Page 167 - FBL AR 2019-20

CORPORATE STATUTORY FINANCIAL
OVERVIEW STATEMENTS STATEMENTS

Notes to the Standalone financial statements for the year ended March 31, 2020

56 Capital management
The Company’s capital management objectives are:

- to ensure the Company’s ability to continue as a going concern; and
- to provide an adequate return to shareholders through optimisation of debts and equity balance.

The Company monitors capital on the basis of the carrying amount of debt less Cash and cash equivalents presented on the face of the
standalone financial statements. The Company’s objective for capital management is to maintain an optimum overall financial structure.
(i) The gearing ratio at the end of the year was as follows:
( H in Lakhs )
March 31, 2020 March 31, 2019
Debts (Term loans and loans repayable on demand including current maturities 22,029.02 20,869.51
of long term debts)
Less: Cash and cash equivalents (Refer note 16) 677.41 4,036.27
Net debt 21,351.61 16,833.24
Total equity 31,260.19 24,948.67
Net debt to equity ratio 68.30% 67.47%

(ii) Dividend on equity shares paid during the year
( H in Lakhs )
Particulars March 31, 2020 March 31, 2019
Dividend on equity shares
Dividend for the year ended March 31, 2019 of H1.25 per share on 91,72,792 equity shares of 114.68 114.68
H5.00/- each, fully paid up (March 31, 2018: H1.25 per share on 91,72,792 equity shares of H5.00/-
each, fully paid up) [Refer note 21(a)]
Dividend distribution tax on above 23.57 23.57
Interim dividend paid during the year ended March 31, 2020 of H5.00/- per share on 96,15,774 480.78 -
equity shares (net of 1,94,555 equity shares of H5.00/- each which were held by ESOP Trust) [Refer
note 21(a)]
Dividend distribution tax on above 100.82 -
57 Investment properties

The Company’s investment properties consist of Thane One Building and freehold land located at Majiwade Thane. Out of the 16 floors,
ground to 13 floors have been considered as Investment property by the Management. In addition to Thane One building and freehold land
at Thane, the Company has freehold land at Takawe area.

Criteria used for classification of property as investment property
The Company has considered the following for classification of property as investment property:
(i) Investment property comprises building and other assets required to provide ancillary services to the occupants of the investment
property.
(ii) The properties that are not occupied by the Company for use in production or supply of goods or services or for administrative purposes,
or for sale in the ordinary course of business, but are held primarily to earn rental income and capital appreciation are classified as
investment property.
The Company has a building which is primarily meant for renting is classified as an investment property, except for the part of that building
which is used for administrative purposes, and hence classified as owner-occupied property. The Company has apportioned the cost of the
property between investment property and owner-occupied property in the ratio of area used, respectively, as a percentage of total area.

Estimation of fair value
The fair value of the Investment Property has been determined as H42,508.90 Lakhs. (March 31, 2019 H42,508.90 Lakhs) The Company had
carried out the fair valuation of the investment property during the year ended March 31, 2019. The Management is of the view that there have
been no material changes in the fair valuation of the investment property subsequent to the same. The fair value has been determined by an
external, independent property valuer, having appropriate professional qualification and recent experience in the location and category of
the property being valued. The Company obtained independent valuation for its investment property and fair value measurement has been
categorised as Level 3. The fair value has been arrived at by using comparable market rate approach. The main inputs used are quantum, area,
location, demand, restrictive entry to the complex, age of building and trend of fair market rent in village Majiwada area and Takawe area.

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