Employee benefits

Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized as an expense during the period.

Compensated absences

The employees can carry-forward a portion of the unutilised accrued compensated absences and utilise it in future service periods or receive cash compensation on termination of employment but subject to utilisation of 3 months from the end of the financial year. Since the compensated absences fall wholly within twelve months after the end of the period in which the employees render the related service and are also expected to be utilized wholly within twelve months after the end of such period, the benefit is classified as a short-term employee benefit. The Company records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement.

Long term employment benefits

Defined contribution plans:

The Company makes specified monthly contributions towards employee provident fund scheme and employees' state insurance corporation. The Company's contribution paid / payable under the scheme is recognised as expense in the statement of profit and loss during the year in which the employee renders the related service.  The interest rate payable on employee provident fund scheme is being notified by the Government.

Defined benefit plans

The Company's gratuity benefit scheme is a defined benefit plan. The Company's net obligation in respect of the gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its brsent value.

The brsent value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the brsent value of the estimated future cash flows.  The discount rates used for determining the brsent value of the obligation under defined benefit plan, are based on the market yields on Government securities as at the balance sheet date.

Actuarial gains and losses are recognized immediately in the statement of profit and loss.

Employee Benefit disclosures in accordance with Accounting Standard 15 (Revised 2005)

(a) Defined Contribution Plans

Amount of Rs 11,322,373 (brvious year: Rs 9,560,544) towards contribution to provident fund and employees' state insurance corporation is recognised as an expense and included in employee benefit expense.

(b) The Company's Gratuity benefit is unfunded and it is defined benefit plan.

The Company has a defined benefit gratuity plan.  Every employee who has completed five years or more of service gets a gratuity on death or resignation or retirement at 15 days salary (last drawn salary) for each completed year of service with maximum ceiling as per Company policies.

Amount recognised in balance sheet	31 March 2016	31 March 2015
Fair value of plan assets	-	-
Present value of obligations	77,24,580	36,52,790
(Liability) recognised in balance sheet	(77,24,580)	(36,52,790)

Movement in brsent values of defined benefit obligations	31 March 2016	31 March 2015
Defined benefit obligation at 1 April	36,52,790	19,72,074
Current service cost	27,08,366	18,21,172
Interest cost	2,92,223	1,57,766
Actuarial losses / (gains)	10,71,201	(2,98,222)
Benefits paid		-
Defined benefit obligation at 31 March	77,24,580	36,52,790

Expenses recognised in the statement of profit and loss	31 March 2016	31 March 2015
Current service cost	27,08,366	18,21,172
Interest on obligation	2,92,223	1,57,766
Net actuarial (gain)/ loss recognised in the year	10,71,201	(2,98,222)
Total included in 'employee benefits'	40,71,790	16,80,716

Principal actuarial assumptions	31 March 2016	31 March 2015
Mortality	IALM (2006-08) ULT	IALM.(2006-08) ULT
Discount rate as at 31 March	7.46%	8.00%
Expected Rate of Return on Assets	-	-
Attrition Rate	8%	8%
Expected salary increase rate	10%	7%

The estimate of future salary increase, considered in the actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

The obligations are measured at the brsent value of estimated future cash flows by using a discount rate that is determined with reference to the market yields at the Balance Sheet date on Government Bonds, which is consistent with the estimated terms of the obligation.

Five year experience history	31 March 2016	31 March 2015	31 March 2014	31 March 2013	31 March 2012
Defined benefit obligation	77,24,580	36,52,790	19,72,074	14,91,586	-
Fair value of plan assets	-	-	-	-	-
(Surplus) / deficit in the plan	77,24,580	36,52,790	19,72,074	14,91,586	-
Experience (gain) adjustment on plan liabilities	(12,70,961)	(9,28,509)	(7,57,103)	(3,99,534)	-

(C) Compensated absences

The provision for compensated absences as at the year ended 31 March 2016 is Rs. 3,568,733 (Rs. 2,049,468)

Notes to the financial statements

for the year ended 31 March 2016

(Currency: Indian Rupees)

1. Company overview

Travel Food Services Private Limited ('the Company') was incorporated on 20 November 2007 under the Companies Act, 1956. The Company manages and develops food and beverage outlets at Mumbai, Mangalore and Coimbatore Airports and at Visakhapatnam railway station.

2. Significant accounting policies

The accounting policies set out below have been applied consistently to the periods brsented in these financial statements.

2.1 Basis of brparation of financial statements

These financial statements have been brpared and brsented under the historical cost convention, on the accrual basis of accounting in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Companies Act, 2013 ('the Act'), read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified).

2.2 Use of estimates

The brparation of financial statements in conformity with generally accepted accounting principles ('GAAP') requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reported period.  Management believes that the estimates made in the brparation of the financial statements are prudent and reasonable. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

2.3 Current / non-current classification

All the assets and liabilities have been classified as current and non-current.

Assets

An asset is classified as current when it satisfies any of the following criteria:

(i)  It is expected to be realized in, or is intended for sale or consumption in, the Company's normal operating cycle;

(ii) It is held primarily for the purpose of being traded;

(iii) It is expected to be realised within twelve months after the reporting date; or

 (iv) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

(i)  It is expected to be settled in the company's normal operating cycle;    

(ii) It is held primarily for the purpose of being traded;

(iii) It is due to be settled within twelve months after the balance sheet date; or

(iv) The company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Current liabilities include current portion of non-current financial liabilities.

All other liabilities are classified as non-current.

2.4 Operating cycle

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out above which are in accordance with the Schedule III to the Act.

Based on the nature of services and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non-current classification of assets and liabilities.

2.5 Fixed assets, debrciation and amortisation

Tangible assets

Tangible fixed assets are carried at cost of acquisition less accumulated debrciation/ amortisation and impairment loss, if any. The cost of an item of tangible fixed asset comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use; any trade discounts and rebates are deducted in arriving at the purchase price.

Debrciation on tangible assets is provided on the straight-line method over the useful lives of assets as brscribed under Part C of Schedule II of the Act except for plant and machinary, furniture and fixtures, electrical equipments, and kitchen equipments which is based on technical evaluation. Management believes that the useful lives as given below best rebrsent the period over which management expects to use these assets. Hence the useful life for plant and machinary of 5 years, furniture and fixtures of 5 years, electrical equipments of 5 years and for kitchen equipments of 5 years for continuous running is different from the useful life as brscribed under Part C of Schedule II of the Act.

Debrciation is charged on pro-rata basis for assets purchased / sold during the period.

Tangible assets	Useful life in (Years)
Plant and Machinery	5 years
Furniture and Fixtures	5 years
Office Equipments	5 years
Computer other than servers and networks	3 years
Electrical Equipments	5 years
Vehicle	8 years
Kitchen Equipments	5 years

Leasehold improvements are amortised over the useful life of assets or the lease term, whichever is lower.

A fixed asset is eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal. Losses arising from retirement or gains or losses arising from disposal of fixed assets which are carried at cost are recognised in the Statement of Profit and Loss.

Capital work-in-progress includes the cost of fixed assets that are not ready for their intended use as at the balance sheet date.

Advance paid for acquisition/ construction of fixed assets which are not ready for their intended use at each balance sheet date are disclosed under loans and advances as capital advances.

Intangible assets

Intangible assets rebrsent software licenses purchased by the Company which are amortised over an expected benefit period of 3 years using the straight line method.

Assets costing individually Rs 5,000 or less, are debrciated fully in the year of purchase.

2.6 Impairment of fixed assets

The Company assesses at each balance sheet date whether there is any indication that an asset or a group of assets (cash generating unit) may be impaired.  If any such indication exists, the Company estimates the recoverable amount of the asset or a group of assets.  The recoverable amount of the asset (or where applicable, that of the cash generating unit to which the asset belongs) is estimated as the higher of its net selling price and its value in use. In assessing value in use, the estimated future cash flows are discounted to their brsent value based on an appropriate discount factor.  If such recoverable amount of the asset or the recoverable amount of the cash-generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount.  In assessing the value in use, estimated future cash flows are discounted to their brsent value based on an appropriate discount factor.  The reduction is treated as an impairment loss and is recognized in the statement of profit and loss.  If at the balance sheet date there is an indication that a brviously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of debrciable historical cost.

2.7 Investments

Investments that are readily realisable and intended to be held for not more than a year from the date of acquisition are classified as current investments. All other investments are classified as long-term investments. However, that part of long term investments which is expected to be realized within 12 months after the reporting date is also brsented under 'current assets' as "current portion of long term investments" in consonance with the current-non-current classification scheme of  Schedule III.

Long-term investments (including current portion thereof) are carried at cost less any other-than-temporary diminution in value, determined separately for each individual investment.

Profit or loss on sale of investments is recognised in the statement of profit and loss upon disposal of the investment.

2.8 Inventories

Inventories consists of raw materials and stock-in-trade which comprises of groceries and consumables which are of perishable nature and are valued at lower of costs and net realisable value. Costs of inventories is determined first in first out (FIFO) method in case of stock in trade and moving weighted average method for raw material. Provision is made for inventory expired or not likely to be consumed where considered neccessary.

Cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their brsent location and condition.

The comparison of cost and net realisable value is made on an item-by-item basis.

2.9 Revenue recognition

Food and beverage sales

Revenue from sales is recognised when significant risks and rewards of ownership is transferred to the customers, which coincides with the point of delivery of goods to the customers at the sales outlets.

Income from sub concessioners

Income from sub concessioners is recognised on accrual basis and in accordance with the contractual arrangement entered into with the outlet operator.

Branding and marketing fees

Branding and marketing fees is recognised on accrual basis in accordance with the agreement.

Business support services and commission income

Income from support services and commission is recognised on accrual basis and in accordance with the contractual arrangement entered into with the respective parties.

Interest income

Interest income is recognized on a time proportion basis taking into account the amount invested and the rate applicable.

2.10 Leases

Lease rentals in respect of assets acquired on operating leases are recognised in the statement of profit and loss on a straight line basis over the lease term.

Assets taken on operating lease:

Lease, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased asset during the lease term, are classified as operating leases. Lease payments under operating lease are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term, considering the renewal terms, if appropriate.

Assets given on operating lease:

Lease rentals are recognized in statement of profit and loss on straight line basis over the lease term.

2.11 Employee benefits

Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized as an expense during the period.

Compensated absences

The employees can carry-forward a portion of the unutilised accrued compensated absences and utilise it in future service periods or receive cash compensation on termination of employment but subject to utilisation of 3 months from the end of the financial year. Since the compensated absences fall wholly within twelve months after the end of the period in which the employees render the related service and are also expected to be utilized wholly within twelve months after the end of such period, the benefit is classified as a short-term employee benefit. The Company records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement.

Long term employment benefits

Defined contribution plans:

The Company makes specified monthly contributions towards employee provident fund scheme and employees' state insurance corporation. The Company's contribution paid / payable under the scheme is recognised as expense in the statement of profit and loss during the year in which the employee renders the related service.  The interest rate payable on employee provident fund scheme is being notified by the Government.

Defined benefit plans

The Company's gratuity benefit scheme is a defined benefit plan. The Company's net obligation in respect of the gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its brsent value.

The brsent value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the brsent value of the estimated future cash flows.  The discount rates used for determining the brsent value of the obligation under defined benefit plan, are based on the market yields on Government securities as at the balance sheet date.

Actuarial gains and losses are recognized immediately in the statement of profit and loss.

2.12 Foreign currency transactions

Transactions denominated in foreign currencies are recorded at the exchange rate brvailing on the date of the transaction.  Exchange rate differences arising on foreign exchange transactions settled during the year are recognised as income or expense in the statement of profit and loss for the year.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rate on that date.  The exchange differences, if any, are recognised in the statement of profit and loss and related assets and liabilities are accordingly restated in the balance sheet.

Non-monetary foreign currency items are carried at cost.

2.13 Taxation

Tax expense comprises current tax and deferred tax charge or credit.

Income tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period).

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date.  Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed debrciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each balance sheet date for appropriateness of their carrying value at each balance sheet date.

2.14 Earnings per share (EPS)

The basic earnings per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting year. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share, and also the weighted average number of shares, that could have been issued on the conversion of all dilutive potential shares, unless the results would be anti-dilutive.

2.15 Provision and contingencies

The Company creates a provision when there is brsent obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.  A disclosure for a contingent liability is made when there is a possible obligation or a brsent obligation that may, but probably will not, require an outflow of resources.  When there is a possible obligation or a brsent obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Loss contingencies arising from claims, litigation, assessment, fines, penalties, etc are recorded when it is probable that a liability has been incurred and the amount can be reasonably ascertained.

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic benefit will arise, the asset and related income are recognised in the period in which the change occurs.

2.16 Cash flow statement

Cash flow is reported using the indirect method, whereby profit/(loss) before tax is adjusted for the effects of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

26. Contingent liabilities and commitments

(i) Corporate Guarantee: The Company has given a corporate guarantee of Rs 140,000,000 (brvious year: Rs 140,000,000) to Yes Bank Limited as security against the Credit Facilities granted by the Yes Bank Ltd to its subsidiary, Travel Food Services Chennai Private Limited. Company has also pledged 30% of its shares of Travel Food Services Chennai Private Ltd in favour of Yes Bank Limited against sanction of this credit facility.

(ii) Corporate Guarantee: The Company has pledged 7,65,000  Equity Shares held in Travel Food Services Chennai Private Limited favour of Yes Bank Limited as security against the Credit Facilities granted by the Yes Bank Ltd to its subsidiary,Travel Food Services Chennai Private Limited.

(iii) Corporate guarantee: Company has given a corporate guarantee of Rs 130,000,000 (brvious year: Rs 130,000,000) to Yes Bank Limited as security against the Credit Facilities granted by the Yes Bank Ltd to its subsidiary, Travel Food Services Kolkata Private Limited. Company has also pledged 30% of its shares of Travel Food Services Kolkata Private Ltd in favour of Yes Bank Limited against sanction of this credit facility.

(iv) Corporate Guarantee: The Company has pledged 7,65,000  Equity Shares held in Travel Food Services Kolkata Private Limited favour of Yes Bank Limited as security against the Credit Facilities granted by the Yes Bank Ltd to its subsidiary, Travel Food Services Kolkata Private Limited.

(v) Performance Corporate Guarantee : Company has given Performance Corporate Guarantee of Rs 375,000,000 in favour of Mumbai International Airport Private Limited (MIAL), as a shareholder of Mumbai Airport Lounge Services Private Limited (MALS). MALS has been awarded Concessionaire Agreement to design, fit-out, finance, develop, operate, maintain and manage common use lounges at Chhatrapati Shivaji International Airport, Mumbai. This performance corporate guarantee has been issued as a continuing guarantee, for the due and punctual performance and observance by MALS of each and all of the payments, terms, conditions, covenants, warranties, undertakings, indemnities, obligations and agreements of whatever nature under and pursuant to said Concession Agreement, as and when due and in accordance with the terms thereof.

(vi) Company has given a corporate guarantee in favour of Yes Bank Ltd, Mumbai to secure the credit facilities sanctioned by Yes Bank Limited upto Rs 350,000,000 (brvious year Rs.350,000,000) in favour of Deluxe Caterers Private Limited. Company has also given security of its cash flows against this credit facility.

(vii) Back To Back Guarantee given by the Company in favour of Deluxe Caterers Private Limited to the extent of the Corporate Guarantee being provided by Deluxe Caterers Private Limited in favour of Delhi International Airport Private Limited for License Agreement in respect of TFS Delhi-T3 Private Ltd, subsidiary of the Company.

(viii) Company has given a corporate guarantee to the extent of Rs.348,000,000 to partly secure the repayment of the credit facilities granted by Axis Bank Ltd, to Mumbai Airport Lounge Services Private Limited together with interest, cost, expenses and other charges thereon.

(ix) Performance Corporate Guarantee given by the Company in favour of Lagardere Services Singapore Pte. Ltd. as primary obligor and not merely as surety full prompt and complete performance by Travel Retail Services Private Limited of all the obligations on its part herein contained and in case of default in the performance or observance of any of the obligations or provisions herein contained in the Franchise Agreement entered between Lagardere Services Singapore Pte. Ltd., Travel Retail Services Private Limited and Travel Food Services Private Limited.

(x) Interest expenses, licence and concession fees claimed by Mumbai International Airport Private Limited (MIAL) which is not acknowledged as dues aggregating Rs.12,647,425  as at 31 March 2016 (brvious year: Rs 11,565,805).

(xi) Bank guarantees on behalf of the Company in favor of Airport authorities and sales tax authorities aggregated Rs 8,006,005 (brvious year: Rs 1,925,005)

(xii) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for as at 31 March 2016 is Rs.16,483,187 (brvious year: Rs 750,360).

The management does not expect any material impact of the pending litigations on its financial position as on 31 March 2016.

27. Payment to Auditors (excluding service tax)

	31 March 2016	31 March 2015
Statutory audit	18,00,000	9,50,000
Tax audit	50,000	50,000
	18,50,000	10,00,000

28. Details of imported and indigenous raw materials which are consumed during the year

	31 March 2016		31 March 2015
	Value	% of total consumption	Value	% of total consumption
Imported	-	0.0%	54,74,250	3.3%
Indigenous	12,24,04,051	100.0%	15,87,36,517	96.7%
	12,24,04,051	100%	16,42,10,767	100%

29. Value of import calculated on CIF basis (on accrual basis)

	31 March 2016	31 March 2015
Purchase of capital goods	92,09,728	-

30. Expenditure in foreign currency (on accrual basis)

	31 March 2016	31 March 2015
Travel and conveyance	9,86,734	10,83,716
Other expenses	51,00,701	2,86,895

31. Earnings in foreign exchange (on accrual basis)

	31 March 2016	31 March 2015
Sale (food and beverages)	2,79,61,043	2,21,05,242

32. Unhedged foreign currency exposure

Details	31 March 2016		31 March 2015
	EURO Exposure		USD Exposure
	INR	EURO	INR	USD
Receivable	-	-	27,17,843	44,714
Payable	1,53,195	2,040	-	-

33. Deferred tax asset (net)

	31 March 2016	31 March 2015
Deferred tax asset:
Provision for expenses disallowed under Section 43B of Income Tax Act,1961	20,31,918	9,16,053
Provision for gratuity	26,73,323	5,70,904
Provision for compensated absences	12,35,067	2,85,156
Provision for expenses disallowed under 40(a) of income tax act, 1961	-	20,340
Excess of net block of fixed assets for tax purpose over net block of fixed assets as per books of accounts	3,42,23,879	2,97,65,095
	4,01,64,187	3,15,57,548
Deferred tax asset (net)	4,01,64,187	3,15,57,548

34. Earnings per share

		31 March 2016	31 March 2015
Basic Earning Per Share
Net profit after tax attributable to equity shareholders	(A)	19,43,00,646	14,13,75,994
Calculation of the weighted average number of shares
Number of equity shares at the beginning of the year		35,29,101	27,22,506
Add: shares issued during the year		-	8,06,595
Number of equity shares outstanding at the end of the year		35,29,101	35,29,101
Weighted average number of shares outstanding during the year	(B)	35,29,101	27,24,716
Nominal value of equity shares		10	10
Basic earning per share (face value of Rs 10 per share)	(A)/(B)	55.06	51.89

35. Related party disclosures

A. Related parties with whom transactions have taken place during the year

Names of  investors having substantial voting power of reporting enterprise:

SNVK Properties Private Limited

Kapur Family Trust (formerly known as Sunil family trust)

Parties where control exists :

Wholly owned subsidiary

Travel Food Services Global Private Limited, Mauritius

Travel Food Works Private Limited (formerly known as Travel Food Services (Mumbai T2) Private Limited)

Travel Food Services (Delhi) Private Limited

Subsidiaries

Mumbai Airport Lounge Services Private Limited

Travel Food Services Chennai Private Limited

Travel Food Services Kolkata Private Limited

TFS Gate Onboard Sales and Services Private Limited

Travel Retail Services Private Limited

Travel Food Service (Delhi Terminal 3) Private Limited

Other related parties where transactions have taken place during the year :

Entities in which Key Management Personnel are having significant influence/ control

Contemporary Kitchens Private Limited

Copper Chimney Cuisines Private Limited

Delight Caterers Private Limited

Deluxe Caterers Private Limited

Deluxe Travel Caterers Services Private Limited

Global Kitchens Private Limited

Global Kitchens (KG) LLP

Gourmet Foods LLC

Grand Cuisines Banquets Private Limited

Grand Cuisines Private Limited

The Irish House Food and Beverages Private Limited

Pan India Food Solution Private Limited

Travel Food Services Duty Free Private Limited

Kardar Films Private Limited

Key management personnel and relative:

Sunil Kapur - Director

Varun Kapur - Director

Karan Kapur - Relative of Director

B. Transactions with related parties during the year

	31 March 2016	31 March 2015
Other income
Lease rental income fixed assets
Deluxe Caterers Private Limited	3,15,717	9,05,550
Support Service Income
Mumbai Airport Lounge Services Private Limited	5,60,07,507	3,67,41,756
Travel Food Services Chennai Private Limited	4,75,00,000	-
Travel Food Services Kolkata Private Limited	3,25,00,000	-
Interest income
Travel Retail Services Private Limited	59,16,088	56,55,896
Global Kitchens Private Limited	14,17,706	10,76,384
Grand Cuisines Private Limited	-	13,635
TFS Gate Onboard Sales and Services Private Limited	-	1,090
Travel Food Services (Delhi) Private Limited	17,41,200	9,09,435
Travel Food Services Chennai Private Limited	26,64,055	31,73,442
Travel Food Services Kolkata Private Limited	24,40,484	12,51,898
Travel Food Services Duty Free Private Limited	1,87,430	2,32,682
Delight Caterers Private Limited	3,02,131	-
Copper Chimney Cuisines Private Limited	5,14,754	-
Expense
Pan India Food Solution Private Limited - Purchase	13,99,484	31,19,516
Pan India Food Solution Private Limited - Royalty	32,47,794	29,36,416
SNVK Properties Private Limited - Interest	-	36,06,823
Sunil Kapur - Office rent expense	38,10,000	36,15,000
Kardar Films Private Limited - Rent	1,68,000	1,68,000
Deluxe Caterers Private Limited - Rent	11,23,769	-
Purchase of goods
Travel Food Services Kolkata Private Limited	21,02,283	-
Travel Food Service (Delhi Terminal 3) Private Limited	24,84,238	-
Sales of goods
The Irish House Food and Beverages Private Limited	4,778	-
Travel Food Services Chennai Private Limited	28,000	-
Travel Food Services Kolkata Private Limited	1,87,319	-
Purchase of Fixed Assets
Mumbai Airport Lounge Services Private Limited	5,76,152	91,704
TFS Gate Onboard Sales and Services Private Limited	2,39,836	-
Travel Food Services Kolkata Private Limited	39,200	-
Travel Food Services Chennai Private Limited	8,72,786	-
Sale of Fixed Assets
Travel Food Services Chennai Private Limited	-	91,96,813
Travel Food Services Kolkata Private Limited	7,73,906	-
Contemporary Kitchens Private Limited	16,18,621	-
Mumbai Airport Lounge Services Private Limited	1,02,72,145	-
The Irish House Food and Beverages Private Limited	4,42,688	-
Remuneration to Key Management Personnel
Varun Kapur	1,20,00,000	96,00,000
Unsecured loan given
Global Kitchens Private Limited	50,00,000	-
Travel Food Services (Delhi) Private Limited	-	96,65,000
Travel Retail Services Private Limited	2,25,00,000	-
Travel Food Services Chennai Private Limited	-	1,00,00,000
Travel Food Services Kolkata Private Limited	-	2,00,00,000
Delight Caterers Private Limited	70,00,000
Unsecured loan given and repaid
Travel Retail Services Private Limited	1,07,00,000	10,00,000
Copper Chimney Cuisines Private Limited	50,00,000	-
Delight Caterers Private Limited	70,00,000	-
Unsecured loan repaid
Travel Food Services Chennai Private Limited	1,40,99,410	-
Unsecured loan taken
Global Kitchens Private Limited
SNVK Properties Private Limited	-	6,17,86,352
Unsecured loan taken and repaid
SNVK Properties Private Limited	-	9,05,00,000
Advance for Investment in Subsidiary
Mumbai Airport Lounge Services Private Limited	1,49,99,400	-
Investment in Subsidiary
Travel Food Services Global Private Limited	-	1,72,98,286
Mumbai Airport Lounge Services Private Limited	-	6,00,00,000
Investment in Subsidiary
Mumbai Airport Lounge Services Private Limited	1,79,40,000	-
Travel Retail Services Private Limited	1,10,00,000	-
Travel Food Services (Delhi) Private Limited	-	1,00,000
Travel Food Services (Delhi Terminal 3)  Private Limited	-	39,98,400
Issue of New Shares
SNVK Properties Private Limited (Face Value Rs 10)	-	11,13,10,110
Reimbursement of expenses receivable
Deluxe Caterers Private Limited	-	60,02,208
Deluxe Travel Caterers Services Private Limited	300	42,883
Global Kitchens Private Limited	-	8,182
Global Kitchen (Kolkata) LLP	-	58,382
Gourmet Foods LLC	37,09,147	1,61,704
Travel Food Services (Delhi) Private Limited	1,000	18,685
Travel Food Service (Delhi Terminal 3) Private Limited	2,48,693	3,79,822
Travel Retail Services Private Limited	4,29,130	58,383
Travel Food Services Chennai Private Limited	1,23,310	1,43,450
Travel Food Services Kolkata Private Limited	8,87,415	1,02,099
Mumbai Airport Lounge Services Private Limited	15,216	88,160
Travel Food Works Private Limited	3,941	3,569
SNVK Properties Private Limited	-	9,269
Grand Cuisines Banquets Private Limited	-	8,182
TFS Gate Onboard Sales and Services Private Limited	-	10,716
The Irish House Food and Beverages Private Limited	3,19,992	-
Grand Cuisines Private Limited	27,854	-
Varun Kapur	-	1,92,898
Global Kitchens (KG) LLP	-	8,182
Reimbursement of expenses (paid) / payable
Deluxe Caterers Private Limited	56,46,843	93,94,878
Travel Food Service (Delhi Terminal 3) Private Limited	6,297	-
Travel Retail Services Private Limited	-	80,986
Travel Food Services Chennai Private Limited	3,15,333	511
Global Kitchens Private Limited	-	23,19,022
Mumbai Airport Lounge Services Private Limited	-	13,753
Grand Cuisines Banquets Private Limited	-	2,89,120
Global Kitchens (KG) LLP	12,306	3,899
Gourmet Foods LLC	64,800	-
Grand Cuisines Private Limited	4,68,478	-
Varun Kapur	5,00,922	4,38,551
Sunil Kapur	7,56,186	7,11,768

C. Closing Balance with related parties

	31 March 2016	31 March 2015
Advance for investment in subsidiary
Mumbai Airport Lounge Services Private Limited	1,49,99,400	-
Loan given
Travel Food Services (Delhi) Private Limited	1,45,10,000	1,45,10,000
Travel Retail Services Private Limited	6,83,58,964	5,46,18,820
Travel Food Services Duty Free Private Limited	18,74,303	18,74,303
Global Kitchens Private Limited	1,40,00,000	90,00,000
Travel Food Services Chennai Private Limited	1,75,21,480	3,16,20,690
Travel Food Services Kolkata Private Limited	2,02,81,800	2,02,81,800
Accrued interest receivable
Travel Retail Services Private Limited	1,41,94,468	1,08,10,133
Global Kitchens Private Limited	31,73,404	18,97,469
Grand Cuisines Private Limited	1,24,529	1,25,893
TFS Gate Onboard Sales and Services Private Limited	35,255	35,255
Travel Food Services (Delhi) Private Limited	33,44,881	17,77,801
Travel Food Services Duty Free Private Limited	13,45,228	11,76,541
Travel Food Services Chennai Private Limited	9,45,692	28,56,098
Travel Food Services Kolkata Private Limited	10,98,218	11,26,708
Reimbursement of expenses receivable
Gourmet Foods LLC	36,99,983	55,636
Deluxe Travel Catering Services Private Limited	12,47,985	10,47,685
Travel Food Works Private Limited	2,53,493	49,552
TFS Gate Onboard Sales and Services Private Limited	8,95,642	8,95,622
Travel Food Services (Delhi) Private Limited	1,62,07,253	1,59,06,253
Travel Food Service (Delhi Terminal 3) Private Limited	2,36,86,163	2,33,18,356
Travel Food Services Duty Free Private Limited	13,92,191	13,92,191
Travel Retail Services Private Limited	32,69,001	29,82,079
Travel Food Services Chennai Private Limited	-	6,98,077
Travel Food Services Kolkata Private Limited	10,65,359	6,21,381
Mumbai Airport Lounge Services Private Limited	16,17,705	57,45,865
Grand Cuisines Banquets Private Limited	-	51,464
Global Kitchen (Kolkata) LLP	-	58,382
Global Kitchen (KG) LLP	7,001	14,234
The Irish House Food and Beverages Private Limited	3,37,018
Karan Kapur	-	1,00,000
Trade receivables
Mumbai Airport Lounge Services Private Limited	5,82,13,382	3,71,54,732
Travel Food Services Chennai Private Limited	4,96,37,500	1,03,46,415
Travel Food Services Kolkata Private Limited	3,39,62,500	-
Receivable towards Sale of Fixed assets
Travel Food Services Kolkata Private Limited	7,73,906	-
Mumbai Airport Lounge Services Private Limited	40,60,609	-
The Irish House Food and Beverages Private Limited	4,42,688	-
Contemporary Kitchens Private Limited	18,20,949
Advance to supplier
Pan India Food Solution Private Limited	5,15,198	-
Security deposit given for rent (Receivable)
Sunil Kapur	6,60,000	6,60,000
Payable for fixed assets
TFS Gate Onboard Sales and Services Private Limited	2,39,856	-
Travel Food Services Kolkata Private Limited	39,200	-
Mumbai Airport Lounge Services Private Limited	5,80,306	-
Travel Food Services Chennai Private Limited	8,72,786	-
Trade payables
Travel Food Services Kolkata Private Limited	19,14,964	-
Pan India Food Solutions Private Limited	23,00,260	22,00,523
Reimbursement of expenses payable
Kardar Films Private Limited	-	15,000
Global Kitchens Private Limited	19,51,337	19,51,337
Deluxe Caterers Private Limited	11,65,606	6,83,722
Travel Food Services Chennai Private Limited	2,10,268
Grand Cuisines Banquets Private Limited	38,529	-
Varun Kapur	3,48,093	-
Remuneration (including reimbursement of expense) paid/payable to Key Management Personnel
Karan Kapur	1,00,000	-
Varun Kapur	2,00,967	9,69,655
Other payable
Sunil Kapur	-	11,00,200

36. Employee Benefit disclosures in accordance with Accounting Standard 15 (Revised 2005)

(a) Defined Contribution Plans

Amount of Rs 11,322,373 (brvious year: Rs 9,560,544) towards contribution to provident fund and employees' state insurance corporation is recognised as an expense and included in employee benefit expense.

(b) The Company's Gratuity benefit is unfunded and it is defined benefit plan.

The Company has a defined benefit gratuity plan.  Every employee who has completed five years or more of service gets a gratuity on death or resignation or retirement at 15 days salary (last drawn salary) for each completed year of service with maximum ceiling as per Company policies.

Amount recognised in balance sheet	31 March 2016	31 March 2015
Fair value of plan assets	-	-
Present value of obligations	77,24,580	36,52,790
(Liability) recognised in balance sheet	(77,24,580)	(36,52,790)

Movement in brsent values of defined benefit obligations	31 March 2016	31 March 2015
Defined benefit obligation at 1 April	36,52,790	19,72,074
Current service cost	27,08,366	18,21,172
Interest cost	2,92,223	1,57,766
Actuarial losses / (gains)	10,71,201	(2,98,222)
Benefits paid		-
Defined benefit obligation at 31 March	77,24,580	36,52,790

Expenses recognised in the statement of profit and loss	31 March 2016	31 March 2015
Current service cost	27,08,366	18,21,172
Interest on obligation	2,92,223	1,57,766
Net actuarial (gain)/ loss recognised in the year	10,71,201	(2,98,222)
Total included in 'employee benefits'	40,71,790	16,80,716

Principal actuarial assumptions	31 March 2016	31 March 2015
Mortality	IALM (2006-08) ULT	IALM.(2006-08) ULT
Discount rate as at 31 March	7.46%	8.00%
Expected Rate of Return on Assets	-	-
Attrition Rate	8%	8%
Expected salary increase rate	10%	7%

The estimate of future salary increase, considered in the actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

The obligations are measured at the brsent value of estimated future cash flows by using a discount rate that is determined with reference to the market yields at the Balance Sheet date on Government Bonds, which is consistent with the estimated terms of the obligation.

Five year experience history	31 March 2016	31 March 2015	31 March 2014	31 March 2013	31 March 2012
Defined benefit obligation	77,24,580	36,52,790	19,72,074	14,91,586	-
Fair value of plan assets	-	-	-	-	-
(Surplus) / deficit in the plan	77,24,580	36,52,790	19,72,074	14,91,586	-
Experience (gain) adjustment on plan liabilities	(12,70,961)	(9,28,509)	(7,57,103)	(3,99,534)	-

(C) Compensated absences

The provision for compensated absences as at the year ended 31 March 2016 is Rs. 3,568,733 (Rs. 2,049,468)

37. Operating lease

Operating leases as lessee:

The Company has taken office brmises under non cancellable operating lease. The Company has given refundable security deposits in accordance with the agreed terms. Lease payments are recognized in the statement profit and loss under 'Rent' Rs 16,204,297 (brvious year: Rs. 13,076,632).

The future minimum lease payments under non-cancellable operating leases are as follows:

Particulars	31 March 2016	31 March 2015
Not later than one year	1,17,24,000	79,20,000
Later than one year but not later than five years	98,49,000	1,14,24,000
Later than five years	-	-

38. Due to micro and small enterprises

Under the Micro Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2 October 2006, information has been determined to the extent such parties have been identified on the basis of information available with the Company:

	31 March 2016	31 March 2015
The amounts remaining unpaid to micro and small suppliers as at the end of the year	-	-
Principal	-	-
Interest	-	-
The amount of interest paid by the buyer as per the Micro Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006)	-	-
The amounts of the payments made to micro and small suppliers beyond the appointed day during each accounting year	-	-
The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under MSMED Act, 2006	-	-
The amount of interest accrued and remaining unpaid at the end of each accounting year	-	-
The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a deductible expenditure under the MSMED Act, 2006	-	-

* pertains to payable on purchase of fixed assets

39. Transfer pricing

The Company's management has developed a system of maintenance of information and documents as required by the transfer pricing legislation under Section 92 to 92F of the Income Tax Act, 1961. The Company's management is of the opinion that its international transactions and domestic transactions are at arm's length so the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

40. Segment reporting

As the Company's business activity falls within a single business segment viz. 'Managing and developing food and beverage outlets' and the sales substantially being in the domestic market, the financial statement are reflective of the information required by Accounting Standard 17 "Segment Reporting", notified under Companies (Accounting Standard) Rules, 2014.

41. Subsequent Event

Travel Food Services Private Limited has acquired 2,894,968 equity shares of Travel Food Services Chennai Private Limited from Authentic Restaurants Private Limited on May 31, 2016 for a consideration of Rs. 75,000,000. Currently Travel Food Services Private Limited is holding 5,908,099 Equity Shares in Travel Food Services Chennai Private Limited i.e. 99.99%.

Travel Food Services Private Limited has acquired 2,744,979 equity shares of Travel Food Services Kolkata Private Limited from Authentic Restaurants Private Limited on May 31, 2016  for a consideration of Rs. 35,000,000. Currently Travel Food Services Private Limited is holding 5,601,999 Equity Shares in Travel Food Services Kolkata Private Limited i.e. 99.99%.

Travel Food Services Private Limited has been alloted 1,153,800 equity shares of Mumbai Airport Lounge Services Private Limited on May 18, 2016 for a consideration of Rs. 14,999,400.

42. Agreement with Mumbai International Airport Private Limited (MIAL)

The Company had entered into a licence and concessionaire agreement dated 26 July 2014 with Mumbai International Airport Private Limited (MIAL) for operation of food and beverage outlets located at Mumbai Domestic Airport whose initial expiry was on 31 July 2016. The Company has subsequently received a written letter dated 28 July 2016 from MIAL allowing an extension for continuation to operate food and beverages operations at outlets until 30 September 2016.

The operations with MIAL have contributed to total revenue of Rs 1,127,475,652 and profit of Rs 566,981,763 in the current year.

Vide Request For Proposal (RFP) dated 16 December 2015, MIAL has invited tender to grant a non-exclusive right to operate all the food and beverage outlets at Mumbai Domestic Airport. The Company has submitted its commercial proposal against the tender and is in the process of bidding. The Management is confident that the agreement will be renewed with MIAL for a further period of 5 years.

43. Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The Company's management is in the process of identifying activities for spending with regards to CSR for the current year.

Other expenses include Rs. Nil (Previous year Rs.2,850,000) spent towards various schemes of Corporate Social Responsibility.

A) Gross amount required to be spent by the Company during the year is Rs. 2,711,397 (Previous year Rs. 1,918,194)

B) Amounts spent during the year Rs Nil (Previous year Rs. 2,850,000)

44. Other information

Information with regard to other matters specified in Schedule III to the Act is either nil or not applicable to the Company.

As per our report of even date attached.	For and on behalf of the Board of Directors of
For B S R and Associates LLP	Travel Food Services Private Limited
Chartered Accountants	CIN: U55209MH2007PTC176045
Firm's Registration No: 116231W/W-100024
Farhad Bamji	Sunil Kapur
Partner	Director
Membership No: 105234	DIN:00088787
	Varun Kapur
	Director
	DIN: 00113399
	Deepa Laungani
	Company Secretary
Mumbai	Mumbai
Date : 08/09/2016	Date : 08/09/2016