal. fear OfficerCompliance and no personnel has been denied direct Whistle Blower The Committee. the Chairmanaccess to of the Audit https://vakrangee. of the Company, is placed on the website Policy in/policies_and_guidelines.html • Apart from above, during the last three years, there were no no were there years, during the last three Apart above, from strictures either the Securities or penalties imposed by and statutory or any of India Board Exchanges or the Stock Exchange the capital to non-compliance related authorities matter for of any markets. of SEBI LODR with Discretionary requirements Compliance 2015: has complied with all the mandatory Company The requirements status of compliance with discretionary The 2015. of SEBI (LODR) under Regulation E Schedule 27(1) and Part SEBI II of requirements below: 2015 is provided (LODR), During FY 2018-19, BSE Limited and National Stock Exchange of Exchange During and National Stock FY 2018-19, BSE Limited submission India delayed levied a penalty Ltd of ` 88,500 /- each for 31, 2018. ended March the year Results for Financial of Audited Details of non-compliance by the listed entity, penalties, penalties, entity, the listed by Details of non-compliance or exchange(s) stock entitystrictures by the listed imposed on to related matter on any statutory authority, or any the board years: three during the last capital markets, 198
STATUTORY REPORTS
Disclosure on Compliance: Payment to Statutory Auditor FY 2020 - 21 (` In Lakhs) The Company is in Compliance with, Audit Fees 65.00 • The Corporate Governance Requirements as specified in Tax Audit Fees 10.00 regulation 17 to 27 and clauses (b) to (i) of sub regulation (2) Other Services 0.00 of regulation 46. Reimbursement of Expenses 1.83 • all the requirements mentioned in sub- paras (2) to (10) Total 76.83 of section C of Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. • Disclosure under the Sexual Harassment of Women at • During the year under review the Board has accepted all the Workplace (Prevention, Prohibition and Redressal) Act, recommendations of its Committees. 2013. • The Company has obtained certificate from S.K. Jain & Co., Number of complaints filed during the year Nil Practicing Company Secretary that none of the Directors 2020 - 21. on the Board of the Company have been debarred or Number of complaints disposed off during NA disqualified from being appointed or continuing as directors the year 2020 - 21. of the Companies by the Board/Ministry of Corporate Affairs or any such Statutory Authority. Number of complaints pending as on 31 NA March 2021 • Total fees for all services paid by the Company and its subsidiaries, on a consolidated basis, to the Statutory Auditor and all entities in the network firm/network entity of which the Statutory Auditor is a part is given below:
Compliance Certificate: The Compliance Certificate issued by Dr. S.K. Jain proprietor of S.K. Jain & Co., Practicing Company Secretary on Compliance with the Corporate Governance requirements by the Company is annexed herewith.
I, hereby, confirm and declare that in terms of Regulation 26(3) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, all the Board members and Senior Management Personnel of the company have affirmed compliance with the “Code of Conduct for the Board of Directors and the Senior Management Personnel”, for the financial year 2020-21.
Sd/- Dinesh Nandwana Managing Director & Group CEO (DIN:00062532)
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
199 199 C. P. NO. 3076 NO. C. P. ------Dr. S. K. JAIN Dr. VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 11/09/2020 FOR S. K. JAIN & CO. Date of Cessation Date Membership No. FCS 1473 Membership No. Company 20/10/2006 28/05/1990 01/10/2015 28/06/2002 25/01/2019 31/03/2015 25/10/2010 14/11/2014 12/02/2018 31/07/2020 Date of appointment in of appointment Date DIN 00002683 00062638 00062767 03281592 06869633 08064889 00062532 01334483 02336683 08797386 CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS OF NON-DISQUALIFICATION CERTIFICATE (Listing Obligations and Disclosure Requirements) Regulations, 2015) Regulations, (Listing Obligations and Disclosure Requirements) Ranbir Datt Anil Khanna Ramesh Joshi Sunil Agarwal Babu Lal Meena (pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI and 34(3) Schedule Regulation to V Para (pursuant Hari Chand Mittal Dinesh Nandwana Name of Director Avinash Avinash Chandra Vyas Sujata Chattopadhyay Nishikant Hayatnagarkar 1. 2. 3. 4. 5. 6. 7. 8. 9. June 29, 2021 10. Sr. No. Sr. In my opinion and to the best of my information and according to the verifications (including Directors Identification Number Identification (including Directors the verifications to and according information the best of my In opinion and to my necessary & its considered as the Company and explanations furnished me by to (DIN) status at the portal www.mca.gov.in) as stated Company certify of the of the Directors I hereby 2021 on the Board as on 31st that none of the Directors officers, March, by the Board Securities of companies as Directors and Exchange being appointed or disqualified from been debarred have below of India, Ministry Statutory such other or any Authority. Affairs, of Corporate To, Members of The LIMITED. VAKRANGEE 16, No 93, Road No. Plot House, Corporate Vakrangee Mumbai - 400093 (East), Andheri Marol, M.I.D.C. Limited Vakrangee of the Directors from received and disclosures returns forms, records, registers, examined the relevant I have No. 16, Plot No 93, Vakrangee Road Corporate House, office at registered and having CIN L65990MH1990PLC056669 having the Company me by ‘the Company’), before produced as to Andheri referred (East), Mumbai - 400093 (hereinafter Marol, M.I.D.C. Para-C Sub clause 10(i) of the V with read Schedule with the purposeRegulation 34(3) of issuing this Certificate, in accordance for 2015. Regulations, of India Requirements) Securities Board and Disclosure (Listing Obligations Exchange
Ensuring the eligibility of for the appointment / continuity Ensuring of every the eligibility of for is the responsibility of the management on the Board Director This certificate is neither an an opinion on these based on our verification. My express is to responsibility of the Company. nor of the efficiencyeffectiveness viability with which the management has of the Company the future or assurance as to Company. conducted the affairs of the Mumbai Place: Date: 200
STATUTORY REPORTS
To The Members of VAKRANGEE LIMITED Vakrangee Corporate House, Plot No.93, Road No.16, M.I.D.C. Marol, Andheri East, Mumbai – 400093
We have examined the compliance of conditions of Corporate Governance by VAKRANGEE LIMITED for the year ended on 31st March, 2021.
We certify that the Company has complied with the conditions of Corporate Governance as stipulated in Regulation 17 to 27 and clause (b) and (i) of Regulation 46 and Para C and D of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the Listing Regulations).
Managements Responsibility The Compliance of conditions of Corporate Governance is responsibility of the Management. This responsibility includes the design, implementation and maintenance of internal control and procedures to ensure the compliance with the conditions of the Corporate Governance stipulated in Listing Regulations. Our examination was limited to procedures and implementation thereof adopted by the Company for ensuring Compliance with the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
Opinion Based on our examination of the relevant records and according to the information and explanations provided to us and the representation provided by the Management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in regulations 17 to 27 and clause (b) and (i) of Regulation 46 and Para C and D of Schedule V of the Listing Regulations during the year ended March 31, 2021.
We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the Management has conducted the affairs of the Company.
Restriction on Use The certification is addressed to and provided to the members of the Company solely for the purpose to enable the Company to comply with requirement of aforesaid Regulations, and should not be used by any other person for any other purpose. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this certificate is shown or into whose hands it may come without our prior consent in writing.
FOR S. K. JAIN & CO. Practicing Company Secretary
Dr. S. K. JAIN Place: Mumbai Proprietor Date: June 29, 2021 C. P. NO. 3076
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
201 201 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Jangid Ajay Officer Chief Financial Sub: CEO / CFO Certificate (Issued in accordance with provisions of Regulation 17(8) of SEBI with provisions (Issued in accordance (Listing Obligations and Disclosure Requirements) Regulations, 2015 Regulations, Requirements) Disclosure (Listing Obligations and significant changes in internal control over financial reporting financial over year; during the changes in internal control significant to been disclosed in the notes year and that the same have changes in accounting policies during the significant and the financial statements; of the if any, therein, and the involvement aware become we have fraud of which instances of significant financial over system internal control role in the company’s a significant having management or an employee reporting. These statements together present a true and fair view of the company’s affairs and are in compliance with existing affairs and are and fair view a true of the company’s present together statements These and regulations. applicable laws accounting standards, These statements do not contain any materially untrue statement or omit any material fact or omit any or contain statements materially untrue statement do not contain any statements These that might be misleading; (ii) (iii) There are, to the best of our knowledge and belief, no transactions entered into by the company during the year which are during which are the year the company by into no transactions entered our knowledge the best of to and belief, are, There code of conduct. fraudulent, illegal or in violation of the company’s reporting financial we have for and that establishing and maintaining internal controls for accept responsibility We pertaining reporting of the company systems to financial of internal control have and the effectiveness evaluated if any, or operation of such internal controls, deficiencies in the design committee, and the Audit the auditors disclosed to deficiencies. these rectifying be taken to taken for and steps or proposed committee- and the Audit the auditors to indicated have We (i) (ii) (i) June 19, 2021 Mumbai Place: Date: Dinesh Nandwana CEO & Group Managing Director (DIN: 00062532) Vakrangee Limited Vakrangee For Yours sincerely, Yours (c) (d) (b)
(a) We have reviewed the financial statements read with Cash flow statement of Vakrangee Limited for the year ended March 31, year ended Vakrangee for the March Limited of statement Cash flow read with the financial statements reviewed have We that; state we the best of our knowledge2021 and that to and belief, To the Board of Directors of the Board To Limited Vakrangee Dear Sirs/Madam, BUSINESS RESPONSIBILITY REPORT CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS 204
STATUTORY REPORTS
Section A: General information about the Company S. Question Response No. 1 Corporate Identity Number (CIN) of Company L65990MH1990PLC056669 2 Name of the Company Vakrangee Limited 3 Registered address Vakrangee Corporate House, Plot No.93, Road No.16, M.I.D.C., Marol, Andheri (E), Mumbai - 400093. 4 Website www.vakrangee.in 5 E-mail id [email protected] 6 Financial year reported 2020-21 7 Sector(s) that the Company is engaged in 631 - Data processing, hosting and related activities; web portals (industrial activity code-wise) 639 - Other information service activities 662 - Activities auxiliary to insurance and pension funding 461 - Wholesale on a fee or contract basis 479 - Retail trade not in stores, stalls or markets 791 - Travel agency and tour operator activities 641 - Monetary intermediation 661 - Activities auxiliary to financial service activities, except insurance and pension funding 649 - Other financial service activities, except insurance and pension funding activities 8 List three key products/ services that the We have only one business segment, Vakrangee Kendra, which is also reported Company manufactures/ provides (as in balance in the Company’s balance sheet. Our Vakrangee Kendra, a one-stop shop, offers sheet) following 3 key services: 1. BFSI - Banking, insurance and financial services 2. ATM 3. E-commerce – assisted online shopping, assisted online healthcare, assisted online travel, telecom and bill payment services; and Logistics. 9 Total number of locations where business activity is undertaken by the Company i. Number of international locations i. Company operates only in India (provide details of major 5) ii. Company franchises 11,730 operational Next-Gen Vakrangee Kendras ii. Number of national locations across 30 states and Union Territories of India. It is in the process of on- boarding 13,000 additional Next-Gen Vakrangee Kendras in India. 10 Markets served by the Company – local/ state/ Local, state and national markets. national/ international
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
205 205 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Social and community development Education Healthcare Eradicating Hunger Limited Finserve Vakrangee Limited Private Logistics Vakrangee subsidiary: e-SolutionsVakrangee Foreign Inc., Philippines
Response Response Yes. Both Indian subsidiaries participate of the parent in BR initiatives Yes. Company. No. 10594.06 Lakhs 22743.67 Lakhs 5136.12 Lakhs of net profits the average spending on CSR is 0.26% of total Company’s The years. financial three the previous i. ii. iii. iv. Indian of which 2 are subsidiaries, has 3 wholly owned Company Yes. subsidiary. subsidiaries and 1 is a foreign Indian subsidiaries: 1. 2. 3. Question Question Do the subsidiary participate companies Company/ If Company? of the parent in the BR initiatives the number of such subsidiaryindicate then yes, Company(s) suppliers, other entity/entitiesDo any (e.g. does business that the Company distributors etc.) with, participate of the in the BR initiatives of the percentage then indicate If yes, Company? than 30%, 30-60%, More [Less such entity/entities. than 60%] Paid-up capital (INR) Paid-up (INR) turnover Total (INR) after taxes profit Total Social Responsibility on Corporate Spending Total after tax (%) of profit as percentage (CSR) has in 4 above List of activities in which expenditure been incurred subsidiary any have Company/ Does the Company companies? S. S. 2 3 1 2 3 4 5 1 No. No. SectionOther C: details Section B: Financial details of the Company Section B: Financial 206
STATUTORY REPORTS
Section D: BR Information S. Question Response No. 1 Details of Director/Directors responsible for BR Corporate Governance Committee, Corporate Social Responsibility (CSR) Committee and ESG Committee of Company are responsible for implementing BR policies. Details on the committees are as follows: (a) Details of the Director/Director responsible for Corporate Governance Committee implementation of the BR policy/policies DIN Name Designation 1. DIN Number 00002683 Mr. Ramesh Joshi Chairman 2. Name 00062532 Mr. Dinesh Nandwana Member 3. Designation 00062638 Dr. Nishikant Hayatnagarkar Member Corporate Social Responsibility Committee
DIN Name Designation 00062532 Mr. Dinesh Nandwana Chairman 00002683 Mr. Ramesh Joshi Member 00062767 Mr. Sunil Agarwal Member ESG Committee
DIN Name Designation 06869633 Mr. Avinash Vyas Chairman 00002683 Mr. Ramesh Joshi Member 02336683 Ms. Sujata Chattopadhyay Member
(b) Details of the BR head Details of BR Head
S. No. Particulars Details 1 DIN 00062532 2 Name Mr. Dinesh Nandwana 3 Designation Managing Director & Group CEO 4 Telephone number 022 67765100 5 E-mail id [email protected]
2 Principle-wise (as per NVGs) BR policy/ policies (a) Details of compliance (reply in Y/N)
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
207 207 2 $ Y Y Y Y Y Y Y Y P9 Y Y Y 8 $ Y Y Y Y Y Y Y Y P8 Y Y Y 7 $ Y Y Y Y Y Y Y Y P7 Y Y Y VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 6 $ Y Y Y Y Y Y Y Y P6 Y Y Y 5 $ Y Y Y Y Y Y Y Y P5 Y Y Y 4 $ Y Y Y Y Y Y Y Y P4 Y Y Y 3 $ Y Y Y Y Y Y Y Y P3 Y Y Y 2 $ Y Y Y Y Y Y Y Y Y P2 Y Y 1 $ Y Y Y Y Y Y Y Y Y P1 Y Y Indicate the link for the policyIndicate online? be viewed the link for to Does the Company have a specified committee of the Board/ of the Board/ committee a specified have Does the Company Official of the policy?oversee the implementation Director/ to If yes, has it been signed by MD/ owner/ CEO/ appropriate CEO/ appropriate MD/ owner/ by has it been signed If yes, Director? Board Has the policy been approved by the Board? by Has the policy been approved Does national/ international the policy any to conform 1) Note to (Refer specify? (50 words) Ifstandards? yes, Has the policy with the in consultation been formulated stakeholders?relevant mechanism a grievance redressal have Does the Company the policy/policies stakeholders’ to address to related the policy/ to policies? grievances related Do you have a policy/ have Do policies for…. you implement the to in-house structure have Does the Company policy/ policies? Has the policy been formally communicated to all relevant all relevant Has the policy to communicated been formally internal and external stakeholders? Questions https://vakrangee.in/pdf/Policies-PDF/Political%20Involvement%20Policy.pdf https://vakrangee.in/pdf/Policies-PDF/Corporate%20Social%20Responsibility_Policy.pdf internally evaluated are Policies https://vakrangee.in/pdf/Policies-PDF/Final%20Code%20Of%20Conduct%20-For%20Employees-V2.pdf https://vakrangee.in/pdf/Policies-PDF/Sustainability%20related%20Services.pdf https://vakrangee.in/pdf/Policies-PDF/Human%20Rights%20Policy.pdf https://vakrangee.in/pdf/Policies-PDF/Environmental%20Policy.pdf https://vakrangee.in/pdf/Policies-PDF/Sustainable%20Sourcing%20Policy.pdf https://vakrangee.in/pdf/Policies-PDF/Business%20Conduct%20Policy.pdf https://www.vakrangee.in/pdf/Policies-PDF/Sustainability%20related%20Services.pdf Has the Company carried out independent audit/ evaluationHas the Company of the working of this policy an internal or external by agency? 7 8 $ 3 4 5 6 6 1 2 Note 1: Policies are based on NVG, and conform to international standards such as ISO 9000, ISO 20000, ISO 27000, UNGC principles international standards to based on NVG, and conform are 1: Policies Note standards. and ILO Y Y Y Y Y Y Y Y Y Y 7 6 5 4 3 2 10 1 9 8 S. No.
11 y y y y y y y y y y y 208
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S. Question Response No. 3 Governance related to BR (a) Indicate the frequency with which the Board of The Board, and ESG Committee assess Company’s BR performance on Directors, Committee of the Board or CEO to assess the quarterly basis. BR performance of the Company. Within 3 months, 3-6 months, annually, more than 1 year (b) Does the Company publish a BR or a sustainability Company publishes BR and sustainability reports annually for report? What is the hyperlink for viewing this report? How financial year ending 31st March. This year it forms part of the Annual frequently is it published? Integrated Report for FY 2020-21. Hyperlink for viewing the report is www.vakrangee.in
Section E: Principle-wise performance Principle 1 S. Question Response No. 1 Principle 1 Does the policy relating to ethics, bribery and corruption No. cover only the Company? Yes/ No. Does it extend to the Our policy on business conduct applies to all individuals working at Group/ Joint Ventures/ Suppliers/ Contractors/ NGOs/ all levels and grades including senior managers, officers, directors, Others? employees (permanent, fixed or temporary), consultants, contractors, trainees, seconded staff, homeworkers, casual workers and agency staff, volunteers, interns, agents, sponsors or any other person associated with the Company, its subsidiaries or group companies. Hyperlink of the policy is https://vakrangee.in/pdf/Policies-PDF/ Business%20Conduct%20Policy.pdf 2 How many stakeholder complaints have been received For details on Investor Complaints and resolution, refer to the in the past financial year and what percentage was Corporate Governance section which is part of this Annual Report. satisfactorily resolved by the management? If so, provide details thereof, in about 50 words or so.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
209 209 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Company’s offerings like banking, financial and insurance services, ATM, like offerings banking, financial and insurance services, Company’s e-commerce of the financial and social inclusion promote and logistics the facility provide unserved and underservedWe population of India. our from Transfer Benefits under Direct subsidies of directly withdrawing outlets. paperless banking provide we concerns, Considering environmental biometric-enabled bill use, for payment banking, and digital and ATM name a few. to payments, obtain a to skill as they have promote of franchisees, development We We offer banking certificateto provide and insurance services. in order trainings on e-commerce, e-governance, financial services at and logistics Next-Gen Vakrangee Kendras. services the unserved for communities Tele-medicine launched Company Digital rural locations can get access to in remote customers where consultation with Expert Blood test Home Doctors languages, in Regional Doorstep delivery discounts at facilities, for vouchers of medicines and hospitals. Partner Reduction production/ distribution since the during achieved sourcing/ the value chain? – Not Applicable throughout year previous has been achieved water) Reduction during consumers (energy, usage by – Not Applicable year? since the previous
Response Company has a policy on sustainable sourcing and green procurement in place. in place. procurement has a policy and green Company on sustainable sourcing all suppliers carryingfor Link out business with us. defines prerequisites Policy is https://vakrangee.in/pdf/Policies-PDF/ Policy the Sustainable Sourcing for Sustainable%20Sourcing%20Policy.pdf is https://vakrangee.in/pdf/Policies- Policy the Sustainable Sourcing Link for PDF/Green%20Procurement%20Policy.pdf Not applicable Not applicable We have considered both social and environmental aspects of our business both social and environmental considered have We segment. i. ii. iii. iv. i. ii. Question Has the Company taken any steps to procure procure to taken steps any Has the Company goods and services local & small producers, from their place including communities surrounding been taken to have what steps of work? If yes, their capacity and capability of local improve and small vendors? a mechanism to have Does the Company If recycle and waste? products what is the yes of recycling and waste of products percentage details thereof, provide as 10%). Also, (separately or so. in about 50 words List up to 3 of your products or services products 3 of your List up to whose has incorporated social or environmental design risksconcerns, and/ or opportunities. For each such product, provide the following the following provide each such product, For water, use (energy, of resource details in respect (optional) per unit of product etc.) material, raw in place for procedures have Does the Company transportation)? (including sustainable sourcing inputs was of your what percentage If yes, details provide sustainably? Also, sourced or so. in about 50 words thereof, S. 4 5 1 2 3 No. Principle 2 Principle 210
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Principle 3 S. Question Response No. 1 Please indicate total number of employees 800 2 Please indicate total number of employees 0 hired on temporary/ contractual/ casual basis 3 Please indicate number of permanent women 42 employees 4 Please indicate number of permanent 1 employees with disabilities 5 Do you have an employee association that is No recognized by management? 6 What percentage of your permanent Not applicable employees is members of this recognized employee association?
7 Please indicate the number of complaints Number of Number of complaints S. relating to child labour, forced labour, Category complaints filed pending as on end of No. involuntary labour, sexual harassment in the in financial year financial year last financial year and pending, as on the end of the financial year (2020-21) 1 Child labour/ Nil Nil forced labour/ involuntary labour 2 Sexual harassment Nil Nil 3 Discriminatory Nil Nil employment
8 What percentage of your under-mentioned We have trained 100% employees on behavioural aspects and ISO 14001: employees were given safety and skill up- 2015 (Environmental Management System); ISO 37001:2016 (Anti-Bribery gradation training in the last year? Management System); ISO 45001:2018 (Occupational Health and Safety Management System); and ISO 19600:2014 (Compliance Management System) i. Permanent employees- 800 ii. Permanent women employees- 42 iii. Casual/ Temporary/ Contractual employees- 0 iv. Employees with disabilities- 1
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
211 211 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Response Response and extends all stakeholders to its Group, policyThe the Company, covers suppliers. franchisees, e.g., Ltd., Vakrangee with associated Yes in the last human rights violations was received No complaint regarding year. financial Yes Vakrangee offers its services offers Vakrangee to the underserved and unserved of population in tier 4,5 present KendrasVakrangee Overthe country. are 80% of Next-Gen locations are remote and franchisees from Our customers and 6 locations. basic facilities. poor or no access to disadvantaged as they have Our Banking - Amidst COVID-19 Lockdown, BankingDoorstep Facility banking doorstep services BCs provided Business Correspondents Jan to and senior citizens especially for rural areas Holders in remote Dhan Account old age pensioners. and vulnerable conduct disadvantaged, we CSR activities for Moreover, Details stakeholders. be obtained in CSR Report can marginalized attached to Report.Director’s Question Does the policy on human of the Company or extend only the Company rights cover Suppliers/ Ventures/ Joint Group/ the to NGOs/ Others?Contractors/ Question Has the Company mapped its internal and Has the Company external stakeholders? been stakeholder many complaints have How year and what the past financial in received the by was satisfactorilypercent resolved management? Out of the above, has the Company has the Company Out of the above, vulnerable and identified the disadvantaged, stakeholders? marginalized Are there any special initiatives taken the special initiatives by any there Are with the disadvantaged, engage to Company If stakeholders. vulnerable and marginalized in about 50 words thereof, details provide so, or so. S. S. 1 1 2 2 3 No. No. Principle 5 Principle Principle 4 Principle 212
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Principle 6 S. Question Response No. 1 Does the Policy related to Principle 6 cover It covers the Company and its Group. only the Company or extend to the Group/ Joint Ventures/ Suppliers/ Contractors/ NGOs/ others? 2 Does the Company have strategies/ Vakrangee creates positive environmental impact through its Kendras. All initiatives to address global environmental services are available at one point of location. Banking and ATM services are issues such as climate change, global purely digital and paperless. Banking service is also biometric-enabled. Strong warming, etc.? Y/N. If yes, please give market penetration helps in reducing carbon footprint further. As Vakrangee hyperlink of webpage. Kendras are present in remote locations, customers are not required to travel far for a service. Vakrangee’s Business model is completely sustainable model focused on enabling Indians to benefit from financial, social and digital inclusion. Through our vast network of outlets, we are driving financial, digital and social inclusion in rural India. Since we are a technology platform providing services in an environment friendly format at the last mile in rural remote locations. Therefore, our services are always sustainable in nature as we provide Paperless bio metric enabled banking and paperless ATM services. We have integrated our Business strategy and mapped our sustainability initiatives with the United Nation’s Sustainable Development Goals. Our commitment for sustainability is supported by a robust governance and risk management mechanism. Our governance bodies oversee the impact areas of our business operations and major global risks faced by all businesses, such as climate change risks as well as identify the emerging opportunities due to Climate change https://vakrangee.in/pdf/Policies-PDF/Integrated%20Approach%20Climate%20 Change_&%20Business%20Strategy.pdf 3 Does the Company identify and assess Yes potential environmental risks? 4 Does the Company have any project related Not applicable to Clean Development Mechanism? If so, provide details thereof, in about 50 words or so. Also, if Yes, whether any environmental compliance report is filed? 5 Has the Company undertaken any other Yes. Company’s corporate office uses solar panels for 20% of its electricity initiatives on – clean technology, energy consumption. Few of our Next-Gen Vakrangee Kendras also run on solar power efficiency, renewable energy, etc. Y/N. If yes, completely. please give hyperlink for web page etc. 6 Are the emissions/ waste generated by the As a technology-based Company, we leverage digitization to offer our services. Company within the permissible limits given Therefore, emissions or waste generated by Company is minimal. by CPCB/SPCB for the financial year (2020- 21) being reported? 7 Number of show cause/ legal notices Not applicable received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as on end of Financial Year (2020-21).
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
213 213 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Associated Chambers of Commerce and Industry Chambers of Commerce Associated of India (AASOCHAM) Industry (CATMi) of ATM Confederation of India (BFCI) Federation Member Correspondent of Business
Response a. b. c. tax and other participates Company on economic reforms, in discussions Yes. legislations. Response its through social and economic development maximize aims to Vakrangee same qualityservices. services offer Not only do we at no additional charge communities. local franchisees from also employ but we customers, from Atal Transfer, Our services like schemes government Benefits Direct promote customers’ For among others. Yojana, JeevanJyoti Beema Yojana, Pension installed CCTV have we safety, biometric-based camera, enabled banking, and helpline numbers. grievance redressal provided in-house team. undertaken are Company’s by Programmes Sustainable Development conducted for of Excellence Centre Thornton’s Grant social, economic, an impact of our business operations across assessment of Uttar in the states and cultural parameters governance environmental, and Maharashtra. Pradesh the 4 above, as mentioned in Principle daily initiatives Apart company’s from in Annexure detail of which is given in CSR initiatives, is also involved company Report with this Annual Report. annexed the Directors’ to highly trained employees. by and monitored delivered Our CSR activities are to and benefits the outcomes and better measure to track initiatives We people. Is your Company a member of any trade a member of any Company Is your Name Yes, Ifand chamber or association? business that your only those major ones deals with through advocated/lobbied you Have the advancement associations for above Yes/No; of public good? or improvement box: (drop areas specify the broad if yes Economic Governance and Administration, Inclusive Development Policies, Reforms, Security, Food Water, security, Energy Others) Sustainable Business Principles, Question specified have Does the Company in pursuit projects initiatives/ programmes/ 8? If Principle yes of the policy to related details thereof. undertaken projects the programmes/ Are foundation/ own in-house team/ through external any structures/ NGO/ Government other organization? impact done any of assessment you Have initiative? your contribution direct Company’s What is your communityto projects development - Amount in INR and the details of the projects undertaken. that this ensure taken to you steps Have community is initiative development the community? by successfully adopted or so. explain in 50 words, Please Question S. S. 1 2 1 2 3 4 5 No. No. Principle 8 Principle Principle 7 Principle 214
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Principle 9 S. Question Response No. 1 What percentage of customer complaints/ 3.22% consumer cases are pending as on the end of financial year (2020-21)? 2 Does the Company display product Most of our services are free of cost to customers. For chargeable services, information on the product label, over we display the actual cost. Rates are as per the mandate and are included as and above what is mandated as per local part of branding at each Kendra. We have also provided a helpline number for laws? Yes/No/N.A. /Remarks (additional customers, should they have any complaint related to services. information) 3 Is there any case filed by any stakeholder No against the Company regarding unfair trade practices, irresponsible advertising and/or anti-competitive behaviour during the last five years and pending as on end of financial year. If so, provide details thereof, in about 50 words or so. 4 Did the Company carry out any consumer Yes. survey/ customer satisfaction trends? Company has engaged Grant Thornton India LLP as external consultant for Outlet Quality Analysis survey of Next-Gen Vakrangee Kendras. Report can be accessed on https://vakrangee.in/reports_hub.html
VAKRANGEE LIMITED Integrated Annual Report 20-21
STANDALONE FINANCIAL STATEMENTS
Independent Auditors’ Report 218 Annexure “A” to the Independent Auditor’s Report 223 Annexure “B” to the Independent Auditor’s Report 225 Balance Sheet 226 Statement of Profit and Loss 227 Cash Flow Statement 228 Statement of changes in equity 230 Notes to Standalone Financial Statements 231 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
219 219 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Estimates Involving in Capitalisation of Capital of Capital in Capitalisation Involving Estimates their useful lives and determining Expenditure, Critical Policies”, Accounting Significant 1” Note (Refer and Plant “Property, 4 and Note Estimates Accounting details) for Equipment” Plant Property, has capitalised additions to Company Automated the to (PPE), mainly related and Equipment the OEM. newly from purchased Machine (ATM) Teller bring cost and cost to the asset such as freight Expenditure capitalised. location and new the acquisition cost are to expenditures related Identification and allocation of the economic judgement and estimation of future involves benefit. based on management’s are of PPE items useful lives The the period during which the asset or regarding estimates are The estimates components will be used. its significant marketbased on historical experiences, practice and group of the ATM. evaluation of useful lives decision on technical and newacquisition is not considered expenditure Capital for our audit but as it risk of significant be an area to its audit due to to considerable time and resource requires be a key to audit matter. it is considered magnitude, Procedure Audit Principal accounting policy in assessed whether the Company’s We in sync and are the capitalisation of expenditures to relation be consistent. them to in compliance with IND AS and found and major obtained a listing of capital expenditures We checked on a sample basis, and, acquisition during the year undertakenwhether the assets were based on internal the by approved that had been properly order purchase key person with such authority with no material exceptions inspected a sample of contracts and underlying We noted. determine whether the classification between to invoices We was appropriate. capital and operating expenditure no material exceptions. noted Key Audit Matter Audit Key that, in our professional matters those Key are audit matters audit of the standalone in our of most significance were judgment, were These matters period. current of the financial statements in the context audit of the standalone financial of our addressed and opinion thereon, our and in forming as a whole, statements have We opinion on these matters. a separate not provide do we be the key described to determined the matters below audit reports. in our be communicated to matters 1.
Basis for Opinion Basis for conducted our audit of the standalone financial statements We specified (SAs) on Auditing with the Standards in accordance under section under those 143(10) of the Act. Our responsibilities Responsibilities further for are Standards described in the Auditor’s section Statements of our of the Standalone Financial the Audit with in accordance independent of the Company are We report. the Institute of Ethics issued by of Charteredthe Code Accountants that are of India with the ethical requirements together (“ICAI”) under financial statements our audit of the standalone to relevant Act,2013 and the Rules made of the Companies the provisions responsibilities ethical fulfilled our other have and we thereunder, of Code and the ICAI’s with these requirements in accordance us is the audit evidence that believe obtained by We Ethics. for our audit opinion a basis provide to sufficient and appropriate on the standalone financial statements. In our opinion and to the best of our information and according In and according the best of our information our opinion and to standalone financial the aforesaid us, to explanations given the to Act, the Companies by required the information give statements a true and fair view in and give 2013 in the manner so required prescribed conformity with the Indian Standards Accounting (Indianunder section with the Companies 133 of the Act read 2015, as amended (“Ind and Rules, AS”) Standards) Accounting other accounting principles in India, generally accepted of the total and 31, 2021, profit as at March Company of affairs of the state for changes in equity income, and its cash flows comprehensive ended on that date. the year Report on the Audit of the Standalone Financial Statements Statements Report Financial of the Standalone the Audit on Opinion of financial statements the standalone audited have We LIMITED (“the Company”), which comprise the VAKRANGEE and of Profit 31, 2021, the Statement Balance Sheet as at March Income), Other (including of the Statement Loss Comprehensive ended on that Flows Changes in Equity of Cash and the Statement and a summarydate, accounting policies and other of significant “the standalone as to explanatory referred (hereinafter information financial statements”). To the Members of Vakrangee Limited, Vakrangee the Membersof To STATEMENTS FINANCIAL Report Auditors’ Independent STANDALONE VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 218 218 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
219 219 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Principal Audit Procedure Audit Principal and operational the design and tested evaluated We system information of of the general controls effectiveness Although our audit is not for VKMS of the Company. i.e. of the an opinion on effectiveness the purpose of giving the group’s reviewed we controls, technology information on the of IT and the controls framework of governance and of data, the development the to management of access and information generation of financial changes in programs, data. of analytical review other useful data for established by and the controls IT environment The of controls, management combined with the testing applied, have which we including compensating controls, in the integrity our reliance basis for us reasonable provide the for generated of the information and reliability financial Statements. of the Company’s preparation Loss Expected Credit of the Standalone described(d) 2 (B) (xi) in Note As The 31, 2021. year ended for the March financial statements losses credit for management has determined the allowance the reflect based on historicalexperience loss to adjusted credit for allowance The impact of the economic conditions. COVID-19 of consideration of the effect loss model requires business operations/ on the customers’ pandemic event has Based on such analysis the Company dues. ability pay to ` 597.47 lacs as at to aggregating allowance an recorded 7 & 13 of the standalone in Note 31, 2021, considered March credit for We identified allowance financial statements. exercises losses as a key because the Company audit matter in calculating the expected credit judgment significant losses. 3. We evaluated whether the useful lives of the component whether the useful lives evaluated We in line management were the determined and applied by assessment and the market group with historical experience, practice. of PPE items checked whether the depreciation We comparing of the by the date was commenced timely, with to asset in use, work in progress from reclassification no noted We of the actthe date of completion of the work. material exceptions. disclosures related to Reference of on the disclosure information has provided Company The on the year for the addition, deletion of PPE and depreciation 4 of the standalone such addition and existing asset in Note financial statement. environment Technology Information technology environment the information identified We Limited Vakrangee in our audit, since of focus as an area the both for structure, dependent on their technology are the reasonable as for as well of their operations, processing of their standalone financial and presentation preparation statements. its business for infrastructure has technological Company The the improvement plans for as ongoing as well activities, of the access of the management and and maintenance change in the pertinent the and applications, systems and controls and automated of newdevelopment programs business processes. components in the relevant automated restrict and cancel accesses control authorise, to Control The changes are and programme environment technology to risk mitigating the potential of fraud or error fundamental for of change in the systems based on the misuse or improper thus ensuring the integrity of the financial the Company, and accounting records. information structure technology has an information Company The environment than one technology which comprises more The lack controls. and segregated processes with different environment of suitability control general technology of the could trigger incorrectand its dependent controls of the the preparation for of critical information processing standalone financial statements. 2.
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 218 218 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
221 221 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Information Other than the Financial Statements and Auditor’s and Auditor’s Statements OtherInformation the Financial than Report Thereon the for is responsible of Directors Board Company’s The comprises information other The of other information. preparation the Annual Report, included in the information example for Report including Board’s Management and Analysis, Discussion Report, Business Responsibility Report, Board’s to Annexures Information, but does Governance and Shareholder’s Corporate and our auditor’s financial statements not include the standalone Annual reportThe be made available is expected to report thereon. report. of this our auditor’s after us the date to does not cover Our opinion on the standalone financial statements of assurance form any express do not and we the other information conclusion thereon. In connection with our audit of the standalone financial statements, identified above the other information read is to our responsibility whether the consider in doing so, and, when it becomes available with the standalone is materially inconsistent other information or our financial statements obtained in the audit or knowledge otherwise be materially misstated. appears to Annual Report, read is a When we conclude that there if we communicate to required are we therein, material misstatement with governance. those charges to the matter Financial the Standalone Responsibilities for Management’s Statements the matters for is responsible of Directors Board Company’s The in section Act, (“the 2013 stated of the Companies 134(5) Act”) of these standalone financial the preparation to with respect view a true and fair of the financial position, that give statements changes in income, financial performance,total comprehensive with the in accordance Company equity of the and cash flows Ind AS and other accounting principles in generally accepted of adequate also includes maintenance responsibility This India. of the with the provisions in accordance accounting records and for of the assets of the Company safeguarding Act for and detecting frauds and other irregularities; selectionpreventing accounting policies; makingand application of appropriate and prudent; and reasonable that are and estimates judgments internal of adequate implementation and maintenance design, for ensuring the operating effectively were that financial controls, relevant accuracy of the accounting records, completeness and of the standalone financial and presentation the preparation to material from free view a true and fair and are that give statements fraud or error. whether due to misstatement,
Basis of consideration of the impactBasis of consideration the of economic conditions and accuracyCompleteness in of the data used default of estimation of probability loss of the expected credit Computation allowance Verified publicly available credit reports available credit and other publicly Verified to customers the Company’s to relating information the if the management had correctlytest considered risk. credit adjustments to period Obtained and verified the details of credit and developed the customers to extension granted an expectation other extensions of similar across of the Company. customers Carried out inquiries with the management to understand the impact of COVID-19 in terms of and evaluation customers identification of distressed extension in contractual of dues, of recoverability collections. terms for and accuracy the completeness of the ageing Tested data. of accounts receivable a forward- process, the above in addition to Further lookingexpected impairmentloss prescribed as model was also applied Instruments” “Financial in IND AS 109 as the judgment involves This the Company. by about information losses must reflect expected credit of future and forecasts conditions, current past events, conditions. • • Evaluated the design and implementation including and implementation the design Evaluated over: of the controls the operating effectiveness • Recomputed the expected credit loss allowance considering loss allowance the expectedRecomputed credit the determined input data and compared the above by with the amounts recorded amounts so recomputed material any were determine if there the management to individually or in the aggregate. differences • Selected a sample of the customers, and Selected a sample of the customers, • iii. iv. ii. Principal Audit Procedure Audit Principal performed procedures: have the following We i. vi. v.
STATEMENTS FINANCIAL STANDALONE VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 220 220 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
221 221 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Evaluate the appropriateness of accounting policies used of accounting the appropriateness Evaluate and related of accounting estimates and the reasonableness management. made by disclosures of use of management’s on the appropriateness Conclude based on the the going concern basis of accounting and, whether a material uncertaintyaudit evidence obtained, cast may or conditions that events to exists related abilityto continue as a Company’s doubt on the significant going concern. If conclude that a material uncertainty we in our auditor’s attention draw to required are we exists, financial statements in the disclosures report the related to modify our opinion. to inadequate, are if such disclosures or, the audit evidence based on obtained Our conclusions are events future report. However, of our auditor’s the date up to continue cease to to cause the Company or conditions may as a going concern. and content structure presentation, the overall Evaluate and including the disclosures, of the financial statements, the underlying represent whether the financial statements transactions fair achieves in a manner that and events presentation. • • • Materiality in the of the misstatement is the magnitude that, individually or in aggregate, standalone financial statement of the reasonably that the economic decision makes it probable knowledgeable be may user of the of the financial statement materiality quantitative and qualitative We considered influenced. factor the scope of our audit work in (i) planning and in evaluating of our work, identified the result of any the effects and (ii) evaluate in the financial statements. misstatement regarding, with governance with those charged communicate We the planned scope and timing of the audit among other matters, deficiencies any significant including audit findings, and significant identify during our audit. that we in internal control with a statement with governance those charged also provide We ethical requirements complied with relevant have that we with them all communicate and to independence, regarding be thought reasonably that may and other matters relationships related applicable, and where bear on our independence, to safeguards. Identify and assess the risks of the of material misstatement to fraud or whether due standalone financial statements, to and perform responsive design audit procedures error, and obtain audit evidence that is sufficient and those risks, riskThe of not our opinion. a basis for provide to appropriate fraud is from resulting detecting a material misstatement involve as fraud may error, from one resulting higher than for misrepresentations, omissions, intentional collusion, forgery, or the override of internal control. to relevant Obtain an understanding of internal control that are audit procedures design to the audit in order Under section 143(3) in the circumstances. appropriate also responsible are Act, we 2013, (i) of the Companies has our opinion on whether the Company expressing for in place and the system internal controls financial adequate of such controls. operating effectiveness • • As part of an audit in accordance with SAs, we exercise professional professional exercise we partAs with SAs, of an audit in accordance the skepticism throughout and maintain professional judgment audit. We also: Auditor’s Responsibilities for the Audit of the Standalone of the Standalone the Audit Responsibilities for Auditor’s Statements Financial assurance about whether obtain reasonable to Our objectives are from free as a whole are the standalone financial statements issue and to fraud or error, whether due to material misstatement, report our opinion. Reasonable that includes assurance an auditor’s that an audit but is not a guarantee of assurance, is a high level detect a material will always with SAs conducted in accordance Misstatements fraud or can arise when it exists. from misstatement aggregate, individually or in the material if, considered and are error influence the economic be expected to they could reasonably decisions of users taken on the basis of these standalone financial statements. The Board of Directors are responsible for overseeing the overseeing for responsible are of Directors Board The reporting financial process. Company’s In preparing the standalone financial statements, the InManagement the standalone financial statements, preparing ability continue as a to assessing the Company’s for is responsible going to related matters as applicable, going concern, disclosing, concern and using the going concern basis of accounting unless or to the Company liquidate the Management to either intends do so. but to alternative or has no realistic cease operations,
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 220 220 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
223 223 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 The Company has disclosed the impact of Company The in its pending litigations on its financial position 39 Note Refer standalone financial statements. standalone financial statements. the to long-term any did not have Company The contracts contracts including derivative for material foreseeable any were which there losses. amount, in transferring has been no delay There the Investor to be transferred to required the Company. by Fund and Protection Education With respect to the adequacy to respect With of the internal financial reporting and financial Company over of the controls refer of such controls, the operating effectiveness Our report B”. “Annexure Report our separate to in an unmodified opinion on the adequacyexpresses Internal Company’s of the and operating effectiveness reporting. the financial over Controls Financial be included in the to the other matters to respect With Report the requirements with in accordance Auditor’s of Section 197(16) of the Act, as amended: In the best of our information our opinion and to us, to the explanations given to and according by paid or provided the managerial remuneration is in during its directors the year to the company of Section 197 read with the provisions accordance the Act. V to with Schedule in be included to the other matters to respect With Report with Rule 11 of in accordance the Auditor’s 2014, in Rules, and Auditors) (Audit the Companies and the best of our information our opinion and to us: to the explanations given to according i. ii. iii. & Co. A.P.Sanzgiri For Chartered Accountants FRN : 116293W Agrawal Anil Partner 041396 Membership No. UDIN: 21041396AAAABK3105 Mumbai Place: : June 19, 2021 Date: (f) (g) (h)
We have sought and obtained all the information and sought and obtained all the information have We the best of our knowledgeexplanations which to and necessary purposes the belief were of our audit. for In books of account as required our opinion, proper so far as it been kept the Company by have law by of those books. our examination appears from and of Profit Balance Sheet, the Statement The Income, including Other the Loss Comprehensive of Changes in Equity Flow Statement and the Cash this Report dealt with by Statement in agreement are with the books of account. standalone financial In our opinion, the aforesaid comply with the Indstatements AS specified under Section with Rule 7 of the 133 of the Act, read 2014. Rules, (Accounts) Companies received On the basis of the written representations 31, 2021 taken as on March the directors on from none of the directors of Directors, the Board by record being 31, 2021 from is disqualified as on March in terms of Section as a director appointed 164(2) of the Act. (b) (c) (d) (e) As required by the Companies (Auditor’s Report) Order, 2016 Report) Order, (Auditor’s the Companies by required As (“the Order”), of India Government the Central issued by in terms of sub-section (11) of Section 143 of the Companies on the a statement A” “Annexure in the give Act, 2013, we to the 3 and 4 of the Order, specified in paragraphs matters extent applicable. Section by the Act, 143(3) of based on our audit required As reportwe that: (a) 2. Report on Other and Regulatory Legal Requirements 1. From the matter communicated with those charge with with those charge communicated the matter From of most that were determine those matters we governance, of the financial statement in audit of standalone significance We the key matters. audit therefore periodcurrent and are report and unless law describe in our auditor’s these matters or when, about the matters public disclosure precludes regulation determine that the matters we circumstances, in extremely rare in our reportshould not be communicated the adverse because be expected to reasonably so would consequences of doing benefits of such communication. outweigh interest the public STATEMENTS FINANCIAL STANDALONE VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 222 222 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
223 223
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 According to the information and explanations given and explanations given information the to According our examination of the us and on the basis of to amounts deducted/ accrued of the Company, records of undisputed in the books of account in respect income-tax,statutory fund, dues including provident value added insurance, state sales tax, employees’ tax, goods and service service tax, duty of customs, tax, cess and other material statutory been dues have the Company by during deposited the year regularly authorities. with the appropriate given and explanations the information to According of in respect amounts payable no undisputed us, to state income tax, sales tax, employees’ fund, provident service value added tax, dutyinsurance, of customs, tax, goods and service tax, cess and other material 31, 2021 for statutory as at March in arrears dues were they the date than six months from a period of more became payable. given and explanations the information to According goods no dues of duty of customs, are there us, to and service tax and Income not been tax which have authorities on account with the appropriate deposited dispute. of any In our opinion and according to the information and the information In to our opinion and according the Company the management, by explanation provided to of loans or borrowing in repayment has not defaulted has not taken loans and borrowings any the bank Company or has not issued financial institutions and government from Hence reporting under clause 3 (viii) of the debentures. any the Company. is not applicable to Order of way moneys by has not raised any Company The or further (including debt initial public offer public offer instruments) or term loans and hence reporting under clause the Company. is not applicable to 3 (ix) of the Order the the best of our knowledge to and according To the no fraud by us, to and explanations given information its officers by or no material fraud on the Company Company has been noticed or reported duringor employees the year. The maintenance of cost records has not been specified has not of cost records maintenance The Government under sectionthe Central 148(1) of the by activities the business carried Act, 2013 for Companies out by reporting under clause 3(vi) of the order Thus, the Company. the Company. is not applicable to DUES STATUTORY a. b. viii. ix. x. vi. vii. The Company has maintained proper records showing showing records has maintained proper Company The full particulars, details and including quantitative assets. situation of fixed to cover of verification has a program Company The assets in a phased manner which, of fixed all the item the size to regard having in our opinion, is reasonable, to Pursuant of its assets. and nature of the Company verified physically certainwere assets program, fixed the to According the management duringby the year. no material us, to and explanation given information noticed on such verification. were discrepancies given and explanations the information to According us and based on the examined by the records us, to deeds / registered examination of the conveyance report we that, the title us, to sale deed provided comprising properties all the immovable deeds, of held in the are freehold, land and buildings which are In as at the balance sheet date. name of the Company properties of immovable respect of land and building been taken on lease and disclosed as fixed that have the lease assets in the standalone financial statements, the name of the Company. in are agreements
As explained to us, the inventories were physically verified verified physically were the inventories us, explained to As intervals the Management by during at reasonable the year noticed on physical were and no material discrepancies verification. or secured loans, any has not granted Company The Partnership firm, liability limited companies, to unsecured, maintained under or other parties in the register covered section Act, 2013 (“the Companies 189 of the Act”). and the information In to our opinion and according has complied with the Company us, to explanations given of the Section 185 and 186 of the Act,the provisions in making and providing the loans, to respect investment as applicable. and securities, guarantees us, to and explanations given the information to According deposit during the year. any has not accepted the Company unclaimed deposits and any does not have Company The other of Sections 76 or any 73 to the provisions therefore not Act, 2013 are of the Companies provisions relevant applicable. b. c. FIXED ASSET a.
iii. iv. v. ii.
i. Annexure “A” to the Independent Auditor’s Report Auditor’s the Independent to “A” Annexure our section of Legal and Regulatoryunder ‘Report on Other to in paragraph 1 (Referred Requirements’ LIMITED) the Members of VAKRANGEE report to
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 222 222 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
225 225 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 According to the information and explanations given to to and explanations given information the to According of the of the records us and based on our examination non-cash into has not entered the Company Company, transactions or persons connected with him. with directors clause 3(xv) is not applicable. of the Order Accordingly, under section be registered to is not required Company The 45-IA of the Reserve Bank of India Act 1934. xv. xvi. & Co. A.P.Sanzgiri For Chartered Accountants FRN : 116293W Agrawal Anil Partner 041396 Membership No. UDIN: 21041396AAAABK3105 Mumbai Place: : June 19, 2021 Date:
In our opinion and according to the information and the information In to our opinion and according the for the managerial remuneration us, to explanations give the by been paid / provided 31, 2021 has ended March year of with the provisions in accordance its directors to Company the Act. V to Section with Schedule 197 read and the information In to our opinion and according is not a Nidhi the Company us, to explanations given is not Clause 3(xii) of the Order Accordingly, Company. applicable. to given and explanations the information to According of the us and based on our examination of the records parties transactions in with the related are Company, compliance with the Section of the Companies 177 and 188 applicable and the details of transactionsAct, 2013 where parties been disclosed in the with the related have by applicable required as standalone financial statements IndianStandard. Accounting us and to and explanations given the information According of the Company, based on our examination of the records allotment or preferential has not made any the Company or fully or partlyprivate placement of shares convertible hence reporting and during the year debentures under the Company. applicable to is not clause 3 (xiv) of the Order xii. xiii. xiv. xi. STATEMENTS FINANCIAL STANDALONE VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 224 224 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
225 225 Financial Financial VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Meaning of Internal Financial Controls over Financial Reporting Financial over Controls Meaning Financial of Internal reporting financial over is internal financial control a A Company’s the regarding assurance reasonable provide to designed process reportingreliability of financial of financial preparation and the externalgenerally with purposes for in accordance statements internal financial A company’s accounting principles. accepted reportingfinancial over includes those policies andcontrol that, in that (1) pertain of records the maintenance procedures to and fairly accurately reflect the transactions detail, andreasonable of the Company;dispositions of the assets reasonable (2) provide as necessary recorded assurance that transactions permit to are with generally in accordance of financial statements preparation of expenditures and receipts that and principles, accounting accepted with authorisations accordance being made only in are the Company of the Company;of management and directors and (3) provide detection or timely of prevention assurance regarding reasonable assets disposition of the Company’s or acquisition, use, unauthorized on the financial statements. a material effect that could have Financial over Controls Financial of Internal Limitations Inherent Reporting over limitations of internal financial controls Because of the inherent reporting,financial the possibility including of collusion or improper due to material misstatements management override of controls, any projections of Also, occur and not be detected. or fraud may error reporting financial over evaluationto of the internal financial controls subject periods the risk to are that the internal financial control future reporting financial because of changes become inadequate over may of compliance with the policies or or that the degree in conditions, deteriorate. may procedures Opinion the to In and according best of our information our opinion, to an in all material respects, has, the Company us, to explanation given reporting financial over system internalcontrols financial adequate reporting financial over were and such internal financial controls the internal 31, 2021, based on as at March operating effectively reporting financial Company over criteriaby the established control in the stated considering the essential components of internal control Over Controls of Internal on Audit Financial Guidance Note Reporting the Institute issued by of India. of Chartered Accountants & Co. A.P.Sanzgiri For Chartered Accountants FRN : 116293W Agrawal Anil Partner 041396 Membership No. UDIN: 21041396AAAABK3105 Mumbai Place: : June 19, 2021 Date:
eport on the Internal Financial Controls over Financial Financial over Controls eport Financial on the Internal
R Annexure “B” to the Independent Auditor’s Report Auditor’s to the Independent “B” Annexure of our section Regulatory Other Legal and under ‘Report on to in paragraph 2(f) (Referred Requirements’ of even date) LIMITED the Members of VAKRANGEE report to Reporting with reference to the aforesaid Standalone Financial Financial Standalone the aforesaid to Reporting with reference (i) of Sub-section under Clause Statements 3 of Section 143 of 2013 Act, the Companies financialover the internal financial controls audited have We LIMITED (“the Company”) as of March VAKRANGEE reporting of 31, 2021 in conjunction the Standalone Financial with our audit of on that date. ended the year for of the Company Statements Controls Financial Internal Responsibility for Management’s establishing and for is responsible management Company’s The based on the internal control maintaining internal controls financial reporting financial Company over criteriaby the established in the stated considering the essential components of internal control Financial over Controls of Internal on Audit Financial Guidance Note Reporting the Institute issued by of India of Chartered Accountants implementation include the design, responsibilities These (‘ICAI’). were that internal financial controls of adequate and maintenance for ensuring and efficient conduct the orderly operating effectively the policies, company’s to including adherence of its business, and detection of frauds and the prevention assets, of its safeguarding and the accuracy of the accounting records, errors, and completeness required as financial information, of reliable the timely preparation Act, 2013.under the Companies Responsibility Auditors’ internal an opinion on the Company’s express Our responsibility is to We reporting financial over on our audit. based financial controls on Audit with the Guidance Note conducted in accordance our audit “Guidance Reporting Financial (the over Controls of Internal Financial under section prescribed on Auditing and the Standards Note”) the extent an Act, 2013, to to applicable 143(10) of the Companies and the Guidance Those Standards audit of internal controls. financial and plan and requirements comply with ethical that we require Note perform assurance about whether obtain reasonable the audit to reporting financial over was internalcontrols financial adequate effectively operated established and maintained and if such controls in all material respects. obtain audit evidence performing to procedures Our audit involves overabout the adequacy system of the internal financial controls reporting Our audit financial of and their operating effectiveness. reporting financial over included obtaininginternal financial controls financialover an understanding of internal financial controls reporting, assessing the risk that a material weakness and exists, of and operating effectiveness and evaluating the design testing selected procedures The based on the assessed risk.internal control including the assessment of the judgment, depend on the auditor’s Statements, risks Financial of the Standalone of material misstatement fraud or error. whether due to is sufficient and obtained have that the audit evidence believe we We our audit opinion on the Company’s a basis for provide to appropriate reporting financial over of the system internal financial controls Company.
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 224 224 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
227 227 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - - 92.52 24.72 461.82 781.38 330.61 337.74 696.61 704.23 668.35 6,001.03 1,119.72 9,710.73 5,630.47 (` in lakhs) 14,934.48 62,472.21 42,276.58 10,594.06 83,962.06 16,766.76 17,435.11 150,748.87 250,859.44 194,926.55 278,888.61 261,453.50 278,888.61 - - - 53.94 20.16 39.26 466.28 291.35 101.56 As at March 31, 2020 31, March at As 3,129.84 2,817.25 1,243.61 3,439.61 6,169.56 16,169.30 132,849.52 - DIN : 00062638 Bhansali Jay Secretary Company Whole-time Director Dr. Nishikant Hayatnagarkar Dr. 54.73 58.10 26.05 140.25 346.43 511.53 497.22 331.00 705.90 443.83 5,752.03 7,236.09 1,092.08 15,564.00 59,633.83 89,756.53 10,594.06 10,747.73 81,436.54 19,807.85 20,251.68 111,038.62 252,394.70 201,803.90 283,240.44 262,988.76 283,240.44 - - 0.00 77.64 10.14 40.39 14.34 38.76 584.01 As at March 31, 2021 31, March at As 2,934.85 2,739.54 1,825.23 1,004.75 8,086.50 2,622.47 107,614.49 4 4 5 6 7 8 9 10 11 17 12 16 13 13 14 15 18 19 20 10 22 21 23 27 26 28 24 25 29 30 1-48 DIN : 00062532 MD & Group CEO MD & Group Dinesh Nandwana Note No. Note Ajay Jangid Ajay Officer Chief Financial DIN : 00002683 Chairman For and on behalf of the Board of Directors and on behalf of the Board For Ramesh Joshi
Investments Trade Receivables Trade Loans Assets Other Financial Other Financial Assets Other Financial Trade Receivables Trade equivalents and Cash Cash Bank Balances other than (iii) above Loans Other Financial Liabilities Other Financial - Dues of micro enterprises and small enterprises- Dues of micro Trade Payables Trade enterprises and small other than micro - Dues of Creditors enterprises Other Financial Liabilities Other Financial - Dues of Creditors other than micro enterprises and small other than micro - Dues of Creditors enterprises - Dues of micro enterprises and small enterprises- Dues of micro Borrowings Payables Trade Particulars ASSETS Assets Non - Current and Equipment Property Plant Capital Work-in-Progress Capital Intangible Assets under development Intangible Assets Deferred Tax Assets (net) Assets Tax Deferred Financial Assets Financial (i) (ii) (iii) (iv) Other Assets Non - Current Total Non-current Assets Total Current Tax Assets (Net) Assets Tax Current Current Assets Current Inventories (vi) Other Assets Current Financial Assets Financial (ii) (iii) (iv) (v) Total Current Assets Current Total TOTAL EQUITY AND LIABILITIES Equity Capital Equity Share Other Equity Deferred Tax Liabilities (net) Liabilities Tax Deferred Total Equity Total (ii)
Liabilities Liabilities Non - Current Liabilities Financial (i) Benefit Obligations Employee Other Liabilities Current Total Non-Current Liabilities Non-Current Total (iii) Provisions
Current Liabilities Current Liabilities Financial (i) (ii) Employee Benefit Obligations Employee Current Tax Liabilities Tax Current Total Current Liabilities Current Total Total Liabilities (i + ii) Total TOTAL Significant Accounting Policies and Notes forming part Policies and Notes of the Accounting Significant Statements. Financial Standalone Anil Agarwal Anil Partner 041396 Membership No.: : Mumbai Place : June 19, 2021 Date As per our reportAs date of even Sanzgiri & Co. A. P. For Chartered Accountants : 116293W No. Registration Firm's I 1 2 II 1 2 i ii as at March 31, 2021 as at March STATEMENTS FINANCIAL Sheet Balance STANDALONE VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 226 226 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
227 227 - - 0.61 0.61 18.42 18.42 503.41 8,170.76 7,667.35 6,470.80 6,452.38 1,718.38 10,606.65 10,593.51 62,267.46 69,934.81 - - VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 18.42 16.00 (Amount in ` lakhs) (Amount 422.03 (425.63) 1,296.35 1,470.04 2,762.10 7,382.81 2,563.91 7,599.58 48,498.23 62,335.23 For the year ended the year For 31, 2020 March - - DIN : 00062638 Bhansali Jay Secretary Company Whole-time Director Dr. Nishikant Hayatnagarkar Dr. 0.48 0.48 89.24 89.24 6,738.59 6,738.59 5,225.36 5,136.12 1,602.47 10,605.24 10,594.06 22,820.33 29,558.92 - - - 89.24 120.60 949.03 281.13 1,481.87 1,478.35 2,567.55 3,347.33 6,815.25 14,196.94 22,743.67 For the year ended the year For 31, 2021 March 4 4 37 36 38 34 35 33 38 31 32 1-48 DIN : 00062532 MD & Group CEO MD & Group Dinesh Nandwana Note No. Note Ajay Jangid Ajay Officer Chief Financial DIN : 00002683 Chairman For and on behalf of the Board of Directors and on behalf of the Board For Ramesh Joshi
Particulars Other Comprehensive Income (net of tax) Income Other Comprehensive the period for Income Comprehensive Total ii) Remeasurement of net defined benefit obligations (net of taxes) ii) Remeasurement Items that will not be reclassified subsequently to profit and loss and to profit subsequently be reclassified will not Items that OCI at fair value through value gain on financial instruments i) Fair Other Comprehensive Income Other Comprehensive and loss to profit subsequently will be reclassified Items that exchange foreign on translation of difference i) Exchange Profit for the year for the Profit (b) Tax Deferred Tax Expense: Tax (a) Tax Current Exceptional Items Exceptional Tax Profit Before Profit Before Tax and exceptional Items exceptional Tax and Before Profit Impairment Loss OtherExpenses Expenses Total Depreciation and AmortizationDepreciation Expense (2) Diluted (`) (2) Diluted forming part Policies and Notes of the Accounting Significant Statements. Financial Standalone (1) Basic (`) 1/- Per Share): ` 1/- Per Value (Face Equity Share Earnings Per Employee Benefits Expense Employee Costs Finance Changes in Inventories (2) Diluted Expenses Operating Expenses Purchase of Stock-in-Trade Purchase (1) Basic Income Income Operations Revenue from Other Income Income Total Weighted Average No. of equity shares for computing EPS (in lakhs) computing for of equity shares No. Average Weighted Anil Agarwal Anil Partner 041396 Membership No.: : Mumbai Place : June 19, 2021 Date Chartered Accountants : 116293W No. Registration Firm's As per our reportAs date of even Sanzgiri & Co. A. P. For Statement of Profit and Loss Profit and of Statement 31, 2021 year ended March for the IX VIII VII VI IV V III X II I
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 226 226 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
229 229 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - - - - - 1.50 0.16 3.43 33.23 24.61 16.00 (1.50) 334.18 151.49 (663.57) (503.41) (961.18) (370.71) 7,369.30 1,387.55 1,470.04 3,045.62 3,481.52 8,170.76 6,641.56 1,147.23 8,170.76 96,599.59 (7,369.30) (2,150.02) (4,632.23) 31, 2020 (3,509.41) (4,470.59) (61,885.21) (41,380.89) For the year the year For ended March ended March (Amount in ` lakhs)(Amount ------9.68 0.22 64.78 (0.04) (5.40) 209.53 119.25 395.48 284.16 (14.54) 547.30 (372.58) 6,797.51 1,478.35 1,605.61 2,338.93 6,738.59 4,883.97 6,738.59 25,170.26 18,507.98 (1,041.58) (6,797.51) (2,132.97) (3,886.90) 31, 2021 (2,522.53) (2,895.11) (47,479.95) For the year the year For ended March ended March
Particulars Dividends received Dividends received Investment in subsidiariesInvestment of subsidiaries Loans received Interest activities (B) / (used in) investing from generated Net cash flow Purchase of investments Purchase sale of investments from Proceeds Gain on disposal of property, plant and equipment Gain of property, on disposal Dividend income plant and equipment sale of property, from Proceeds Impairment of Property, Plant and Equipment Plant Impairment of Property, expenses based payment share Employee differences exchange Net foreign losses credit for Allowance loss and Profit fair value through value gain on financial instrument at Fair of defined benefit obligations Remeasurement costs Finance income Interest working capital changes before profit Operating Cash flow from investing activities investing from flow Cash plant and equipment of property, Purchase Non-cash adjustment to reconcile profit before tax to net cash flows tax before Non-cash profit reconcile to adjustment plant and equipment of property, Depreciation Cash flow from operating activities operating from flow Cash continuing operations tax from before Profit Cash generated from operations operations from generated Cash of refunds) paid (net taxes Income operating activities(A) from generated Net cash flow Increase / (decrease) in other current liabilities in other current Increase / (decrease) Increase / (decrease) in provisions Increase / (decrease) Increase / (decrease) in employee benefit obligations in employee Increase / (decrease) Increase / (decrease) in trade payables Increase / (decrease) Decrease / (increase) in other non-current / (increase) assets Decrease Movements in assets and liabilities : in assets Movements in inventories / (increase) Decrease in trade receivables / (increase) Decrease in loans and other financial assets / (increase) Decrease assets in other current / (increase) Decrease Profit before tax before Profit S. No I for the year ended March 31, 2021 year ended March for the STATEMENTS FINANCIAL Flow Statement Cash STANDALONE II VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 228 228 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
229 229 - - 6.03 (0.17) 178.22 (544.41) 2,081.48 (837.70) 1,243.61 (2,648.51) 31, 2020 (3,008.67) For the year the year For VAKRANGEE LIMITED VAKRANGEE ended March ended March Integrated Annual Report 20-21 (Amount in ` lakhs)(Amount - - - - - 0.05 584.01 1,243.61 (659.65) (2,648.51) 31, 2021 (2,648.51) DIN : 00062638 Bhansali Jay Secretary Company Whole-time Director Dr. Nishikant Hayatnagarkar Dr. For the year the year For ended March ended March DIN : 00062532 MD & Group CEO MD & Group Dinesh Nandwana Ajay Jangid Ajay Officer Chief Financial DIN : 00002683 Chairman For and on behalf of the Board of Directors and on behalf of the Board For Ramesh Joshi Particulars Dividend Distribution Tax paid Tax Dividend Distribution Cash flow from financing financing from activities flow Cash issue of shares from Proceeds Proceeds towards securities premium on issue of shares securities premium towards Proceeds of borrowings Repayment paid Interest shareholders company's Dividends paid to (used in) in financing Net cash flow (C) activities Cash and cash equivalents at the end of the year the end of the year at and cash equivalents Cash Net increase / (decrease) in cash and cash equivalents (A + B + C) (A in cash and cash equivalents / (decrease) Net increase changes on cash and cash equivalents rate of exchange Effects of the year at the beginning and cash equivalents Cash Anil Agarwal Anil Partner 041396 Membership No.: : Mumbai Place : June 19, 2021 Date As per our reportAs date of even Sanzgiri & Co. A. P. For Chartered Accountants : 116293W No. Registration Firm's S. No Significant Accounting Policies and Notes forming part of the Standalone Financial Statements 1-48 formingFinancial Statements part Policies and Notes of the Standalone Accounting Significant III
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231 231 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21
------the 6.03 89.24 18.42 178.22 (663.57) 5,136.12 6,452.38 to equityto (1,041.59) (2,648.51) (3,192.92) Company holders of 262,988.75 261,453.49 258,654.94 Total equity Total attributable attributable ------(Amount in ` lakhs)(Amount 89.24 18.42 (13.25) income of other (102.49) (120.91) Other items comprehensive comprehensive DIN : 00062638 Bhansali Jay Secretary Company Whole-time Director Dr. Nishikant Hayatnagarkar Dr. ------Equity income income (3,086.34) (3,086.34) (3,086.34) instruments instruments Other Comprehensive Income Other Comprehensive through other through comprehensive comprehensive
------Share Share (663.57) (250.10) Options Account 1,838.33 2,879.92 3,793.59 (1,041.59) Outstanding Other Equity DIN : 00062532 MD & Group CEO MD & Group Dinesh Nandwana ------General General Reserve 18,268.05 18,268.05 18,268.05 ------5,136.12 6,452.38 earnings (2,648.51) Retained Reserves and surplus (3,192.92) 192,641.07 190,153.46 186,894.00 ------250.10 178.22 premium premium Securities 42,746.83 42,746.83 42,318.52 Ajay Jangid Ajay Officer Chief Financial DIN : 00002683 Chairman For and on behalf of the Board of Directors and on behalf of the Board For Ramesh Joshi ------6.03 Share Share Equity Capital 10,594.06 10,594.06 10,588.03
Anil Agarwal Anil Partner 041396 Membership No.: : Mumbai Place : June 19, 2021 Date Chartered Accountants : 116293W No. Registration Firm's As per our reportAs date of even Sanzgiri & Co. A. P. For Particulars Balance as at March 31, 2021 March as at Balance Remeasurement of net defined Remeasurement benefit obligations (net of taxes) Share-based (net) payments Transfer to General Reserve to Transfer Dividends (including dividend distribution tax) Profit for the year for the Profit Transferred from Share Options Share from Transferred Outstanding Account Amount received on shares issued on shares Amount received during the year Increase in share capital on Increase in share of ESOPs account of conversion Balance as at March 31, 2020 March as at Balance Remeasurement of net defined Remeasurement benefit obligations (net of taxes) Share-based (net) payments Transfer to General Reserve to Transfer Dividends (including dividend distribution tax) Profit for the year for the Profit Transferred from Share Options Share from Transferred Outstanding Account Amount received on shares issued on shares Amount received during year the Increase in share capital on Increase in share ESOPs of account of conversion Significant Accounting Policies and Notes forming part of the Standalone Financial Statements 1-48 Statements Financial forming part Policies and Notes Standalone of the Accounting Significant for the year ended March 31, 2021 year ended March for the STATEMENTS FINANCIAL in equity changes of Statement STANDALONE Balance as at March 31, 2019 March as at Balance VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 230 230 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
231 231 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Expected to be realized or intended to be sold to or intended be realized Expected to or consumed in normal operating cycle. the purposeHeld primarily of trading. for months within twelve be realized Expected to after or the reporting date, or cash equivalent unless restricted from Cash settle a liability or used to being exchanged months after the reporting at least twelve for period. It be settled in normal is expected to operating cycle. It months after be settled within twelve is due to the reporting or period, the is no unconditional right defer to There at least twelve settlement of the liability for months after the reporting period.
All other liabilities are classified as noncurrent. All other liabilities are classified as non- are tax assets and liabilities Deferred assets and liabilities. current and services of products Based on the nature offered operating cycle determined is 12 the Company, by the purpose and non-current of current months for classification of assets and liabilities. operating cycleThe is the time between the and their realisation processing acquisition of assets for in cash and cash equivalents, Current versus non-current classification versus Current assets and liabilities in presents Company The /non-current on current the balance sheet based classification. when it is: as current An asset is treated y y y y y y y The Financial statements of the Company are are of the Company statements Financial The Indian in (`), which is also its Rupees presented to functional off currency rounded and all values are when otherwiseLakhs, except indicated. All other assets are classified as non-current. classified All other assets are A liability when: is current Summary of significant accounting policies Summary accounting significant of i.
B. certain (including financial assets and liabilities derivative instruments) defined benefit plans- plan assets; and Based Payments Equity-settled Share
y y Statqement of compliance Statqement in accordance prepared are financial statements These (hereinafter with Indian Standards Accounting of the “Ind under the provisions AS”) as to referred as `the to referred Act, 2013 (hereinafter Companies The prescribed Ind AS are Act’) the extent (to notified). under Section with Rule 3 of the 133 of the Act read Rules, (Indian Standards) Companies Accounting (Indian Standards) 2015 and Companies Accounting 2016. Amendment Rules, Basis of preparation on been prepared have financial statements The assets and the following historical cost basis except at fair value been measured liabilities which have amount: y
ii. Basis of preparation i.
A. Note 2 - Significant Accounting Policies Accounting 2 - Significant Note accounting policies a list of the significant provides note This The of these financial statements. in the preparation adopted the applied by been consistently accounting policies have unless otherwise a newlyCompany issued or where stated adopted. is initially accounting standard The financial statements were authorized for issue by the for issue authorized were financial statements The on June 19, 2021. of Directors Board Company’s The Company is engaged in providing diverse solutions, activities solutions, diverse is engaged in providing Company The Services Financial Label ATM, White in E-governance, E-commerce, including bullion and (Including sector, Banking) and Logistics KendraVakrangee B2B and B2C basis) (on its through jewellery, and multi-state, in handling massive, with special competencies e-governance software data digitization, and projects, enrollment license. Note 1 - Corporate Information 1 - Corporate Note is Company’’) ‘‘the as to referred (hereinafter Limited Vakrangee in India domiciled company and incorporated a public limited The Act applicable in India. of the Companies under the provisions ‘Vakrangee Corporate at is located Company office of the registered Andheri Mumbai (East), – 16, M.I.D.C., 93, Road No. No. Plot House’, on two listed are shares Company’s The 400 093, Maharashtra, India. (BSE) and in India- Exchange exchanges Stock the Bombay stock of India Exchange (NSE). National Stock
Notes to Standalone Financial Statements Financial to Standalone Notes 31, 2021 year ended March for the
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 230 230 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
233 233 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 April,2018, the Company has adopted has adopted the Company April,2018, st Non-monetary in terms measured that are items currency recorded are of historical cost in a foreign of the initial as at the dates rates using the exchange Non-monetarytransactions. at fair measured items the using currency translated are value in a foreign when the fair value was on the date rates exchange or loss arising gain The translation of on measured. non-monetary is treated at fair value measured items of the gain or loss on in line with the recognition translation (i.e. of the item the change in fair value or loss is whose fair value gain on items differences recognised also or loss are in OCI or profit recognised respectively). or loss, in OCI or profit 1 Effective Appendix B to the Ind-AS 21-foreign currency the Ind-ASAppendix B to 21-foreign transaction and advance consideration, which clarify the purpose of transaction of determining the date for of the use on initial recognition to rate the exchange expenses or income when an entity assets, related or paid advance consideration in foreign has received on account of adoption of this effect The currency. amendment was insignificant. recognition Revenue primarily activities from derives revenue Company The Insurance Services Services and (ATM, in BFSI and ATM Banking & financial services), E-Commerce Assisted and Bill payment Service Pharmacy, shopping, (Online bullion and jewellery, including logistics) recharge, KendraVakrangee B2B and B2C basis) (on its through multi- in handling massive, with special competencies and e-governancestate, data projects, enrolment softwaredigitization, license. and adopted Ind AS AprilCompany Effective 1, 2018, the notified Contracts with Customers “Revenue from 115 supersede will standard This 28, 2018. on March requirements. recognition revenue all current use the modified has decided to Company The applied transition method, for approach retrospective as of April not completed 1, contractsto that were Accounting “Significant 2(B)(iv) Note refer 2018. Please 2018 standalone financial in the Company’s Policies,” priorto revenue for the policies in effect for statement on adoption of effect The Ind AS 115 was April 1, 2018. insignificant. is a summary and/or revised following of new The revenue to related policies accounting significant recognition. of of control upon transfer Revenue is recognized or services products promised in an customers to we expectto the consideration amount that reflects or services. products those for in exchange receive
iv. (continued)
exchange differences on foreign currency foreign on differences exchange assets under construction to relating borrowings included in which are use, productive future for regarded the cost of those assets when they are costs on those interest as an adjustment to currency borrowings. foreign on transactions entered differences exchange currency hedge certain to in order into foreign risks. on monetary differences items exchange a foreign to or payable from receivable which settlement is neither operation for forming planned nor likely occur (therefore to operation), part in foreign of the net investment initially in other recognised which are from income and reclassified comprehensive of the repayment or loss on equity profit to monetary items.
y y Segment ReportingSegment based on segments identifies operating company The the chief operating to the internal reporting provided decision-maker. is responsible who chief operating decision-maker, The and assessing performance resources allocating for has been identified as the of the operating segments, decisions. that makes of Directors strategic Board segment for adopted accounting policies The reporting the accounting policies of in line with are expenses segment revenue, Segment the Company. basis of their on the to segments been identified have the operating activities to of the segment. relationship Currencies Foreign and balances Transaction recorded initially are currencies in foreign Transactions in their functional the company currencyby at the of transaction. on the date prevailing rate exchange Monetary in foreign assets and liabilities denominated at the functional translated currency are currencies on the balance sheet prevailing of exchange using rate date. arising on the settlement or differences Exchange in the translation of monetary recognized are items where: or loss except of profit statement y iii. ii. for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 232 232 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
233 233 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 and Equipment Plant Property, use in the production for Land and buildings held services,or supply of goods or administrative or for in the balance sheet at cost stated are purposes, and accumulated depreciation less accumulated land is not depreciated. Freehold impairment losses. initially equipment are plant and of property, All items the cost of at cost. Such cost includes recorded partreplaced plant and equipment of the property, attributable directly costs that are and borrowing acquisition, construction the to of or production The plant and equipment. a qualifying property, plant and equipment is of property, cost of an item that it is probable and only if, as an asset if, recognized will with the item economic benefits associated future can be and the cost of the item to the company flow reliably. measured production, in the course of constructionProperties for carried purposes are supply or administrative at cost, includes Cost impairment loss. recognized less any borrowing qualifying assets, for and, fees professional the company`s with in accordance costs capitalized to Such properties classified are accounting policy. plant and categories of property, the appropriate intended for and ready equipment when completed on the same basis as of these assets, Depreciation use. other property commences when the assets are assets, use. intended their for ready plant and property, recognition, Subsequent to at measured land) are freehold equipment (excluding and accumulated depreciation cost less accumulated partsWhen significant of property, impairment losses. be replaced to required plant and equipment are such partsin intervals, recognizes the company and as individual assets with specific useful lives Likewise, when a major respectively. depreciation in the inspection is performed, its cost is recognized carrying amount of the plant and equipment as a criteria are cost only if the recognition replacement costs are repair and maintenance All other satisfied. Loss as and of Profit in the Statement recognized incurred. ovaer depreciated held under finance leases are Assets on the same basis as owned their expected useful lives certainty is no reasonable when there However, assets. the end of the by will be obtained that ownership the shorter over of depreciated lease term, assets are the lease term and useful lives.`
v. Arrangement for software-relatedArrangement for services either are or on a time-and fixed-timeframe price, on a fixed material basis. the software and license where usages Revenue from from the revenue use” to “right obtains a customer at the time the software and license is recognised the customer. software to and license is made available obtains a the customer licenses where Revenue from the access period. over is recognised access” to “right presented are revenues and unbilled receivable Trade net of impairment in the Balance Sheet sale of goods and servicesRevenue from as is shown net of sales tax, value added tax, service tax, goods and services tax and applicable discounts and allowances. Income Interest recognized financial assets is income from Interest benefits will flow that economic when it is probable and the amount of income can be company the to is accrued on a time income Interest reliably. measured the principal to outstanding and at reference by basis, which is the rate applicable, rate interest the effective cash receipts that exactly future discounts estimated to that of the financial assets the expected life through net carryingasset’s on initial recognition. amount Dividend Income is recognised investments Dividend income from has payment right receive to when the shareholder’s that the that it is probable been established (provided and the the company to economic benefits will flow reliably). amount of income can be measured claims Insurance based on claims for Insurance accounted claims are the extent and to be admitted / expected to admitted is no uncertaintythat there the claims. in receiving
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 232 232 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
235 235 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Intangible Asset Intangible at cost as of measured are Intangible assets purchased less accumulated of acquisition, as applicable, the date amortisation impairment, and accumulated if any. Intangible assets consist of rights under licensing amortised and software which are licences agreement license period the useful life which equates over basis. on a straight-line between 2-5 years ranging Income tax expense comprises tax expense current asset or tax and the net change in the deferred are taxes and deferred Current liability during the year. to the and loss except of profit statement recognized directly in recognized items to extent that it relates in which case income or equity, other comprehensive income or in other comprehensive it is recognized equity respectively. taxes Current at the amount income tax is recognized Current the tax from or recovered be paid to expected to that have and tax laws using the tax rates authorities, the balance enactedbeen enacted by or substantively year to year on a offsets, Company The sheet date. it has where liabilities, tax assets and the current basis, it intends right do so and where to legally enforceable such assets and liabilities on a net basis. settle to taxes Deferred between on differences tax is recognized Deferred the carrying amounts of assets and liabilities in the tax and the corresponding financial statements bases used in the computation of taxable profit using the balance sheet for accounted and are generally are tax liabilities Deferred liability method. and all taxable temporary for differences, recognized all for generally recognized tax assets are deferred deductibleto the extent that temporary differences available will be that taxable profits it is probable against which those deductible temporary differences not Such assets and liabilities are can be utilized. arises if the temporary from difference recognized than in a (other the initial recognition goodwill or from business combination) of other assets and liabilities in nor a transaction neither the taxable profit that affects the accounting profit. outside recognised items to tax relating Deferred either in other recognised and loss is the profit income or in equity. comprehensive vi. vii. Taxation 3 years 5 years 8 years 60 years 10 years 15 years 10 years 51 years (continued) 3-4 years Useful lives Useful
Description of Asset Depreciation is recognised to write off the cost of to is recognised Depreciation land and properties than freehold assets (other the values over under construction) less their residual (“SLM”). line method using the straight- useful lives, Management, evaluation, on a technical based the the assets reflect of that the useful lives believes be expected to which these assets are periods over as follows: which are used, Buildings including and Printers, Computers Peripherals Computer Office Equipments & Fixtures Furniture Motor Vehicles & MachineryPlant Machine ATM including Land and Building, Leasehold refer (Also leasehold improvements 4) Note Assets Project and Printers, (comprising of Computers Peripherals, including Computer and Office and Fixtures Furniture Equipments) carryingThe plant and equipment values of property, impairment or changes when events for reviewed are that the carrying indicate in circumstances value may not be recoverable. and depreciation useful life values, residual The year-end at each financial reviewed method are that the amount, method and period of ensure to estimates with previous consistent are depreciation and the expected pattern of consumption of the of economic benefits embodied in the items future plant and equipment. property, plant and equipment is of property, An item upon disposal or when no future derecognised the to arise expected from economic benefits are gain or loss arising on continued use of the asset. Any plant and of property, of an item disposal or retirement between equipment is determined as the difference and the carryingsale proceeds of the asset amount or loss. in profit and is recognised
for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 234 234 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
235 235 z VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Investment properties are measured initially at cost, initially at cost, propertiesInvestment measured are initial Subsequent to including transaction costs. cost at properties stated are investment recognition, and accumulated depreciation less accumulated if any. impairment loss, using the propertiesInvestment depreciated are useful their estimated method over straight-line has been determined based on life useful The lives. evaluation performedtechnical management the by expert. property investment measures the Company Though fair value of the measurement, using cost-based property Fair investment disclosed in the notes. is determined based on an annual evaluation values are performed external independent an accredited by valuer. either when propertiesInvestment derecognised are been disposed of or when they they have are permanently withdrawn from use and no future use and no future permanently from withdrawn are The their disposal. economic benefit is expected from and the between the net disposal proceeds difference carrying or in profit amount of the asset is recognised loss in the period of derecognition. Assets Impairment of Non-Financial the end of each reporting At the company period, the carryingreviews and amounts of its tangible is determine whether there assets to intangible an suffered that those assets have indication any the If such indication exists, impairment loss. any in order estimated amount of the asset is recoverable determine the extent to of impairment loss (if any). the recoverable estimate When it is not possible to estimates amount of an individual asset, the company amount of the cash-generating the recoverable When a reasonable which the asset belongs. unit to basis of allocation can be identified, and consistent individual cash- to also allocated corporate assets are or otherwise generating units, to allocated they are of cash-generating which the smallest group units for allocation basis can be and consistent a reasonable identified. and Intangible useful lives assets with indefinite for tested use are for available assets not yet intangible is an there and whenever impairment at least annually, be impaired. indication that the asset may
x. Level 1 — Quoted (unadjusted) market (unadjusted) 1 — Quoted prices in Level active markets identical assets or liabilities. for which the for techniques 2 —Valuation Level to the fair input that is significant level lowest indirectly or is directly value measurement observable. which the for techniques 3 —Valuation Level to the fair input that is significant level lowest is unobservablevalue measurement
For assets and liabilities that are recognised in the recognised assets and liabilities that are For Company recurring the on a basis, financial statements between occurred have determines whether transfers re-assessing by categorisation in the hierarchy levels to input that is significant level (based on the lowest as a whole) at the end of the fair value measurement each reporting period. summarises note accounting policyThis fair value. for in the given are Other disclosures fair value related notes. relevant property Investment propertiesInvestment properties are that is held for capital appreciation yields or for long-term rentals (including property such under construction for purposes) the or both, and that is not occupied by property. is classified as investment Company, y y The carryingThe tax assets is reviewed amount of deferred the extent to reduced and date at each balance sheet that sufficient taxable that it is no longer probable all or partto allow available will be of the asset profits be recovered. to when offset tax assets and liabilities are Deferred right set off current to is a legally enforceable there liabilities and when they tax tax assets against current the same taxation levied by taxes income to relate settle its to authority intends Company and the tax assets and liabilities on a net basis. current measurement Value Fair at fair financial instruments measures Company The value is the price Fair value at each balance sheet date. settle to sell an asset or paid to be received that would a liability transaction in an orderly between market of regardless participants date, at the measurement whether that price observable is directly or estimated using another valuation technique fair value is measured which All assets and liabilities for categorised are or disclosed in the financial statements described as follows, within the fair value hierarchy, to is significant input that level based on the lowest whole: as a the fair value measurement y ix.
viii.
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 234 234 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
237 237 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Subsequent measurement Subsequent amortisedDebt Instruments at cost: at measured A financial asset is subsequently amortised cost if it is held within a business hold the asset model whose objectiveis to collect to contractual and in order cash flows the contractual terms of the financial asset that flows to cash rise on specified dates give of principal payments solely and interest are Interest on the principal amount outstanding. these financial assets is included in income from rate interest finance income using the effective debt investment A gain or loss on a method. at amortisedthat is subsequently measured cost or loss when the asset is in profit is recognized or impaired. derecognised Other through Value Fair at Debt instrument (OCI) Income Comprehensive A financial `asset is subsequently measured other comprehensive at fair value through income if it is held within a business model both collectingwhose objective by is achieved contractual and selling financial cash flows assets and the contractual terms of the financial to cash flows rise on specified dates asset give of principal interest payments and solely are that Interest on the principal amount outstanding. assets is included in these financial income from rate interest finance income using the effective recognized are value movements Fair method. income (OCI). in the other comprehensive interest recognizes the Company However, impairment or losses and foreign gains income, the statement gains and losses in exchange of the On derecognition and loss. of profit gain or loss previously asset, the cumulative equityto from in OCI is reclassified recognised and loss. of profit statement Profit through Value Fair at Debt instrument (FVTPL)or Loss A financial asset which does not meet the categorization as at amortizedcriteria for cost other comprehensive or as fair value through or profit income is classified as fair value through Debt measured instruments subsequently loss. measured or loss are profit at fair value through in the at fair value with all changes recognized and loss. of profit statement b) (continued)
Initial recognition and measurement Initial recognition initially at fair recognised All financial assets are assets not in the case of financial value plus, or loss, profit fair value through at recorded attributabletransaction the to are costs that or Purchases acquisition of the financial asset. deliveryrequire sales of financial assets that of assets within a time frame established by in the market or convention place regulation on the trade recognised trades) are way (regular commits to that the Company the date i.e., date, or sell the asset. purchase
Recoverable amount is the higher of fair value less amount is the higher of fair value less Recoverable In in use. costs of disposal and value in assessing value to discounted are cash flows future the estimated use, value using a pre-tax that their present discount rate marketreflects current time value assessments of the for which of money and the risksto the asset specific not been have cash flows of future the estimates adjusted. cash- amount of an asset (or If the recoverable less than it is be to generating unit) is estimated carrying amount, the carrying amount of the asset cash-generating its recoverable (or to unit) is reduced in the profit amount. An impairment loss is recognized or loss. the When an impairment loss subsequently reverses, carrying a cash-generating amount of the asset (or of its estimate the revised to unit) is increased carrying increased amount, but so that the recoverable carrying the amount does not exceed amount that been determined impairment had no have would cash-generating the asset (or for loss been recognised of an impairment loss is A reversal unit) in prior years. or loss. in profit immediately recognised Instruments Financial to contractgives rise A financial instrument is any that a financial asset of one entity and a financial liability or equity instrument of another entity. Assets Financial a) xi.
for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 236 236 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
237 237 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 When the Company has transferred its rights to has transferred When the Company an asset or has entered from cash flows receive arrangement, if it evaluates a pass-through the risks what extent and to it has retained When it has neither of ownership. and rewards the substantially all retained nor transferred of the asset, nor transferred risks and rewards continues to of the asset, the company control the extent asset to of the transferred recognise In that continuing involvement. the company`s an associated also recognises the company case, asset and the associated transferred The liability. the that reflects on a basis measured liability are has rights and obligations that the company retained. that takes the form involvement Continuing asset is the transferred over of a guarantee carrying of the original at the lower measured amount of the asset and the maximum amount could be of consideration that the company repay. to required Impairment assets of financial impairment loss recognises Company The loss (ECL) model applying the expected credit at amortisedon the financial assets measured cost, debt instruments at FVTOCI, lease other contractual receivables, trade receivables, cash or another financial asset right receive to as at not designated and financial guarantee FVTPL. average the weighted losses are Expected credit risks of losses with the respective of credit default occurring as the weights. for the loss allowance measures Company The to a financial instrument at an amount equal credit losses if the expected credit the lifetime risk on that financial instrument has increased recognition. If the credit since initial significantly risk on a financial instrument has not increased the recognition, since initial significantly that for the loss allowance measures Company to 12 financial instrument at an amount equal losses. months expected credit contractual or any right to trade receivables For result cash or other financial assets that receive within the scope of transactions that are from Ind always AS 11 and Ind AS 18, the Company at an amount equal the loss allowance measures losses. expected credit lifetime to d) Equity instruments of Ind in scope All equity AS 109 investments Equity instruments at fair value. measured are classified as at trading are held for which are FVTPL. the all other equity instruments, For makeelection may an irrevocable to Company subsequent changes in the fair value present makes election such Company The in OCI. The basis. on an instrument-by-instrument and recognition on initial classification is made is irrevocable. are such investments Dividends from loss as other income. or in profit recognized OCI is no recycling of the amounts from There on sale of investment. even Loss, and Profit to the transfer may the Company However, equity. gain or loss within cumulative at Equity instruments subsequently measured measured or loss are profit fair value through in the at fair value with all changes recognized and loss. of profit statement in subsidiariesInvestment is carried at cost less impairment in the financial statements. part a applicable, where (or, A financial asset of a financial asset or part of similar group of a (i.e. financial assets) is primarily derecognised balance sheet) company the from removed when: the asset from cash flows rights receive The to or expired, have its rights to has transferred Company The the asset or has from cash flows receive the received pay assumed an obligation to to a material in full without delay cash flows arrangement; ‘pass-through’ partythird under a has transferred and either (a) the company of the substantially all the risks and rewards has neither transferred asset, or (b) the company substantially all the risks and nor retained control of the asset, but has transferred rewards of the asset. c) De-recognition
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 236 236 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
239 239 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Financial liabilities are subsequently carried liabilities are Financial at amortized interest using the effective cost consideration contingent for except method, a business combination which is in recognized at fair value through subsequently measured For trade and other payables and loss. profit the Balance from maturing within one year the carrying Sheet date, amounts approximate the shortfair value due to maturity of these instruments. and borrowings Loans loans interest-bearing initial recognition, Asfter subsequently measured are and borrowings at amortised interest cost using the effective recognised Gains and losses are method. rate are or loss when the liabilities in profit the effective as through as well derecognised amortisation rate interest process. Amortised taking by cost is calculated into on acquisition discount or premium account any part an integral or costs that are of and fees Such amortisation rate. is interest the effective of included as finance costs in the statement and loss. profit contracts guarantee Financial contracts the guarantee issued by Financial a those contracts that require are Company the holder for reimburse be made to to payment fails a loss it incurs because the specified debtor make when due in accordance to a payment with the terms instrument. Financial of a debt initially as recognised contractsguarantee are transaction for a liability adjusted at fair value, directly attributable the to costs that are the Subsequently, issuance of the guarantee. at the higher of the amount liability is measured determined as per impairmentof loss allowance of Ind AS 109 and the amount requirements amortisation. less cumulative recognised when the A financial liability is derecognised obligation under the liability or is discharged When an existing financial cancelled or expires. the same from another by liability is replaced or the terms, lender on substantially different terms substantially of an existing liability are or modification such an exchange modified, of the original as the derecognition is treated of a new liability. liability and the recognition respective carrying in the difference The of profit in the statement amounts is recognised or loss. c) Derecognition (continued)
Further, for the purpose of measuring lifetime the purpose of measuring lifetime for Further, trade for loss allowance expected credit ‘simplified applies the Company receivables, Ind permitted by AS 109 Financial approach’ loss allowance expectedThis credit Instruments. matrix based on a provision is computed loss which takes account historical credit into forward-lookingexperience for and adjusted information. and measurement Initial recognition initially recognised All financial liabilities are loans and in the case of at fair value and, net of directly and payables, borrowings attributable transaction costs. measurement Subsequent depends of financial liabilities measurement The on their classification, as described below: through fair value at liabilities Financial or loss profit or profit at fair value through liabilities Financial for trading loss include financial liabilities held upon initial and financial liabilities designated or profit as at fair value through recognition for classified as held liabilities are Financial loss. the purpose of for incurred trading if they are categoryThis also in the near term. repurchasing financial instruments entered includes derivative as not designated that are the company by as instruments in hedge relationships hedging by defined embedded 109. Ind-AS Separated for trading as held also classified derivatives are hedging as effective designated unless they are instruments. trading are Gains or losses on liabilities held for or loss. in the profit recognised upon initial liabilities designated Financial or loss profit at fair value through recognition of recognition, at the initial date designated are and only if the criteria in Ind satisfied. AS 109 are as FVTPL, liabilities designated fair value For gains/ losses attributable changes in own to gains/ These in OCI. risk is recognized credit to not subsequently transferred losses are transfer may the company P&L. However, All gain or loss within equity. the cumulative other changes in fair value of such liability are or loss. of profit in the statement recognised financial any has not designated Company The and loss. profit liability through as at fair value Financial Liabilities Financial a) b)
for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 238 238 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
239 239 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Right-of-use assets right-of-use assets at the recognises Company The the the date lease (i.e., of the commencement date use). Right-of-use underlying for available asset is assets are and depreciation accumulated at cost, less any measured remeasurement any for and adjusted impairment losses, cost of right-of-useThe includes assets of lease liabilities. direct initial recognised, the amount of lease liabilities the made at or before and lease payments costs incurred, received. incentives lease less any commencement date basis on a straight-line Right-of-use depreciated assets are the shorterover useful of the lease term and the estimated of the assets. lives the Company to If leased asset transfers of the ownership at the end of the lease term the exercise or the cost reflects using the is calculated option, depreciation of a purchase right-of-useThe assets are of the asset. useful life estimated also subject impairment. to Liabilities Lease the Company of the lease, the commencement date At value of at the present lease liabilities measured recognises lease The the lease term. be made over to lease payments in substance (including payments include fixed payments receivable, lease incentives less any payments) fixed variable depend on an index or a rate, that lease payments value be paid under residual and amounts expectedto guarantees. the In value of lease payments, calculating the present at the rate borrowing uses its incremental Company rate because the interest lease commencement date the After determinable. implicit in the lease is not readily the amount of lease liabilities is commencement date, for reduced and of interest reflect the accretion to increased In made. addition, the carryingthe lease payments amount is a modification, a if there of lease liabilities is remeasured change in the lease term, a change in the lease payments a change from resulting payments future changes to (e.g., determine such lease payments) used to in an index or rate the purchase or a change in the assessment of an option to underlying asset. assets Short-term and leases of low-value leases applies the short-term Company lease recognition The its short-term to exemption leases of machinery and a lease term of 12 those leases that have equipment (i.e., and do not the commencement date months or less from on short-term payments option). Lease contain a purchase as recognised are assets leases and leases of low-value the lease term. basis over expense on a straight-line
Offsetting of financial instruments and the net offset, are assets and financial liabilities Financial is a currently amount is reported there in the balance sheet if amounts and recognised the legal right offset to enforceable the realise to settle on a net basis, to is an intention there simultaneously. assets and settle the liabilities on First-In-First-Out of cost valued at lower are Inventories obsolescence for value after providing (FIFO) or net realizable of Cost necessary. considered where and other losses, and other costs comprises all costs of purchase inventories location present their to the inventories in bringing incurred inventory is determined of purchased and condition. Cost value is Net realizable discounts. and after deducting rebates selling pricethe estimated in the ordinary course of business, costs costs of completion and estimated less estimated necessary make to the sale. Ind including its AS 116 supersedes Ind AS 17 Leases the sets out the principles for standard The appendices. of and disclosure presentation measurement, recognition, the most leases on recognise lessees to leases and requires balance sheet. Ind has adopted AS 116 using the modified Company The method of adoption under the transitional retrospective of initial with the date of the Standards, provisions also elected to Company The application on 1st April 2019. lease contracts. for exemptions use the recognition assesses at contract inception whether a Company The if the contract conveys that is, a lease, or contains, contract is, for a period the use of an identified asset the right control to consideration. for of time in exchange as a lessee Company and measurement applies a single recognition Company The short-term for leases and except all leases, for approach lease recognises Company The assets. leases of low-value make and right-of-useliabilities to lease payments assets the right use the underlying to assets. representing xii. Inventories xiii. Leases
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 238 238 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
241 241 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 The after-income tax effect of interest and other of interest tax effect after-income The potential with dilutive financing costs associated and equity shares, that would number of equity shares average Weighted of all been outstanding assuming the conversion have equity. potential the dilutive
Cash and Cash Equivalents and Cash Cash comprisesCash cash on hand and demand deposits with short-term equivalents are Cash balances (with an banks. of the date maturityoriginal months2 or less from of three readily that are acquisition), and highly liquid time deposits convertible known into cash and which are amounts of subjectrisk of changes in value. insignificant to Benefits Employee Short-term obligations including non-monetary wages and salaries, Liabilities for to be settled wholly within 12 expected benefits that are months after the period the end of employees in which the of in respect service the related recognised render are services the end of the reporting up to period employee’s amounts of the at the undiscounted measured and are settled. to be paid when the liabilities are benefits expected benefit employee as current presented liabilities are The obligations in the balance sheet. Contingent Liabilities Contingent A contingent liability that arises is a possible obligation be confirmed will by the whose existence events past from or non-occurrenceoccurrence uncertain of one or more a or of the Company the control beyond events future it is not because obligation that is not recognized present to required will be resources of that an outflow probable a does not recognize Company The settle the obligation. contingent liability the financial in but discloses its existence are if any of such liabilities, in respect Payments statements. as advances. shown Share Earnings Per dividing the net by calculated are Basic earnings per share year attributable to equity the for shareholders or loss profit shares number of equities average the weighted by outstanding during the year. used in the adjusts the figures earningsDiluted per share consider to determination of basic earnings per share y y xx. xxi. xviii. xix. (continued)
Company as a lessor Company under Ind accounting AS 116 is substantially Lessor classify will continue to Indunchanged from 17. Lessors AS or finance leases using similar leases as either operating Ind AS 116 does not Therefore, principles as in Ind AS 17. lessor. is the the Company leases where impact an for have substantially does not transfer which the Company in Leases of an asset ownership incidental to all the risks and rewards Rental income arising as operating leases. classified is are the lease terms. basis over on a straight-line for accounted Initial an in negotiating and arranging costs incurred direct the carrying added to operating lease are amount of the term the lease on the same over leased asset and recognised as recognised are rents Contingent income. basis as rental earned. in the period they in which are revenue Costs Borrowing attributable costs directly the acquisition, Borrowing to construction of qualifying assets that or production their necessarily takes for a substantial period get ready to cost of those assets, the added to use or sale are intended for ready substantially until such time as the assets are costs are All other borrowing use or sale. their intended and loss in the period in of profit in statement recognised incurred. which they are Equity Instruments An eqauity contract instrument is any that evidences a in the assets of an entity after deducting interest residual Incremental attributable costs directly to all of its liabilities. in equity shown as a are or options the issue of new shares the proceeds. deduction, net of tax, from Dividends being dividend declared, any is made for Provision of and no longer at the discretion authorized appropriately reporting the end of the period on or before the Company, but not distributed at the end of the reporting period. Provisions has a present when the Company recognised are Provisions of a past event, as a result obligation, legal or constructive, embodying resources of that an outflow it is probable to settle the obligation required economic benefits will be can be made of the amount of the estimate and a reliable obligation. using the cash flows is measured a provision Where obligation, it carrying settle the present to estimated amount of the If the effect value of those cash flows. is the present discounted are provisions time value of money is material, when appropriate, pre-taxusing a current that reflects, rate the risksto the liability. specific xiv. xv. xvi. xvii.
for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 240 240 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
241 241 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 including any marketincluding any the performance conditions (e.g., price) share Company’s the impact service of any excluding and non-market sales profitability, performance conditions (e.g. vesting of the entity employee and remaining targets growth specified time period), a and over Including conditions the impact non-vesting of any or holding save to employee for the requirement (e.g. a specific period of time. for shares
The total expense is recognised over the vesting period, period, the vesting over expense is recognised total The vesting all the specified which which is the period over the At the end of each period, be satisfied. to conditions are of options that of the number its estimates revises Company based on the non-market be vest expected to vesting are and service It the impact conditions. of the recognises with a or loss, in profit if any, estimates, original to revision equity. adjustment to corresponding Remeasurements gains and losses arising from experience losses arising gains and Remeasurements from in actuarialadjustments and changes assumptions are income in the year in the other comprehensive recognised to not subsequently reclassified in which they arise and are Loss. and of Profit Statement value of the defined benefit Changes in the present or curtailments plan amendments from obligation resulting or loss as past service in profit immediately recognised are cost. Plan Contribution Defined fund contributions publicly to provident pays Company The funds as per local regulatory provident administered has no further Company The obligations once authorities. contributionsThe are been paid. the contributions have as defined contribution plans and the for accounted expense benefit as employee recognised contributions are due. when they are Share-based Payments to provided benefits are based compensation Shared Option Stock Employee Limited Vakrangee via employees Plan. options Employee cost of equity-settledThe transactions is determined by when the at the date the fair value of the options granted under the fair value of options granted The is made. grant benefits as an employee is recognised Option Plan Employee total The in equity. increase expense with a corresponding the to reference be expensed is determined by amount to fair value of the options granted: y y y
xxii. Defined benefit plans such as gratuityDefined benefit plans such as fund. Defined contribution plans such as provident Defined benefit plan - Gratuity Obligations Defined benefit plan - benefit a defined gratuity, for provides Company The employees eligible covering “Gratuity Plan”) plan (the of Gratuity Act, 1972. with the Payment in accordance to a lump sum payment Gratuity provides The Plan death, incapacitation or at retirement, employees vested of an amount based on the termination of employment, salary of employment. and the tenure employee’s respective in the balance sheet in liabilityThe or asset recognised present value gratuity of defined benefit respect plans is the reportingof the defined benefit obligation at the end of the defined benefit The period less the fair value of plan assets. Unit obligation is actuarially determined using the Projected method. Credit value of the defined benefit obligation is present The cash flows future discounting the estimated determined by to market yields at the end of the reference by outflows reporting a term period bonds that have on government the terms of the obligation. to approximating applying the discount by cost, calculated net interest The the net balance of the defined benefit obligation and to rate as employee is recognised the fair value of the plan assets, and loss. of profit benefit expenses in the statement II. benefit obligations employee Other Long-term absences (annual leave) compensated liabilities for The wholly within 12 be settled not expected to which are months after the end of the period in which the employee service non-current as the related presented render are measured therefore They are benefits obligations. employee be to payments value of expected future as the present up of servicesmade in respect employees by provided the end of the reportingto period using the Projected using discounted benefits are The method. Unit Credit the market yields at the end of the reporting period on the to terms approximating bonds that have government as a Remeasurements obligations. terms of the related of experience actuarial adjustments and changes in result in actuarial recognised assumptions (i.e. losses/ gains) are Other income. comprehensive in the balance as current presented obligations are The an unconditional right does not have sheet if the Company months after the at least twelve settlement for defer to when the actual of is settlement reporting regardless period, occur. expected to obligations employment Post- post-employment the following operates Company The schemes: I.
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 240 240 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
243 243 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 The parameter most subject change is the discount parameter The to plans for In discount rate determiningappropriate the rate. in India,operated the interest the management considers with the consistent bonds in currencies of government rates of the post-employmentcurrencies benefit obligation. mortalityThe mortality available is based on publicly rate mortalityThose only at interval change to tables tend tables. salary increases Future changes. demographic to in response inflation based on expected future are and gratuity increases rates. in Note given details about gratuity obligations are Further 43. instruments of financial measurement value Fair financial liabilities When the fair values of financial assets and based on the balance sheet cannot be measured in recorded pricesquoted in active markets, their fair value is measured these models are inputs to The using valuation techniques. observabletaken from but where markets possible, where in of judgement is required a degree this is not feasible, include considerations Judgements establishing fair values. of inputs such as liquidity risk, risk and volatility. credit Changes in assumptions about these factors the could affect for 47 reportedSee Note of financial instruments. fair value further disclosures. and Plant of Property, and useful lives Depreciation Equipment the over depreciated are and Equipment Plant Property, after taking useful lives, account estimated estimated into useful Management the estimated reviews value. residual to values of the assets annually in order and residual lives during recorded be to depreciation of amount determinethe values are and residual useful lives The reportingany period. historical experience with similar based on the Company’s technological assets and taken account anticipated into if periods is revised future for 1c /depreciation The changes. estimates. previous changes from significant are there Liabilities and Contingent Provision has a present when the Company is recognised 2A provision that an and it is probable of past event obligation as a result to settle the obligation, required will be resources of outflow These can be made. estimate of which a reliable in respect to and adjusted date at each balance sheet reviewed are Contingent liabilities best estimates. reflect the current Contingent in the financial statements. not recognised are nor disclosed in the financial neither recognised assets are statements. • • • (continued)
Estimating fair value for share-based transactions payment Estimating fair value for valuation determination of the most appropriate requires on the terms which is dependent and conditions of model, determination of the also requires estimate This the grant. the valuation model including inputs to most appropriate option, volatility and dividend of the share the expected life assumptions The yield and making assumptions about them. share-based value for estimating fair and models used for 45. disclosed in Note transactionspayment are Defined benefit plans gratuity cost of the defined benefit plan and other post- The value of the and the present medical benefits employment determined using actuarial gratuity obligation are valuations. makingAn actuarial various valuation involves assumptions actual in the future. developments from differ that may future include the determination of the discount rate; These salary and mortality increases the complexities Due to rates. a defined in the valuation and its long-term nature, involved to changes in these benefit obligation is highly sensitive at each reporting reviewed All assumptions are assumptions. date. Share-based payments •
• Application of accounting policies that require critical accounting Application of accounting policies that require and the use of assumptions in the financial statements estimates as follows: are The estimates and associate’s assumptions are based on historical are assumptions and associate’s estimates The be relevant. to experience considered and other factors that are These estimates those estimates. from could differ Actual results on an ongoing basis. reviewed and underlying assumptions are in the period recognised are Revisions accounting estimates to only that affects if the revision revised are in which the estimates periods if the and future or in the periodperiod, of the revision period. and future both current affects revision Note 3 (a) - Critical Accounting Judgements and Estimates Judgements Accounting 3 (a) - Critical Note in conformity with of financial statements preparation Ind AS The be made by and assumptions to estimates judgements, requires reported the that affect amount Company the management of the disclosures accompanying expenses, revenue, liabilities, of assets, of liabilities as at the date contingent to relating and the disclosures reported the and the financial statements of income and amounts the periods presented. expense for for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 242 242 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
243 243
commitments.
Consideration paid shall be equally amortized over the period of leases and the company is not subject to any other future minimum lease rental rental lease minimum future other any to subject not is company the and leases of period the over amortized equally be shall paid Consideration
evaluation of the facts and circumstances of the lease arrangement. The lease arrangement does not contain any clause for renewal or escalation. escalation. or renewal for clause any contain not does arrangement lease The arrangement. lease the of circumstances and facts the of evaluation
In consideration to the provisions of Ind AS 17 - Leases, the leasehold land and building have been assessed for classification as finance lease based on the the on based lease finance as classification for assessed been have building and land leasehold the Leases, - 17 AS Ind of provisions the to consideration In
3,000.00 lakhs. 3,000.00 to amounting premium sum lump a `
No.93, Road No.16, MIDC, Marol, Andheri (East) Mumbai 400093 for the remaining period of 51 years out of the total lease term of 95 years in consideration of of consideration in years 95 of term lease total the of out years 51 of period remaining the for 400093 Mumbai (East) Andheri Marol, MIDC, No.16, Road No.93,
During the the year ended on March 31, 2018, the company has entered into a long term finance lease arrangement for a land and building situated at Plot Plot at situated building and land a for arrangement lease finance term long a into entered has company the 2018, 31, March on ended year the the During
VAKRANGEE LIMITED VAKRANGEE
Integrated Annual Report 20-21 Leasehold Land & Building & Land Leasehold 3,061.69 3,061.69 3,002.35
March 31, 2020 31, March 2021 31, March
As at at As at As
lakhs) in (Amount `
The net carrying amount of Property, Plant and Equipment under finance lease arrangements are as follows: as are arrangements lease finance under Equipment and Plant Property, of amount carrying net The
Finance Lease arrangement (Leasehold Land and Building): Building): and Land (Leasehold arrangement Lease Finance (d)
accounted as per Para 38 of Ind-AS 8, Accounting Policies, Change in Estimates and Errors. and Estimates in Change Policies, Accounting 8, Ind-AS of 38 Para per as accounted
one class of Property, Plant and Equipment viz. ATM, life expectation has been changed from previous estimates. The change in life expectation has been been has expectation life in change The estimates. previous from changed been has expectation life ATM, viz. Equipment and Plant Property, of class one
During the previous year, the management has analysed the remaining useful life of assets and based on technical valuation of of valuation technical on based and assets of life useful remaining the analysed has management the year, previous the During Estimate: in Change (c)
asset. the of value carrying the than less is amount recoverable
Impairment loss mainly pertains to one high speed printer categorised under Plant & Machinery. Based on technical valuation, the the valuation, technical on Based Machinery. & Plant under categorised printer speed high one to pertains mainly loss Impairment Assets: of Impairment (b)
15,396.30 15,396.30 461.82 14,934.48 824.26 3,061.69 446.84 287.06 75.42 230.30 8,339.48 1,669.43 2020 31, March At
15,704.25 15,704.25 140.25 15,564.00 717.40 3,002.35 259.49 213.53 58.85 200.63 9,461.30 1,650.45 2021 31, March At
Net Book Value Book Net
6,268.43 6,268.43 - 6,268.43 355.66 182.89 1,451.26 283.53 87.91 371.28 3,417.65 118.26 2021 31, March At
0.18 0.18 - 0.18 - - - 0.18 - - - - Disposals/Transfers
transfer to CWIP to transfer
189.35 189.35 - 189.35 - - 94.96 58.45 - 29.24 - 6.70 year the for Depreciation
charged to P&L P&L to charged
Depreciation for the year year the for Depreciation 1,478.35 1,478.35 - 1,478.35 116.54 59.34 111.47 16.62 16.56 6.23 1,129.18 22.41
At March 31, 2020 31, March At 4,600.91 4,600.91 - 4,600.91 239.12 123.55 1,244.83 208.64 71.35 335.81 2,288.47 89.15
Disposals/Transfers 1,171.76 1,171.76 - 1,171.76 - - 844.55 78.93 - 82.89 - 165.39
Impairment during the year the during Impairment 16.00 16.00 - 16.00 ------16.00 -
year
Depreciation charged for the the for charged Depreciation 1,470.04 1,470.04 - 1,470.04 112.98 59.50 238.04 79.04 16.66 39.97 886.77 37.09
At March 31, 2019 31, March At 4,286.63 4,286.63 - 4,286.63 126.14 64.04 1,851.34 208.53 54.70 378.73 1,385.70 217.45
Impairment
Depreciation and and Depreciation
At March 31, 2021 31, March At 21,972.69 21,972.69 140.25 21,832.44 1,073.05 3,185.24 1,710.75 497.05 146.77 571.91 12,878.95 1,768.72
Disposals/Transfers 2,373.51 2,373.51 2,373.09 0.41 - - - 0.41 - - - -
Additions 4,348.98 4,348.98 2,051.52 2,297.46 9.68 - 19.08 1.78 - 5.80 2,251.00 10.13
At March 31, 2020 31, March At 19,997.21 19,997.21 461.82 19,535.39 1,063.38 3,185.24 1,691.67 495.69 146.77 566.11 10,627.96 1,758.58
Disposals/Transfers 4,988.19 4,988.19 2,932.29 2,055.90 295.00 - 858.43 92.46 - 87.04 - 722.98
Additions 5,082.31 5,082.31 2,057.80 3,024.51 34.46 - 90.06 40.29 - 37.16 2,343.96 478.57
At March 31, 2019 31, March At 2,002.99 2,002.99 8,284.00 8,284.00 146.77 146.77 615.98 547.86 547.86 2,460.04 2,460.04 3,185.24 3,185.24 18,566.78 18,566.78 1,323.91 19,903.09 19,903.09 1,336.31
Cost or Valuation or Cost
Peripherals
Fixtures Building Progress
Machinery Vehicle Equipments Computer Computer Improvement Total
Description (a) Buildings and and Land & & Land Work-In- Total
Plant and and Plant Motor Motor Office Office including including Leasehold Leasehold Grand Grand
Furnitures Furnitures Leasehold Leasehold Capital Capital
Computers Computers
lakhs) in (Amount ` Note 4 - Property, Plant and Equipment and Plant Property, - 4 Note
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 242 242 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
245 245 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21
------96.00 346.43 346.43 126.94 346.43 126.94 Amount 1,200.00 1,500.00 31, 2020 2,796.00 As at March March at As
(Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 96.00 138.85 138.85 1,200.00 1,500.00 31, 2021 2,796.00 As at March March at As (continued) ( B ) ( A )
1,20,00,000 Equity Shares of Vakrangee Logistics Private Limited of ` 10/- each Limited Private Logistics Vakrangee of 1,20,00,000 Equity Shares 31, 2020 : 1,20,00,000 Equityfully paid up (March shares) Investments in Equity in Instruments of Subsidiaries Investments e-Solutions 100/- Vakrangee of Peso Inc., Philippines of 96,000 Equity Shares 31, 2020 : 96,000 Equityeach fully paid up (March shares) of ` 10/- each fully paid Limited Finserve Vakrangee of 1,50,00,000 Equity Shares 31, 2020 : 1,50,00,000 Equityup (March shares) In Equity Shares of CSC e-Governance2,500 Equity Shares Services India of ` 1000/- Limited 31, 2020 : 2,500 Equityeach fully paid up (March shares) Particulars Description Unquoted Unquoted Cost at carried Investment - Investment carried at Fair value through Profit and Loss (FVTPL) and Profit through value Fair at carried Investment - Bharat Easy Super App Super App Easy Bharat under developement) (Asset Block Gross 31, 2019 March At Additions Disposal 31, 2020 March At Additions Disposal 31, 2021 March At and Impairment Depreciation 31, 2019 March At the year for Charged Depreciation Impairment during the year Disposal 31, 2020 March At the year for Charged Depreciation Impairment during the year Disposal 31, 2021 March At Net Book Value 31, 2021 March At 31, 2020 March At (a) for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 (a) Note 6 - Investments 6 - Investments Note (Non - Current) under development Assets 5 - Intangible Note 244 244 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
245 245 - - - - 206.90 206.90 206.90 337.33 337.33 206.90 337.33 2,922.94 31, 2020 31, 2020 3,129.84 As at March March at As As at March March at As VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 ------(Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 381.55 381.55 381.55 2,934.85 31, 2021 31, 2021 2,934.85 As at March March at As As at March March at As ( C ) TOTAL (A + B + C) (A TOTAL Particulars Quoted Quoted Loss (FVTPL) and Profit through value Fair carried at Investment in Mutual Funds Investments Series 31, 2020 : 8 (March Oriented Fund Protection NIL units of Union Capital 20,00,000 units) Aggregate amount of quoted investments investments of quoted amount Aggregate investments of quoted value market Aggregate investments of unquoted amount Aggregate Particulars Note 7 - Trade Receivables Trade 7 - Note (Non Current) The fair value of quoted mutual fund units are based on quoted net asset value at the reporting based on quoted date. mutual fund units are fair value of quoted The The fair value of the unquoted equity shares have been estimated using valuation techniques for which the lowest level input level which the lowest for using valuation techniques been estimated have equity fair value of the unquoted The shares observable. is directly to the fair value measurement that is significant The strategic investments in subsidiaries have been taken in subsidiaries at cost. have investments strategic The (b) (b) units. equity and unquoted securities mutual in quoted reflect and quoted investment and loss profit at fair value through Investment fund TOTAL TOTAL Trade Receivable considered good (Secured) good (Secured) Receivable considered Trade good (Unsecured) Receivable considered Trade Risk in Credit increase significant Receivable have which Trade impaired Receivable - credit Trade losses credit for Allowance Less:
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 244 244 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
247 247 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - - - 2020 53.94 53.40 92.52 53.94 126.58 219.10 2,817.25 31, 2020 2,817.25 As at March March at As As at March 31, March at As (Amount in ` lakhs) (Amount 41.10 51.62 - (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 2,724.53 85.03 77.64 77.09 77.64 126.58 134.07 - - - 31, 2021 As at March 31, 2020 March at As 2021 As at March March at As 2,739.54 2,739.54 As at March 31, March at As 268.32 210.22 41.00 41.08 (58.10) 2,657.46 - 59.85 268.32 150.37 As at March 31, 2021 March at As (continued) ( B ) ( A )
Loan to Related Parties Parties Related to Loan subsidiaries Dues from Earnest Money Deposit Security Deposit Loan to Others to Loan
Provision for Employees' obligations Employees' for Provision on in depreciation On account of difference and Equipment Plant Property, On account of difference in depreciation on in depreciation On account of difference and Equipment Plant Property, Losses On account of Expected Credit with maturity than 12 months * period of more Particulars Loans Receivable which have significant increase in Credit Credit Risk in increase significant which have Receivable Loans impaired - credit Receivable Loans Loans Receivable considered good (Secured) good (Secured) considered Receivable Loans Loans Receivable considered good (Unsecured) good (Unsecured) considered Receivable Loans (a)
(b)
Particulars Particulars Balance carried to Balance Sheet (A - B) (A Sheet Balance carried to Balance (ii) Liabilities (i) Assets Assets (i) (iii) (iii) (iv) (i) Note 8 - Loans 8 - Loans Note (Non - Current) (ii) for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE Deposits with bank - TOTAL * Amount held as margin money or security against borrowings, guarantee, other money guarantee, or security * Amount held as margin against borrowings, commitments Note 10 - Deferred Tax Assets (net) Assets Tax 10 - Deferred Note Note 9 - Other Financial Assets Assets 9 - OtherNote Financial (Non - Current) VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 246 246 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
247 247 - - - - - 92.52 85.03 59.85 92.52 92.52 92.52 25.17% 134.07 150.37 (58.10) (58.10) Closing Closing (126.58) (268.32) 31, 2020 31, 2020 Balances As at March March at As As at March March at As VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 ------(6.19) (6.19) (Amount in ` lakhs)(Amount (6.19) (30.01) (30.01) (30.01) income in other 25.17% (58.10) (58.10) Recognised Recognised 31, 2021 31, 2021 comprehensive comprehensive As at March March at As As at March March at As - - - - loss 4.84 17.50 16.30 (50.87) (388.66) (141.74) (422.03) (120.60) (120.60) (422.03) Recognised Recognised in profit and in profit - - - - 73.72 85.03 92.52 92.52 262.08 184.94 520.74 134.07 520.74 (126.58) balance Opening Explanation of changes in the applicable tax rate(s) compared to the previous accounting period accounting the previous to compared rate(s) of changes in the applicable tax Explanation Movement in deferred tax account during the year is as follows: during the year tax account in deferred Movement Particulars Particulars Particulars (b) (b) tax asset or liability deferred for considered rate Tax Applicable been enactedend of the each as at the that have been changed on the basis of using the tax rates have applicable tax rates The reporting period. For the year ended March 31, 2020 : 31, ended March the year For : to tax (liabilities)/assets in relation Deferred as Equipment Plant and Property, WDV of between Difference per books and Income taxes Expenses provided but allowable in Income Tax on payment Tax in Income but allowable Expenses provided losses expected credit for Allowance For the year ended March 31, 2021 : ended March the year For : to tax (liabilities)/assets in relation Deferred Equipment as Plant and Property, WDV of between Difference per books and Income taxes (a) Expenses provided but allowable in Income Tax on payment Tax in Income but allowable Expenses provided Allowance for expected credit losses expected credit for Allowance Deferred Tax Assets to be recovered after more than 12 months after more be recovered to Assets Tax Deferred Deferred Tax Assets to be recovered within 12 months be recovered to Assets Tax Deferred Others Others TOTAL TOTAL TOTAL TOTAL The analysis of Deferred Tax Assets is as follows: Assets Tax analysis of Deferred The
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 246 246 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
249 249 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - - 6.93 0.87 6.93 299.09 195.36 521.34 781.38 31, 2018 61,950.00 62,472.21 1,32,745.79 31, 2020 1,33,044.88 1,32,849.52 As at March March at As As at March March at As - - (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 4.85 0.90 9.81 0.90 10.09 215.92 766.44 511.53 1,485.80 31, 2019 As at March 31, 2020 March at As As at March 31, 2020 March at As 1,06,344.61 31, 2021 1,07,830.41 1,07,614.49 As at March March at As As at March March at As 2.18 35.75 497.22 59,595.90 59,633.83 4.04 7.87 12.09 23.66 485.31 As at March 31, 2021 March at As As at March 31, 2021 March at As (continued)
Particulars Particulars Particulars Debts due from related parties related Debts due from (i) Subsidiaries TOTAL TOTAL Trade Receivable considered good (Secured) good (Secured) Receivable considered Trade Trade Receivable considered good (Unsecured) good (Unsecured) Receivable considered Trade Risk in Credit increase significant Receivable which have Trade impaired Receivable - credit Trade Less: Allowance for credit Losses Losses credit for Allowance Less: TOTAL Stock-in-Trade Stock-in-Trade Consumables Consumables Stores & Spares & Spares Stores Basis of valuation of Inventories Basis of valuation with Ind value on FIFO basis which is in accordance AS-2. of cost or net realizable valued at lower are Inventories TOTAL TOTAL Particulars (a) (b) (b) Note 11 - Other Non-Current Assets Assets 11 - OtherNote Non-Current (Non - Current) for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE (a) Capital Advances Advances Capital Tax - Sales Prepaid Expenses Prepaid Balances with statutory authorities / revenue taxation) for (net of provision Tax - Income TOTAL TOTAL Note 12 - Inventories 12 - Inventories Note Receivables Trade 13 - Note (Current) (b) VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 248 248 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
249 249 - - - - 20.16 20.16 670.49 1,243.61 1,243.61 1,243.61 16,169.30 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - - (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount in ` lakhs)(Amount 4.03 As at March 31, 2020 March at As As at March 31, 2020 March at As 31, 2020 March at As 16.13 89.61 199.01 199.01 1,044.60 1,044.60 16,079.69 - - - - 10.14 10.14 894.07 584.01 584.01 584.01 1,004.75 - - 7.71 2.43 As at March 31, 2021 March at As As at March 31, 2021 March at As 31, 2021 March at As 51.75 92.44 51.75 912.31 532.26 532.26 Current Accounts Accounts Current Deposit Accounts Accounts Current Deposit Accounts Earmarked balances in unclaimed dividend account Deposits with maturity period of Fixed than 12 than 3 months but less more months ** Cash-in-hand Cash-in-hand Cash-in-hand Balances with Banks : - - Balances with Banks : - - Loan to Others to Loan Bank Balances other than above above other than Bank Balances (i) (ii) Credit : - Cash Less (ii) (ii) Cash and Cash Equivalents Equivalents and Cash Cash (i) Equivalents & Cash Cash (i) Particulars Particulars Loans Receivable - credit impaired impaired Receivable - credit Loans Loans Receivable which have significant increase in increase significant Receivable which have Loans Risk Credit Security Deposit Loans Receivable considered good (Secured) good (Secured) Receivable considered Loans good (Unsecured) Receivable considered Loans (a) Staff Advances Staff ** Amount held as margin money or security ** Amount held as margin other commitments guarantee, against borrowings, TOTAL TOTAL TOTAL (B) For the purpose of cash flow statement the purpose of cash flow For (A) (A) Particulars (iv) TOTAL (iii) (i) (ii) Note 15 - Loans 15 - Loans Note (b) (b) Note 14 - Cash & Cash equivalents equivalents & Cash 14 - Cash Note (a)
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 248 248 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
251 251 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - 888.16 103.72 466.28 466.28 7,334.04 1,119.72 31, 2020 Amount 31, 2020 12,500.00 1,119.72 33,950.66 12,500.00 42,276.58 As at March March at As As at March March at As (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount in ` lakhs)(Amount (Amount in ` lakhs) (Amount 0.29 72.35 11.71 511.53 454.28 511.53 1,377.82 31, 2021 31, 2021 10,919.48 77,386.88 As at March 31, 2020 March at As 89,756.53 As at March March at As As at March March at As - 12,500.00 12,500.00 1,825.23 1,825.23 0.47 0.29 1,824.47 Number of shares (in lakhs) Number of shares As at March 31, 2021 March at As (continued)
Particulars Goods & Service Tax Goods & Service As at March 31, 2020 March at As Accrued Revenue Accrued Authorised share capital share Authorised Increase during year the As at March 31, 2021 March at As Particulars Particulars Particulars Note 19 - Equity Share Capital 19 - Equity Share Note TOTAL TOTAL Balances with statutory authorities / revenue - Other Receivable - Prepaid Expenses Prepaid Advances Advances Vendors to ATM Settlement Receivable ATM Assets 18 - OtherNote Current Insurance claim Receivable on FD Interest Accrued taxation) for (net of provision Tax Income TOTAL Equity share capital Equity share (i) Note 16 - Other Financial Assets Assets 16 - OtherNote Financial (Current) for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE TOTAL TOTAL (Net) Assets Tax 17 - Current Note VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 250 250 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
251 251 - - - 6.03 15.22 6.22% 6.52% 23.69% 12.37% 5,294.02 Amount 31, 2020 10,588.03 10,594.06 10,594.06 As at March March at As % Holding VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - - (Amount in ` lakhs) (Amount 8.08 (No. of shares in lakhs) of shares (No. 659.30 691.07 2,509.50 1,311.00 5,294.02 31, 2021 As at March 31, 2020 March at As lakhs) shares (in shares As at March March at As Number of - 6.03 6.22% 6.52% 23.69% 12.37% 10,588.03 10,594.06 10,594.06 % Holding 659.15 691.07 2,509.50 1,311.00 Number of shares (in lakhs) Number of shares As at March 31, 2021 March at As lakhs) shares (in shares Number of No. of shares issued on exercise of options granted under the ESOP scheme. of options granted issued on exercise of shares No. shareholders for returns their abilitya going concern, continue as provide to that they so can continue to Safeguard and for other stakeholders, and benefits the cost of capital. Maintain reduce an optimal capital structure to No. of shares bought back of shares No. No. of shares allotted as fully paid by way of Bonus Shares of Bonus Shares way as fully paid by allotted of shares No. No. of shares allotted as fully paid up pursuant to contracts as fully paid up pursuant to payment without allotted of shares No. in cash being received Particulars Particulars Particulars (ii) - Management Capital : to capital are objectives when managing Company’s The (i) - - As at March 31, 2019 March at As - Details of shareholders holding more than 5% shares in the Company in the than 5% shares holding more Details of shareholders Paid up Equity share capital up Equity share Paid of options Exercise 31, 2020 March at As Vakrangee Holdings Private Limited Holdings Private Vakrangee NJD Capital Private Limited Limited Private NJD Capital InsuranceLife Corporation of India Dinesh Nandwana including each class of shares to and restrictions relating preferences of the rights, on the terms Detailed note of capital. restrictions on the distribution of dividends and repayment is Each holder of Equity Share a par value of ` 1/- per share. having has only one class of Equity Shares Company The dividend in Indian During ended March and pays the year Rupees. declares Company The per share. one vote entitled to of ` 1/- ` 0.25/- per share is as distributions Equity to Shareholders dividend recognised 31, 2021, the amount of per share 31, 2020. ended March the year each for of assets remaining receive will be entitled to the holders of Equity shares In of liquidation of the Company, the event distributionThe will be in proportion the number of Equity to amounts. after distribution of all preferential the Company, the shareholders. held by shares reporting for each class of shares previous periods immediately five for details Aggregate Exercise of options Exercise As at March 31, 2021 March at As
(vi) (iii) (ii) (v) (iv)
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 250 250 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
253 253 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - - 495.65 178.22 250.10 (250.10) 5,950.10 31, 2020 31, 2020 31, 2020 5,950.10 42,746.84 18,268.05 (3,070.18) (5,321.30) 2020 11,025.85 42,318.52 42,746.84 2,61,453.50 1,90,153.46 As at March March at As As at March March at As 2,54,048.27 As at March March at As ------(Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount (Amount in ` lakhs) (Amount As at March 31, March at As 3,347.37 31, 2021 31, 2021 31, 2021 5,950.10 3,347.37 42,746.84 18,268.05 (1,509.04) (2,602.73) 2021 42,746.84 42,746.84 2,62,988.76 1,92,641.07 As at March March at As As at March March at As 2,55,494.29 As at March March at As (continued)
Particulars Particulars Securities Premium Reserve Securities Premium Options Outstanding Account Share Opening balance On furtherAdd:- of options grant Lapsation of option Reversal due to Less:- Securities account to premium Transfer Less: balance Closing Opening balance issued during the year On share Add:- options outstanding account shares from Transfer Add:- balance Closing Particulars Particulars Securities Premium General Reserve Share Options Outstanding Account Options Outstanding Share Expense Compensation Employee Deferred Loss and Surplus Profit of in Statement (A) Total Reserves and surplus In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, shareholders, of dividends paid to adjust the amount may the company adjust the capital structure, maintain or In to order debt. reduce or sell assets to issue new shares shareholders, capital to return gearing ratio: capital on the basis of the following monitors the Company with others in the industry, Consistent sheet, in the balance (as shown ‘equity’ total divided by net of cash and cash equivalents) borrowings Net debt (total including non-controlling interests). : as follows gearingThe ratios were maintain a gearing is to ration within 1:1. strategy Company’s The (b) (a) Net debt equity Total Net debt to equityNet debt to ratio (i)
for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE Note 20 - OtherNote Equity VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 252 252 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
253 253 - - 18.42 (544.41) (495.65) 6,452.38 2,398.78 2,258.94 31, 2020 31, 2020 31, 2020 31, 2020 (2,648.51) 18,268.05 18,268.05 (7,232.25) (3,070.18) (3,207.25) (3,188.83) As at March March at As As at March March at As As at March March at As As at March March at As 1,86,894.00 1,90,153.46 2,50,859.44 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - - - - (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 89.24 291.65 5,136.12 1,269.49 31, 2021 31, 2021 31, 2021 31, 2021 (2,648.51) 18,268.05 18,268.05 (3,070.18) (1,509.04) (3,188.83) (3,099.59) As at March March at As As at March March at As As at March March at As As at March March at As 1,90,153.46 1,92,641.07 2,52,394.70 Particulars Particulars Particulars Opening balance balance Closing Opening balance year for the Profit Add:- Dividend distribution tax Less:- Surplus in Statement of Profit & Loss & of Profit Surplus in Statement General Reserve to Transfer Less:- and paid Dividend declared Less:- Deferred Employee Compensation Expense Compensation Employee Deferred Opening balance Loss account and Profit from Transfer Add:- balance Closing General ReserveGeneral Add:- On furtherAdd:- of options grant Less:- Reversal due to Lapsation of option Reversal due to Less:- Less:- AmortisedLess:- during the year Closing balance Closing Particulars Securities Premium reserve with the The is utilised in accordance on issue of shares. the premium record Securities is used to premium Act, 2013. of Companies provisions ReserveGeneral purposes. for appropriation retained earnings from profits transfer time to general reserve time to The is used from of other one component of equity not an item another and is from to a transfer by the general reserveAs is created Items of profit income, to statement included in the general reserve subsequently will not be reclassified comprehensive and loss. Other Comprehensive Income Other Comprehensive Opening balance (net of taxes) of net defined benefit obligations Remeasurement (B) Total balance Closing (A+B) Total (e) (c) (d) (b) Nature of Reserves Nature (a) (ii)
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 252 252 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
255 255 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21
------39.26 39.26 337.74 291.35 337.74 291.35 31, 2020 31, 2020 31, 2020 As at March March at As As at March March at As March at As Interest Interest
------(Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 40.39 40.39 331.00 331.00 31, 2021 31, 2021 31, 2021 As at March 31, 2020 March at As As at March March at As As at March March at As March at As Principal Principal ------14.34 14.34 Interest Interest - - - - - As at March 31, 2021 March at As Principal Principal (continued)
small enterprises Particulars Particulars Particulars Particulars - Dues of micro enterprises and small enterprises - Dues of micro vendor Amount due to Principal amount paid (including unpaid) beyond the unpaid) beyond amount paid (including Principal date appointed Interest due and payable for the year for due and payable Interest Interest accrued and remaining unpaid accrued and remaining Interest Note 22 - Other Financial Liabilities 22 - OtherNote Financial (Non - Current) Total Dues of micro enterprises and small enterprises and small enterprises enterprises Dues of micro Total TOTAL the extent been determined Micro to such parties and small enterprisesDues to have of been identified on the basis have Management. collected by information - Dues of Creditors other than micro enterprises and other than micro - Dues of Creditors Note 21 - Trade Payables Payables Trade 21 - Note (Non - Current) for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE Provision for Employees' benefits Employees' for Provision TOTAL 24 - Borrowings Note (Current) Loans Secured Loan Repayable on Demand Repayable Loan Bank - From TOTAL TOTAL Security Deposit TOTAL Note 23 - Employee Benefit Obligations Benefit Obligations 23 - Employee Note (Non - Current) VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 254 254 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
255 255 ------89.61 555.70 386.64 658.49 101.56 1,043.52 2,794.30 2,088.32 1,453.50 6,169.56 31, 2020 31, 2020 3,439.61 5,630.47 6,271.12 As at March March at As March at As VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Interest Interest - - - (Amount in ` lakhs)(Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 92.23 294.11 695.96 650.05 286.84 752.31 101.56 101.56 6,648.26 3,970.75 1,932.08 31, 2021 31, 2021 8,086.50 7,236.09 As at March March at As March at As As at March 31, 2020 March at As Principal - - - - - 38.76 2,622.47 2,661.23 Interest Interest - - - 38.76 38.76 As at March 31, 2021 March at As Principal enterprises Particulars Particulars Particulars Payable to Franchisee under WLA under Franchisee to Payable Liabilities 27 - OtherNote Current Statutory dues customers from Advance Payable for acquisition of Property, Plant & Equipments & Equipments Plant acquisition of Property, for Payable CSR Expenses towards Payable Unpaid Dividend TOTAL pending allotment Kendra money received Franchisee Wallet Wallet Balance Franchisee Payable Staff Emoluments TOTAL Note 25 - Trade Payables Payables Trade 25 - Note (Current) Collateral Security - Registered Equitable Mortgage of Immovable Property situated at Vakrangee Corporate House, Plot No .93, Plot House, Corporate Mortgage SecurityVakrangee Equitable Collateral - Registered of Immovable at Property situated building of entire Suncity Andheri area built up Near Hotel East, Mumbai-400093 Residency, with total Road No 16, MIDC, Marol, Limited. Vakrangee is 21050 Sq ft name of M/S in the The Company has cash credit facility (sanctioned limit of Rs. 45 Crores) from Union Bank of India. The facility is secured by First First by facilityThe is secured Bank of India. Union from facility 45 Crores) (sanctioned has cash credit Rs. limit of Company The assets of Company. current & future of Book Debts and present of hypothication charge Trade Payables Trade enterprises small enterprises and - Dues of micro vendor Amount due to Principal amount paid (including unpaid) beyond the amount paid (including unpaid) beyond Principal date appointed Interest due and payable for the year for due and payable Interest Interest accrued and remaining unpaid accrued and remaining Interest - Dues of Creditors other than micro enterprises and small other than micro - Dues of Creditors Total Dues of micro enterprises and small enterprises and small enterprises enterprises Dues of micro Total TOTAL Note 26 - Other Financial Liabilities 26 - OtherNote Financial Dues to Micro and small enterprises have been determined to the extent been determined Micro to such parties and small enterprisesDues to have of been identified on the basis have Management. collected by information
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 254 254 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
257 257 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 24.72 24.72 297.82 704.23 696.61 704.23 696.61 7,864.45 2,261.09 31, 2020 31, 2020 31, 2020 51,911.87 62,335.23 As at March March at As As at March March at As As at March March at As (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount (Amount in ` lakhs) (Amount 34.33 26.05 26.05 263.49 705.90 March 31, 2020 March 705.90 7,864.45 2,261.09 1,092.08 31, 2021 31, 2021 For the year ended the year For 31, 2021 1,092.08 As at March March at As As at March March at As As at March March at As 246.78 4,910.94 1,324.01 16,261.94 22,743.67 69.09 177.69 March 31, 2021 March 4,910.94 1,324.01 For the year ended the year For (continued)
Scrap Sales Kit Transportation charge Computer consumables & peripherals Computer Information Technology-enabled Services (ITeS) Services (ITeS) Technology-enabled Information - Other Operating Revenues Other Revenues Operating - Revenue from Sale of Products Sale of Products from Revenue - Revenue from Sale of Services from Revenue - Revenue from vakrangeeRevenue from kendra, including e-governance activities
Particulars Particulars Particulars Particulars TOTAL Note:- The amount of revenues are exclusive of indirect taxes i.e. Goods and Service Tax Tax Goods and Service i.e. of indirect taxes exclusive are amount of revenues The Note:- (d) (b) (c) (a) Provision for Expenses for Goods & services Expenses for for Provision TOTAL Benefit Obligations 29 - Employee Note (Current) Note 30 - Current Tax Liabilities (Net) Tax 30 - Current Note taxation) for (net of provision Tax Income TOTAL Provision for Employees' benefits Employees' for Provision TOTAL Operations from 31 - Revenue Note Note 28 - Provisions 28 - Provisions Note for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 256 256 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
257 257 1.50 1.65 32.10 228.78 708.79 119.13 236.42 7,369.30 6,492.98 7,599.58 40,907.16 48,498.23 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - (Amount in ` lakhs) (Amount (Amount in ` lakhs) (Amount 0.39 3.12 0.46 17.58 14.94 224.81 March 31, 2020 March March 31, 2020 March 5,624.96 1,744.34 For the year ended the year For For the year ended the year For 40,904.52 - 0.70 6.15 17.74 113.70 220.61 6,797.51 5,109.90 1,035.74 7,710.14 6,815.25 14,196.94 - 0.07 3.12 0.01 14.54 14.93 11.92 195.94 March 31, 2021 March March 31, 2021 March 6,601.57 5,106.89 For the year ended the year For For the year ended the year For
Bank Deposits Interest IncomeInterest at on the financial assets amortized cost - Other Income Interest Miscellaneous Income Gain on Sale of Asset Fluctuation Exchange Gain on Foreign value gain on financial instrument at fair Fair and loss* Profit value through Rent Received - - - - Interest Income Income Interest (a) (b) Dividend income Other non-operating income -
Particulars Particulars NIL) as ‘ and loss includes ` 2.63 lakhs ` NIL) as profit year (previous value gain on financial instrument at fair value through Fair *Total Net Gain on sale of Investments’ Expenses 33 - Operating Note TOTAL (i) (ii) (iii) Note 32 - OtherNote Income Project DeliveryProject Cost - Opening Stock - Add : Purchase of goods and services : Purchase - Add : Closing Stock - Less Project Expenses Project Expenses Commission Costs Communication Expenses Travelling & Conveyance Transportation, Octroi and Loading / Unloading Charges / Unloading Charges Octroi and Loading Transportation, Rent, Rates and Taxes Taxes Rent, Rates and TOTAL
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 256 256 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
259 259 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 340.81 766.44 7,382.81 (425.63) 7,382.81 - - (Amount in ` lakhs) (Amount (Amount in ` lakhs) (Amount 17.80 94.44 347.85 March 31, 2020 March 393.09 766.44 March 31, 2020 March (52.28) (663.57) 6,174.86 1,411.43 For the year ended the year For For the year ended the year For 766.44 485.31 281.13 3,347.33 3,347.33 - - - 19.10 36.66 287.77 187.94 766.44 485.31 March 31, 2021 March March 31, 2021 March 3,857.44 For the year ended the year For For the year ended the year For (1,041.58) (continued)
Directors' Sitting Fees Directors' Welfare Expenses Staff Salaries & Wages Remuneration Directors' & Other Funds Provident Contribution to Expenses Share-based Payment Particulars At the beginning of the period the beginning At (i) Work-in-Progress Stock-in-Trade (ii) Stock-in-Trade Work-in-Progress (i) Work-in-Progress (v) (vi) (i) (ii) (iii) (iv) TOTAL Ind AS-19 by as required on disclosure Detailed note 43 No. Note refer details, For Stock-in-Trade (ii) Stock-in-Trade Particulars (a) (a) Note 34 - Changes in Inventories 34 - Changes Note for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE Less : Stock converted into Fixed Assets Assets Fixed converted into : Stock Less the end of the period : at Less
(b) (b) TOTAL TOTAL Benefits Expenses 35 - Employee Note VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 258 258 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
259 259
- 6.00 9.46 9.73 3.43 63.42 85.03 90.51 79.76 56.30 84.85 494.50 140.40 111.65 139.25 186.41 687.35 209.01 147.81 157.23 503.41 503.41 2,762.10 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 March 31, 2020 March (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount For the year ended the year For 2.42 0.75 4.01 9.21 18.65 42.35 65.00 10.00 678.14 March 31, 2020 March
(532.69) (529.26) For the year ended the year For - - - 71.93 18.10 54.04 11.43 76.98 21.10 41.04 23.57 67.09 10.34 64.78 77.71 205.81 235.26 151.57 119.50 463.24 745.04 109.02 March 31, 2021 March 2,567.55 For the year ended the year For - 4.85 2.81 1.98 64.27 27.91 65.00 10.00 435.33 March 31, 2021 March (597.47) (532.69) For the year ended the year For Net gain on disposal of Property plant and equipment Legal & Professional & Professional Legal Stamp Duty Charges and Franking Filing, Reimbursement of Expenses For Audit fees (including limited review) review) (including limited fees Audit fees Audit Tax Other ServicesFor Less : Closing Allowances : Closing Allowances Less Opening Allowances Opening Allowances Particulars Particulars Exceptional item consists of profit on sale of investment property item of PPE). premises (an on sale of investment and old office consists of profit item Exceptional TOTAL - Note 36 - OtherNote Expenses - Others Repairs & Maintenance : - Building - Vehicle Advertisement and Publicity Business Promotion Rates & Taxes Insurance Electricity Charges Printing and StationeryPrinting Communication Costs Communication & Subscriptions Fees Charges Issue/Transfer & Share Registrar Listing, - Other to than payments Fees & Professional Legal Auditor: - - - Conveyance & Travelling Loss on Foreign Exchange Fluctuation Fluctuation Exchange on Foreign Loss value gain on financial instrument at fair value Fair and loss Profit through : Auditors to Payments - - - Expenses Vehicle Item 37 - Exceptional Note Corporate Social ResponsibilityCorporate Expenditure 40) Note (Refer Miscellaneous Expenses TOTAL Office & General Expenses - Allowance for credit losses credit for Allowance -
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 258 258 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
261 261 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21
- 1.00 0.61 0.61 13.14 346.35 6,452.38 6,452.38 10,606.65 10,593.51 10,593.51 62,797.48 63,143.83 10,606.65 March 31, 2020 March (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount For the year ended the year For 45.78 175.57 125.00 62,797.48 As at March 31, 2020 March at As
- 1.00 0.48 0.48 11.18 495.57 5,136.12 5,136.12 10,605.24 10,594.06 10,594.06 59,595.90 60,091.47 10,605.24 March 31, 2021 March - For the year ended the year For 325.00 170.57 59,595.90 As at March 31, 2021 March at As (continued) ( B ) ( A )
Estimated amount of contracts remaining to to amount of contractsEstimated remaining on capital account not provided be executed (net of advances) for Company has provided Counter Guarantee in Guarantee Counter has provided Company various to parties Bank Guarantee to relation on behalf of subsidiary which is not company acknowledged in books of accounts Claims against the company not Claims against the company acknowledged as debts Guarantee Counter has provided Company various to Bank Guarantee to in relation parties which is not acknowledged in books of accounts Particulars Face Value per Equity Share (`) Equity per Share Value Face Basic EPS (`) For Diluted EPS Diluted For Commitments Commitments (i) Weighted average no. of equity shares (in lakhs) of equity shares no. average Weighted outstanding during the year Basic EPS For of in execution delays occur on levying which may clients for of penalty by amount of liabilities, The and/or charges is unascertained.contracts in the agreement, the time prescribed within Add: Potential equity shares equity shares Potential Add: Diluted EPS (`) Diluted (in lakhs) of shares no. between Reconciliation EPS basic and diluted calculating used for calculating Basic EPS used for of shares No. (iii) Add/Less: Adjustment relating to potential equity potential to relating Adjustment Add/Less: shares Liabilities Contingent (i) (ii) Net profit after tax attributableto equity Net profit for shareholders Basic EPS after tax attributable equityto Net profit EPS Diluted for shareholders No. of shares used for calculating Diluted EPS Diluted calculating used for of shares No.
Particulars (c) (B) + B) (A TOTAL (b) Note: (d) (A) (a) Note 38 - Earnings Per Equity Share 38 - Earnings Per Note for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE Note 39 - Contingent Liabilities and Commitments (to the extent not provided for) for) not provided the extent (to Liabilities and Commitments 39 - Contingent Note VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 260 260 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
261 261 - Total 745.04 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - (Amount in ` lakhs)(Amount 650.05 in Cash Yet to be paid to Yet - 94.99 In Cash In Cash Non-Executive Chairman (w.e.f. January 24, 2020) Chairman (w.e.f. Non-Executive Chairman upto CEO (Executive & Group Managing Director January 24, 2020) & Director 11, 2020) (Managing September (upto Director January CEO upto Group 24, 2020) Director Whole-Time Director Director Director Director Nominee Director July 31, 2020) (w.e.f. Director Officer December 20 2020) (upto Chief Financial SecretaryCompany Officer and Compliance (upto December 20 2020) December 21, 2020) (w.e.f. Officer Chief Financial Secretary(w.e.f. Company Officer and Compliance December 21, 2020) Construction / acquisition of any asset Construction of any / acquisition On purposes other than (i) above Particulars i) ii) & Directors Personnel Management Key Ramesh Mulchand Joshi Mr. Mr. Dinesh Nandwana Mr. Anil Khanna Mr. Nishikant HayatnagarkarDr. Sunil Agarwal Mr. Babulal Meena Mr. Mrs. Sujata Chattopadhyay Vyas Chandra Avinash Mr. Ranbir Datt Mr. Hari Chand Mittal Mr. Subhash Singhania Mr. Mehul Rawal Mr. Jangid Ajay Mr. Bhansali Jay Mr. Gross amount required to be spent by the company during the year is ` 745.04 lakhs. during the year the company be spent by to amount required Gross Note 42 - Related Party Details 42 - Related Note (a) Note 41 - Segment Reporting 41 - Segment Note Kendra. Vakrangee Considering the nature various services comprise activities providing predominently through Company’s The i.e. is only one reportable / or geographical) (business and there operating segment and operations, business of the Company’s “Operating Segments”. 108 – of the Indian Standard Accounting with the requirements KendraVakrangee accordance in Note 40 - Corporate Social Responsibility 40 - Corporate Note spend at least 2% of its to needs meeting the applicability threshold, per SectionAs Act, company, 2013, a the Companies 135 of areas The responsibility (CSR) on corporate years social activities. financial three preceding the immediately for net profit average and care destitute education, art eradication of hunger and malnutrition, CSR activities healthcare, promoting are for and culture, by has been formed A CSR committee projects. and rural development relief disaster sustainability, environment rehabilitation, as per the Act. the Company a)
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 260 260 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
263 263 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - - - - 4.48 1.60 2020 100% 100% 100% 58.50 54.00 26.05 16.76 18.75 240.00 1,112.93 31, 2020 March 31, March For the year the year For ended March ended March - - - - (Amount in ` lakhs)(Amount 5.92 1.21 0.49 2021 100% 100% 100% 47.77 37.20 16.09 17.72 20.00 240.00 31, 2021 March 31, March For the year the year For ended March ended March Holding as at Country of Incorporation Phillipines Phillipines India India Nephew of Director Nephew of Director Nephew of Director of Director Daughter Son of Director (continued)
Nature of Transactions Nature of Transactions Name of subsidiaries - Mr. Shelendra Nandwana Shelendra - Mr. Divya Nandwana - Ms. Nandwana Vedant - Mr. transactions during the year into has entered Subsidiary with whom the Company Companies Relative of keyRelative and Name of the enterprises management personnel same key having and/ or management personnel transactions into during as the reporting the year has entered enterprisestheir relatives the Company with whom Manoj Nandwana - Mr. Related Related Party Transactions (a) to - In relation - Dinesh Nandwana - Anil Khanna Nishikant Hayatnagarkar - Dr. - Subhash Singhania - Mehul Rawal - Ajay Jangid - Ajay Bhansali - Jay Personnel Key Managerial to benefits Post-employment - Dinesh Nandwana - Dr. Nishikant Hayatnagarkar - Dr. - Subhash Singhania - Mehul Rawal - Ajay Jangid - Ajay Bhansali - Jay Vakrangee e-SolutionsVakrangee Inc. Vakrangee Finserve Limited Limited Finserve Vakrangee Vakrangee Logistics Private Limited Limited Private Logistics Vakrangee (c) (b) for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 262 262 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
263 263 - - - - - 3.44 0.09 1.02 3.95 0.29 2.50 8.97 2.15 6.28 2.00 3.95 6.81 3.25 0.03 0.05 15.40 18.73 307.64 31, 2020 31, 2020 For the year the year For For the year the year For VAKRANGEE LIMITED VAKRANGEE ended March ended March ended March ended March Integrated Annual Report 20-21 ------(Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 1.66 2.95 2.75 7.34 2.70 5.13 2.50 3.20 6.43 2.75 2.25 3.18 1.80 0.40 4.63 15.42 12.48 31, 2021 31, 2021 For the year the year For For the year the year For ended March ended March ended March ended March Nature of Transactions Nature of Transactions Nature of Transactions Nature of Transactions - In relation to (b) to - In relation Reimbursement of Expenses Paid of Expenses Paid Reimbursement - Manoj Nandwana Related Related Party Transactions (a) to - In relation - Shelendra Nandwana ESOP Perquisites Nishikant Hayatnagarkar - Dr. - Divya Nandwana Directors Sitting Fees - Ramesh Mulchand Joshi Nandwana Vedant - - Sunil Agarwal Benefit Expenses Employee - Manoj Nandwana - Babulal Meena - Shelendra Nandwana - Sujata Chattopadhyay - Divya Nandwana - Avinash Chandra Vyas Chandra - Avinash Nandwana Vedant - - Ranbir Datt - Mehul Rawal Jangid - Ajay Bhansali - Jay - Hari Chand Mittal 31 : outstanding as on March Balance (Expenses and Salaries Payable) - Dinesh Nandwana Nishikant Hayatnagarkar - Dr. - Anil Khanna - Subhash Singhania
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 262 262 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
265 265 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - - - 6.93 0.32 2018 ended 361.53 125.00 2,724.53 31, 2020 March 31, March For the year the year For For the year the year For ended March ended March
(Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 0.90 1.31 0.42 1.15 0.50 2019 ended 360.37 325.00 2,657.46 31, 2021 March 31, March For the year the year For For the year the year For ended March ended March (continued)
Vakrangee Finserve Limited Limited Finserve Vakrangee Limited Finserve Vakrangee (Trade Limited Finserve Vakrangee Receivable) exchange including foreign e-Solutions Receivable, (Loans Vakrangee Inc. year end) fluctuationat as Nature of Transactions Nature of Transactions Nature of Transactions Nature of Transactions Sales of Support Services - Bank by issued Money against Guarantee Margin - 31 : Outstanding as on March Balance - - - In relation to (c) to - In relation Leave obligations Leave earned liability leave. for the Company’s obligations cover leave The of ` 262.92 lakhs amount of provision 31, 2020 - ` 276.07 lakhs) and non-current,The (March as current since is presented based on However, of these obligations. any settlement for right an unconditional defer to does not have the Company payment or require take to does not expect accrued leave the full amount of all employee the Company past experience, encashment as per Ind-AS 19 based on of leave provision for has accounted Company The within the next 12 months. acturial valuer. valuation undertaken a registered by (post-employment benefits) Gratuity of Gratuity who Act, 1972. Employees in India employees as per the Payment gratuity to for provides Company The on retirement/ amount of gratuity payable The gratuity. for in continuous service eligible are are a period of 5 years for basic salary last drawn salarytermination 15 days is the employees proportionately per month computed for multiplied for makes contributions recognised/ gratuity the Company plan is a funded plan and The to of service.the number of years Company The gratuity plan against this liability with LIC of India. has funded group Company The funds in India. approved of gratuity as per Ind-AS on acturial 19 based provision valuer. for valuation undertakenhas accounted a registered by plans contribution Defined fund in for provident India to also has certainmade are Contributions Company The defined benefit obligations. provident registered to made The contributions are of basic salary at the specified rate employees regulations. as per amount contributed the and it to is limited obligations of the Company The the government. by fund administered defined during the period towards expense recognised The has no further contractual constructive obligation. nor any contribution plan is ` 138.94 lakhs 31, 2020 - ` 260.04 lakhs). (March - In relation to (b) to - In relation Balance outstanding as on March 31 : March outstanding as on Balance (Expenses and Salaries Payable) - Manoj Nandwana - Shelendra Nandwana - Divya Nandwana Nandwana Vedant - (ii) (iii) Benefit Obligations 43 - Employee Note (i) for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 264 264 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
265 265 ------1.40 46.28 12.86 (5.28) (7.25) (5.49) 86.40 86.40 86.40 94.14 134.18 486.64 131.10 (70.89) 128.90 132.50 (10.64) (24.61) (400.24) (132.11) (119.25) 31-Mar-20 Net amount VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 ------(Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 17.52 95.90 11.75 (7.25) (5.49) 94.14 17.52 11.75 408.09 109.99 (40.56) (29.95) (40.56) (29.95) (313.95) (465.85) (400.24) (400.24) (313.95) 31-Mar-21 Plan assets Plan Fair value of value Fair ------1.10 35.28 46.28 31.35 134.18 131.10 (88.41) (95.90) 455.21 169.46 486.64 486.64 162.45 408.09 (42.13) (132.11) (109.99) (131.01) of obligation of obligation Present value value Present Particulars Particulars Present value of funded obligations Present value of plan assets Fair Deficit/(Surplus) of gratuity plan gratuity Deficit/(Surplus) of Gratuity in the net defined benefit and the movements in the balance sheet recognised table sets out the amount following The as follows: are the year obligations over 01-Apr-19 Current ServiceCurrent cost Past Service Past Cost Interest expense/(income) Interest Total amount recognised in profit and loss and in profit recognised amount Total Remeasurements expense / amounts included in interest Return excluding on plan assets, (income) (Gain)/loss from change in financial assumptions (Gain)/loss from Experience (gains)/losses Total amount recognised in other comprehensive income in other comprehensive recognised amount Total Employer contributions Employer Benefit payments 31-Mar-20 01-Apr-20 Current ServiceCurrent cost Past Service Past Cost Interest expense/(income) Interest Total amount recognised in profit and loss and in profit recognised amount Total Remeasurements expense / amounts included in interest Return excluding on plan assets, (income) (Gain)/loss from change in financial assumptions (Gain)/loss from Experience (gains)/losses Total amount recognised in other comprehensive income in other comprehensive recognised amount Total Employer contributions Employer Benefit payments 31-Mar-21 The net liability disclosed above relates to funded plans are as follows funded plans are to relates net liabilityThe disclosed above
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 264 264 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
267 267 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 9% 9% 11% 10% 5.55 0.85 1.77 6.70% 5.00% 17.28 74.55 91.83 100.00 Ultimate Ultimate 31-Mar-20 31-Mar-20 31-Mar-20 IALM 2012-14 31-Mar-20 - 8% 8% 9% 10% 9.68 4.02 6.67% 5.00% 18.74 67.56 86.30 In Percentage % In Percentage 100.00 Ultimate Ultimate 31-Mar-21 31-Mar-21 Increase in assumption Increase 31-Mar-21 IALM 2012-14 31-Mar-21 Decrease in assumption Decrease Impact benefit obligation on defined Increase by Increase by Increase by Increase by Decrease by by Decrease Decrease by by Decrease Impact defined benefit obligation on 1% 1% 1% 1% 31-Mar-20 31-Mar-20
(continued) 1% 1% 1% 1% Change in assumption Change 31-Mar-21 Change in assumption Change 31-Mar-21
Particulars Particulars TOTAL Salary rate growth Discount rate Discount rate Salary growth rate (per annum) Salary rate growth Mortality Table Sensitivity analysis weighted is: principal assumptions sensitivityThe changes in the to of the defined benefit obligation Significant estimates- actuarial estimates- assumptions and sensitivitySignificant follows as actuarial significant were The assumptions for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE as follows: of plans assets are major categories *The The methods and types the priorThe to the sensitivity period. of assumptions used in preparing compared analysis did not change The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In based on a change in sensitivity analyses are above practice, The When calculating the sensitivity of the be correlated. and changes in some of the assumptions may this is unlikely occur, to obligation (present value of the defined benefit to significant actuarialdefined benefit obligation assumptions the same method method at the end of the reporting unit credit period) with the projected has been applied as when calculating the calculated sheet. in the balance recognised defined benefit liability Discount rate Salary rate growth Equity instruments securities backed Asset Insurance contributes all the ascertained Life Corporation of India gratuity to Company (LIC)*The liabilities towards which is the is of the investments LIC the detailed breakup in the plan assets is managed by Since the investments managed fund. insurer- the Company. to not made available Debt instruments bonds/debentures Corporate and cash equivalents Cash Government bonds VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 266 266 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
267 267 6,02,550 19,61,400 18,13,475 64,58,800 1,77,89,650 1,26,89,700 options Number of VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 31-Mar-20 49.95 18.53 30.58 35.60 86.88 70.46 Average Average per share per share option (`) exercise price price exercise - - 64,58,800 32,45,125 17,31,025 32,13,675 options Number of - - 31-Mar-21 70.46 61.42 86.85 79.48 Average Average per share per share option (`) exercise price price exercise The present value of defined benefit plan liability is calculated using a discount rate which is determined by which is determined value of defined benefit plan liabilityrate using a discount is calculated present The market to of the reporting yields at the end Most of the plan asset period bonds. on government reference subject securitiesto grades and in government income securities which are with high is in fixed investment maintain to intends Company The risk. rate in equityinterest A portion securities. invested of the funds are mix in the continuing years. investment the above this will be in the market the plan liability;A decrease bond will increase yields in the government however, return debt investments. on the plan's in the partiallyan increase by offset by which is determined value of defined benefit plan liabilityrate using a discount is calculated present The of the mortality the best estimate to of plan participantsreference both during An and after employment. expectancy in the life increase of the plan participants liability. the plan's will increase by which is determined benefit plan liability value of defined using a discount rate is calculated present The salaries in the salary of plan participants. the future such, an increase to As plan participants of the reference liability. the plan's will increase Particulars Set out below is a summarySet out below under the plan: of options granted Options are granted under the plan for no consideration and carry no dividend or voting rights. When exercisable, each option each exercisable, When no consideration and carry under the plan for granted rights. no dividend or voting Options are price of the options is a price which is determined at 50% of market exercise The price is convertible one equity into share. other price the Nomination and as decided by or at any Exchange) the highest traded Stock (on of the scrip of the company Committee. RemunerationCompensation and Once vested, the options remain exercisable for a period of 4 /5 years. for exercisable the options remain Once vested, Risk Exposure are detailed of which the most significant to a number ofis exposed risks, Company the its defined benefit plans, Through riskInvestment riskInterest riskLongevity Salary risk based payments 44 - Share Note the members/ by 2008 (ESOP Scheme) which was approved Option Scheme, Stock Employee has formulated company The 23, 2008, as modified on general meeting held on September at their annual January of the Company shareholders 2011 10, the by approved “ESOP Scheme 2014” the new has formulated the company Further and June 1, 2012 annual general meeting. to incentives provide to is designed Option Plan Employee The postal ballot on May 23, 2014. through members of the company proportionately options which vest granted are employees Under the plan, servingall the existing employees with the Company. lock in period. which includes date the grant from 2 – 6 years from Opening balance Granted duringGranted the year Exercised during the year Exercised Lapsed during the year Closing Balance Closing Vested and exercisable Vested No options expired during tables. the periodsNo options expired in the above Nil 31, 2021 was ` during ended March the year of options exercised price of exercise at the date share average weighted The 31, 2020 : ` 63.10). (March
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 266 266 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
269 269 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 26.05 14.18 17.83 6.80% 0.39% 27.48% 3,66,100 2,00,600 2,36,300 1,42,300 2,09,400 1,12,100 3,25,600 2,96,800 2,05,300 1,13,200 9,70,300 10,00,000 22,80,800 08-10-2030 09-10-2019 64,58,800 31-Mar-19 Share options Share 26.05 14.18 17.28 6.67% 0.43% 32.38% - 08-10-2028 09-10-2019 71,700 40,200 64,000 32,475 3,01,300 1,37,200 1,54,200 1,18,400 1,77,900 2,16,800 5,93,900 13,05,600 32,13,675 31-Mar-20 36.80 17.95 27.26 6.67% 0.44% Share options Share 50.68% 09-07-2028 10-07-2019 (`) 69.85 25.93 14.38 18.03 32.95 17.95 14.18 14.18 32.35 56.54 137.33 202.28 109.40 67.00 32.95 49.42 7.50% 0.37% Year ended March 31, 2020 ended March Year 44.79% 14-04-2028 15-04-2019 Exercise price price Exercise (continued) 09-07-2027 04-10-2027 02-01-2028 14-04-2028 09-07-2028 08-10-2028 08-10-2030 08-01-2027 12-04-2027 25-10-2026 10-03-2025 25-07-2026 26-11-2023 Expiry date
Fair value (`) Fair Risk free interest rate rate interest Risk free Options are granted for consideration and vest upon completion of service for a period of one / two years. Vested options Vested completion of service upon consideration and vest a period of one / two for years. for granted Options are vesting. years after / five a period of four for exercisable are Expected dividend yield Share price at grant date (`) date price at grant Share shares Expected price volatility of the company’s Expiry date Exercise price Exercise Grant date Particulars Grant date Grant TOTAL i) h) 10-07-2018 05-10-2018 03-01-2019 15-04-2019 10-07-2019 09-10-2019 09-10-2019 of options granted value Fair of options granted date fair value at grant The 31, 2021. ended March option during the year any has not granted company The is determined using date fair value at grant The 31, 2020 was ` 49.42, ` 27.26, ` 17.28 and ` 17.83. ended March during the year and date price at grant the term of the option, the share price, the Black Scholes Model which takes account the exercise into the term of the for rate expected the expected interest price dividend yield and the risk volatility free of the underlying share, option. 2020 included: 31, ended March during the year options granted model inputs for The a) g) 09-01-2018 13-04-2018 e) f) 26-10-2017 d) b) c) 11-03-2016 26-07-2017 26-11-2014 Share options outstanding at the end of the year have the following expiry prices: the following and exercise date have options outstanding at the end of the year Share for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE The expected price volatility is based on the historic volatility (based on the remaining life of the options), adjusted for any any for of the options), adjusted expectedThe price life volatility is based on the historic volatility on the remaining (based information. publicly available volatility due to future expected changes to VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 268 268 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
269 269
------2020 138.85 Level 2 Level 138.85 (663.57) March 31, March VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 ------(Amount in ` lakhs)(Amount (Amount in ` lakhs) (Amount 2021 Level 1 Level (1,041.58) March 31, March 10.14 value 584.01 138.85 2,739.54 1,004.75 1,902.87 Carrying 1,07,614.49 1,13,994.65 ------FVOCI ------FVTPL 138.85 138.85 - cost 10.14 584.01 2,739.54 1,004.75 1,902.87 Amortised 1,07,614.49 1,13,855.80 Unadjusted quoted prices quoted in active marketsUnadjusted identical assets and liabilities. for either directly or observableInputs 1 that are the asset or liability, other than prices for included within Level indirectly. Unobservable the asset or liability. inputs for
Expense arising from share based payment transactions based payment share Expense arising from as part or loss in profit benefit of employee transactions based payment recognized share arising expenses from Total as follows: expense were Method and assumptions used to estimate the fair value estimate Method used to and assumptions both financial for the determination of fair value, require accounting policies and disclosures A number of the Company’s to transfer to sell an asset or paid received would be Fair value is the price that and liabilities. as non-financial assets as well a liability transaction in an orderly between market measurement A fair value participants date. at the measurement the liabilityassumes that the transaction takes sell the asset or transfer to place either in the principal market the asset for principalThe or liability or in the absence of a principal market, in the most advantageous market liability. the asset or for market or the most advantageous market the Company. must be accessible to the assumptions that market using fair value of an asset or a liabilityThe is measured participants use when pricing would assuming that market participantsthe asset or liability, act in their economic best interest. categorised the within are or disclosed in the financial statements fair value is measured which All assets and liabilities for The fair as a whole. to the fair value measurement input that is significant level based on the lowest fair value hierarchy is described as below:value hierarchy 1 : Level 2 : Level follows:- carryingThe as were 31, 2021 each classification as at value and fair value by March Level 3 : Level Particulars Particulars
j)
Employee Stock Option Plan Stock Employee Instruments 45 - Financial Note (i) Financial Assets Financial Loans Term Long Trade Receivables Trade Cash & Cash equivalents & Cash Cash Other Bank Balances Short Term ShortLoans Term Other Financial Assets Other Financial Investments* TOTAL
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 268 268 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
271 271 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 ------126.94 Level 2 Level Level 2 Level 126.94 ------(Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 206.90 Level 1 Level Level 1 Level 206.90 - - 20.16 value value 520.22 333.84 2,817.25 1,243.61 6,562.47 3,478.87 2,675.57 8,126.90 Carrying Carrying 16,169.30 10,041.34 10,802.47 1,32,849.52 1,53,953.90 ------FVOCI FVOCI ------(continued) FVTPL FVTPL 333.84 333.84 - - - cost cost 20.16 520.22 2,817.25 1,243.61 6,562.47 3,478.87 2,675.57 8,126.90 16,169.30 10,041.34 10,802.47 Amortised Amortised 1,32,849.52 1,53,620.06
Financial Risk Management Financial risk management the establishment and overview for responsibility of the company’s has overall of Directors Board The has established a risk of Directors management policy Board The and analyse the risks identify the to faced by framework. Risk limits. management systems to risk monitor and adherence and to risk limits and controls, set appropriate to Company, Committee Audit The activities. periodically reflect changes in market to reviewed conditions and the company’s are and risk management policies and procedures, compliances with the company’s management monitors how oversees Internal by Internal in its role Audit. Audit is assisted Committee Audit The the riskreviews management framework. Committee. reported the Audit to of which are the results and procedures, of risk review management controls covers various Risk, exposed to activities risk viz. Credit are Liquidity Company’s RiskThe and Market Risk. In it uses various on the financial performance effects adverse Company, minimise any of the to order / Management of Directors of the Company. the Board policies set up by instruments and follows Particulars Particulars for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE Financial Assets Financial Loans Term Long Financial Liabilities Financial Borrowings Trade Receivables Trade Trade Payables Trade Cash & Cash equivalents & Cash Cash Other Financial Liabilities Other Financial Other Bank Balances TOTAL Short term Loans The The carrying value and fair value by each classification as at March 31, 2020were as follows:- Other financial assets Investments* TOTAL Financial Liabilities Financial Borrowings Trade Payables Trade Other Financial Liabilities Other Financial TOTAL
*excluding Investments in Subsidiary Investments *excluding (` 2,796.00 lakhs Companies 31, 2020 : ` 2,796.00 lakhs) (March at cost. measured (ii) VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 270 270 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
271 271 - - 3.43 0.19 0.17 Total Total 2020 2020 12.70 529.26 623.36 532.69 March 31, March March 31, March 1,32,745.79 1,33,382.21 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - - (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 3.56 0.82 2021 2021 64.78 532.69 834.15 597.47 1,028.82 > 5 years March 31, March March 31, March 1,06,344.61 1,08,211.96 - - 1 - 5 years - - < 1 Year Liquidity Risk : Liquidity difficulty with financial will encounter risk in meeting obligations associated is the risk that the Company for managing approach Company’s The cash or another financial asset. delivering settled by liabilities that are under both normal are due, sufficient liquidity meet its liabilities when they to that it will have liquidity ensure is to typically reputation, without incurring conditions, unacceptable losses or riskingand stressed Company’s damage to servicing to meet expected operational expenses, cash on demand that it has sufficient ensures of the company financial obligations. of financial liabilities Maturities contractual maturities the remaining of financial liabilities: details regarding provides table below The Credit Risk : Credit risk is the risk counterpartyCredit or service of financial loss arisingrepay from to to debt according failure risk of both, the direct risk encompasses the contractual Credit of default and the risk of terms or obligations. limits analysing credit by riskdeterioration of creditworthiness is controlled Credit concentration of risks. as as well after obtaining has been granted and creditworthiness whom the credit basis to on a continuous of customers credit. necessary for approvals Company with the managed in accordance are balances with banks and financial institutions risks from Credit with by only dealing risk the credit to limit attempts Company the instruments, derivative and financial For policy. rating agencies. by credit ratings assigned high credit banks and financial institutions having reputable to banks and other given financial guarantees to risk relation in credit is exposed to In addition, the Company is the in this respect maximum exposure Company’s The subsidiary. parties by counter facilities availed the for is called upon. if the guarantee pay to have would maximum amount the Company areas industries geographical diverse and across spread number of customers consists of large receivables Trade and regularly monitored receivables are The outstanding trade risk. concentration of credit with no significant receivables. action collectionappropriate is taken of overdue for
b)
a) Movement in the expected credit loss allowance in the expected credit Movement As on March 31, 2021 on March As Age of receivables Age TOTAL TOTAL Table showing age of gross trade receivables and movement in expected credit loss allowance: in expected credit and movement receivables trade of gross age showing Table Balance at beginning of the year Balance at beginning at lifetime calculated on trade receivables loss allowance in expected credit Net movement losses expected credit Within the credit period the credit Within 1-90 days past due 1-90 days past due 91-180 days past due 181-270 days past due than 270 days More Non-Current borrowings Current borrowings borrowings Current
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 270 270 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
273 273 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - - - Total Total 36.14 36.14 2,724.53 31, 2020 31, 2020 (27.25) As at March March at As As at March March at As 1 % decrease ( USD in Lakhs) - - - (Amount in ` lakhs)(Amount Assets (Amount in ` lakhs) (Amount in ` lakhs) (Amount 36.14 36.14 2,657.46 31, 2021 31, 2021 > 5 years 27.25 As at March March at As As at March March at As 1% increase For year ended March 31, 2020 ended March year For - - - 31, 2020 1 - 5 years (26.57) As at March March at As 1 % decrease Impact of Profit and Loss / EquityLoss / and Impact of Profit - - - Liabilities < 1 Year 31, 2021 26.57 As at March March at As 1% increase For year ended March 31, 2021 ended March year For (continued)
Market Risk - Foreign Exchange RiskMarket - Foreign currency Risk of a financial instrument will fluctuate cash flows is that risk in which fair value or future Foreign internationally and a portion operates Company The of rates. exchange because of changes in the foreign exchange foreign is exposed to the Company and therefore its business is transacted currencies in several hedges the Company The currencies. in various foreign sales and purchases its overseas risk through consultant and as per policies view after discussion with Forex forming by as payables as well receivables various currency banks to from loans availed the Foreign is also exposed to Company The Management.by cost. interest the overall reduce
Market Risk:Market a change in the Marketresult from may that cash flows risk earnings is the risk or fair values or future of future of loss the interest result of changes in as a may change The value of a financial instrument price of a financial instrument. and other market rates market exchange changes that affect instruments. risk sensitive foreign rates, (i)
c) Currency Currency As on March 31, 2020 on March As Particulars TOTAL Trade Receivables Trade Loans Receivable Loans Foreign Currency Sensitivity Currency Foreign Tax and impactEquity on after impact on Profit the following will have rates exchange in foreign or decrease 1% increase for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE US Dollar (USD) risk because the exposure exchange foreign of the inherent opinion, the sensitivity analysis is unrepresentative In management’s at the end of the reporting duringyear.. period the the exposure does not reflect US Dollar (USD) Non-Current borrowings Current borrowings borrowings Current currency monetary denominated foreign carrying assets and liabilities as at the end of the The amount of the Company’s reporting period is as follows: Foreign Currency Exposure Exposure Currency Foreign VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 272 272 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
273 273 % of 100% 100% 100% 57.19 704.23 25.17% (448.32) (368.94) 2,056.42 8,170.76 2,724.53 1,631.24 31, 2020 31, 2020 31, 2020 (927.01) 1,296.35 1,744.67 2,724.53 As at March March at As As at March March at As For the year the year For VAKRANGEE LIMITED VAKRANGEE ended March ended March shareholding Integrated Annual Report 20-21 - (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount (Amount in ` lakhs) (Amount 28.08 705.90 523.62 96,000 25.17% 182.28 (242.18) 1,695.97 6,738.59 2,657.46 31, 2021 31, 2021 31, 2021 1,481.87 1,453.79 2,657.46 1,50,00,000 1,20,00,000 As at March March at As As at March March at As For the year the year For No. of Shares of Shares No. ended March ended March as at year-end as at Particulars Particulars Name of Subsidiaries Name of Subsidiaries The following table provides the details of income tax liabilities and income tax assets as of March 31, 2021 and March 31, 31, 2021 and March the details of income tax liabilities and income tax assets as of March table provides following The 2020: Earlier tax expenses year expense Tax Income Current Effect of non-deductible expenses Others year of current expense Tax Income Enacted tax rates in IndiaEnacted tax rates expected tax expense Computed Profit before income taxes before Profit Liabilities Tax IncomeCurrent the end tax liabilities / (assets) at income Net current - Vakrangee e-SolutionsVakrangee Inc. - to the subsidiary financial assistance provide of loan is to company) (Purpose in Subsidiaries Details of Investment Assets Income Tax A reconciliation of the income tax provision to the amount computed by applying the statutory by the amount computed the to to income tax rate tax provision of the income A reconciliation below: is summarized taxes income income before Vakrangee e-SolutionsVakrangee Inc. (incorporated in Philippines) Limited Finserve Vakrangee Limited Private Logistics Vakrangee Market Risk - Interest Rate RiskMarket - Interest of a financial instrument will fluctuate risk because of cash flows rate is the risk that the fair value or future interest The changes in market rates. interest subsidiaries Details of loans to (b) (ii) Note 47 - Income Taxes Taxes 47 - Income Note (a) under Section 2013 pertaining Act, 46 - Disclosure Note subsidiaries and associates of the Companies 186 (4) to (i) ii)
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 272 272 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
275 275 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 6.19 422.03 (92.52) (961.18) 1,296.35 31, 2020 31, 2020 (927.01) (520.74) (1,262.18) For the year the year For For the year the year For ended March ended March ended March ended March (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 30.01 58.10 120.60 182.28 (92.52) (372.58) 1,481.87 31, 2021 31, 2021 (927.01) DIN : 00062638 Bhansali Jay SecretaryCompany Whole-time Director Dr. Nishikant Hayatnagarkar Dr. For the year the year For For the year the year For ended March ended March ended March ended March DIN : 00062532 MD & Group CEO MD & Group Dinesh Nandwana Dinesh Nandwana (continued) Ajay Jangid Ajay Officer Chief Financial DIN : 00002683 Chairman For and on behalf of the Board of Directors and on behalf of the Board For Ramesh Joshi
Particulars Particulars The gross movement in the current income tax liability / (asset) for the year ended March 31, 2021 and March 31, 2020 is as 31, 2021 and March ended March the year income tax liability in the current / (asset) for movement gross The follows: Net deferred income tax liability at the beginning tax liability the beginning at income Net deferred Movements relating to temporary differences temporary to relating Movements differences Temporary differences on other comprehensive income on other comprehensive differences Temporary Net deferred income tax liability the end at income Net deferred Net current income tax liability / (asset) at the beginning tax liability the beginning / (asset) at income Net current tax liability the end / (asset) at income Net current Income Tax paid Tax Income expense Tax Income Current ended the year income tax account for in the deferred movement gross The as follows: 31, 2018, are 31, 2019 and March March Anil Agarwal Anil Partner 041396 Membership No.: : Mumbai Place : June 19, 2021 Date Chartered Accountants : 116293W No. Registration Firm's As per our reportAs date of even Sanzgiri & Co. A. P. For
for the year ended March 31, 2021 31, 2021 year ended March for the STATEMENTS FINANCIAL Statements Financial to Standalone Notes STANDALONE Note 48 - Previous year figures figures year 48 - Previous Note 2015 (Ind Rules, Companies (IndianAccounting Standards) with the in accordance been prepared have financial statements The accounting practices the under Section and polices to AS) prescribed Act, recognised 2013 and other 133 of the Companies to make necessary, them comparable. reclassified wherever / regrouped been have figures year’s previous The extent applicable. (c ) (c VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 274 274 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
275 275 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21
VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 274 274
CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS 284 278 286 287 288 290 291
CONSOLIDATED STATEMENTS FINANCIAL Balance Sheet Independent Auditors’ Report Independent Auditors’ Annexure “A” to the Independent Auditor’s Report the Independent to Auditor’s “A” Annexure Loss and of Profit Statement Statement Flow Cash of changes in equityStatement Statements Standalone Financial to Notes 278
CONSOLIDATED FINANCIAL STATEMENTS Independent Auditors’ Report
To the Members of Vakrangee Limited, Key Audit Matter Key audit matters are those matters that, in our professional Report on the Audit of the Consolidated Financial Statements judgment, were of most significance in our audit of the Opinion consolidated financial statements of the current period. These We have audited the accompanying consolidated financial matters were addressed in the context of our audit of the statements of VAKRANGEE LIMITED (hereinafter referred to consolidated financial statements as a whole, and in forming our as the “Holding Company”) and its subsidiaries (the Company opinion thereon, and we do not provide a separate opinion on and its subsidiaries together referred to as “the Group”),which these matters. We have determined the matters described below to comprise the Consolidated Balance Sheet as at March 31, 2021, be the kay audit matters to be communicated in our report. and the Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Consolidated Statement of Changes 1. Estimates Involving in Capitalisation of Capital in Equity and the Consolidated Statement of Cash flows for the Expenditure, and determining their useful lives year then ended on that date, a summary of significant accounting (Refer Note 1” Significant Accounting Policies”, Critical policies and other explanatory information (hereinafter referred to Accounting Estimates and Note 4 “Property, Plant and as “the consolidated Financial Statements”). Equipment” for details)
In our opinion and to the best of our information and according to Group has capitalised items of Property, Plant and Equipment the explanations given to us, the aforesaid consolidated financial (PPE), mainly related to the Automated Teller Machine (ATM) statements give the information required by the Companies Act, purchased newly from the OEM. Expenditure such as freight 2013 in the manner so required and give a true and fair view in cost and cost to bring the asset to the location and new conformity with Indian Accounting Standards prescribed under acquisition cost are capitalised. Identification and allocation Section 133 of the Act read with the Companies (Indian Accounting of the related expenditures involves judgement and Standards) Rules, 2015, as amended (“Ind AS) and other accounting estimation of future economic benefit. principles generally accepted in India, of their consolidated state The useful lives of PPE items are based on management’s of affairs of the Group as at March 31, 2021, the consolidated profit, estimates regarding the period during which the asset or its consolidated total comprehensive income, consolidated changes significant components will be used. The estimates are based in equity and its consolidated cash flows for the year ended on that on historical experiences, market practice and group decision date. on technical evaluation of useful lives of the ATM.
Basis for Opinion Capital expenditure and new acquisition is not considered We conducted our audit of the consolidated financial statement in to be an area of significant risk for our audit but as it accordance with the Standards on Auditing (SAs) specified under requires considerable time and resource to audit due to its section 143(10) of the Companies act, 2013. Our responsibilities magnitude, it is considered to be a key audit matter. under those Standards are further described in the Auditor’s Principal Audit Procedure Responsibilities for the Audit of the Consolidated Financial We assessed whether the Group’s accounting policy in Statements section of our report. We are independent of the relation to the capitalisation of expenditures are in sync and Group in accordance with the Code of Ethics issued by The in compliance with IND AS and found them to be consistent. Institute of Chartered Accountant of India (ICAI) together with the independence requirements that are relevant to our audit of the We obtained a listing of capital expenditures and major consolidated financial statements under the provisions of the Act acquisition during the year and, on a sample basis, checked and Rules made thereunder, and we have fulfilled our other ethical whether the assets were undertaken based on internal responsibilities in accordance with these requirements and the purchase order that had been properly approved by the ICAI’s Code of Ethics. We believe that the audit evidence we have key person with such authority with no material exceptions obtained is sufficient and appropriate to provide a basis for our noted. We inspected a sample of contracts and underlying audit opinion on the consolidated financial statements. invoices to determine whether the classification between capital and operating expenditure was appropriate. We noted no material exceptions.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
279 279 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Principal Audit Procedure Audit Principal and the design and tested evaluated We of the general controls operational effectiveness Group. VKMS of the i.e., system of information the purpose of giving not for Although our audit is of the information an opinion on effectiveness the group’s reviewed we controls, technology of IT and the controls framework of governance the data, the access to on the management of of and changes in programs, development and other generation of financial information of analytical data. review useful data for established and the controls IT environment The of management combined with the testing by which compensating controls, including controls, basis for us reasonable provide applied, have we in the integrity of the reliability and our reliance of the the preparation for generated information financial Statements. consolidated Group’s Loss Expected Credit of the described(d) 2 (B) (xi) in Note As year for the financial statements consolidated management Group The 31, 2021. ended March losses credit for has determined the allowance based on historicalexperience loss to adjusted reflect the impact of the economic conditions. loss model requires credit for allowance The COVID-19 of consideration of the effect pandemic business operations/ability on the customers’ event the Company Based on such analysis dues. pay to ` 800.29 to aggregating an allowance has recorded 7 & in Note 31, 2021, considered lacs as at March We financial statements. 13 of the consolidated losses as a keyfor credit audit identified allowance significant exercises because the Company matter losses. in calculating the expected credit judgment 3. We evaluated whether the useful lives of the component whether the useful lives evaluated We in line management were the determined and applied by assessment and the market group with historical experience, practice. of PPE items checked whether the depreciation We comparing of the by the date was commenced timely, with to asset in use, work in progress from reclassification no noted We of the actthe date of completion of the work. material exceptions. disclosures related to Reference disclosure on the information has provided Group The the for of the addition, deletion of PPE and depreciation 4 of the existing asset in Note on such addition and year financial statement. Consolidated environment Technology Information technology environment the information identified We Limited Vakrangee in our audit, since of focus as an area the both for structure, dependent on their technology are the reasonable as for as well of their operations, processing financial of their consolidated and presentation preparation statements. its business infrastructure for has technological Group The the improvement plans for as ongoing as well activities, of the access of the management and and maintenance change in the pertinent the and applications, systems and controls and automated of newdevelopment programs business processes. components in the relevant automated restrict and cancel accesses control authorise, to Control The changes are and programme environment technology to risk mitigating the potential of fraud or error fundamental for of change in the systems based on the misuse or improper thus ensuring the integrity of the financial the Company, and accounting records. information which structure technology has an information Group The with environment than one technology comprises more The lack of controls. and segregated processes different environment suitability control technology of the general could trigger incorrectand its dependent controls of the the preparation for of critical information processing financial statements. consolidated 2.
280
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Principal Audit Procedure Information Other than the Consolidated Financial Statements We have performed the following procedures: and Auditor’s Report Thereon The Holding Company’s Board of Directors is responsible for the i. Evaluated the design and implementation including preparation of other information. The other information comprises the operating effectiveness of the controls over: the information included in the Annual Report, for example • Basis of consideration of the impact of the Management Discussion and Analysis, Board’s Report including economic conditions Annexures to Board’s Report, Business Responsibility Report, Corporate Governance and Shareholder’s Information, but does • Completeness and accuracy of the data used in not include the consolidated financial statements and our auditor’s estimation of probability of default report thereon. The Annual report is expected to be made available • Computation of the expected credit loss to us after the date of this our auditor’s report. allowance Our opinion on the consolidated financial statements does not ii. Carried out inquiries with the management to cover the other information and we do not express any form of understand the impact of COVID-19 in terms of assurance conclusion thereon. identification of distressed customers and evaluation of recoverability of dues, extension in contractual In connection with our audit of the consolidated financial terms for collections. statements, our responsibility is to read the other information iii. Tested the completeness and accuracy of the ageing identified above when it becomes available and, in doing so, of accounts receivable data. consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge iv. Further in addition to the above process, a forward- obtained in the audit or otherwise appears to be materially looking expected loss impairment model as prescribed misstated. in IND AS 109 “Financial Instruments” was also applied by the Company. This involves judgment as the When we read Annual Report, if we conclude that there is a expected credit losses must reflect information about material misstatement therein, we are required to communicate past events, current conditions, and forecasts of future the matter to those charged with governance. conditions. v. Selected a sample of the customers, and Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements • Verified publicly available credit reports and other information relating to the Company’s The Holding Company’s Board of Directors is responsible for the customers to test if the management had matters stated in section 134(5) of the Companies Act, 2013 (“the correctly considered the adjustments to credit Act”) with respect to the preparation of these consolidated financial risk. statements that give a true and fair view of the consolidated financial position, consolidated financial performance, consolidated • Obtained and verified the details of credit total comprehensive income, consolidated changes in equity period extension granted to the customers and and consolidated cash flows of the Group in accordance with developed an expectation of similar extensions the Ind AS and other accounting principles generally accepted across other customers of the Company. in India. The respective Board of Directors of the Companies included in the Group are responsible for maintenance of vi. Recomputed the expected credit loss allowance adequate accounting records in accordance with the provisions considering the above determined input data and of the Act for safeguarding of the assets of the Group and for compared the amounts so recomputed with the preventing and detecting frauds and other irregularities; selection amounts recorded by the management to determine and application of appropriate accounting policies; making if there were any material differences individually or in judgments and estimates that are reasonable and prudent; and the aggregate. design, implementation and maintenance of adequate internal
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
281 281 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Obtain an understanding of internal financial control relevant of internalObtain an understanding control financial that are audit procedures design to the audit in order to Under section 143(3) in the circumstances. appropriate for also responsible are Act, 2013, we (i) of the Companies and its our opinion on whether the Company expressing subsidiary incorporated companies in companies which are in place system India, internal financial controls has adequate of such controls. and the operating effectiveness policies used of accounting the appropriateness Evaluate and related estimates of accounting and the reasonableness management. made by disclosures use of of management’s on the appropriateness Conclude on the based the going concern basis of accounting and, a material whether uncertaintyaudit evidence obtained, cast significant or conditions that may events to exists related continue as a going to doubt on the ability of the Group concern. If conclude that a material uncertainty we we exists, report the to in our auditor’s attention draw to required are financial statements in the consolidated disclosures related modify our opinion. to inadequate, are if such disclosures or, the audit evidence based on obtained Our conclusions are events future report. However, of our auditor’s the date up to continue as a cease to to cause the Group or conditions may going concern. and content structure presentation, the overall Evaluate including the financial statements, of the consolidated financial statement and whether the consolidated disclosure, underlying the transaction in a and the events represent fair presentation. manner that achieve the regarding audit evidence Obtain sufficient appropriate of the entities or business activitiesfinancial information an opinion on the consolidated express to within the Group the direction, for responsible We are financial statements. supervision and performance of the audit of the financial of such entities included in the consolidated statements the independent are we of which financial statements the other entities included in the consolidated For auditors. by other been audited which have financial statements, the for responsible remain such other auditors auditors, direction, supervision and performance of the audits carried our audit for solely responsible remain We them. out by opinion. • • • • • Identify and assess the risks of the of material misstatement to fraud or whether due financial statements, consolidated to and perform responsive design audit procedures error, and obtain audit evidence that is sufficient and those risks, riskThe of not our opinion. a basis for provide to appropriate fraud is from resulting detecting a material misstatement involve as fraud may error, from one resulting higher than for misrepresentations, omissions, intentional collusion, forgery, or the override of internal control. • As part of an audit in accordance with SAs, we exercise professional professional exercise we partAs with SAs, of an audit in accordance the skepticism throughout and maintain professional judgment audit. We also: Auditor’s Responsibilities for the Audit of the Consolidated of the Consolidated the Audit Responsibilities for Auditor’s Statements Financial assurance about whether obtain reasonable to Our objectives are from free as a whole are financial statements the consolidated issue and to fraud or error, whether due to material misstatement, report our opinion. Reasonable that includes assurance an auditor’s that an audit but is not a guarantee of assurance, is a high level detect a material will always with SAs conducted in accordance Misstatements fraud or can arise when it exists. from misstatement aggregate, individually or in the material if, considered and are error influence the economic be expected to they could reasonably decisions of users taken financial on the basis of these consolidated statements. The respective Board of Directors of the companies included in the of Directors Board respective The reporting the financial overseeing for responsible also are Group of the Group. process In preparing the consolidated financial statements, the respective the In financial statements, the consolidated preparing are included in the Group of the Companies of Directors Board ability as a going continue to assessing the Group’s for responsible concern going to related matters as applicable, concern, disclosing, and using the going concern basis of accounting unless the cease or to the Company liquidate to management either intends do so. but to alternative or has no realistic operations, financial controls, that were operating effectively for ensuring the operating effectively were that financial controls, relevant accuracy records, of the accounting and completeness financial the consolidated of and presentation the preparation to material from free a true and fair view and are that give statements or error. fraud to whether due misstatement, 282
CONSOLIDATED FINANCIAL STATEMENTS
Materiality is the magnitude of misstatement in the • One of the subsidiary is located outside India whose consolidated financial statement that, individually or in financial statements has been prepared in accordance with aggregate, makes it probable that the economic decision of accounting principles generally accepted in such country a reasonably knowledgeable user of the financial statement and which has been reviewed by the other auditor under may be influenced. We consider quantitative materiality and generally accepted auditing standard applicable in that qualitative factors in (i) planning the scope of our audit work country. The Company’s management has converted the and in evaluating the results of our work; and (ii) to evaluate financial statements of such subsidiary located outside the effect of any identified misstatement in the financial India from accounting principles generally accepted in that statements. country to accounting principles generally accepted in India. Our conclusion in so far relates to the balances and affairs of We communicate with those charged with governance such subsidiary located outside India is based on the report regarding, among other matters, the planned scope and of other auditor and conversion adjustments prepared by timing of the audit and significant audit findings, including the management of the company and reviewed by another any other significant deficiencies in internal control that we Chartered Accountant whose report has been furnished to identify during the audit. us on which we placed reliance. We also provide those charged with governance with a Our opinion on the Consolidated Financial Statements statement that we have complied with relevant ethical above and our report on Other Legal and Regulatory requirements regarding independence, and to communicate Requirements below, is not modified in respect of the above with them all relationships and other matters that may matters with respect to our reliance on the work done and reasonably be thought to bear on our independence, and the reports of the other auditors and the financial statements where applicable, related safeguards. and other financial information certified by the management. From the matters communicated with those charged with Report on Other Legal and Regulatory Requirements governance, we determine those matters that were of most significance in the audit of the consolidated financial 1. As required by the section 143 (3) of the Act, based on our statements of the current period and are therefore the key report and on consideration of report of the other auditor audit matters. We describe these matters in our auditor’s on separate financial statements and the other financial report unless law or regulation precludes public disclosure information of subsidiaries as referred in the ‘Other Matter’ about the matter or when, in extremely rare circumstances, paragraph, we report, to the extent applicable that: we determine that a matter should not be communicated a. We have sought and obtained all the information and in our report because the adverse consequences of doing explanations which to the best of our knowledge and so would reasonably be expected to outweigh the public belief were necessary for the purposes of our audit of interest benefits of such communication. the aforesaid Consolidated Financial Statements. Other Matter b. In our opinion, proper books of account as required by • We did not audit the financial statements of three law have been relating to preparation of the aforesaid subsidiaries included in the Consolidated Financial Consolidated Financial Statements have been kept so Statements, whose financial statements reflect total assets of far as it appears from our examination of those books. ` 8873.65 Lakhs as at March 31, 2021, total revenues of c. The Consolidated Balance sheet, the Consolidated ` 9196.59 Lakhs and net cash flows amounting to Statement of Profit and Loss (including Other ` (27.32) Lakhs for the year ended on that date, as considered Comprehensive Income), the Consolidated Statement in the Consolidated Financial Statements. These financial of Changes in Equity and the Consolidated Statement statements have been audited by other auditor whose of Cash Flows dealt with by this report are in reports have been furnished to us by the management. Our agreement with the relevant books of accounts opinion on the Consolidated Financial Statements, in so far as maintained for the purpose of preparation of the it relates to the amounts and disclosures included in respect Consolidated Financial Statements. of these subsidiaries and our report in terms of sub-sections (3) and (11) of Section 143 of the Act, in so far as it relates to d. In our opinion, the aforesaid Consolidated Financial the aforesaid subsidiaries, is based solely on the reports of Statements comply with the Indian Accounting the other auditor.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
283 283 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 The Consolidated Financial Statements disclose Statements Financial Consolidated The the impact of pending litigation on the of the Group. Position Financial Consolidated Financial the Consolidated 40 to Note to Refer Statements. material foreseeable any did not have Group The losses on long-term contracts including derivative contracts ended during the year 31, 2021. March in transferring has been no delay There the to be transferred, to required amounts, the by Fund and Protection Education Investor 31, 2021. March ended during the year Group With respect to the other matters to be included in to the other matters to respect With Report with Rule 11 of in accordance the Auditor’s 2014, in Rules, and Auditors) (Audit the Companies and of our information the best our opinion and to on us and based to the explanation given to according reportthe consideration of the on auditor of the other also the other financial as financial statements separate ‘Other of the subsidiaries in the as noted information paragraph: Matter’ i. ii. iii. & Co. A.P.Sanzgiri For Chartered Accountants FRN : 116293W Agrawal Anil Partner 041396 Membership No. UDIN: 21041396AAAABL5556 Mumbai Place: June 19, 2021 Date: h. Standards Prescribed under Section of the Act, 133 Prescribed Standards Rules, (Accounts) Rule 7 of the Companies with read 2014 as amended. received On the basis of the written representations as on March of Holding Company directors the from of of Directors the Board by 31, 2021 taken on record and the reports of the Statutorythe Holding Company of its subsidiaryauditors incorporated in Company Companies India, of the Group none of the directors being 31, 2021 from disqualified as on March are in terms of Section as a director appointed 164 (2) of the Act. the adequacy to respect With and operating over of the internal financial controls effectiveness report to our separate reporting; in financial refer report of which is based on the auditor’s A” “Annexure and the reports of the statutorythe Company auditors of its subsidiary incorporated in India. Company Our report on the an unmodified opinion expresses adequacy internal of the and operating effectiveness reporting financial over of those financial control therein. stated reason for companies, in the be included to the other matters to respect With Report with the requirements in accordance Auditor’s of Section 197(16) of the Act, as amended: given and explanations the information to According ended the year for the managerial remuneration us, to the group by paid / provided 31, 2021, has been March of provisions with the in accordance directors its to the Act. V to Section with Schedule 197 read e. f. g. 284
CONSOLIDATED FINANCIAL STATEMENTS Annexure “A” to the Independent Auditor’s Report (Referred to in the paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members of Vakrangee Limited of even date).
Report on the Internal Financial Controls Over Financial Our audit involves performing procedures to obtain audit evidence Reporting under Clause (i) of Sub-section 3 of Section 143 of about the adequacy of the internal financial controls system over the Companies Act, 2013 (“the Act”) financial reporting and their operating effectiveness. Our audit In conjunction with our audit of the Consolidated Financial of internal financial controls over financial reporting included Statements of the Company as of and for the year ended March obtaining an understanding of internal financial controls over 31, 2021, we have audited the internal financial controls over financial reporting, assessing the risk that a material weakness financial reporting of VAKRANGEE LIMITED (hereinafter referred to exists, and testing and evaluating the design and operating as “Company”) and its subsidiary companies which are companies effectiveness of internal control based on the assessed risk. The incorporated in India, as of that date. procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial Management’s Responsibility for Internal Financial Controls statements, whether due to fraud or error. The Board of Directors of the Company and its subsidiary companies, which are Companies incorporated in India, are We believe that the audit evidence we have obtained, and the audit responsible for establishing and maintaining internal financial evidence obtained by the other auditor in terms of their reports controls based on the internal control over financial reporting referred to in the Other Matters paragraph below, is sufficient and criteria established by the respective Companies considering the appropriate to provide a basis for our audit opinion on the internal essential components of internal control stated in the Guidance financial controls system over financial reporting with reference to Note on Audit of Internal Financial Controls over Financial these consolidated financial Statements. Reporting issued by the Institute of Chartered Accountants of India Meaning of Internal Financial Controls Over Financial (‘ICAI’). These responsibilities include the design, implementation Reporting and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct The Company’s internal financial control over financial reporting of its business, including adherence to company’s policies, the is a process designed to provide reasonable assurance regarding safeguarding of its assets, the prevention and detection of frauds the reliability of financial reporting and the preparation of financial and errors, the accuracy and completeness of the accounting statements for external purposes in accordance with generally records, and the timely preparation of reliable financial information, accepted accounting principles. A Company’s internal financial as required under the Act. control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in Auditors’ Responsibility reasonable detail, accurately and fairly reflect the transactions and Our responsibility is to express an opinion on the internal financial dispositions of the assets of the Company; (2) provide reasonable controls over financial reporting of the Company and its subsidiary assurance that transactions are recorded as necessary to permit companies, which are companies incorporated in India, based preparation of financial statements in accordance with generally on our audit. We conducted our audit in accordance with the accepted accounting principles, and that receipts and expenditures Guidance Note on Audit of Internal Financial Controls Over of the Company are being made only in accordance with Financial Reporting (the “Guidance Note”) issued by The Institute authorisations of management and directors of the Company; and of Chartered Accountant of India and the Standards on Auditing, (3) provide reasonable assurance regarding prevention or timely prescribed under section 143(10) of the Companies Act, 2013, detection of unauthorized acquisition, use, or disposition of the to the extent applicable to an audit of internal financial controls. Company’s assets that could have a material effect on the financial Those Standards and the Guidance Note require that we comply statements. with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
285 285 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Other Matters reports under SectionOur aforesaid the Act 143(3)(i) of on the adequacy of the internal financial and operating effectiveness to these reporting financial reference over with controls so far in Company, of the Holding financial statements consolidated which of subsidiaries, financial statements separate to as it relates incorporated in India, is based on the corresponding is Company incorporated in India.reports of such Company of the auditor & Co. A.P.Sanzgiri For Chartered Accountants FRN : 116293W Agrawal Anil Partner 041396 Membership No. UDIN: 21041396AAAABL5556 Mumbai Place: June 19, 2021 Date: Opinion the to In and according of our information best our opinion, to and based on the consideration of report us, to explanation given below, paragraph ‘Other Matter’ in to as referred of other auditor, and its Subsidiary which are the Holding Company Companies, an in all material respects, companies incorporated in India, have, reporting financial over system internal financial controls adequate reporting financial over were and such internal controls financial 31, 2021, based on the internal as at March operating effectively reporting financial Company over criteriaby the established control stated considering the essential components of internal control Controls of Internal on Audit Financial in the Guidance Note ReportingOver the Institute Financial issued by of Chartered of India.Accountants Inherent Limitations of Internal Financial Controls Over Over Controls Financial of Internal Limitations Inherent ReportingFinancial of internal limitations controls financial Because of the inherent reporting, financial including the possibility of collusion or over material misstatements management override of controls, improper Also, not be detected. occur and or fraud may error due to over evaluation of the internal controls financial projections of any reporting subject periodsto the financial are risk that to future reporting financial over may become the internal financial control of or that the degree because of changes in conditions, inadequate deteriorate. may compliance with the policies or procedures 286
CONSOLIDATED FINANCIAL STATEMENTS Consolidated Balance Sheet as at March 31, 2021
(Amount in ` lakhs) Particulars Note No. As at March 31, 2021 As at March 31, 2020 I ASSETS 1 Non - Current Assets Property Plant and Equipment 4 15,564.27 14,935.07 Capital Work-in-Progress 4 140.25 461.82 Other Intangible Assets 5 - 1.83 Intangible Assets under development 5 346.43 - Financial Assets (i) Investments 6 138.85 333.84 (ii) Trade Receivables 7 - - (iii) Loans 8 108.23 118.87 (iv) Other Financial Assets 9 364.65 611.73 309.06 761.77 Deferred Tax Assets (net) 10 0.38 92.64 Other Non - Current Assets 11 59,687.18 62,550.34 Total Non-current Assets 76,350.24 78,803.47 2 Current Assets Inventories 12 497.22 781.38 Financial Assets (i) Trade Receivables 13 1,12,031.21 1,36,884.21 (ii) Cash and Cash equivalents 14 818.59 1,505.50 (iii) Bank Balances other than (ii) above 14 1,309.63 16,345.05 (iv) Loans 15 1,154.17 1,067.00 (v) Other Financial Assets 16 1,863.97 1,17,177.57 525.88 1,56,327.64 Current Tax Assets (Net) 17 516.81 1,401.59 Other Current Assets 18 93,021.52 44,579.52 Total Current Assets 2,11,213.12 2,03,090.13 TOTAL 2,87,563.36 2,81,893.60 II EQUITY AND LIABILITIES 1 Equity Equity Share Capital 19 10,594.06 10,594.06 Other Equity 20 2,55,813.98 2,53,136.44 Total Equity 2,66,408.04 2,63,730.50 2 Liabilities (i) Non - Current Liabilities Financial Liabilities (i) Trade Payables 21 - Dues of micro enterprises and small enterprises - - - Dues of Creditors other than micro enterprises and small enterprises 14.34 291.35 (ii) Other Financial Liabilities 22 40.39 54.73 39.26 330.61 Deferred Tax Liabilities (net) 23 58.10 - Employee Benefit Obligations 24 331.00 337.74 Total Non-Current Liabilities 443.83 668.35 (ii) Current Liabilities Financial Liabilities (i) Borrowings 25 - - (ii) Trade Payables 26 - Dues of micro enterprises and small enterprises 38.76 101.56 - Dues of Creditors other than micro enterprises and small enterprises 3,375.05 6,806.42 (iii) Other Financial Liabilities 27 8,086.50 11,500.31 3,439.61 10,347.59 Other Current Liabilities 28 7,236.09 5,719.70 Provisions 29 1,134.72 698.51 Employee Benefit Obligations 30 26.05 24.72 Current Tax Liabilities 31 814.32 704.23 Total Current Liabilities 20,711.49 17,494.75 Total Liabilities (i +ii) 21,155.32 18,163.10 TOTAL 2,87,563.36 2,81,893.60 Significant Accounting Policies and Notes forming part of the 1-49 Consolidated Financial Statements As per our report of even date For A. P. Sanzgiri & Co. For and on behalf of the Board of Directors Chartered Accountants Firm's Registration No. : 116293W Ramesh Joshi Dinesh Nandwana Dr. Nishikant Hayatnagarkar Chairman MD & Group CEO Whole-time Director DIN : 00002683 DIN : 00062532 DIN : 00062638 Anil Agarwal Partner Membership No.: 041396 Place : Mumbai Ajay Jangid Jay Bhansali Date : June 19, 2021 Chief Financial Officer Company Secretary
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
287 287
- 0.67 0.67 35.92 18.42 54.34 503.41 8,651.86 9,155.27 2,027.26 7,128.01 7,182.35 10,593.51 10,606.65 67,618.12 76,269.98 - VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 16.00 (Amount in ` lakhs) (Amount 439.64 March 31, 2020 March (425.63) 1,472.60 2,948.25 7,747.82 2,563.91 7,382.81 1,587.62 68,522.16 53,660.18 For the year ended the year For
- - DIN : 00062638 Whole-time Director Bhansali Jay Dr. Nishikant Hayatnagarkar Dr. SecretaryCompany 0.59 0.59 89.24 (0.74) 88.50 8,281.81 8,281.81 2,002.68 6,367.63 6,279.13 10,594.06 10,605.24 30,113.32 38,395.13 - - 949.03 281.13 120.34 March 31, 2021 March 2,697.82 1,480.51 6,965.99 3,441.90 1,882.34 21,262.93 31,429.14 For the year ended the year For 4 37 38 33 34 35 36 32 39 39 4,5 1-49 DIN : 00062532 MD & Group CEO MD & Group Dinesh Nandwana Dinesh Nandwana Note No. Note Ajay Jangid Ajay DIN : 00002683 Chief Financial Officer Chief Financial Chairman For and on behalf of the Board of Directors and on behalf of the Board For Ramesh Joshi
Particulars
Profit Before Tax and exceptional Items exceptional Tax and Before Profit Impairment Loss OtherExpenses Expenses Total Exceptional Items Exceptional Depreciation and AmortizationDepreciation Expense the period for Income Comprehensive Total Expenses Operating Expenses Tax Profit Before year for the Profit Income Other Comprehensive or loss to profit subsequently will be reclassified Items that operations foreign on translation of difference Exchange Other Income Income Total of Stock-in-Trade Purchase Changes in Inventories Benefits Expense Employee Costs Finance (b) Tax Deferred or lossto profit subsequently be reclassified will not Items that OCI at fair value through value gain on financial instrument i) Fair of net defined benefit obligations (net of taxes) ii) Remeasurement (net of tax) Income Other Comprehensive Income Income Operations Revenue from Expense: Tax (a) Tax Current Weighted Average No. of equity shares for computing EPS (in lakhs) computing for of equity shares No. Average Weighted (2) Diluted (`) (2) Diluted forming part Policies and Notes of the Accounting Significant Statements Financial Consolidated 1/- Per Share): ` 1/- Per Value (Face Equity Share Earnings Per (1) Basic (2) Diluted (1) Basic (`) Anil Agarwal Anil Partner 041396 Membership No.: : Mumbai Place Date : June 19, 2021 Date As per our reportAs date of even Sanzgiri & Co. A. P. For Chartered Accountants : 116293W No. Registration Firm's III IV II V VII VIII IX
I VI Consolidated Statement of Profit and Loss and of Profit Statement Consolidated 31, 2021 year ended March for the X 288
CONSOLIDATED FINANCIAL STATEMENTS Consolidated Cash Flow Statement for the year ended March 31, 2021 (Amount in ` lakhs) For the year For the year S. Particulars ended March ended March No 31, 2021 31, 2020 I Cash flow from operating activities Profit before tax from continuing operations 8,281.81 9,155.27 Profit before tax 8,281.81 9,155.27 Non-cash adjustment to reconcile profit before tax to net cash flows Depreciation of property, plant and equipment 1,480.51 1,472.60 Depreciation of investment properties - - Impairment of Property, Plant and Equipment - 16.00 Employee share based payment expenses (1,041.58) (663.57) Net foreign exchange differences (0.04) 0.16 Allowance for credit losses 64.78 0.03 Fair value gain on financial instrument at fair value through Profit and loss (14.54) - Remeasurement of defined benefit obligations 119.25 24.61 Gain on disposal of property, plant and equipment - (503.41) Finance costs - - Interest income (6,948.25) (7,516.51) Dividend income - (1.50) Operating profit before working capital changes 1,941.94 1,983.68 Movements in assets and liabilities : Decrease / (increase) in inventories 284.16 (370.71) Decrease / (increase) in trade receivables 24,788.22 (4,925.23) Decrease / (increase) in loans and other financial assets 13,565.22 97,886.46 Decrease / (increase) in other current assets (48,442.00) (42,222.00) Decrease / (increase) in other non-current assets 2,365.94 (61,914.95) Increase / (decrease) in trade payables (3,771.18) 3,469.60 Increase / (decrease) in employee benefit obligations (5.40) 151.49 Increase / (decrease) in provisions 436.21 300.98 Increase / (decrease) in other financial liabilities 4,648.03 (1,020.88) Increase / (decrease) in other current liabilities 1,516.39 3,005.54 Cash generated from operations (2,672.47) (3,656.02) Income taxes paid (net of refunds) (390.27) (1,424.49) Net cash flow from operating activities (A) (3,062.74) (5,080.51) II Cash flow from investing activities Purchase of property, plant and equipment, including CWIP (2,132.97) (2,150.02) Proceeds from sale of property, plant and equipment 0.22 1,387.55 Purchase of investments - - Proceeds from sale of investments 209.53 33.23 Decrease in foreign currency translation reserve (0.74) 35.92 Interest received 6,948.25 7,516.51 Dividends received - 1.50 Net cash flow from/(used in) investing activities (B) 5,024.29 6,824.69
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
289 289 - - 6.03 (0.16) 178.22 (544.41) 2,770.15 1,505.50 (2,648.51) 31, 2020 (3,008.67) (1,264.49) For the year the year For VAKRANGEE LIMITED VAKRANGEE ended March ended March Integrated Annual Report 20-21 (Amount in ` lakhs)(Amount - - - - - 0.05 818.59 1,505.50 (686.96) (2,648.51) 31, 2021 (2,648.51) DIN : 00062638 Whole-time Director Bhansali Jay Dr. Nishikant Hayatnagarkar Dr. SecretaryCompany For the year the year For ended March ended March DIN : 00062532 MD & Group CEO MD & Group Dinesh Nandwana Dinesh Nandwana Ajay Jangid Ajay DIN : 00002683 Chief Financial Officer Chief Financial Chairman For and on behalf of the Board of Directors and on behalf of the Board For Ramesh Joshi Particulars Net increase / (decrease) in cash and cash equivalents (A + B + C) (A in cash and cash equivalents / (decrease) Net increase changes on cash and cash equivalents rate Effects of exchange of the year at the beginning and cash equivalents Cash the end of the year at and cash equivalents Cash Dividend Distribution Tax paid Tax Dividend Distribution (used in) in financing Net cash flow (C) activities Cash flow from financing financing from activities flow Cash issue of shares from Proceeds Proceeds towards securities premium on issue of shares securities premium towards Proceeds of borrowings Repayment paid Interest shareholders company's Dividends paid to Anil Agarwal Anil Partner 041396 Membership No.: : Mumbai Place Date : June 19, 2021 Date As per our reportAs date of even Sanzgiri & Co. A. P. For Chartered Accountants : 116293W No. Registration Firm's S. No Significant Accounting Policies and Notes forming part of the Standalone Financial Statements 1-49 Statements Financial forming part Policies and Notes Standalone of the Accounting Significant III 290
CONSOLIDATED FINANCIAL STATEMENTS Statement of changes in equity for the year ended March 31, 2021
(Amount in ` lakhs) Other Equity Reserves and surplus Other Comprehensive Income Total equity Equity attributable Particulars Share Equity Other items Foreign to equity Capital Securities Retained General Share Options instruments of other Currency holders of premium Outstanding through other the Company reserve earnings Reserve Account comprehensive comprehensive Translation income income Reserve Balance as at March 31, 2019 10,588.03 42,318.52 1,87,875.91 18,268.04 3,793.59 - (3,207.25) 583.56 2,60,220.40 Increase in share capital on account of 6.03 ------6.03 conversion of ESOPs Amount received on shares issued - 178.22 ------178.22 during the year Transferred from Share Options - 250.10 - - (250.10) - - - - Outstanding Account Profit for the year - - 7,128.01 - - - - - 7,128.01 Dividends (including corporate dividend - - (3,192.92) - - - - - (3,192.92) tax) Transfer to General Reserve ------Share-based payments (net) - - - - (663.58) - - - (663.58) Remeasurement of net defined benefit ------18.42 - 18.42 obligations (net of taxes) Exchange Translations ------35.92 35.92 Balance as at March 31, 2020 10,594.06 42,746.84 1,91,811.00 18,268.04 2,879.91 - (3,188.83) 619.48 2,63,730.49 Increase in share capital on account of ------conversion of ESOPs Amount received on shares issued ------during the year Transferred from Share Options ------Outstanding Account Profit for the year - - 6,279.13 - - - - - 6,279.13 Dividends (including dividend - - (2,648.51) - - - - - (2,648.51) distribution tax) Transfer to General Reserve ------Share-based payments (net) - - - - (1,041.58) - - - (1,041.58) Remeasurement of net defined benefit ------89.24 - 89.24 obligations (net of taxes) Exchange Translations ------(0.74) (0.74) Balance as at March 31, 2021 10,594.06 42,746.84 1,95,441.63 18,268.04 1,838.32 - (3,099.59) 618.74 2,66,408.04
Significant Accounting Policies and Notes forming part of the Standalone Financial Statements 1-49
As per our report of even date For A. P. Sanzgiri & Co. For and on behalf of the Board of Directors Chartered Accountants Firm's Registration No. : 116293W Ramesh Joshi Dinesh Nandwana Dr. Nishikant Hayatnagarkar Chairman MD & Group CEO Whole-time Director DIN : 00002683 DIN : 00062532 DIN : 00062638 Anil Agarwal Partner Membership No.: 041396 Place : Mumbai Ajay Jangid Jay Bhansali Date : June 19, 2021 Chief Financial Officer Company Secretary
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
291 291 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 defined benefit plans- plan assets; and defined benefit plans- Payments Based Equity -settled Share the contractual arrangement the other vote with holders of the investee. rights contractual other arising from arrangements. rights voting and potential the Group’s potential In rights. voting assessing control, are exercisable rights are voting that currently and considered; has power over the investee. over has power variable to returns or has rights, it is exposed, and with the investee; its involvement from its returns through has the ability those affect to the investee. over power certain assets and liabilities (including financial derivative instruments);
The Company reassess whether or not it controls an it controls whether or not reassess Company The that there indicate if facts and circumstances investee elements of the three one or more changes to are above. listed that a majority is a presumption there Generally, support this To in control. rights result of voting has less than and when the Group presumption the majority or similar rights of the of the voting facts all relevant considers and the Group investee, over in assessing whether it has power circumstances including: an investee, y y y The Consolidated Financial statements of the Group of the Group statements Financial Consolidated The in Indian Rupees (`), which is also its presented are to functional off currency rounded and all values are when otherwiseLakhs, except indicated. Basis of Consolidation comprise financial statements consolidated The entities Company, of the the financial statements the by entities) controlled (including structured and its Subsidiaries. Company when the Company is achieved Control y y y Basis of preparation been have statements financial consolidated The following the on historical cost basis except prepared at fair been measured have asset and liabilities which value amount: y y y
iii. ii. Statement of compliance Statement prepared are financial statements consolidated These with Indian Standards in accordance Accounting “Ind under the AS”) as to referred (hereinafter Act, (hereinafter 2013 of the Companies provisions The as `the Act’) to the extent (to notified). referred under SectionInd prescribed AS are 133 of the Act (Indian with Rule 3 of the Companies Accounting read (Indian 2015 and Companies Rules, Standards) 2016. Rules, Amendment Standards) Accounting the Ind with has adopted AS in accordance Group The time adoption of Ind AS was done Ind AS 101 First 31, 2017. ended March during the year been consistently accounting policies have The unless otherwise the Group applied by or where stated is initially adopted. a newly issued accounting standard
Basis of preparation i.
A. This note provides a list of the significant accounting policies a list of the significant provides note This financial of these consolidated in the preparation adopted been consistently accounting policies have These statements. unless otherwise the Group by presented all the years applied to stated. Note 2 - Significant Accounting Policies Accounting 2 - Significant Note The Consolidated financial statements were authorized authorized were financial statements Consolidated The on June 19, 2021. of Directors the Board issue by for Vakrangee Limited along with its subsidiaries, Vakrangee Vakrangee its subsidiaries, along with Limited Vakrangee Limited Finserve Vakrangee e-Solutions Inc. (Philippines), referred (hereinafter Limited Private Logistics Vakrangee and solutions, diverse is engaged in providing “Group”) as to activities in e-governance including and e-commerce sector, KendraVakrangee (on its through bullion and jewellery, in handling B2B and B2C basis) with special competencies and e-governance multi-state, massive, enrollment software data digitization, and license. projects, Note 1 - Corporate Information 1 - Corporate Note is Company’’) ‘‘the as to referred (hereinafter Limited Vakrangee in India domiciled company and incorporated a public limited Act applicable in India. of the Companies under the provisions ‘Vakrangee at is located Company office of the registered The Andheri (East), M.I.D.C, 16, 93, Road No. No. Plot House’, Corporate shares Company’s The MumbaiMaharashtra, – 400 093, India. in India- exchanges Stock on two the Bombay stock listed are of India Exchange (NSE). (BSE) and National Stock Exchange
Notes to Consolidated financial statements financial to Consolidated Notes 31, 2021 year ended March for the 292
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
y the size of the group’s holding of voting Changes in the Group’s ownership interests in rights relative to the size and dispersion of the existing subsidiaries: holdings of the other voting rights holders. Non-controlling interests in the net assets (excluding any additional facts and circumstances that indicate goodwill) of consolidated subsidiaries are identified that the Company has, or does not have, the current separately from the Company’s equity. The interest ability to direct the relevant activities at the time that of non-controlling shareholders may be initially decisions need to be made, including voting patterns measured either at fair value or at the non-controlling at previous shareholder’s meetings. interests’ proportionate share of the fair value of the acquiree’s identifiable net assets. The choice of Subsidiaries are fully consolidated from the date measurement basis is made on an acquisition-by- on which control is transferred to the Group and acquisition basis. Subsequent to acquisition, the ceases control when the Group loses control of the carrying amount of non-controlling interests is the subsidiary. The income and expenses of subsidiaries amount of those interests at initial recognition plus the acquired or disposed of during the year are included non-controlling interests’ share of subsequent changes in the consolidated statement of profit and loss from in equity. Total comprehensive income is attributed to the effective date the Company gains control until non-controlling interests even if it results in the non- the date when the Company ceases to control the controlling interest having a deficit balance. subsidiaries. Changes in the Company’s interests in subsidiaries The financial statements of the subsidiary companies that do not result in a loss of control are accounted and entities (including structured entities) controlled for as equity transactions. The carrying amount of the by the Company used in the consolidation are drawn Company’s interests and the non-controlling interests up to the same reporting date as of the Company, are adjusted to reflect the changes in their relative Accounting policies of the respective subsidiaries interests in the subsidiaries. Any difference between are adjusted wherever necessary, so as to ensure the amount by which the non-controlling interests are consistency with the accounting policies that are adjusted and the fair value of the consideration paid or adopted by the Group under Ind AS. received is recognized directly in equity and attributed to owners of the Company. Profit or loss and each component of other comprehensive income (OCI) are attributed to the When the Company loses control of a subsidiary, owners of the Company and to the non-controlling the profit or loss on disposal is calculated as the interests. Total comprehensive income of subsidiaries difference between (i) the aggregate of the fair value is attributed to the owners of the Company and to the of consideration received and the fair value of any non-controlling interests even if this results in the non- retained interest and (ii) the previous carrying amount controlling interests having a deficit balance. of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. Amounts The financial statements of the Company and its previously recognized in other comprehensive income subsidiary companies have been consolidated on a in relation to the subsidiary are accounted for (i.e., line-by-line basis by adding together of like items of reclassified to profit or loss) in the same manner as assets, liabilities, equity, income, expenses and cash would be required if the relevant assets or liabilities flows, after fully eliminating intragroup assets and were disposed of. liabilities, equity, income, expenses, and cash flows relating to transactions between members of the Group on consolidation.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
293 293 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 exchange differences on foreign foreign on differences exchange to currency relating borrowings future assets under construction for included in which are use, productive the cost of those assets when they are interest as an adjustment to regarded currency costs on those foreign borrowings. on transactions differences exchange hedge certainto in order entered currency risks. foreign
Segment ReportingSegment identifies operating segments Group The based on the internal reporting provided the chief operating decision-maker. to who chief operating decision-maker, The and allocating resources for is responsible assessing performance of the operating been identified as the has Board segments, decisions. that makesof Directors strategic for adopted accounting policies The reporting in line with the segment are accounting policies of the Company. expenses segment revenue, Segment on to segments been identified have the to the basis of their relationship operating activities of the segment. Currencies Foreign and balances Transaction are currencies in foreign Transactions in their the company by initially recorded functional currency rate at the exchange of transaction. on the date prevailing Monetary assets and liabilities denominated at the translated are currencies in foreign functional currency of exchange using rate sheet date. on the balance prevailing arising on the differences Exchange settlement or translation of monetary in the statement recognized are items where: or loss except of profit y y ii. iii. It be settled in normal is expected to operating cycle; or It months after be settled within twelve is due to the reporting period; or the is no unconditional right defer to There at least twelve settlement of the liability for months after the reporting period. It is expected to be realized, or intended to be to or intended It be realized, is expected to sold or consumed in normal operating cycle. It the purpose is held primarily of trading; or for It within twelve be realized is expected to months after the reporting or date; or cash equivalent unless restricted from Cash settle a liability or used to being exchanged months after the reporting at least twelve for period.
All other liabilities are classified as noncurrent. classified All other liabilities are classified tax assets and liabilities are Deferred as non-current assets and liabilities. and services of products Based on the nature offered operating cycle determined is the Company, by the purpose and non- of current 12 months for classification of assets and liabilities. current operating cycleThe is the time between the and their processing acquisition of assets for in cash and cash equivalents, realisation y y All other assets are classified as non-current. classified All other assets are a liability if: current is classified as Similarly, y y y y Current versus non-current classification versus Current in the balance assets and liabilities presents Group The /non-currentsheet based on current classification. Sheet, an of Balance the Purpose For if: asset is classified as current y
Summary of significant accounting policies Summary accounting significant of i. B. 294
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
y exchange differences on monetary items y All the resulting foreign exchange differences receivable from or payable to a foreign are recognised in other comprehensive income operation for which settlement is neither and held in foreign currency translation reserve planned nor likely to occur (therefore forming (‘FCTR’), a component of Equity. part of the net investment in foreign operation), When the foreign operation is either partially or which are recognised initially in other fully disposed of, the proportionate share or entire comprehensive income and reclassified from cumulative foreign exchange differences (pertaining equity to profit or loss on repayment of the to the said operation that are held in FCTR as at monetary items. the date of disposal) respectively, are re-classified Non-monetary items that are measured in terms from Equity and considered in calculating the of historical cost in a foreign currency are recorded resulting profit / (loss) on sale of the operation. using the exchange rates as at the dates of the initial The said profit / (loss) on sale of the operation is transactions. Non-monetary items measured at fair recognized in the Statement of Profit and loss. value in a foreign currency are translated using the Goodwill and fair value adjustments to identifiable exchange rates on the date when the fair value was assets acquired and liabilities assumed through determined. The gain or loss arising on translation acquisition of a foreign operation are treated as assets of non-monetary items measured at fair value is and liabilities of the foreign operation and translated treated in line with the recognition of the gain or at the rate of exchange prevailing at the end of loss on the change in fair value of the item (i.e. each reporting period. Exchange differences arising translation differences on items whose fair value gain are recognized in other comprehensive income. or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively). iv. Revenue recognition Effective 1st April,2018, the Company has adopted The Company derives revenue primarily from Appendix B to the Ind-AS 21-foreign currency activities in BFSI and ATM Services (ATM, Insurance transaction and advance consideration, which clarify Services and Banking & financial services), Assisted the date of transaction for the purpose of determining E-Commerce Service (Online shopping, Pharmacy, the exchange rate to use on initial recognition of Bill payment and recharge, logistics) including bullion the related assets, expenses or income when an and Jewellery, through its Vakrangee Kendra (on B2B entity has received or paid advance consideration and B2C basis) with special competencies in handling in foreign currency. The effect on account of massive, multi-state, and e-governance enrolment adoption of this amendment was insignificant. projects, data digitization, software and license. Group Companies Effective April 1, 2018, the Company adopted Ind AS 115 “Revenue from Contracts with Customers notified For the purposes of presenting these consolidated on March 28, 2018. This standard will supersede financial statements, the financial statements of foreign all current revenue recognition requirements. operations/foreign subsidiaries that have a functional The Company has decided to use the modified currency different from the presentation currency are retrospective approach for transition method, translated into the presentation currency as follows: applied to contracts that were not completed as of y Assets and liabilities are translated into INR at April 1, 2018. Please refer Note 2(B)(iv) “Significant the exchange rate prevailing at the end of each Accounting Policies,” in the Company’s 2018 reporting period. standalone financial statement for the policies in effect for revenue prior to April 1, 2018. The effect y Income and expenses are translated at average on adoption of Ind AS 115 was insignificant. exchange rates for the period (unless this is not a reasonable approximation of the cumulative The following is a summary of new and/ effect of the rates prevailing on the transaction or revised significant accounting policies dates, in which case income and expenses are related to revenue recognition. translated at the dates of the transactions), Revenue is recognized upon transfer of control of y Equity is recorded at the historical rate on the promised products or services to customers in an date of issue and hence, is not required to be amount that reflects the consideration we expect to re-translated at each subsequent reporting date, receive in exchange for those products or services. and
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
295 295 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 All items of property, plant and equipment are equipment are plant and of property, All items the at cost. Such cost includes initially recorded partcost of replaced plant and of the property, directly costs that are equipment and borrowing attributable the acquisition, construction to or plant and property, production of a qualifying plant of property, cost of an item The equipment. and as an asset if, and equipment is recognized economic benefits future that it is probable only if, to the company will flow with the item associated reliably. be measured can and the cost of the item production, in the course of constructionProperties for carried purposes are supply or administrative at Cost impairment loss. recognized cost, less any qualifying assets, for and, fees includes professional with the in accordance costs capitalized borrowing Such properties are accounting policy. company`s categories of property, to the appropriate classified and ready plant and equipment when completed on of these assets, Depreciation use. intended for the same basis as other property commences assets, use. their intended for ready when the assets are plant and property, recognition, Subsequent to measured land) are freehold equipment (excluding and depreciation at cost less accumulated When significant impairmentaccumulated losses. parts plant and equipment are of property, in intervals, be replaced the company to required such parts as individual assets with recognizes respectively. and depreciation, specific useful lives Likewise, inspection when a major is performed, in the carryingits cost is recognized amount of the cost only plant and equipment as a replacement All other satisfied. criteria are if the recognition in recognized costs are and maintenance repair Loss as incurred. and of Profit the Statement depreciated held under finance leases are Assets on the same basis as expected their useful lives over is no reasonable when there However, assets. owned certainty the will be obtained by that ownership over depreciated end of the lease term, assets are the shorter of the lease term and useful lives.
Arrangement for software-relatedArrangement for services fixed-timeframe price, on a fixed either are or on a time-and material basis. the software and license where usages Revenue from from the revenue use” to “right obtains a customer the time the at software and license is recognized the customer. software to and license is made available obtains a the customer licenses where Revenue from the access period. over is recognized access” to “right are revenues and unbilled receivable Trade net of impairment in the Balance Sheet presented sale of goods and servicesRevenue from as is shown net of sales tax, value added tax, service tax, goods and services tax and applicable discounts and allowances. Income Interest recognized financial assets is income from Interest benefits will flow that economic when it is probable and the amount of income can be company the to is accrued on a time income Interest reliably. measured the principal to outstanding and at reference by basis, which is the rate applicable, rate interest the effective cash receipts that exactly future discounts estimated to that of the financial assets the expected life through net carryingasset’s on initial recognition. amount Dividend Income is recognised investments Dividend income from has payment right receive to when the shareholder’s that that it is probable been established (provided and to the company the economic benefits will flow reliably). the amount of income can be measured claims Insurance on the for Insurance accounted claims are be / expected to basis of claims admitted is no the extent and to there that admitted uncertainty the claims. in receiving and Equipment Plant Property, use in the production Land and buildings held for or supply of goods or services, administrative or for sheet at cost in the balance stated are purposes, and accumulated depreciation less accumulated land is not depreciated. Freehold impairment losses. v.
296
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
Depreciation is recognised so as to write off vi. Intangible Asset the cost of assets (other than freehold land and Intangible assets purchased are measured at cost as of properties under construction) less their residual the date of acquisition, as applicable, less accumulated values over the useful lives, using the straight- line amortisation and accumulated impairment, if any. method (“SLM”). Management, based on a technical evaluation, believes that the useful lives of the Intangible assets consist of rights under licensing assets reflect the periods over which these assets agreement and software licenses which are amortised are expected to be used, which are as follows: over license period which equates the useful life ranging between 2-5 years on a straight-line basis. Description of Asset Useful lives vii. Taxation Buildings 60 years Income tax expense comprises current tax expense Computers and Printers, including 3 years and the net change in the deferred tax asset or Computer Peripherals liability during the year. Current and deferred taxes are recognized statement of profit and Office Equipments 5 years loss except to the extent that it relates to items Furniture & Fixtures 10 years recognized directly in other comprehensive income or equity, in which case it is recognized in other Motor Vehicles 8 years comprehensive income or equity respectively. Plant & Machinery 15 years Current taxes ATM Machine 10 years The current income tax expense includes income Leasehold Land and Building, 51 years taxes payable by the Company and its subsidiaries in including leasehold improvements India and overseas. The current income tax expense (Also refer Note 4) for overseas subsidiaries has been computed based Project Assets on the tax laws applicable to the subsidiary in (comprising of Computers and 3-4 years the respective jurisdiction in which it operates. Printers, including Computer Current income tax is recognized at the amount Peripherals, Furniture and Fixtures expected to be paid to or recovered from the tax and Office Equipments) authorities, using the tax rates and tax laws that have The carrying values of property, plant and been enacted or substantively enacted by the balance equipment are reviewed for impairment when sheet date. The Company offsets, on a year to year events or changes in circumstances indicate that basis, the current tax assets and liabilities, where it has the carrying value may not be recoverable. legally enforceable right to do so and where it intends to settle such assets and liabilities on a net basis. The residual values, useful life and depreciation method are reviewed at each financial year-end Deferred taxes to ensure that the amount, method and period Deferred tax is recognized on differences between of depreciation are consistent with previous the carrying amounts of assets and liabilities in the estimates and the expected pattern of consumption financial statements and the corresponding tax bases of the future economic benefits embodied in used in the computation of taxable profit and are the items of property, plant and equipment. accounted for using the balance sheet liability method. An item of property, plant and equipment is Deferred tax liabilities are generally recognized for all derecognised upon disposal or when no future taxable temporary differences, and deferred tax assets economic benefits are expected to arise from the are generally recognized for all deductible temporary continued use of the asset. Any gain or loss arising differences to the extent that it is probable that taxable on disposal or retirement of an item of property, profits will be available against which those deductible plant and equipment is determined as the difference temporary differences can be utilized. Such assets between sale proceeds and the carrying amount and liabilities are not recognized if the temporary of the asset and is recognised in profit or loss. difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
297 297 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Investment property Investment propertiesInvestment properties are that is held for capital appreciation yields or for long-term rentals (including property such under construction for purposes) the by or both, and that is not occupied property. is classified as investment Company, initially propertiesInvestment measured are After at cost, including transaction costs. properties are investment initial recognition, depreciation at cost less accumulated stated if any. impairmentand accumulated loss, propertiesInvestment depreciated are their method over using the straight-line has been useful life The useful lives. estimated evaluation determined based on technical performed the management expert. by investment measures the Company Though property the measurement, using cost-based propertyfair value of investment is disclosed determined based values are Fair in the notes. on an annual evaluation performed an by external valuer. independent accredited either propertiesInvestment derecognised are been disposed of or when they when they have use and no future permanently from withdrawn are their disposal. economic benefit is expected from between the net disposal proceeds difference The and the carrying amount of the asset is recognised or loss in the period of derecognition. in profit Assets Impairment of Non-Financial the end of each reporting At the company period, the carryingreviews and amounts of its tangible is determine there whether assets to intangible suffered indication that those assets have any If such indication exists, an impairment loss. any amount of the asset is estimated the recoverable determine the extent to of impairment in order estimate When it is not possible to loss (if any). amount of an individual asset, the recoverable amount the recoverable estimates the company of the cash-generating which the asset unit to basis and consistent When a reasonable belongs. corporate assets are of allocation can be identified, individual cash-generating to or also allocated units, otherwise the smallest group to allocated they are of cash-generating which a reasonable units for allocation basis can be identified. and consistent ix. x. Level 1 — Quoted (unadjusted) market (unadjusted) 1 — Quoted prices in Level active markets identical assets or liabilities. for which the for techniques 2 —Valuation Level to the fair input that is significant level lowest or indirectly is directly value measurement observable. which the for techniques 3 —Valuation Level to the fair input that is significant level lowest is unobservablevalue measurement
For assets and liabilities that are recognised in recognised assets and liabilities that are For recurring the on a basis, the financial statements occurred have determines whether transfers Company re-assessing by between in the hierarchy levels input level categorisation (based on the lowest to the fair value measurement that is significant as a whole) at the end of each reporting period. summarises note accounting policyThis for Other disclosures fair value. fair value related notes. in the relevant given are y y Deferred tax relating to items recognised outside recognised items to tax relating Deferred (either in recognised and loss is the profit equity). income or in other comprehensive carryingThe tax assets is amount of deferred and reduced date at each balance sheet reviewed that the extentto that it is no longer probable to available profits will be sufficient taxable all or partallow be recovered. of the asset to when offset tax assets and liabilities are Deferred right set off current to is a legally enforceable there tax liabilities and when they tax assets against current the same taxation levied by income taxes to relate settle its to authority intends and the Company tax assets and liabilities on a net basis. current measurement Value Fair at fair financial instruments measures Company The value is the Fair value at each balance sheet date. sell an asset or paid to be received price that would a liability settle to transaction in an orderly between market participants date, at the measurement whether that price of observable directly is regardless using another valuation technique or estimated fair value is which All assets and liabilities for are statements or disclosed in the financial measured described categorised value hierarchy, within the fair input that is level based on the lowest as follows, as a whole: to the fair value measurement significant y
viii.
298
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
Intangible assets with indefinite useful lives and b) Subsequent measurement intangible assets not yet available for use are tested Debt Instruments at amortised cost: for impairment at least annually, and whenever there is an indication that the asset may be impaired. A financial asset is subsequently measured at amortised cost if it is held within a business Recoverable amount is the higher of fair value less model whose objective is to hold the asset costs of disposal and value in use. In assessing in order to collect contractual cash flows and value in use, the estimated future cash flows are the contractual terms of the financial asset discounted to their present value using a pre- give rise on specified dates to cash flows tax discount rate that reflects current market that are solely payments of principal and assessments of the time value of money and the interest on the principal amount outstanding. risks specific to the asset for which the estimates Interest income from these financial assets is of future cash flows have not been adjusted. included in finance income using the effective If the recoverable amount of an asset (or cash- interest rate method. A gain or loss on a debt generating unit) is estimated to be less than investment that is subsequently measured at its carrying amount, the carrying amount of amortised cost is recognized in profit or loss the asset (or cash-generating unit) is reduced when the asset is derecognised or impaired. to its recoverable amount. An impairment Debt instrument at Fair Value through loss is recognized in the profit or loss. Other Comprehensive Income (OCI) When an impairment loss subsequently reverses, the A financial asset is subsequently measured carrying amount of the asset (or a cash-generating at fair value through other comprehensive unit) is increased to the revised estimate of its income if it is held within a business model recoverable amount, but so that the increased carrying whose objective is achieved by both collecting amount does not exceed the carrying amount that contractual cash flows and selling financial would have been determined had no impairment assets and the contractual terms of the financial loss been recognised for the asset (or cash-generating asset give rise on specified dates to cash flows unit) in prior years. A reversal of an impairment that are solely payments of principal and loss is recognised immediately in profit or loss. interest on the principal amount outstanding. xi. Financial Instruments Interest income from these financial assets is included in finance income using the effective A financial instrument is any contract that gives interest rate method. Fair value movements are rise to a financial asset of one entity and a financial recognized in the other comprehensive income liability or equity instrument of another entity. (OCI). However, the Company recognizes Financial Assets interest income, impairment gains or losses and foreign exchange gains and losses in the a) Initial recognition and measurement statement of profit and loss. On derecognition All financial assets are recognised initially at fair of the asset, the cumulative gain or loss value plus, in the case of financial assets not previously recognised in OCI is reclassified recorded at fair value through profit or loss, from equity to statement of profit and loss. transaction costs that are attributable to the acquisition of the financial asset. Purchases or Debt instrument at Fair Value through Profit sales of financial assets that require delivery or Loss (FVTPL) of assets within a time frame established by A financial asset which does not meet the regulation or convention in the market place criteria for categorization as at amortized cost (regular way trades) are recognised on the or as fair value through other comprehensive trade date, i.e., the date that the Company income is classified as fair value through profit or commits to purchase or sell the asset. loss. Debt instruments subsequently measured at fair value through profit or loss are measured at fair value with all changes recognized in the statement of profit and loss.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
299 299 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 When the Company has transferred its rights to has transferred When the Company an asset or has entered from cash flows receive arrangement, if it evaluates a pass-through the risks what extent and to it has retained When it has neither of ownership. and rewards the substantially all retained nor transferred of the asset, nor transferred risks and rewards continues to of the asset, the company control the extent asset to of the transferred recognise In that continuing involvement. the company`s an associated also recognises the company case, asset and the associated transferred The liability. the that reflects on a basis measured liability are has rights and obligations that the company retained. that takes the form involvement Continuing asset is the transferred over of a guarantee carrying of the original at the lower measured amount of the asset and the maximum amount could be of consideration that the company repay. to required Impairment assets of financial impairment loss recognises Company The loss (ECL) model applying the expected credit at amortisedon the financial assets measured cost, debt instruments at FVTOCI, lease other contractual receivables, trade receivables, cash or other financial asset and right receive to as at FVTPL. not designated financial guarantee average the weighted losses are Expected credit risks of losses with the respective of credit default occurring as the weights. for the loss allowance measures Company The to a financial instrument at an amount equal credit losses if the expected credit the lifetime risk on that financial instrument has increased recognition. If the credit since initial significantly risk on a financial instrument has not increased the recognition, since initial significantly that for the loss allowance measures Company to 12 financial instrument at an amount equal losses. months expected credit contractual or any right to trade receivables For result cash or other financial assets that receive within the scope of transactions that are from Ind always AS 11 and Ind AS 18, the Company at an amount equal the loss allowance measures losses. expected credit lifetime to d) Equity instruments of Ind in scope All equity AS 109 investments Equity instruments at fair value. measured are classified as at trading are held for which are FVTPL. the all other equity instruments, For makeelection may an irrevocable to Company subsequent changes in the fair value present makes election such Company The in OCI. The basis. on an instrument-by-instrument and recognition on initial classification is made is irrevocable. are such investments Dividends from loss as other income. or in profit recognized OCI is no recycling of the amounts from There on sale of investment. even Loss, and Profit to the transfer may the Company However, equity. gain or loss within cumulative at Equity instruments subsequently measured measured or loss are profit fair value through in the at fair value with all changes recognized and loss. of profit statement part a applicable, where (or, A financial asset of a financial asset or part of similar group of a (i.e. financial assets) is primarily derecognised balance sheet) company the from removed when: the asset from cash flows rights receive The to or expired, have its rights to has transferred Company The the asset or has from flows cash receive the received pay assumed an obligation to to a material in full without delay cash flows arrangement; ‘pass-through’ partythird under a has transferred and either (a) the company of the substantially all the risks and rewards has neither transferred asset, or (b) the company substantially all the risks and nor retained control of the asset, but has transferred rewards of the asset. c) De-recognition
300
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
Further, for the purpose of measuring lifetime Financial liabilities are subsequently carried expected credit loss allowance for trade at amortized cost using the effective interest receivables, the Company applies ‘simplified method, except for contingent consideration approach’ permitted by Ind AS 109 Financial recognized in a business combination which is Instruments. This expected credit loss allowance subsequently measured at fair value through is computed based on a provision matrix which profit and loss. For trade and other payables considers historical credit loss experience and maturing within one year from the Balance adjusted for forward-looking information. Sheet date, the carrying amounts approximate fair value due to the short maturity of these Financial Liabilities instruments. a) Initial recognition and measurement All financial liabilities are recognised initially Loans and borrowings at fair value and, in the case of loans and After initial recognition, interest-bearing loans borrowings and payables, net of directly and borrowings are subsequently measured attributable transaction costs. at amortised cost using the effective interest rate method. Gains and losses are recognised b) Subsequent measurement in profit or loss when the liabilities are The measurement of financial liabilities depends derecognised as well as through the effective on their classification, as described below: interest rate amortisation process. Financial liabilities at fair value through profit or Amortised cost is calculated by considering any loss discount or premium on acquisition and fees Financial liabilities at fair value through profit or or costs that are an integral part of the effective loss include financial liabilities held for trading interest rate. Such amortisation is included as and financial liabilities designated upon initial finance costs in the statement of profit and loss. recognition as at fair value through profit or Financial guarantee contracts loss. Financial liabilities are classified as held for Financial guarantee contracts issued by the trading if they are incurred for the purpose of Company are those contracts that require a repurchasing in the near term. This category also payment to be made to reimburse the holder includes derivative financial instruments entered for a loss it incurs because the specified by the company that are not designated as debtor fails to make a payment when due in hedging instruments in hedge relationships as accordance with the terms of a debt instrument. defined by Ind-AS 109. Separated embedded Financial guarantee contracts are recognised derivatives are also classified as held for trading initially as a liability at fair value, adjusted for unless they are designated as effective hedging transaction costs that are directly attributable to instruments. the issuance of the guarantee. Subsequently, the Gains or losses on liabilities held for trading are liability is measured at the higher of the amount recognised in the profit or loss. of loss allowance determined as per impairment requirements of Ind AS 109 and the amount Financial liabilities designated upon initial recognised less cumulative amortisation. recognition at fair value through profit or loss are designated at the initial date of recognition, c) Derecognition and only if the criteria in Ind AS 109 are satisfied. A financial liability is derecognised when the For liabilities designated as FVTPL, fair value obligation under the liability is discharged or gains/ losses attributable to changes in own cancelled or expires. When an existing financial credit risk is recognized in OCI. These gains/ liability is replaced by another from the same losses are not subsequently transferred to lender on substantially different terms, or the P&L. However, the company may transfer terms of an existing liability are substantially the cumulative gain or loss within equity. All modified, such an exchange or modification other changes in fair value of such liability are is treated as the derecognition of the original recognised in the statement of profit or loss. liability and the recognition of a new liability. The Company has not designated any financial The difference in the respective carrying liability as at fair value through profit and loss. amounts is recognised in the statement of profit or loss
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
301 301 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Right-of-use assets right-of-use assets at the recognises Company The the the date lease (i.e., of the commencement date use). Right-of-useunderlying for available asset is accumulated at cost, less any measured assets are and adjusted and impairment losses, depreciation The liabilities. of lease remeasurement any for cost of right-of-use amount assets includes the costs initial direct of lease liabilities recognised, made at or before and lease payments incurred, incentives lease any less the commencement date on a Right-of-use depreciated assets are received. the shorter basis over of the lease termstraight-line of the assets. useful lives and the estimated the to If leased asset transfers of the ownership at the end of the lease term or the cost Company option, depreciation of a purchase reflects the exercise the of useful life using the estimated is calculated right-of-useThe also subject to assets are asset. impairment. Liabilities Lease the of the lease, the commencement date At at the lease liabilities measured recognises Company the over be made to value of lease payments present payments include fixed lease payments The lease term. lease less any payments) (including in substance fixed variable that lease payments receivable, incentives and amounts expected depend on an index or a rate, value guarantees. paid under residual be to In value of lease payments, calculating the present at rate borrowing uses its incremental the Company because the interest the lease commencement date determinable. implicit in the lease is not readily rate the amount of the commencement date, After of the accretion reflect to lease liabilities is increased made. the lease payments for and reduced interest In addition, the carrying amount of lease liabilities is a modification, a change if there is remeasured in the lease term, a change in the lease payments a from resulting payments future changes to (e.g., determine such used to change in an index or rate or a change in the assessment lease payments) the underlying asset. purchase of an option to assets Short-term and leases of low-value leases applies the short-term Company lease recognition The its short-term to exemption leases of machinery and a lease term of those leases that have equipment (i.e., and the commencement date 12 months or less from payments option). Lease do not contain a purchase on short-term assets are leases and leases of low-value the basis over as expense on a straight-line recognised lease term.
Offsetting of financial instruments and offset are assets and financial liabilities Financial the net amount is reported if in the balance sheet legal right offset to enforceable is a currently there to is an intention amounts and there the recognised and settle the the assets realise to settle on a net basis, liabilities simultaneously. on First-In- of cost valued at lower are Inventories value after providing or net realizable (FIFO) First-Out considered where obsolescence and other losses, for comprises all costs of of inventories Cost necessary. the in bringing and other costs incurred purchase location and condition. their present to inventories inventory is determined after of purchased Cost value Net realizable and discounts. deducting rebates selling priceis the estimated in the ordinary course costs of completion and less estimated of business, costs necessaryestimated make to the sale. Ind including AS 116 supersedes Ind AS 17 Leases sets out the principles standard The its appendices. and presentation measurement, the recognition, for recognise lessees to of leases and requires disclosure most leases on the balance sheet. Ind has adopted AS 116 using the Company The method of adoption under the retrospective modified with the date of the Standards, transitional provisions Company The of initial application on 1st April 2019. for exemptions use the recognition also elected to lease contracts. assesses at contract inception Company The that a lease, or contains, whether a contract is, the right control if the contract to conveys is, for a period the use of an identified asset consideration. for of time in exchange as a lessee Company and applies a single recognition Company The except all leases, for approach measurement short-term for leases and leases of low-value lease liabilities recognises Company The assets. make and right-of-useto lease payments assets the right use the underlying to assets. representing xii. Inventories xiii. Leases
302
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
Company as a lessor xvii Provisions Lessor accounting under Ind AS 116 is substantially Provisions are recognised when the Company has a unchanged from Ind AS 17. Lessors will continue to present obligation, legal or constructive, as a result classify leases as either operating or finance leases of a past event, it is probable that an outflow of using similar principles as in Ind AS 17. Therefore, Ind resources embodying economic benefits will be AS 116 does not have an impact for leases where the required to settle the obligation and a reliable estimate Company is the lessor. can be made of the amount of the obligation. Leases in which the Company does not transfer Where a provision is measured using the cash substantially all the risks and rewards incidental to flows estimated to settle the present obligation, ownership of an asset are classified as operating leases. its carrying amount is the present value of Rental income arising is accounted for on a straight- those cash flows. If the effect of the time value line basis over the lease terms. Initial direct costs of money is material, provisions are discounted incurred in negotiating and arranging an operating using a current pre-tax rate that reflects, when lease are added to the carrying amount of the leased appropriate, the risks specific to the liability. asset and recognised over the lease term on the xviii. Contingent Liabilities same basis as rental income. Contingent rents are recognised as revenue in the period in which they are A contingent liability is a possible obligation that earned. arises from past events whose existence will be confirmed by the occurrence or non-occurrence of xiv. Borrowing Costs one or more uncertain future events beyond the Borrowing costs directly attributable to the acquisition, control of the Company or a present obligation that construction or production of qualifying assets that is not recognized because it is not probable that necessarily takes a substantial period of time to get an outflow of resources will be required to settle ready for their intended use or sale are added to the the obligation. The Company does not recognize cost of those assets, until such time as the assets are a contingent liability but discloses its existence in substantially ready for their intended use or sale. All the financial statements. Payments in respect of other borrowing costs are recognised in statement of such liabilities, if any are shown as advances. profit and loss in the period in which they are incurred. xix. Earnings Per Share xv. Equity Instruments Basic earnings per share are calculated by dividing An equity instrument is any contract that evidences the net profit or loss for the year attributable to equity a residual interest in the assets of an entity after shareholders by the weighted average number deducting all of its liabilities. Incremental costs directly of equities shares outstanding during the year. attributable to the issue of new shares or options are Diluted earnings per share adjusts the shown in equity as a deduction, net of tax, from the figures used in the determination of basic proceeds. earnings per share to consider xvi. Dividends y The after-income tax effect of interest and other Provision is made for the amount of any dividend financing costs associated with dilutive potential declared, being appropriately authorized and no equity shares, and longer at the discretion of the Company, on or before the end of the reporting period but not distributed at y Weighted average number of equity shares that the end of the reporting period. would have been outstanding assuming the conversion of all the dilutive potential equity. xx. Cash and Cash Equivalent Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), and highly liquid time deposits that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
303 303 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 The liability or asset recognised in the balance sheet in liabilityThe or asset recognised gratuity of defined benefit in respect plans is the at the value of the defined benefit obligation present end of the reporting period less the fair value of plan is defined benefit obligation The actuarially assets. method. Unit Credit determined using the Projected value of the defined benefit present The discounting the obligation is determined by reference by outflows cash flows future estimated marketto yields at the end of the reporting a terms period bonds that have on government the terms of the obligation. to approximating applying the by cost, calculated net interest The the net balance of the defined to discount rate benefit obligation and the fair value of the benefit as employee is recognised plan assets, and loss. of profit expenses in the statement gains and losses arisingRemeasurements experience adjustments and changes in from in the actuarial recognised assumptions are in income in the year other comprehensive not subsequently which they arise and are Loss. and Profit of to Statement reclassified of the defined value Changes in the present plan amendments resulting from benefit obligation immediately or curtailments recognised are or loss as past servicein profit cost. Plan Contribution Defined fund contributions provident pays Company The funds as per provident administered publicly to has Company The local regulatory authorities. no further obligations once the contributions accounted contributionsThe are been paid. have as defined contribution plans and the for as employee recognised contributions are due. benefit expense when they are Share-based Payments based compensation benefits are Shared Vakrangee via employees to provided Option Plan. Stock Employee Limited options Employee cost of equity-settledThe transactions is determined at the granted the fair value of the options by fair value of The is made. when the grant date Option Plan under the Employee options granted benefits expense as an employee is recognised The in equity. increase with a corresponding be expensed is determined by amount to total the fair value of the options granted: to reference xxii. Defined benefit plans such as gratuityDefined benefit plans such as Defined contribution plans such as provident fund. Defined benefit plan - Gratuity Obligations Defined benefit plan - a defined gratuity, for provides Company The eligible covering “GratuityPlan”) benefit plan (the of with the Payment in accordance employees Gratuity provides The Plan Gratuity Act, 1972. at employees vested to a lump sum payment death, incapacitation or termination of retirement, based on the respective of an amount employment, salary of employment. and the tenure employee’s II. Employee Benefits Employee Short-term obligations including non- wages and salaries, Liabilities for monetaryto be settled expected benefits that are afterwholly within 12 months the end of the the related render period in which the employees of employee’s respect in service recognised are services the end of the reporting up to period and of the amounts at the undiscounted measured are to be paid when the liabilities benefits expected as current presented are liabilities The settled. are benefit obligations in the balance sheet. employee obligations benefit employee Other Long-term absences (annual leave) compensated liabilities for The be settled wholly within not expected to which are 12 months after the end of the period in which the service as the related presented render are employee They are non-current benefits obligations. employee value of expected as the present measured therefore services of be made in respect to payments future the end of the reporting up to employees by provided The method. Unit Credit period using the Projected using the market discounted benefits are yields at the end of the reporting period on government the terms to terms approximating bonds that have as a Remeasurements obligations. of the related of experience adjustments and changes in result actuarial actuarial assumptions (i.e. losses/ gains) Other in income. recognised comprehensive are in the as current presented obligations are The an does not have balance sheet if the Company at least settlement for unconditional right defer to months after the reportingtwelve regardless period, of when the actual occur. settlement is expected to obligations employment Post- the following operates Company The post-employment schemes: I.
xxi. 304
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
y including any market performance conditions Application of accounting policies that require critical (e.g., the Company’s share price) accounting estimates and the use of assumptions y excluding the impact of any service and non- in the financial statements are as follows: market performance vesting conditions (e.g. y Share-based payments profitability, sales growth targets and remaining Estimating fair value for share-based payment employee of the entity over a specified time transactions requires determination of the period), and most appropriate valuation model, which y Including the impact of any non-vesting is dependent on the terms and conditions conditions (e.g. the requirement for employee of the grant. are This estimate also requiring to save or holding shares for a specific period of determination of the most appropriate inputs time. to the valuation model including the expected The total expense is recognised over the vesting life of the share option, volatility and dividend period, which is the period over which all of the yield and making assumptions about them. The specified vesting conditions are to be satisfied. At assumptions and models used for estimating fair the end of each period, the Company revises its value for share-based payment transactions are estimates of the number of options that are expected disclosed in Note 44. to be vest based on the non-market vesting and y Defined benefit plans service conditions. It recognises the impact of the revision to original estimates, if any, in profit or The cost of the defined benefit gratuity plan loss, with a corresponding adjustment to equity. and other post-employment medical benefits and the present value of the gratuity obligation Note 3 (a) - Critical Accounting Judgements and are determined using actuarial valuations. An Estimates actuarial valuation involves making various The preparation of financial statements in conformity assumptions that may differ from actual with Ind AS requires judgements, estimates and developments in the future. These include assumptions to be made by the management of the determination of the discount rate, future the Company that affect the reported amount of salary increases and mortality rates. Due to assets, liabilities, revenue, expenses, accompanying the complexities involved in the valuation disclosures and the disclosures relating to and its long-term nature, a defined benefit contingent liabilities as at the date of the financial obligation is highly sensitive to changes in these statements and the reported amounts of income assumptions. All assumptions are reviewed at and expenses for the periods presented. each reporting date. The estimates and associate’s assumptions are The parameter most subject to change is the based on historical experience and other factors discount rate. In determining the appropriate that are considered to be relevant. Actual results discount rate for plans operated in India, the could differ from those estimates. These estimates management considers the interest rates of and underlying assumptions are reviewed on an government bonds in currencies consistent with ongoing basis. Revisions to accounting estimates the currencies of the post-employment benefit are recognised in the period in which the estimates obligation. are revised if the revision affects only that period, or in the period of the revision and future periods if The mortality rate is based on publicly available the revision affects both current and future period. mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. Further details about gratuity obligations are given in Note 44.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
305 305 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Provision and Contingent Liabilities Contingent and Provision when the Company is recognised A provision past event of obligation as a result has a present resources of that an outflow and it is probable in settle the obligation, to will be required can be estimate of which a reliable respect at each balance reviewed are These made. current the reflect to and adjusted sheet date liabilities are Contingent best estimates. in the financial statements. not recognised nor neither recognised assets are Contingent disclosed in the financial statements.
y Fair value measurement of financial measurement value Fair instruments financial assets and When the fair values of balance sheet in the recorded financial liabilities prices based on quoted cannot be measured in active markets,their fair value is measured these to inputs The using valuation techniques. observable taken from models are markets a this is not feasible, but where possible, where in establishing judgement is required of degree Judgements include considerations fair values. of inputs such as liquidity risk, risk and credit in assumptions about these Changes volatility. reportedfactors the could affect fair value of for further 46 See Note financial instruments. disclosures. of Property, and useful lives Depreciation and Equipment Plant depreciated are and Equipment Plant Property, after taking useful lives, the estimated into over Management value. residual account estimated and residual useful lives the estimated reviews to values of the assets annually in order be to determineof depreciation the amount The reporting during any period. recorded based on the values are and residual useful lives historical experience with similar Company’s assets and taken anticipated account into for Depreciation The changes. technological significant are if there periods is revised future estimates. previous changes from
y y 306
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued) 0.18 Total 16.00 Grand Grand 189.35 4,988.19 5,082.31 4,348.98 2,373.51 1,470.77 1,171.76 1,478.68 20,108.76 4,490.98 4,805.99 6,473.84 20,202.88 22,178.36 15,704.52 15,396.89 ------(Amount in ` lakhs)(Amount 140.25 461.82 Capital Capital 461.82 140.25 2,057.80 2,932.29 2,051.52 2,373.09 Progress Work-In- 1,336.31 0.41 0.18 Total 16.00 189.35 3,024.51 2,055.90 2,297.46 1,470.77 1,171.76 1,478.68 4,490.98 4,805.99 6,473.84 18,772.45 19,741.06 22,038.11 15,564.27 14,935.07 - - - - - 9.68 34.46 295.00 112.98 116.54 717.39 824.26 126.14 239.12 355.66 1,323.91 1,063.37 1,073.05 Leasehold Leasehold Improvement ------59.50 59.34 64.04 Land & 123.54 182.88 3,002.36 3,061.70 Building 3,185.24 3,185.24 3,185.24 Leasehold Leasehold - - - 90.06 19.08 94.96 858.43 238.56 844.55 111.59 259.49 446.96
2,664.70 1,896.33 1,915.41 2,055.36 1,449.37 1,655.92 including Computer Computer Computers Computers Peripherals As at at As - 3,061.70 1.78 0.41 0.18 40.29 92.46 79.24 78.93 16.82 58.45 Office 213.80 287.52 548.86 496.69 498.06 208.87 209.17 284.26 March 31, 2020 March (Amount in ` lakhs)(Amount Equipments ------16.66 16.56 58.86 75.42 54.70 71.35 87.91 Motor Motor 146.77 Vehicle 146.77 146.77 - -
- and 5.80 6.23 37.16 87.04 39.97 82.89 29.24 As at at As 200.63 230.30 615.98 566.11 571.91 378.73 335.81 371.28 Fixtures 3,002.36 Furnitures Furnitures - - - - - March 31, 2021 March 16.00 886.77 2,343.96 2,251.00 1,129.18 9,461.30 8,339.48 8,284.00 1,385.70 2,288.47 3,417.65 Plant and Plant 10,627.96 12,878.95 Machinery - - - 6.70 10.13 37.09 22.41 89.15 478.57 722.98 165.39 217.45 118.26 1,650.45 1,669.43 2,002.99 1,758.58 1,768.71 Buildings
ImpairmentImpairment of Assets: loss mainly pertains valuation, the & Machinery. Based on technical one high speed printer categorised under Plant to amount is less than the carryingrecoverable value of the asset. valuation of one class of assets and based on technical useful life the management has analysed remaining During the year, in Estimate: Change expectation as has been accounted change in life The estimates. expectationprevious has been changed from life viz. ATM, and Equipment Plant Property, and Errors. Change in Estimates 38 of Ind-AS Policies, 8, Accounting per Para Land and Building): (Leasehold arrangement Lease Finance follows: as under finance lease arrangements and Equipment net carrying are The Plant amount of Property, Road No.16, Plot No.93, at for a land and building situated a long term finance lease arrangement into has entered the company During year, the current in consideration of a lump sum lease term of 95 years out of the total period of 51 years the remaining Andheri (East) Mumbai 400093 for MIDC, Marol, ` 3,000.00 lakhs. amounting to premium classification as finance lease based on the been assessed for the leasehold land and building have of IndIn AS 17 - Leases, the provisions consideration to or escalation. renewal clause for lease arrangementThe does not contain any evaluation of the lease arrangement. of the facts and circumstances minimum lease rental other future paid shall be equally amortized is not subject the periodConsideration any of leases and the company to over commitments. Leasehold Land & Building Leasehold Description Cost Cost or Valuation 31, 2019 March At Additions Disposals/Transfers At March 31, 2020 March At Additions Disposals/Transfers At March 31, 2021 March At Depreciation and Depreciation Impairment 31, 2019 March At Depreciation charged for the for charged Depreciation year Impairment during the year Disposals/Transfers At March 31, 2020 March At Depreciation for the year the year for Depreciation P&L to charged Depreciation for the year the year for Depreciation CWIP to transfer Disposals/Transfers At March 31, 2021 March At Net Book Value 31, 2021 March At At March 31, 2020 March At (a) . (b) (c) (d) Note 4 - Property, Plant and Equipment Plant 4 - Property, Note
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
307 307 ------1.84 1.83 1.83 5.50 5.50 5.50 1.83 3.67 5.50 346.43 346.43 346.43 Amount Amount VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount Description Description Bharat Easy Super App Easy Super App Bharat under developement) Asset Block Gross 31, 2019 March At Additions Disposal 2020 31, March At Additions Disposal 2021 31, March At and Impairment Depreciation 2019 31, March At the year for Charged Depreciation Impairment during the year Disposal 2020 31, March At the year for Charged Depreciation Impairment during the year Disposal 2021 31, March At Net Book Value 31, 2021 March At 31, 2020 March At Logistics Portal Software Portal Logistics Block Gross 31, 2019 March At Additions Disposal 31, 2020 March At Additions Disposal 31, 2021 March At and Impairment Depreciation 31, 2019 March At the year for Charged Depreciation Impairment during the year Disposal 31, 2020 March At the year for Charged Depreciation Impairment during the year Disposal 31, 2021 March At Net Book Value 31, 2021 March At 31, 2020 March At development under Assets Intangible (a) (b) Assets 5 - Intangible Note 308
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
Note 6 - Investments (Non - Current) (Amount in ` lakhs) As at March As at March Particulars 31, 2021 31, 2020 (a) Unquoted Investment carried at Fair value through Profit and Loss (FVTPL) - In Equity Shares 2,500 Equity Shares of CSC e-Governance Services India Limited of ` 1000/- each fully 138.85 126.94 paid up (March 31, 2020 : 2,500 Equity shares) ( A ) 138.85 126.94 (b) Quoted Investment carried at Fair value through Profit and Loss (FVTPL) Investments in Mutual Funds 20,00,000 units of Union Capital Protection Oriented Fund Series 8 (March 31, 2020 : - 206.90 20,00,000 units) ( B ) - 206.90 TOTAL (A + B) 138.85 333.84 Aggregate amount of quoted investments - 206.90 Aggregate market value of quoted investments - 206.90 Aggregate amount of unquoted investments 138.85 126.94 Investment at fair value through profit and loss reflect investment in quoted and unquoted equity securities and quoted mutual fund units.
The fair value of the unquoted equity shares have been estimated using valuation techniques for which the lowest level input that is significant to the fair value measurement is directly observable.
The fair value of quoted mutual fund units are based on quoted net asset value at the reporting date.
Note 7 - Trade Receivables (Non Current) (Amount in ` lakhs) As at March As at March Particulars 31, 2021 31, 2020 Trade Receivable considered good (Secured) - - Trade Receivable considered good (Unsecured) - - Trade Receivable which have significant increase in Credit Risk - - Trade Receivable - credit impaired 381.55 337.33 381.55 337.33 Less: Allowance for credit losses 381.55 337.33 TOTAL - -
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
309 309 - - - - 2020 92.64 126.58 219.22 118.87 309.06 308.51 118.87 309.06 31, 2020 As at March March at As VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 As at March 31, March at As (Amount in ` lakhs) (Amount 52.77 66.10 - - (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 0.12 As at March 31, 2020 March at As 85.03 134.07 126.58 364.65 364.11 364.65 - - - - 31, 2021 2021 As at March March at As 108.23 108.23 - 0.38 0.38 As at March 31, March at As 42.23 66.00 - - - - - 0.38 As at March 31, 2021 March at As ( B ) ( A ) Loan to Others to Loan Security Deposit Earnest Money Deposit
On account of difference in depreciation on in depreciation On account of difference and Equipment Plant Property, Provision for Employees' obligations Employees' for Provision Loss On account of Expected Credit on in depreciation On account of difference and Equipment Plant Property, Temporary differences on Tax Provisions Provisions Tax on differences Temporary Unused tax credits Deposits with bank - with maturity than 12 months period of more Particulars
Loans Receivable considered good (Unsecured) good (Unsecured) considered Receivable Loans (a) Loans Receivable which have significant increase in Credit Credit Risk in increase significant which have Receivable Loans impaired - credit Receivable Loans Loans Receivable considered good (Secured) good (Secured) considered Receivable Loans
Particulars Particulars Assets Assets (i) - B) (A Sheet Balance carried to Balance (ii) (iv) Liabilities (i) (iii) (v) (ii) (iv) (iii) (i) Note 8 - Loans 8 - Loans Note (Non - Current) TOTAL TOTAL
(i) other money guarantee, or security * Amount held as margin against borrowings, commitments Note 10 - Deferred Tax Assets (net) Assets Tax 10 - Deferred Note Note 9 - Other Financial Assets Assets 9 - OtherNote Financial (Non - Current) 310
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
(a) Movement in deferred tax account during the year is as follows:
(Amount in ` lakhs) Recognised Recognised Opening in other Closing Particulars in profit and balance comprehensive Balance loss income For the year ended March 31, 2021 : Deferred tax (liabilities)/assets in relation to : Difference between WDV of Property, Plant and Equipment as 0.12 0.26 - 0.38 per books and Income taxes Expenses provided but allowable in Income Tax on payment - - - - Allowance for expected credit losses - - - - Unused tax credits - - - - 0.12 0.26 - 0.38 Others ------TOTAL 0.12 0.26 - 0.38 For the year ended March 31, 2020 : Deferred tax (liabilities)/assets in relation to : Difference between WDV of Property, Plant and Equipment as 261.98 (388.44) - (126.46) per books and Income taxes Expenses provided but allowable in Income Tax on payment 73.72 17.50 (6.19) 85.03 Allowance for expected credit losses 184.94 (50.87) - 134.07 Unused tax credits 17.83 (17.83) - - 538.47 (439.64) (6.19) 92.64 Others ------TOTAL 538.47 (439.64) (6.19) 92.64 The analysis of Deferred Tax Assets is as follows:
As at March As at March Particulars 31, 2021 31, 2020 Deferred Tax Assets to be recovered after more than 12 months - - Deferred Tax Assets to be recovered within 12 months 0.38 92.64 0.38 92.64
(b) Explanation of changes in the applicable tax rate(s) compared to the previous accounting period
As at March As at March Particulars 31, 2021 31, 2020 Applicable Tax rate considered for deferred tax asset or liability 25.17% 25.17% The applicable tax rates have been changed on the basis of using the tax rates that have been enacted as at the end of the each reporting period.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
311 311 - - 4.85 10.09 30.44 766.44 501.92 398.18 781.38 569.90 31, 2020 31, 2020 61,950.00 62,550.34 1,36,780.47 As at March March at As As at March March at As 1,37,282.39 1,36,884.21 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - - (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 4.04 7.87 As at March 31, 2020 March at As 11.43 485.31 418.74 497.22 558.47 1,688.62 31, 2021 31, 2021 1,10,761.33 1,12,449.95 1,12,031.21 As at March March at As As at March March at As 4.64 86.64 59,595.90 59,687.18 As at March 31, 2021 March at As 61.26 25.38 Stock-in-Trade Stock-in-Trade Consumables & Spares Stores Particulars Particulars Trade Receivable considered good (Secured) good (Secured) Receivable considered Trade Trade Receivable considered good (Unsecured) good (Unsecured) Receivable considered Trade Risk in Credit increase significant Receivable which have Trade impaired Receivable - credit Trade Less: Allowance for credit Losses Losses credit for Allowance Less: TOTAL Debts due from related parties related Debts due from (i) (ii) (iii) TOTAL Basis of valuation of Inventories of Inventories Basis of valuation with Ind value on FIFO basis which is in accordance AS-2. of cost or net realizable valued at lower are Inventories Particulars (a) Capital Advances Advances Capital Prepaid Expenses Prepaid Balances with statutory authorities / revenue taxation) for (net of provision Tax - Income Tax - Sales TOTAL TOTAL Note 12 - Inventories 12 - Inventories Note Note 11 - Other Non-Current Assets Assets 11 - OtherNote Non-Current (b) (b) (a) Receivables Trade 13 - Note (Current) (b) 312
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
Note 14 - Cash & Cash equivalents (a) (Amount in ` lakhs) Particulars As at March 31, 2021 As at March 31, 2020 (A) Cash & Cash Equivalents (i) Balances with Banks : - Current Accounts 763.46 1,303.11 - Deposit Accounts - - (ii) Cash-in-hand 55.13 202.39 818.59 1,505.50 (B) Bank Balances other than above (i) Earmarked balances in unclaimed dividend 92.44 89.61 account (ii) Fixed Deposits with maturity period of more 1,217.19 16,255.44 than 3 months but less than 12 months ** TOTAL 1,309.63 16,345.05 ** Amount held as margin money or security 1,145.89 793.20 against borrowings, guarantee, other commitments
(b) For the purpose of cash flow statement (Amount in ` lakhs) Particulars As at March 31, 2021 As at March 31, 2020 (A) Cash & Cash Equivalents (i) Balances with Banks : - Current Accounts 763.46 1,303.11 - Deposit Accounts - - (ii) Cash-in-hand 55.13 202.39 818.59 1,505.50 Less : - Cash Credit - - TOTAL 818.59 1,505.50
Note 15 - Loans (Amount in ` lakhs) Particulars As at March 31, 2021 As at March 31, 2020 (i) Loans Receivable considered good (Secured) - - (ii) Loans Receivable considered good (Unsecured) - - (a) Loan to Others Security Deposit 7.71 16.13 Staff Advances 2.43 4.03 Inter Corporate Deposits 1,144.03 1,046.84 1,154.17 1,067.00 (iii) Loans Receivable which have significant increase in - - Credit Risk (iv) Loans Receivable - credit impaired - - TOTAL 1,154.17 1,067.00
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
313 313 - 0.59 43.53 15.77 11.71 103.72 454.28 525.88 7,334.04 1,035.55 1,401.59 31, 2020 31, 2020 1,401.59 36,106.21 44,579.52 As at March March at As As at March March at As VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 72.35 20.09 516.81 (20.09) 516.81 1,438.06 31, 2021 31, 2021 10,919.48 80,591.63 As at March 31, 2020 March at As 93,021.52 As at March March at As As at March March at As - 0.47 0.53 19.84 18.66 1,824.47 1,863.97 20.09 (20.09) As at March 31, 2021 March at As Goods & Service Tax Goods & Service Accrued Revenue Accrued ATM Settlement Receivable ATM Receivables COD Others Outlets for Advance BCAs to Advance Insurance claim Receivable on FD Interest Accrued losses credit for : - Allowance Less Particulars Particulars Particulars Balances with statutory authorities / revenue - TOTAL Other Receivable - Prepaid Expenses Prepaid Advances to Vendors Vendors to Advances Assets 18 - OtherNote Current
(i) TOTAL (Net) Assets Tax 17 - Current Note taxation) for (net of provision Tax Income TOTAL Note 16 - Other Financial Assets Assets 16 - OtherNote Financial (Current) 314
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
Note 19 - Equity Share Capital Equity share capital (i) Authorised share capital (Amount in ` lakhs) Particulars Number of shares (in lakhs) Amount As at March 31, 2020 12,500.00 12,500.00 Increase during the year - - As at March 31, 2021 12,500.00 12,500.00
(ii) Paid up Equity share capital (Amount in ` lakhs) Particulars Number of shares (in lakhs) Amount As at March 31, 2019 10,588.03 10,588.03 Exercise of options 6.03 6.03 As at March 31, 2020 10,594.06 10,594.06 Exercise of options - - As at March 31, 2021 10,594.06 10,594.06
(iii) Details of shareholders holding more than 5% shares in the Company Particulars As at March 31, 2021 As at March 31, 2020
Number of Number of shares (in % Holding shares (in % Holding lakhs) lakhs) Vakrangee Holdings Private Limited 2,509.50 23.69% 2,509.50 23.69% NJD Capital Private Limited 1,311.00 12.37% 1,311.00 12.37% Life Insurance Corporation of India 659.15 6.22% 659.30 6.22% Dinesh Nandwana 691.07 6.52% 691.07 6.52%
(iv) Detailed note on the terms of the rights, preferences and restrictions relating to each class of shares including restrictions on the distribution of dividends and repayment of capital. The Company has only one class of Equity Shares having a par value of ` 1/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. During the year ended March 31, 2021, the amount of per share dividend recognised as distributions to Equity Shareholders is ` 0.25/- per share of ` 1/- each for the year ended March 31, 2020. In the event of liquidation of the Company, the holders of Equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity shares held by the shareholders.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
315 315 - - - - 15.22 5,294.02 5,950.10 31, 2020 31, 2020 42,746.84 18,268.04 (3,070.19) 2020 2,63,730.50 1,91,811.00 2,55,705.79 As at March March at As As at March March at As VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - - - - (Amount in ` lakhs)(Amount (Amount in ` lakhs) (Amount 8.08 (No. of shares in lakhs) of shares (No. As at March 31, March at As 5,294.02 3,347.37 31, 2021 31, 2021 42,746.84 18,268.04 (1,509.04) 2021 2,66,408.04 1,95,441.62 2,58,294.83 As at March March at As As at March March at As No. of shares issued on exercise of options granted under the ESOP scheme. of options granted issued on exercise of shares No. shareholders for returns ability their continue as a going concern, provide to so that they can continue to Safeguard and for other stakeholders, and benefits the cost of capital. Maintain reduce an optimal capital structure to No. of shares bought back bought of shares No. No. of shares allotted as fully paid by way of Bonus Shares of Bonus Shares way as fully paid by allotted of shares No. No. of shares allotted as fully paid up pursuant to contracts as fully paid up pursuant to without payment allotted of shares No. in cash being received Particulars Particulars Particulars In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, shareholders, adjust the amount of dividends paid to may company the maintain or adjust the capital structure, In to order debt. reduce sell assets to or issue new shares shareholders, capital to return gearing ratio: capital on the basis of the following monitors the Company with others in the industry, Consistent in the balance sheet, (as shown ‘equity’ total and cash equivalents) divided by net of cash borrowings Net debt (total including non-controlling interests). as follows: gearingThe ratios were a gearing maintain is to within 1:1. ration strategy Company’s The (ii) - Management Capital to: capital are objectives when managing Company’s The (i) - - Securities Premium ReserveSecurities Premium General Reserve Share Options Outstanding Account Share Expense Compensation Employee Deferred Loss & Surplus of Profit in Statement (A) Total - Reserves and surplus Aggregate details for five immediately previous reporting shares for each class of previous periods immediately five details for Aggregate Net debt equity Total Net debt to equityNet debt to ratio
(vi) (i) (v) Note 20 - OtherNote Equity 316
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
(a) Securities Premium Reserve (Amount in ` lakhs) As at March As at March Particulars 31, 2021 31, 2020 Opening balance 42,746.84 42,318.52 Add:- On share issued during the year - 178.22 Add:- Transfer from shares options outstanding account - 250.10 Closing balance 42,746.84 42,746.84
(b) Share Options Outstanding Account (Amount in ` lakhs) As at March As at March Particulars 31, 2021 31, 2020 Opening balance 5,950.10 11,025.85 Add:- On further grant of options - 495.65 Less:- Reversal due to Lapsation of option (2,602.73) (5,321.30) Less: Transfer to Securities premium account - (250.10) Closing balance 3,347.37 5,950.10
(c) Deferred Employee Compensation Expense (Amount in ` lakhs) As at March As at March Particulars 31, 2021 31, 2020 Opening balance (3,070.19) (7,232.26) Add:- On further grant of options - (495.65) Less:- Reversal due to Lapsation of option 1,269.49 2,398.78 Less:- Amortised during the year 291.64 2,258.94 Closing balance (1,509.04) (3,070.19)
(d) General Reserve (Amount in ` lakhs) As at March As at March Particulars 31, 2021 31, 2020 Opening balance 18,268.04 18,268.04 Add:- Transfer from Profit & Loss account - - Closing balance 18,268.04 18,268.04
(e) Surplus in Statement of Profit & Loss (Amount in ` lakhs) As at March As at March Particulars 31, 2021 31, 2020 Opening balance 1,91,811.00 1,87,875.91 Add:- Profit for the year 6,279.13 7,128.01 Less:- Transfer to General Reserve - - Less:- Dividend declared (2,648.51) (2,648.51) Less:- Dividend distribution tax - (544.41) Closing balance 1,95,441.62 1,91,811.00
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
317 317 ------39.26 18.42 35.92 39.26 291.35 583.56 619.48 291.35 31, 2020 31, 2020 31, 2020 (3,207.25) (3,188.83) (2,569.35) As at March March at As As at March March at As March at As 2,53,136.44 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 Interest Interest - - - - - (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 40.39 89.24 (0.74) 40.39 619.48 618.74 31, 2021 31, 2021 31, 2021 As at March 31, 2020 March at As (3,188.83) (3,099.59) (2,480.85) As at March March at As As at March March at As March at As 2,55,813.98 Principal Principal ------14.34 14.34 Interest Interest - - - - - As at March 31, 2021 March at As Principal Principal Particulars Particulars Other Comprehensive Income Other Comprehensive Opening balance benefit obligations (net of taxes) of net defined Remeasurement (i) balance Closing Reserve Translation Currency Foreign Opening balance Translation reserve for the year year the reserve for Translation (ii) balance Closing Total (B) Total (A+B) Total small enterprises (a) Particulars Particulars Note 21 - Trade Payables Payables Trade 21 - Note (Non - Current) - Dues of micro enterprisesand small enterprises - Dues of micro vendor Amount due to Principal amount paid (including unpaid) beyond the amount paid (including unpaid) beyond Principal date appointed Interest due and payable for the year for due and payable Interest Interest accrued and remaining unpaid accrued and remaining Interest Note 22 - Other Financial Liabilities Liabilities 22 - OtherNote Financial (Non - Current) Total Dues of micro enterprises and small enterprises and small enterprises enterprises Dues of micro Total TOTAL the extent been determined Micro to such parties and small enterprisesDues to have been identified on the basis of have Management. collected by information - Dues of Creditors other than micro enterprises and other than micro - Dues of Creditors (b) (ii) OtherPayable OtherPayable Security Deposit TOTAL 318
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
Note 23 - Deferred Tax Liabilities (net) (Non - Current) (Amount in ` lakhs) Particulars As at March 31, 2021 As at March 31, 2020 Assets (i) On account of difference in depreciation on - - Property, Plant and Equipment (ii) Provision for Employees' obligations 59.85 - (iii) Temporary differences on Tax Provisions - - (iv) On account of Expected Credit Loss 150.37 - (v) Unused tax credits - - ( A ) 210.22 - Liabilities (i) On account of difference in depreciation on 268.32 - Property, Plant and Equipment ( B ) 268.32 - Balance carried to Balance Sheet (A - B) 58.10 - (a) Movement in deferred tax account during the year is as follows: Recognised Recognised Opening in other Closing Particulars in profit and balance comprehensive Balance loss income For the year ended March 31, 2021: Deferred tax (liabilities)/assets in relation to: Difference between WDV of Property, Plant and 126.58 141.74 - 268.32 Equipment as per books and Income taxes Expenses provided but allowable in Income Tax on (85.03) (4.84) 30.01 (59.85) payment Allowance for expected credit losses (134.07) (16.30) - (150.37) Unused tax credits - - - - (92.52) 120.60 30.01 58.10 Others ------TOTAL (92.52) 120.60 30.01 58.10 For the year ended March 31, 2020: Deferred tax (liabilities)/assets in relation to: Difference between WDV of Property, Plant and - - - - Equipment as per books and Income taxes Expenses provided but allowable in Income Tax on - - - - payment Allowance for expected credit losses - - - - Unused tax credits ------Others ------TOTAL - - - -
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
319 319 - - - - - 337.74 25.17% 337.74 31, 2020 31, 2020 31, 2020 31, 2020 As at March March at As March at As As at March March at As March at As VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - - - (Amount in ` lakhs)(Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount in ` lakhs)(Amount 331.00 25.17% (58.10) 331.00 (58.10) 31, 2021 31, 2021 31, 2021 31, 2021 As at March March at As March at As As at March March at As March at As Explanation of changes in the applicable tax rate(s) compared to the previous accounting period accounting the previous to compared the applicable tax rate(s) of changes in Explanation From Banks From Particulars Particulars Particulars Particulars (b) The analysis of Deferred Tax Assets is as follows: Assets Tax analysis of Deferred The Provision for Employees' benefits Employees' for Provision TOTAL Loans Secured on demand repayable Loans - TOTAL First facility by The is secured Union Bank of India. from facility (sanctioned has cash credit limit of ` 45 Crores) Company The assets of Company. current & future of Book Debts and present of hypothication charge .93, No Plot House, Corporate Mortgage SecurityVakrangee Equitable Collateral - Registered of Immovable at Property situated building of entire Suncity Andheri built up area Near Hotel East, Mumbai-400093 Residency, with total Road No 16, MIDC, Marol, Limited. Vakrangee is 21050 Sq ft in the name of M/S Note 24 - Employee Benefit Obligations Benefit Obligations 24 - Employee Note (Non - Current) Deferred Tax Assets to be recovered after more than 12 months than 12 after more be recovered to Assets Tax Deferred tax asset or liability deferred for considered rate Tax Applicable been enacted as at the end of the each that have on the basis of using the tax rates been changed have applicable tax rates The reporting period. Deferred Tax Assets to be recovered within 12 months be recovered to Assets Tax Deferred 320
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
Note 26 - Trade Payables (Current) (Amount in ` lakhs) Particulars As at March 31, 2021 As at March 31, 2020 Trade Payables - Dues of micro enterprises and small enterprises Principal Interest Principal Interest Amount due to vendor 38.76 - 101.56 - Principal amount paid (including unpaid) beyond the - - - - appointed date Interest due and payable for the year - - - - Interest accrued and remaining unpaid - - - - 38.76 - 101.56 - Total Dues of micro enterprises and small enterprises 38.76 101.56 - Dues of Creditors other than micro enterprises and 3,375.05 6,806.42 small enterprises TOTAL 3,413.81 6,907.98 Dues to Micro and small enterprises have been determined to the extent such parties have been identified on the basis of information collected by Management.
Note 27 - Other Financial Liabilities (Amount in ` lakhs) As at March As at March Particulars 31, 2021 31, 2020 Payable to Franchisee under WLA 6,648.26 2,794.30 Payables against cash collection - - Payable for acquisition of Property, Plant & Equipments 695.96 555.70 Payable towards CSR Expenses 650.05 - Unpaid Dividend 92.23 89.61 TOTAL 8,086.50 3,439.61
Note 28 - Other Current Liabilities (Amount in ` lakhs) As at March As at March Particulars 31, 2021 31, 2020 Statutory dues 294.11 1,132.75 Advance from customers 3,970.75 2,088.32 Kendra money received pending allotment 1,932.08 1,453.50 Franchisee Wallet Balance 286.84 386.64 Staff Emoluments Payable 752.31 658.49 TOTAL 7,236.09 5,719.70
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
321 321 24.72 24.72 297.82 704.23 698.51 704.23 698.51 7,866.51 2,261.09 31, 2020 31, 2020 31, 2020 58,096.74 68,522.16 As at March March at As As at March March at As As at March March at As VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount (Amount in ` lakhs) (Amount 2.06 34.33 26.05 26.05 263.49 814.32 March 31, 2020 March 814.32 7,864.45 2,261.09 1,134.72 31, 2021 31, 2021 For the year ended the year For 31, 2021 1,134.72 As at March March at As As at March March at As As at March March at As 246.78 4,910.94 1,324.01 24,947.41 31,429.14 - - 69.09 177.69 March 31, 2021 March 4,910.94 1,324.01 For the year ended the year For Scrap Sales Courier and Delivery Services Kit Transportation charge Computer consumables & peripherals Computer Information Technology-enabled Services (ITeS) Services (ITeS) Technology-enabled Information - - - Others Other Operating Revenues Other Revenues Operating - Revenue from Sale of Products Sale of Products from Revenue - Revenue from Sale of Services from Revenue - Revenue from vakrangeeRevenue from kendra, including e-governance activities
Particulars Particulars Particulars Particulars TOTAL
Note:- The amount of revenues are exclusive of indirect taxes i.e. Goods and Service Tax Tax Goods and Service i.e. of indirect taxes exclusive are amount of revenues The Note:- (d) (b) (c) (a) Note 30 - Employee Benefit Obligations Benefit Obligations 30 - Employee Note (Current) Provision for Expenses for Goods & services Expenses for for Provision TOTAL Note 31 - Current Tax Liabilities (Net) Tax 31 - Current Note taxation) for (net of provision Tax Income TOTAL Provision for Employees' benefits Employees' for Provision TOTAL Operations from 32 - Revenue Note Note 29 - Provisions 29 - Provisions Note 322
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
Note 33 - Other Income (Amount in ` lakhs) For the year ended For the year ended Particulars March 31, 2021 March 31, 2020 (i) Interest Income (a) Interest Income on the financial assets at amortized cost - Bank Deposits 226.70 5,657.68 (b) Other Interest Income 6,721.55 6,948.25 1,858.83 7,516.51 (ii) Dividend Income - 1.50 (ii) Other non-operating income - Rent Received 3.12 3.12 - Gain on Sale of Asset - 0.46 - Gain on Foreign Exchange Fluctuation 0.01 224.82 - Fair value gain on financial instrument at fair 14.54 - value through Profit and loss* - Miscellaneous Income 0.07 1.41 17.74 229.81 TOTAL 6,965.99 7,747.82 *Total Fair value gain on financial instrument at fair value through profit and loss includes ` 2.63 Lakhs (previous year ` NIL ) as ‘ Net Gain on sale of Investments’
Note 34 - Operating Expenses (Amount in ` lakhs) For the year ended For the year ended Particulars March 31, 2021 March 31, 2020 Project Delivery Cost - Opening Stock 14.93 17.58 - Add : Purchase of goods and services 5,106.89 40,904.72 - Less : Closing Stock 11.92 14.94 5,109.90 40,907.36 Project Expenses 1,035.74 708.79 Commission Expenses 14,775.60 11,651.15 Communication Costs 1.23 5.23 Conveyance & Travelling Expenses 6.15 32.10 Transportation, Octroi and Loading / Unloading Charges 113.70 119.13 Rent, Rates and Taxes 220.61 236.42 TOTAL 21,262.93 53,660.18
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
323 323 340.81 766.44 7,382.81 (425.63) 7,382.81 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - - (Amount in ` lakhs) (Amount (Amount in ` lakhs) (Amount 17.80 94.44 347.85 March 31, 2020 March 393.09 766.44 March 31, 2020 March (52.28) (663.57) 1,411.43 6,174.86 For the year ended the year For For the year ended the year For 766.44 485.31 281.13 3,441.90 3,441.90 - - - 19.10 36.66 287.77 187.94 766.44 485.31 March 31, 2021 March March 31, 2021 March 3,952.01 For the year ended the year For For the year ended the year For (1,041.58) Particulars At the beginning of the period the beginning At (i) Work-in-Progress Stock-in-Trade (ii) Stock-in-Trade Work-in-Progress (i) Work-in-Progress (v) Directors' Sitting Fees (v) Directors' Expenses Welfare (vi) Staff (iii) Contribution to Provident & Other Funds & Other Funds Provident (iii) Contribution to Expenses (iv) Share-based Payment TOTAL Ind AS-19 by as required on disclosure Detailed note 43 No. Note refer details, For (i) Salaries & Wages Wages (i) Salaries & Remuneration (ii) Directors' Stock-in-Trade (ii) Stock-in-Trade Particulars (a) (a) Note 35 - Changes in Inventories 35 - Changes Note Less : Stock converted into Fixed Assets Assets Fixed converted into : Stock Less the end of the period : at Less
(b) (b) TOTAL TOTAL Benefits Expenses 36 - Employee Note 324
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
Note 37 - Other Expenses (Amount in ` lakhs) For the year ended For the year ended Particulars March 31, 2021 March 31, 2020 Repairs & Maintenance : - Building 4.85 18.65 - Vehicle 2.81 2.42 - Others 64.27 71.93 42.35 63.42 Advertisement and Publicity 205.81 494.50 Business Promotion 18.10 85.03 Rates & Taxes 239.95 276.79 Insurance 151.57 111.65 Electricity Charges 54.04 90.51 Printing and Stationery 11.43 139.25 Communication Costs 119.50 186.41 Fees & Subscriptions 21.10 6.00 Listing, Registrar & Share Issue/Transfer Charges 41.04 56.30 Loss on Foreign Exchange Fluctuation 82.38 10.92 Fair value gain on financial instrument at fair value - 9.46 through Profit and loss* Legal & Professional Fees - Other than payments to Auditor: - Legal & Professional 442.55 682.82 - Filing Stamp Duty and Franking Charges 28.29 9.47 - Registration charges - 470.84 - 692.29 Payments to Auditors : - Audit fees (including limited review) 66.45 66.45 - Tax Audit fees 10.15 10.15 - For Other Services 1.30 2.46 - For Reimbursement of Expenses 1.98 79.88 4.01 83.07 Conveyance & Travelling 43.58 222.32 Vehicle Expenses 10.34 9.73 Corporate Social Responsibility Expenditure (Refer Note 41) 745.04 84.85 Office & General Expenses 152.20 163.42 Allowance for credit losses Opening Allowances (755.60) (755.57) Less : Written off during the year - - Less : Closing Allowances (820.38) 64.78 (755.60) 0.03 Miscellaneous Expenses 114.31 162.30 TOTAL 2,697.82 2,948.25
Note 38 - Exceptional Item (Amount in ` lakhs) For the year ended For the year ended Particulars March 31, 2021 March 31, 2020 - Net gain on disposal of Property plant and equipment - 503.41 TOTAL - 503.41 Exceptional item consists of profit on sale of investment property and old office premises (an item of PPE).
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
325 325
- 1.00 0.67 0.67 13.14 724.18 7,128.01 7,128.01 10,606.65 10,593.51 10,593.51 62,797.48 63,521.66 10,606.65 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 March 31, 2020 March (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount For the year ended the year For 45.78 553.40 125.00 62,797.48 As at March 31, 2020 March at As
- 1.00 0.59 0.59 11.19 846.57 6,279.13 6,279.13 10,605.24 10,594.06 10,594.06 59,595.90 60,442.47 10,605.25 March 31, 2021 March - For the year ended the year For 325.00 521.57 59,595.90 As at March 31, 2021 March at As ( B ) ( A ) Estimated amount of contracts remaining to to amount of contractsEstimated remaining on capital account not provided be executed (net of advances) for Company has provided Counter Guarantee in Guarantee Counter has provided Company various to parties Bank Guarantee to relation on behalf of subsidiary which is not company acknowledged in books of accounts Claims against the company not Claims against the company acknowledged as debts in Guarantee Counter has provided Company various to parties Bank Guarantee to relation which is not acknowledged in books of accounts Particulars Face Value per Equity Share (`) Equity per Share Value Face Basic EPS (`) For Diluted EPS Diluted For Weighted average no. of equity shares (in lakhs) of equity shares no. average Weighted outstanding during the year Basic EPS For Commitments Commitments (i) The amount of liabilities, which may occur on levying of penalty and/or charges by clients for delays in execution of in execution delays occur on levying which may clients for of penalty by amount of liabilities, The and/or charges is unascertained.contracts in the agreement, the time prescribed within Add: Potential equity shares equity shares Potential Add: Diluted EPS (`) Diluted (in lakhs) of shares no. between Reconciliation EPS basic and diluted calculating used for calculating Basic EPS used for of shares No. Add/Less: Adjustment relating to potential equity potential to relating Adjustment Add/Less: shares Net profit after tax attributableto equity Net profit for shareholders Basic EPS after tax attributable equityto Net profit EPS Diluted for shareholders (iii) Contingent Liabilities Liabilities Contingent (i) (ii) No. of shares used for calculating Diluted EPS Diluted calculating used for of shares No.
Particulars (c) (b) (B) + B) (A TOTAL Note: (d) (a) (A) Note 39 - Earnings Per Equity Share 39 - Earnings Per Note Note 40 - Contingent Liabilities and Commitments (to the extent not provided for) for) not provided extent the (to Liabilities and Commitments 40 - Contingent Note 326
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
Note 41 - Corporate Social Responsibility As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act.
a) Gross amount required to be spent by the company during the year is ` 745.04 lakhs. (Amount in ` lakhs) Yet to be paid Particulars In Cash Total in Cash i) Construction / acquisition of any asset - - - ii) On purposes other than (i) above 94.99 650.05 745.04
Note 42 - Segment Reporting The Company’s activities predominently comprise providing various services through Vakrangee Kendra. Considering the nature of the Company’s business and operations, there is only one reportable operating segment (business and / or geographical) i.e. Vakrangee Kendra in accordance with the requirements of the Indian Accounting Standard 108 – “Operating Segments”.
Note 43 - Related Party Details (a) Key Management Personnel & Directors Mr. Ramesh Mulchand Joshi Non-Executive Chairman (w.e.f. January 24, 2020) Mr. Dinesh Nandwana Managing Director & Group CEO (Executive Chairman upto January 24, 2020) Mr. Anil Khanna Director (upto September 11, 2020) (Managing Director & Group CEO upto January 24, 2020) Dr. Nishikant Hayatnagarkar Whole-Time Director Mr. Sunil Agarwal Director Mr. Babulal Meena Director Mrs. Sujata Chattopadhyay Director Mr. Avinash Chandra Vyas Director Mr. Ranbir Datt Nominee Director Mr. Hari Chand Mittal Director (w.e.f. July 31, 2020) Mr. Subhash Singhania Chief Financial Officer (upto December 20 2020) Mr. Mehul Rawal Company Secretary and Compliance Officer (upto December 20 2020) Mr. Ajay Jangid Chief Financial Officer (w.e.f. December 21, 2020) Mr. Jay Bhansali Company Secretary and Compliance Officer (w.e.f. December 21, 2020)
(b) Relative of key management personnel and Name of the enterprises having same key management personnel and/ or their relatives as the reporting enterprises with whom the Company has entered into transactions during the year - Mr. Manoj Nandwana Nephew of Director - Mr. Shelendra Nandwana Nephew of Director - Ms. Divya Nandwana Daughter of Director - Mr. Vedant Nandwana Son of Director
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
327 327 ------4.48 1.60 3.95 2.50 2.15 2.00 3.95 3.25 0.03 0.05 58.50 54.00 26.05 16.76 18.75 15.40 240.00 307.64 1,112.93 31, 2020 For the year the year For VAKRANGEE LIMITED VAKRANGEE ended March ended March Integrated Annual Report 20-21 ------(Amount in ` lakhs)(Amount 5.92 1.21 0.49 2.95 2.75 2.70 2.50 3.20 2.75 2.25 3.18 1.80 0.40 4.63 47.77 37.20 16.09 17.72 20.00 12.48 240.00 31, 2021 For the year the year For ended March ended March Nature of Transactions Nature of Transactions Related Related Party Transactions (a) to - In relation Remuneration to Key Managerial Personnel Managerial Personnel Key to Remuneration - Dinesh Nandwana - Anil Khanna Nishikant Hayatnagarkar - Dr. - Subhash Singhania - Mehul Rawal - Ajay Jangid - Ajay Bhansali - Jay Personnel Key Managerial to benefits Post-employment - Dinesh Nandwana - Dr. Nishikant Hayatnagarkar - Dr. - Subhash Singhania - Mehul Rawal - Ajay Jangid - Ajay Bhansali - Jay ESOP Perquisites Nishikant Hayatnagarkar - Dr. Directors Sitting Fees - Ramesh Mulchand Joshi - Sunil Agarwal - Babulal Meena - Sujata Chattopadhyay - Avinash Chandra Vyas Chandra - Avinash - Ranbir Datt - Mehul Rawal Jangid - Ajay Bhansali - Jay - Hari Chand Mittal 31 : outstanding as on March Balance (Salaries Payable) - Dinesh Nandwana Nishikant Hayatnagarkar - Dr. - Anil Khanna - Subhash Singhania 328
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
- In relation to (b) (Amount in ` lakhs) For the year For the year Nature of Transactions ended March ended March 31, 2021 31, 2020 Reimbursement of Expenses Paid - Manoj Nandwana 1.66 3.44 - Shelendra Nandwana - 0.09 - Divya Nandwana - 1.02 - Vedant Nandwana - 0.29 Employee Benefit Expenses - Manoj Nandwana 7.34 8.97 - Shelendra Nandwana 5.13 6.28 - Divya Nandwana 15.42 18.73 - Vedant Nandwana 6.43 6.81 Balance outstanding as on March 31 : (Expenses and Salaries Payable) - Manoj Nandwana 1.31 0.32 - Shelendra Nandwana 0.42 - - Divya Nandwana 1.15 - - Vedant Nandwana 0.50 -
Note 44 - Employee Benefit Obligations (i) Leave obligations The leave obligations cover the Company’s liability for earned leave. The amount of provision of ` 262.92 lakhs (March 31, 2020 - ` 276.07 lakhs) is presented as current and non-current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employee to take the full amount of accrued leave or require payment within the next 12 months. The Company has accounted for provision of leave encashment as per Ind-AS 19 based on acturial valuation undertaken by a registered valuer.
(ii) Gratuity (post-employment benefits) The Company provides for gratuity to employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to recognised/approved funds in India. The Company has fully funded group gratuity plan against this liability with LIC of India. The Company has accounted for provision of gratuity as per Ind-AS 19 based on acturial valuation undertaken by a registered valuer.
(iii) Defined contribution plans The Company also has certain defined benefit obligations. Contributions are made to provident fund in India for employees at the specified rate of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligations of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan is ` 138.94 lakhs (March 31, 2020 - ` 260.04 lakhs).
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
329 329 ------1.40 46.28 12.86 (5.28) (7.25) (5.49) 86.40 86.40 86.40 94.14 134.18 131.10 (70.89) 128.90 486.64 132.49 (10.65) (24.61) (400.25) (132.11) (119.25) 31-Mar-20 Net amount Net amount VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 ------(Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 17.52 95.90 11.75 (7.25) (5.49) 94.14 17.52 11.75 109.99 (40.56) (29.95) 408.09 (40.56) (29.95) (313.95) (465.85) (400.25) (400.25) (313.95) 31-Mar-21 Plan assets Plan Plan assets Plan Fair value of value Fair Fair value of value Fair ------1.10 35.28 46.28 31.35 134.18 131.10 (88.41) (95.90) 455.21 169.46 486.64 486.64 162.44 408.09 (42.13) (132.11) (109.99) (131.01) of obligation of obligation of obligation of obligation Present value value Present Present value value Present Particulars Particulars Particulars Present value of funded obligations Present Fair value of plan assets Fair Deficit/(Surplus) of gratuity plan gratuity Deficit/(Surplus) of Gratuity in the net defined benefit and the movements in the balance sheet recognised table sets out the amount following The as follows: are the year obligations over 01-Apr-19 Current ServiceCurrent cost Past Service Past Cost Interest expense/(income) Interest Total amount recognised in profit and loss and in profit recognised amount Total Remeasurements expense / amounts included in interest Return excluding on plan assets, (income) (Gain)/loss from change in financial assumptions (Gain)/loss from Experience (gains)/losses Total amount recognised in other comprehensive income in other comprehensive recognised amount Total Employer contributions Employer Benefit payments 31-Mar-20 01-Apr-20 Current ServiceCurrent cost Past Service Past Cost Interest expense/(income) Interest Total amount recognised in profit and loss and in profit recognised amount Total Remeasurements expense / amounts included in interest Return excluding on plan assets, (income) (Gain)/loss from change in financial assumptions (Gain)/loss from Experience (gains)/losses Total amount recognised in other comprehensive income in other comprehensive recognised amount Total Employer contributions Employer Benefit payments 31-Mar-21 The net liability disclosed above relates to funded plans are as follows funded plans are to relates net liabilityThe disclosed above 330
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
Significant estimates- actuarial assumptions and sensitivity The significant actuarial assumptions were as follows 31-Mar-21 31-Mar-20 Discount rate 6.67% 6.70% Salary growth rate (per annum) 5.00% 5.00% Mortality Table IALM 2012-14 IALM 2006-08 Ultimate Ultimate
Sensitivity analysis The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is: Impact on defined benefit obligation Particulars Change in assumption Increase in assumption 31-Mar-21 31-Mar-20 31-Mar-21 31-Mar-20 Discount rate 1% 1% Decrease by 8% 9% Salary growth rate 1% 1% Increase by 9% 10%
Impact on defined benefit obligation Particulars Change in assumption Decrease in assumption 31-Mar-21 31-Mar-20 31-Mar-21 31-Mar-20 Discount rate 1% 1% Increase by 10% 11% Salary growth rate 1% 1% Decrease by 8% 9%
The above sensitivity analyses are 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 (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.
*The major categories of plans assets are as follows: In Percentage %
31-Mar-21 31-Mar-20 Equity instruments 9.68 5.55 Debt instruments 86.30 91.83 Government bonds 67.56 74.55 Corporate bonds/debentures 18.74 17.28 Asset backed securities - 0.85 Cash and cash equivalents 4.02 1.77 TOTAL 100.00 100.00
*The Company contributes all the ascertained liabilities towards gratuity to Life Insurance Corporation of India (LIC) which is the insurer- managed fund. Since the investments in the plan assets is managed by LIC the detailed breakup of the investments is not made available to the Company.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
331 331 6,02,550 19,61,400 18,13,475 64,58,800 1,77,89,650 1,26,89,700 options Number of VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 31-Mar-20 49.95 18.53 30.58 35.60 86.88 70.46 Average Average per share per share option (`) exercise price price exercise - - 64,58,800 32,45,125 17,31,025 32,13,675 options Number of - - 31-Mar-21 70.46 61.42 86.85 79.48 Average Average per share per share option (`) exercise price price exercise The present value of defined benefit plan liability is calculated using a discount rate which is determined by which is determined value of defined benefit plan liabilityrate using a discount is calculated present The market to of the reporting yields at the end Most of the plan asset period bonds. on government reference subject securitiesto grades and in government income securities which are with high is in fixed investment maintain to intends Company The risk. rate in equityinterest A portion securities. invested of the funds are mix in the continuing years. investment the above this will be in the market the plan liability;A decrease bond will increase yields in the government however, return debt investments. on the plan's in the partiallyan increase by offset by which is determined value of defined benefit plan liabilityrate using a discount is calculated present The of the mortality the best estimate to of plan participantsreference both during An and after employment. expectancy in the life increase of the plan participants liability. the plan's will increase by which is determined benefit plan liability value of defined using a discount rate is calculated present The salaries in the salary of plan participants. the future such, an increase to As plan participants of the reference liability. the plan's will increase Particulars Set out below is a summarySet out below under the plan: of options granted Options are granted under the plan for no consideration and carry no dividend or voting rights. When exercisable, each option each exercisable, When no consideration and carry under the plan for granted rights. no dividend or voting Options are price of the options is a price which is determined at 50% of market exercise The price is convertible one equity into share. other price the Nomination and as decided by or at any Exchange) the highest traded Stock (on of the scrip of the company Committee. RemunerationCompensation and Once vested, the options remain exercisable for a period of 4 /5 years. for exercisable the options remain Once vested, Risk Exposure are detailed of which the most significant to a number ofis exposed risks, Company the its defined benefit plans, Through riskInvestment riskInterest riskLongevity Salary risk based payments 45 - Share Note the members/ by 2008 (ESOP Scheme) which was approved Option Scheme, Stock Employee has formulated company The 23, 2008, as modified on general meeting held on September at their annual January of the Company shareholders 2011 10, the by approved “ESOP Scheme 2014” the new has formulated the company Further and June 1, 2012 annual general meeting. to incentives provide to is designed Option Plan Employee The postal ballot on May 23, 2014. through members of the company proportionately options which vest granted are employees Under the plan, servingall the existing employees with the Company. lock in period. which includes date the grant from 2 – 6 years from Opening balance Granted duringGranted the year Exercised during the year Exercised Lapsed during the year Closing Balance Closing Vested and exercisable Vested No options expired during tables. the periodsNo options expired in the above Nil 31, 2021 was ` during ended March the year of options exercised price of exercise at the date share average weighted The 31, 2020 : ` 63.10). (March 332
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
Share options outstanding at the end of the year have the following expiry date and exercise prices:
Exercise price Share options Share options Grant date Expiry date (`) 31-Mar-20 31-Mar-19 26-11-2014 26-11-2023 32.35 32,475 1,13,200 11-03-2016 10-03-2025 56.54 5,93,900 9,70,300 26-07-2017 25-07-2026 109.40 13,05,600 22,80,800 26-10-2017 25-10-2026 137.33 2,16,800 2,96,800 09-01-2018 08-01-2027 202.28 64,000 2,05,300 13-04-2018 12-04-2027 69.85 3,01,300 3,66,100 10-07-2018 09-07-2027 25.93 1,37,200 2,00,600 05-10-2018 04-10-2027 14.38 1,54,200 2,36,300 03-01-2019 02-01-2028 18.03 71,700 1,42,300 15-04-2019 14-04-2028 32.95 1,18,400 2,09,400 10-07-2019 09-07-2028 17.95 40,200 1,12,100 09-10-2019 08-10-2028 14.18 1,77,900 3,25,600 09-10-2019 08-10-2030 14.18 - 10,00,000 TOTAL 32,13,675 64,58,800
Fair value of options granted The company has not granted any option during the year ended March 31, 2021. The fair value at grant date of options granted during the year ended March 31, 2020 was ` 49.42, ` 27.26, ` 17.28 and ` 17.83. The fair value at grant date is determined using the Black Scholes Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option. The model inputs for options granted during the year ended March 31, 2020 included: a) Options are granted for consideration and vest upon completion of service for a period of one / two years. Vested options are exercisable for a period of four / five years after vesting.
Particulars Year ended March 31, 2020 b) Exercise price 32.95 17.95 14.18 14.18 c) Grant date 15-04-2019 10-07-2019 09-10-2019 09-10-2019 d) Expiry date 14-04-2028 09-07-2028 08-10-2028 08-10-2030 e) Share price at grant date (`) 67.00 36.80 26.05 26.05 f) Expected price volatility of the company’s shares 44.79% 50.68% 32.38% 27.48% g) Expected dividend yield 0.37% 0.44% 0.43% 0.39% h) Risk free interest rate 7.50% 6.67% 6.67% 6.80% i) Fair value (`) 49.42 27.26 17.28 17.83
The expected price volatility is based on the historic volatility (based on the remaining life of the options), adjusted for any expected changes to future volatility due to publicly available information. j) Expense arising from share based payment transactions
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
333 333
------2020 138.85 Level 2 Level Level 2 Level 138.85 (663.57) March 31, March VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 ------(Amount in ` lakhs)(Amount (Amount in ` lakhs) (Amount 2021 Level 1 Level Level 1 Level (1,041.58) March 31, March - value value 108.23 818.59 138.85 1,309.63 1,154.17 2,228.62 3,428.15 8,126.90 Carrying Carrying 11,555.05 1,12,031.21 1,17,789.30 ------FVOCI FVOCI ------FVTPL FVTPL 138.85 138.85 - - cost cost 108.23 818.59 1,309.63 1,154.17 2,228.62 3,428.15 8,126.90 11,555.05 Amortised Amortised 1,12,031.21 1,17,650.45 Unadjusted quoted prices quoted in active marketsUnadjusted identical assets and liabilities. for either directly or observableInputs 1 that are the asset or liability, other than prices for included within Level indirectly. Unobservable the asset or liability. inputs for
Method and assumptions used to estimate the fair value the fair estimate Method and assumptions used to both financial for the determination of fair value, require accounting policies and disclosures A number of the Company’s to transfer to sell an asset or paid received would be Fair value is the price that and liabilities. as non-financial assets as well a liability transaction in an orderly between market measurement A fair value participants date. at the measurement the liabilityassumes that the transaction takes sell the asset or transfer to place either in the principal market the asset for principalThe or liability or in the absence of a principal market, in the most advantageous market liability. the asset or for market or the most advantageous market the Company. must be accessible to the assumptions that market using fair value of an asset or a liabilityThe is measured participants use when pricing would assuming that market participantsthe asset or liability, act in their economic best interest. categorised the within are or disclosed in the financial statements fair value is measured which All assets and liabilities for The fair as a whole. to the fair value measurement input that is significant level based on the lowest fair value hierarchy is described as below:value hierarchy 1 : Level 2 : Level follows:- carryingThe as were 31, 2021 each classification as at value and fair value by March Level 3 : Level Particulars Particulars Particulars Total expenses arising from share based payment transactions recognized in profit or loss as part or loss as in profit benefit expense of employee transactions based payment recognized share arising expenses from Total as follows: were
Employee Stock Option Plan Stock Employee Risk Management 46 - Financial Note (i) Financial Assets Financial Loans Term Long Trade Receivables Trade Cash & Cash equivalents & Cash Cash Other Bank Balances Short Term ShortLoans Term Other Financial Assets Other Financial Investments TOTAL Financial Liabilities Financial Borrowings Trade Payables Trade Other Financial Liabilities Other Financial TOTAL 334
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
The carrying value and fair value by each classification as at March 31, 2020 were as follows:- (Amount in ` lakhs) Amortised Carrying Particulars FVTPL FVOCI Level 1 Level 2 cost value Financial Assets Long Term Loans 118.87 - - 118.87 - - Trade Receivables 1,36,884.21 - - 1,36,884.21 - - Cash & Cash equivalents 1,505.50 - - 1,505.50 - - Other Bank Balances 16,345.05 - - 16,345.05 - - Short term Loans 1,067.00 - - 1,067.00 - - Other financial assets 834.94 - - 834.94 - - Investments - 333.84 - 333.84 206.90 126.94 TOTAL 1,56,755.57 333.84 - 1,57,089.41 206.90 126.94 Financial Liabilities Borrowings ------Trade Payables 7,199.33 - - 7,199.33 - - Other Financial Liabilities 3,478.87 - - 3,478.87 - - TOTAL 10,678.20 - - 10,678.20 - -
(ii) Financial Risk Management The Respective Board of Directors of the Holding and Component Company has overall responsibility for the establishment and overview of the company’s risk management framework. The Board of Directors has established a risk management policy to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risk and adherence to limits. Risk management systems are reviewed periodically to reflect changes in market conditions and the company’s activities. The Audit Committee oversees how management monitors compliances with the company’s risk management policies and procedures, and reviews the risk management framework. The Audit Committee is assisted in its role by Internal Audit. Internal Audit covers review of risk management controls and procedures, the results of which are reported to the Audit Committee. The Group’s activities are exposed to various risk viz. Credit Risk, Liquidity Risk and Market Risk. In order to minimise any adverse effects on the financial performance of the Company, it uses various instruments and follows policies set up by the Board of Directors / Management of the Company.
a) Credit Risk : Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Credit risks from balances with banks and financial institutions are managed in accordance with the Company policy. For derivative and financial instruments, the Company attempts to limit the credit risk by only dealing with reputable banks and financial institutions having high credit ratings assigned by credit rating agencies. In addition, the Holding Company is exposed to credit risk in relation to financial guarantees given to banks and other counter parties for the facilities availed by subsidiary. The Company’s maximum exposure in this respect is the maximum amount the Company would have to pay if the guarantee is called upon. Trade receivables consists of large number of customers spread across diverse industries and geographical areas with no significant concentration of credit risk. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
335 335 - - - - 0.03 Total Total Total 2020 2020 14.32 27.45 755.57 139.63 755.60 1,088.99 March 31, March March 31, March 1,36,349.34 1,37,619.73 VAKRANGEE LIMITED VAKRANGEE Integrated Annual Report 20-21 - - - - (Amount in ` lakhs)(Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 4.87 2.16 2021 2021 64.78 755.60 871.10 820.38 1,689.79 > 5 years > 5 years March 31, March March 31, March 1,10,263.59 1,12,831.50 - - - - 1 - 5 years 1 - 5 years - - - - < 1 Year < 1 Year Market Risk - Foreign Exchange RiskMarket - Foreign currency Risk of a financial instrument will fluctuate cash flows is that risk in which fair value or future Foreign internationally and a portion operates Company The of rates. exchange because of changes in the foreign exchange foreign is exposed to the Company and therefore its business is transacted currencies in several hedges the Company The currencies. in various foreign sales and purchases its overseas risk through consultant and as per policies view after Forex discussion with forming by as payables as well receivables various currency banks to from loans availed the Foreign is also exposed to Company The Management.by cost. interest the overall reduce Liquidity Risk: Liquidity difficulty with financial will encounter risk associated in meeting obligations is the risk that the Company for managing approach Company’s The asset. cash or another financial delivering settled by liabilities that are under both normal are due, sufficient liquidity to meet its liabilities when they that it will have liquidity ensure is to typically reputation, without incurring conditions, losses or risking unacceptable and stressed Company’s damage to servicing to meet expected operational expenses, that it has sufficient cash on demand ensures of the company financial obligations. of financial liabilities Maturities contractual maturities the remaining of financial liabilities: details regarding provides table below The
Market Risk:Market a change in the Marketresult from that may cash flows risk earnings is the risk or fair values or future of loss of future result of changes in the interest may change as a The value of a financial instrument price of a financial instrument. market and other rates market exchange changes that affect instruments. risk sensitive foreign rates, (i)
b)
c) loss allowance in the expected credit Movement As on March 31, 2021 on March As 31, 2020 on March As Age of receivables of Age TOTAL TOTAL Balance at beginning of the year Balance at beginning at lifetime calculated on trade receivables loss allowance in expected credit Net movement losses expected credit Within the credit period the credit Within 1-90 days past due 1-90 days past due 91-180 days past due 181-270 days past due than 270 days More Table showing age of gross trade receivables and movement in expected credit loss allowance: loss in expected credit and movement receivables trade age of gross showing Table Non-Current borrowings Non-Current borrowings Current borrowings borrowings Current borrowings Current 336
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
The carrying amount of the Company’s foreign currency denominated monetary assets and liabilities as at the end of the reporting period is as follows:
(Amount in ` lakhs) Liabilities Assets Currency As at March As at March As at March As at March 31, 2021 31, 2020 31, 2021 31, 2020 US Dollar (USD) - - - -
Foreign Currency Exposure ( USD in Lakhs) As at March As at March Particulars 31, 2021 31, 2020 Trade Receivables - - Loans Receivable - - TOTAL - -
Foreign Currency Sensitivity 1% increase or decrease in foreign exchange rates will have the following impact on Profit after Tax and impact on Equity
(Amount in ` lakhs) Impact of Profit and Loss / Equity
Currency For year ended March 31, 2021 For year ended March 31, 2020
1% increase 1 % decrease 1% increase 1 % decrease US Dollar (USD) - - - - In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.
ii) Market Risk - Interest Rate The interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Note 47 - Income Taxes (a) A reconciliation of the income tax provision to the amount computed by applying the statutory income tax rate to the income before income taxes is summarized below: (Amount in ` lakhs) For the year For the year Particulars ended March ended March 31, 2021 31, 2020 Profit before income taxes 8,281.81 9,155.27 Enacted tax rates in India * 25.17% 25.17% Computed expected tax expense 2,097.60 2,304.20 Effect of non-deductible expenses (255.50) (369.06) Absorption of unabsorbed brought forward losses and depreciation 0.12 (1.03) Others 12.03 101.83 Income Tax expense 1,854.26 2,035.94 Earlier year tax expenses 28.08 (448.32) Current Income Tax expense 1,882.34 1,587.62 * Tax rate on subsidiaries have been considered at 26%, being rate for companies having turnover of less than 250 crores.
VAKRANGEE LIMITED Integrated Annual Report 20-21 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS
337 337 6.19 17.83 421.81 704.23 (92.63) 1,587.62 1,960.06 31, 2020 31, 2020 (538.47) 31, 2020 (1,424.49) (1,418.96) (1,255.83) (1,255.83) As at March March at As For the year the year For For the year the year For VAKRANGEE LIMITED VAKRANGEE ended March ended March ended March ended March Integrated Annual Report 20-21 - (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount (Amount in ` lakhs)(Amount 30.01 57.72 120.34 814.32 578.07 236.25 (92.63) 236.25 (390.27) 1,882.34 31, 2021 31, 2021 31, 2021 (1,255.83) As at March March at As For the year the year For For the year the year For ended March ended March ended March ended March Particulars Particulars Particulars The gross movement in the current income tax liability / (asset) for the year ended March 31, 2021 and March 31, 2020 is as March 31, 2021 and ended March the year tax liability income in the current for / (asset) movement gross The follows: Current Income Tax Liabilities Tax IncomeCurrent the end tax liabilities / (assets) at income Net current Income Tax Assets Income Tax The following table provides the details of income tax liabilities and income tax assets as of March 31, 2021 and March 31, March 31, 2021 and as of March income tax liabilities and income tax assets the details of table provides following The 2020 : Net deferred income tax liabilities / (asset) at the beginning the beginning tax liabilities / (asset) at income Net deferred Net current income tax liability / (asset) at the beginning tax liability the beginning / (asset) at income Net current tax liability the end / (asset) at income Net current 31, 2020 is as March 31, 2021 and ended March the year tax liability income in the current for / (asset) movement gross The follows: temporary to relating Movements differences Income Tax paid Tax Income expense Tax Income Current income on other comprehensive differences Temporary Unused Tax Credit Credit Tax Unused Net deferred income tax liabilities / (asset) at the end (asset) at tax liabilities / income Net deferred
(b) (c ) (c 338
CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated financial statements for the year ended March 31, 2021 (continued)
Note 48 - Additional information pursuant to para 2 of general instructions for the preparation of consolidated financial statements
Net Assets, i.e. total assets Share in other Share in total Share in profit or loss % of % of minus total liabilities comprehensive income comprehensive income voting voting Name of the Country of power power As % of As % of entity incorporation as at as at As % of As % of consolidated consolidated March March consolidated Amount consolidated Amount other Amount total compre- Amount 31, 2021 31, 2020 net assets profit or loss comprehensive hensive income income Vakrangee India - - 96.67% 2,57,534.39 76.06% 4,775.74 100.83% 89.24 76.40% 4,864.98 Limited Indian Subsidiaries Vakrangee India 100.00 100.00 1.87% 4,992.71 24.71% 1,551.41 0.00% - 24.36% 1,551.41 Finserve Limited Vakrangee India 100.00 100.00 0.34% 905.41 0.00% (0.22) 0.00% - 0.00% (0.22) Logistics Private Limited Foreign Subsidiary Vakrangee Philipines 100.00 100.00 1.13% 2,975.53 -0.76% (47.80) -0.83% (0.74) -0.75% (48.54) e-Solutions Inc. Total 2,66,408.04 6,279.13 88.50 6,367.63
Note 49 - Previous year / period figures The financial statements have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and polices to the extent applicable. The previous year’s figures have been regrouped or rearranged wherever necessary.
As per our report of even date For A. P. Sanzgiri & Co. For and on behalf of the Board of Directors Chartered Accountants Firm's Registration No. : 116293W Ramesh Joshi Dinesh Nandwana Dr. Nishikant Hayatnagarkar Chairman MD & Group CEO Whole-time Director DIN : 00002683 DIN : 00062532 DIN : 00062638 Anil Agarwal Partner Membership No.: 041396 Place : Mumbai Ajay Jangid Jay Bhansali Date : June 19, 2021 Chief Financial Officer Company Secretary
VAKRANGEE LIMITED Integrated Annual Report 20-21 OFFICE ADDRESSES: Mumbai: Registered Office: Vakrangee Limited, Vakrangee Corporate House, Plot No. 93, Road No. 16, MIDC, Marol, Andheri East, Mumbai - 400093 (Maharashtra)
New Delhi Office: Vakrangee Limited, Unit No 230-232, Somdutt Chamber-2, Bhikaji Cama Place, New Delhi – 110066 (New Delhi)
Jaipur Office: Vakrangee Limited, 3/55, Paras Ram Nagar, Dher Ke Balaji, Sikar Road, Jaipur - 302023 (Rajasthan)
Chandigarh Office: Vakrangee Limited, W3-A, 3rd Floor, Godrej Eternia, Plot No. 70, Industrial Area, Phase-1, Chandigarh - 160002 (Chandigarh)
Lucknow Office: Vakrangee Limited, 413, Aashiyana Colony, Near Aashiyana Thana, Kanpur Road, Lucknow - 226012 (Uttar Pradesh)
Pune Office: Vakrangee Limited, Unit No. 243/244, 2nd Floor, Akshay Complex Condominum, Dhole Patil Road, Near to Ganpati Mandir, Pune - 411001 (Maharashtra)
Ahmedabad office: Vakrangee Limited, Unit No 608, Amarnath Business Centre -1, St Xavier’s College Corner, Navarangpura, Ahmedabad - 380009 (Gujarat)
Raipur Office: Vakrangee Limited, Fifth Floor, Unit 547, Magneto Mall, Condominium Labhandi, N.H.- 6, Ward No. 28, Maharishi Valmiki Ward, Raipur – 492001 (Chhattisgarh) www.dickensonworld.com
VAKRANGEE LIMITED www.vakrangee.in