BNL 42nd Annual Report 2076 77

BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77
Good Innovation and Shareholder Financial

About Us Reports Subsidiaries
Governance Digitization Information Statement
1
OUR RESPONSE TO CORONA VIRUS PANDEMIC
We convey our good thoughts to everyone impacted by the novel
coronavirus outbreaks throughout the world and in Nepal. These are
challenging times for everyone but we remain positive that our people
and our communities will rebound just like we have after every other
crisis. We will all emerge stronger, more resilient and more united than
ever.
At Bottlers Nepal Limited, we are doing our part to help prevent further
spread of the virus, while also supporting the needs of our employees,
consumers, customers and communities.
We have and always will put the health, safety and security of people
first. Our approach is grounded in our company’s purpose, which
ensures that we continuosly strive to make a difference for the people
in our workplace and in our communities.
Bottlers Nepal Limited has been closely monitoring the COVID-19 public
health emergency and following all the recommendations from World
Health Organization (WHO) and the Government of Nepal. We will adapt
our efforts and responses as per the need.
We are optimistic that by working together, we can ensure safety and

help curtail the spread of coronavirus.
Pradip Pandey
Managing Director
Table Of Contents
4/21
ABOUT US
36/40
REPORTS
• Vision and Mission Statement
• Strategic Objectives of the Company • Report of Board of Directors
• Core Values & Ethical Principles • Disclosure under Section 109(4) of Companies
• Company Profile Act, 2063
• Board of Directors • Disclosure under Rule 26(2) of Securities
• Management Committee Registration and Issue Regulation, 2073
• Organizational Structure • Disclosure under Rule 20(4) of Directives
• Letter from Chairperson Related to Corporate Governance for Listed
• Performance Highlights Companies, 2074.
• Financial Analysis
• Segment Performances
• Horizontal Analysis Of Balance Sheet
• Horizontal Analysis Of Profit Or Loss
•
•
•
•
Vertical Analysis Of Balance Sheet
Vertical Analysis Of Profit Or Loss
Statement of Value Added
Being Consumer Centric-Marketing Campaigns
41/45
SHAREHOLDER INFORMATION
22/33
GOOD GOVERNANCE
•
•
•
•
•
•
Group Structure
Unclaimed Dividend/Unpaid Dividend
Categories of Shareholder
Share Prices
Shareholder Relationship
Notice of Annual General Meeting
• Corporate Governance
• Internal Controls
• Enterprise Risk Management
•
•
•
•
•
•
Company Policies
Corporate Social Responsibility and Sustainability Efforts
Human Capital
Quality, Health and Safety
Environment
Award & Recognition
46/121
FINANCIAL STATEMENT
• Standalone Financial Statement
• Consolidated Financial Statement
34/35
INNOVATION AND DIGITIZATION 122/182
• Sales Force Automation (SFA) and Bottling Operation SUBSIDIARIES
Solution (BOS)
• The Journey to a Digital Learning • Bottlers Nepal (Terai) Limited
• Localization • Troika Traders Private Limited
• Internal Process Automation

Subsidiaries
Statement
Financial
Shareholder
Information
To make every To build a community

Nepali’s first driven, customer
choice of refreshment focused, profitable,
sustainable and
Reports
available within
easy reach. socially responsible
business in
Innovation and
Digitization
Nepal.
Governance
Good
VISION MISSION
About Us
STRATEGIC GOALS OF THE COMPANY

Strategic Goals plays vital role for Bottlers Nepal Limited to resources utilization through zero base budgeting and
become an Industry Leader and achieve excellency in various workings (ZBW).
areas:
• Effective monitoring of market areas and try to respond
• Proactively monitor internal and external environmental quickly for business need ahead of Industry Speed.
changes, to acclimatize to the evolving business
environment. • Develop cost effective distribution models for upcountry
areas.
• Develop employees as an asset through competency
assessment and capability development and provide our • Improve the business operation or increase productivity
people with opportunities to pick right roles and path for through world standard practices and procedures and
their career growth, for ultimate growth of the Company. also in line with Law of Land, and automation of various
processes through latest IT tools at Company Side and
• Driving the business forward by continually developing a also direct stakeholders side; i.e. distributors.
QSE culture across the organization.
• Contribute to the Nation’s socioeconomic development
• Relentless effort to drive strong financial growth destined through our local approach to hiring, manufacturing,
on reasonable return on investment maximizing better distribution and sourcing, and through the impact of our
use of financial and operational assets and optimum sustainability initiatives.
4 BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77

Subsidiaries
CORE VALUES
Statement
Financial
Shareholder
Information
ent
Reports
e rm re Inte
po w a g
s st
Em cision e lowe el Be r rity
eal
De at th lev
Innovation and
de iate
ma propr
Digitization
ap
pe a
Ac
to sha
ip
future
count
rsh
If it is to me
Governance
it’s up
Leade
urage
Good
better
abilit
to be,
The co
About Us
Ci mm keho ngag ntal
Co l sta nt e nme s
loc nsis envi acti
tiz itm ld em
r t sp to
co & pr
ch t og rk
a te ro ce
en en ers en
he in er
wi ire
ea por ng t wo
ot and eth
sh t to by t
su orki eam
n
ip
o
W T
p
Passion for
winning
Commited in heart
and mind
ETHICAL PRINCIPLES
We have a long-standing commitment of doing business with integrity, which means avoiding corruption
in any form, including bribery and complying with the anti-bribery corruption laws.The Code of Business
Conduct and Anti- Bribery Policy provides us guidance on how to conduct business in a fair, ethical and
legal manner. All associates of the company are bound to follow the precepts of the Company’s Code of
Business Conduct, which includes anti-corruption expectation for all employees.
BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77 5

Subsidiaries
Statement
Financial
Shareholder
Information
Reports
Innovation and
Digitization
Governance
Good
About Us
Company Profile
Bottlers Nepal Limited (hereinafter The Company along with its subsidiaries, We believes the success of the Group
referred to as the “Company” or “BNL”) Bottlers Nepal (Terai) Limited and Troika depends on our ability to connect with
is a Public Limited Company, with Traders Private Limited, are the only consumers by providing them with a
operations spanning over 42 years. authorized bottlers and suppliers of “The wide variety of beverage options to meet
The shares of the Company are listed Coca-Cola Company” (“TCCC”), in Nepal. their desires, needs and lifestyles. Our
with the Nepal Stock Exchange Limited success further depends on the ability of
(NEPSE), and majority of its shares are For over 42 years, Bottlers Nepal Limited our people to execute effectively, every
held by M/s Coca-Cola Southwest Asia and its subsidiaries have built success day.
Holdings Limited, [Formerly known as on a profound understanding of demand
Coca-Cola SABCO (Asia) Limited]. of the consumers. That success is based Our objective is to use our Company’s
on a continuous, compelling strategy assets, our brands, financial strength,
Bottlers Nepal Limited, and its that leads to sustainable value creation. unrivaled distribution system, global
subsidiaries, Bottlers Nepal (Terai) It is also based on ability to change and reach, and the talent and strong
Limited (BNTL) and Troika Traders adapt. 2076/77 was no exception. High commitment of our management and
Private Limited (TTPL) (hereinafter standards of Corporate Governance, associates to become more competitive
referred to as the “Group”) are engaged strong technical credentials, prudent and to accelerate growth in a manner
in the production, manufacture, risk management approach, a culture that creates value for our shareowners.
sale, distribution and supply of soft of dedication and a strong distribution
drinks being carbonated non-alcoholic network have been the key driving forces
beverages and packaged drinking water of the Group. The Group is considered as
under the brand names - Coca-Cola®, one of the most prestigious multinational
Sprite®, Fanta®, Coke-Zero® and Kinley®. companies in Nepal.

Subsidiaries
Statement
Financial
Shareholder
Information
Reports
Innovation and
Digitization
Governance
Good
About Us
We Represent
A leading bottler segmenting the market and determining to its long-term success. Over the last
Your Company is the authorized bottler the most efficient and effective way to decade, your Company has integrated
of “The Coca-Cola Company” (“TCCC”), service each of the outlets. Your Company corporate social responsibility and
in Nepal and sells more than 19 MM unit is looking to generate joint value in every sustainability into all aspects of its
cases annually. aspect of its business with each of its business management with long-term
customers, ranging from logistics and investments that aim to build value
It is operating through its bottling plants in delivery, to market place execution and over time. More recently, your Company
Kathmandu and Bharatpur. Your Company sustainability programmes. established a business resilience
manages its business responsibly, programme that enhances its approach
sustainably, and with a passion to create Leading brands and a diverse to risk management and contingency
value for its customers, shareholders, portfolio of beverages response programmes.
consumers and the communities, they
Your Company produces, sells and
serve. Lean manufacturing footprint
distributes the world’s most recognised
beverage brands. Coca-Cola® Sprite®, Your Company has been able to cater to
Capability to execute in the Fanta®, Coke-Zero®, and Kinley® are the increased market demand through its
market some of the world’s best-selling non- existing manufacturing plants through
Building and maintaining a successful alcoholic ready-to-drink beverages. efficient manufacturing operations. Your
partnership with our customers, is Company believes there is ample scope to
critical to our success. By working with A sustainable business achieve further efficiencies, particularly
customers to satisfy consumer needs in Nepalese market.
Your Company recognizes
and maximise demand for our products, that creating shared value for
your Company helps grow its business shareholders, employees, consumers,
and its own. Your Company does this by customers and communities are critical

Subsidiaries
Board of Directors
Statement
Financial
Shareholder
Information
Reports
Ms. Shukla Wassan

Innovation and
(Chairperson)
Digitization
Ms. Wassan is FCS (Fellow

Company Secretary) from
the Institute of Company
Secretaries of India, LL.B.,
B. Com (Hons) with a total
Governance
experience of over 37 years.

She has been a Director and
Good
Chairperson of the Company

since 2nd December, 2014.
She is also a Chairperson
About Us
in Bottlers Nepal (Terai)

Limited, its subsidiary
Company.
Mr. Mohamed Amin Ghoneim

(Director)
Mr. Ghoneim holds a Bachelor of
Commerce in Accounting with
a total experience of over 28
years. He has been nominated
as a Director & Chairman of the
Audit Committee of the Company
w.e.f 2nd July, 2019. He is also
a Director in Bottlers Nepal (Terai)
Limited, its subsidiary Company.

Mr. Melvin Tan Chun Pin
(Director)
Subsidiaries
Mr. Melvin holds Bachelors of Arts
and two Honours in Accountancy and
Financing Management with experience
over 20 years. He is the Director of the Dr.Trilochan Upreti
Company since 9th April, 2020. He is
Statement
(Independent Director)
Financial
also a Director in Bottlers Nepal (Terai)
Dr. Upreti holds multiple academic
Limited, its subsidiary Company.
degrees, M.A., LL.M and Ph.D. with
a total work experience of over 39
years in governance, human rights,
Shareholder
Information
legislative drafting, rendering legal
advice, opinion, administrative
and financial matters. He is a
Director of the Company since
14th December, 2012.
Reports
Innovation and
Digitization
Governance
Mr. Surendra Silwal
(Director)
Good
Mr. Silwal holds a Master in
Business Administration with
a total experience of over 24
About Us
years in various Companies. He
was appointed as a Director of
the Company from 27th June,
2017. Earlier, he was an Alternate
Director to Mr. Soren Lauridsen
since 14th September, 2012. He is
also a Director in Bottlers Nepal
(Terai) Limited, its subsidiary
Company.
Mr. Narmadeshwar Narayan Singh

Mr. Pradip Pandey (Director)
( Managing Director) Mr Singh holds the degree of Master of
Mr. Pandey holds a Bachelor Arts in Political Science from India with
Degree of Science with a a total experience of over 48 years.
total experience of over 27 He was appointed as a Director of the
years. He has been appointed Company from 11th December, 2013
as Managing Director of and re-appointed as the Director of the
the Company w.e.f. 1st Company since 11th December, 2017.
September, 2018. He is
the Chief Executive Officer
in Bottlers Nepal (Terai)
Limited, its subsidiary
company.

Subsidiaries
Management
Committee
Statement
Financial
Shareholder
Information
Reports
PRADIP PANDEY
Innovation and
(Managing Director)
Digitization
HARI SHARMA NEUPANE K. DURAI MURUGAN

(Regional General Manager-BNTL) (Country Supply Chain Manager)
Governance
Good
About Us
ABHISHEK SINGH
(Country Sales Manager)
RAJNISH SHARMA SACHIN SHRESTHA

(Country Commercial Manager) (Country Manager-Key Accounts)
IRINA KARKI GURUNG

(Country Public Affairs,
Communication and
Sustainability Manager)
SHAMBHU PRASAD KOIRALA PRATIMA BURMA

(Country Human Resources Manager) (Company Secretary and Legal Manager)
The overall Company Management is led by Managing Director and Country Leadership Team.
Note: 1. The post of Country Finance Manager is vacant and is yet to be filled in.
2. The aforementioned details is as on July 15, 2020 (FY 2076/77)

11
Subsidiaries
Letter From
Statement
Financial
Chairperson
Shareholder
Information
Reports
We remain conﬁdent in navigating

through the crisis, helping society
Innovation and
rebuild and recover, and ultimately

Digitization
build a stronger and even more

sustainable business for the future.
Governance
Good
Dear Shareholders,
As we all are aware, the whole world is coping with the devastating effects of the Coronavirus (COVID-19). I would like to wish all of
you and your loved ones safety and good health. My thoughts goes out to those who have unfortunately lost the battles to this virus and
About Us
wish an early recovery to those who are afflicted by this disease.
Because of the current situation and abiding by the Government instruction to maintain social distancing, we are organizing this
Meeting virtually and I thank you for taking your time to attend this first ever virtual Annual General Meeting.
From the business perspective, this was a year that tested all assumptions; on how markets and supply chain function in an age of
global interdependency and what it means to truly deliver to consumers, customers, and communities and how companies can and
should operate during a crisis. In such a challenging environment, your Company has truly anchored to its purpose and values. We
are in the business for the last 42 years and have faced unprecedented challenges over the years including the Earthquake, Economic
Blockade and now the Pandemic. We have and we will sail through this crisis with the support of our most passionate workforce and
loyal customers and consumers. With the dedication and hard work of our team, we have ensured safe production and delivery of our
products to the Stores and Communities during these difficult times. From a financial point of view, FY 2076-77 was a challenging
year, and the Company made a loss of NPR 62 Million. However, your Company has taken drastic measures to maintain cash flows
and maximize sales. We have safeguarded your Company with enough cash flow to pay all our due debts and employees’ salary for the
likely duration of COVID -19 crisis. Despite the challenging times, we are confident that in the upcoming years, we will bounce back to
counter any adversity with more vigour and strength.
Your Company is embracing the new normal and pivoting the business to take advantage of emerging omni-channel opportunities and
create value for our investors and customers. We remain confident in navigating through this crisis, helping society rebuild and recover
and ultimately build a stronger and even more sustainable business for the future.
We are truly grateful to our customers, consumers, partners and Government, who have shown their support during these trying times.
Last but not the least, I would like to thank our shareholders again, for placing your overwhelming trust, support and confidence in
Bottlers Nepal Limited.
Stay Safe. Stay Healthy.

Warm regards,
Shukla Wassan
Date: 30th November, 2020

Subsidiaries
NET REVENUE PROFIT BEFORE TAX
2076/77 2076/77
Rs. 6,865MM Rs. (34)MM
Statement
Financial
2075/76 Rs.9,507 MM 2075/76 Rs.1,023 MM
28% 103%
Performance
Shareholder
PROFIT AFTER TAX EPS-BNL
Information
Highlights 2076/77
Rs. (62)MM Rs.
2076/77
(9)
2075/76 Rs.739 MM 2075/76 Rs.183
108% 105%
Reports
EPS-BNTL
2076/77
Innovation and
5
Digitization
Rs.
2075/76 Rs.375
99%
Governance
Good
About Us

Subsidiaries
Financial
Analysis
Statement
Financial
Vertical Analysis
Shareholder
For the year For the year For the year For the year For the year
Information
Particulars
2076-77 2075-76 2074-75 2073-74 2072-73
Revenue 6,865,166,384 9,506,740,405 9,083,454,385 7,696,782,805 6,398,229,089
Gross Profit 1,770,360,293 3,009,264,240 3,160,682,807 2,400,690,761 1,930,517,332
Earning before Interest, Depreciation and
1,001,559,741 1,703,081,624 1,812,429,149 1,390,921,733 1,112,317,746
Tax (EBIDT)
Reports
Operating Profit 199,127,567 1,040,797,909 1,304,683,191 945,314,406 683,317,825

Profit Before Tax (34,104,755) 1,022,883,823 1,308,575,851 882,207,159 563,121,774
Profit After Tax (61,854,742) 739,176,763 1,040,344,037 702,860,934 433,835,636
Innovation and
Earning Per Share (32) 379 534 361 223

Digitization
Horizontal Analysis
Year Ended Year Ended Year Ended Year Ended
Particulars Year Ended 2076
2077 2075 2074 2073
No. of Shares 1,948,887 1,948,887 1,948,887 1,948,887 1,948,887
Governance
Total Assets 11,152,228,589 10,516,288,848 6,960,091,971 6,835,354,908 5,793,945,016

Plant Property and Equipment 7,663,507,959 7,574,155,058 4,219,041,255 3,945,801,850 3,723,755,128
Good
Current Assets 3,279,709,596 2,807,498,276 2,593,016,334 2,714,347,693 2,029,835,649

Net Current Assets (-Ve) 1,332,299,734 1,858,447,277 222,218,379 1,060,313,458 1,064,593,327
Long Term Liabilities 2,658,518,010 1,826,292,033 707,848,070 667,602,259 917,106,141
About Us
Current Liabilities 4,612,009,330 4,665,945,553 2,815,234,713 3,774,661,152 3,094,428,976

Long Term Borrowings 1,700,407,009 958,958,221 707,848,070 667,602,259 917,106,141
Debt 3,642,917,528 2,115,755,383 496,608,770 810,574,979 1,377,167,875
Shareholder equity/ Net Assetes 3,881,701,249 4,024,051,262 3,437,009,187 2,393,091,498 1,782,409,899
Capital Employed 6,540,219,259 5,850,343,295 4,144,857,257 3,060,693,757 2,699,516,041
Market Capitalization 3,566,463,210 3,430,041,120 3,299,465,691 3,235,152,420 3,235,152,420
Ratio Analysis
Year Ended Year Ended Year Ended Year Ended Year Ended
Particulars
2077 2076 2075 2074 2073
Gross Profit Ratio 26% 32% 35% 31% 30%
EBIDT Ratio 14.6% 17.9% 20.0% 18.1% 17.4%
Operating Profit Ratio 3% 11% 14% 12% 11%
Profit Before Tax Ratio -0.5% 11% 14% 11% 9%
Current Ratio 0.7 0.6 0.9 0.7 0.7
Debt Equity Ratio 0.9 0.5 0.1 0.3 0.8
Assets Turnover Ratio 1.6 1.1 0.8 0.9 0.9
Return on Equity -2% 18% 30% 29% 24%
Return on Total Assets -1% 7% 15% 10% 7%
Earning Per Share (32) 358 499 338 223
Market Value Per Share (NPR) 1,830 1,760 1,693 1,660 1,660
Price Earning Ratio (57.2) 4.9 3.4 4.9 7.5
Net Worth Per Share/Return on Share
1,992 2,065 1,764 1,228 915
Holder's Fund (NPR)
Return on Capital Employeed 3% 18% 31% 31% 25%

Segment Reporting
FY 2076/77 Figures in NPR FY 2075/76 Figures in NPR
Particulars BNL BNTL TTPL Particulars BNL BNTL TTPL
Total Assets 3,628,423,694 8,323,076,209 10,763,477 Total Assets 3,413,203,415 7,746,715,786 44,460,946
Total Liabilities 1,906,708,323 6,057,025,423 6,187,173 Total Liabilities 1,633,201,085 5,405,767,357 30,719,233
Total Turnover 3,220,039,006 6,796,368,581 5,836,935 Total Turnover 5,432,160,523 8,034,143,286 268,118,518
Net Revenue 2,164,980,338 4,693,349,428 6,836,618 Net Revenue 3,687,396,573 5,581,385,389 237,958,443
Total Expenditure 2,181,557,442 4,687,719,721 16,002,027 Total Expenditure 3,330,029,533 5,127,842,604 267,949,567
Operating Profit (85,078,290) 291,242,664 (7,036,807) Operating Profit 402,421,431 668,428,859 1,162,806
Profit after Tax (16,577,104) 5,629,707 (9,165,409) Profit after Tax 357,367,040 453,542,785 (29,991,124)

15
16
HORIZONTAL ANALYSIS OF BALANCE SHEET

Bottlers Nepal Limited (Group)
Statement of Financial Position
As at 31st Ashad, 2077 (15th July, 2020)
Financial Year As at 31st Ashad 2077 As at 31st Ashad 2076 As at 32nd Ashad 2075 As at 31st Ashad 2074 As at 31st Ashad 2073
Particulars Figures in NPR Percentage Figures in NPR Percentage Figures in NPR Percentage Figures in NPR Percentage Figures in NPR Percentage
ASSETS
Non-current assets:
Non Financial
Intangible Assets 110,277,143 1475% 88,014,276 1177% 118,270,950 1582% 144,653,270 1935% 7,475,603 100%
Property, Plant and Equipment 7,663,507,959 206% 7,574,155,058 203% 4,219,041,255 113% 3,945,801,849 106% 3,723,755,128 100%
Deferred Tax Assets 62,475,924 - -
Prepayments 28,117,535 86% 28,940,483 88% 29,763,431 91% 30,552,094 93% 32,878,637 100%
Financial Assets
Advances 8,140,432 17,680,755 13,760,370
Current Assets:
Non Financial Assets
Inventories 1,572,951,713 105% 1,379,124,602 92% 1,636,745,333 109% 1,516,851,758 101% 1,496,878,059 100%
Prepayments 88,552,067 247% 74,736,729 209% 29,573,451 83% 30,731,576 86% 35,780,873 100%
Advances 899,479,555 6021% 583,490,513 3906% 331,345,571 2218% 12,436,045 83% 14,938,376 100%
Other Current Assets - 0% 2,887,216 1% 12,162,775 4% 165,847,511 57% 289,214,481 100%
Income Tax Receivable 19,578,467 28,554,512 15,999,396
Financial Assets
Other Current Assets 16,719,123 7,961,479 5,830,759
Trade Receivables 221,507,342 161% 194,405,540 141% 318,395,799 231% 125,043,053 91% 138,010,223 100%
Cash and Cash Equivalents 460,921,329 838% 536,337,685 975% 229,202,881 417% 863,437,751 1569% 55,013,636 100%
Total Assets 11,152,228,589 192% 182% 6,960,091,971 120% 6,835,354,907 118% 5,793,945,016 100%
10,516,288,848
EQUITY AND LIABILITIES
Equity:
Equity Share Capital 194,888,700 100% 194,888,700 100% 194,888,700 100% 194,888,700 100% 194,888,700 100%
Reserve and Surplus 3,475,761,880 231% 3,611,729,902 240% 3,058,399,674 203% 2,080,609,983 138% 1,507,401,977 100%
Non Controlling Interest 211,050,669 263% 217,432,660 271% 183,720,814 229% 117,592,932 147% 80,119,222 100%
Non-current Liabilities:
Retirement Benefit Obligation 958,111,001 178% 830,631,023 154% 691,067,895 128% 660,434,291 123% 538,006,520 100%
Deferred Tax Liability - 0% 36,702,789 1184% 16,780,175 541% 7,167,968 231% 3,099,621 100%
Financial Liabilities
Non current Borrowing 1,700,407,009 452% 958,958,221 255% - 0% 0% 376,000,000 100%
Current Liabilities:
Retirement Benefit Obligation 121,160,000 66,981,000
Borrowings 1,942,510,519 194% 1,156,797,162 116% 496,608,770 50% 810,574,979 81% 1,001,167,875 100%
Trade Payables 1,184,806,157 80% 1,980,868,172 133% 645,401,102 43% 2,249,426,036 151% 1,486,170,768 100%
Other Financial Liabilities 1,329,722,984 219% 1,424,137,633 235% 1,635,180,174 269% 714,660,018 118% 607,090,333 100%
Non Financial Liabilities 25,084,251 27,147,036 38,044,667
Income Tax Payable 8,725,419 -
Total Equity and Liabilities 11,152,228,589 192% 182% 6,960,091,971 120% 6,835,354,907 118% 5,793,945,016 100%

10,516,288,848
Elements are a percent of Base Year. Base year is considered 31st Ashad 2073
HORIZONTAL ANALYSIS OF PROFI OR LOSS STATEMENT
Financial Year For the Year 2076-77 For the Year 2075-76 For the Year 2074-75 For the Year 2073-74 For the Year 2072-73
Revenue from operations 6,865,166,384 107% 9,506,740,405 149% 9,083,454,385 142% 7,696,782,805 120% 6,398,229,089 100%
Cost of goods sold 114% (6,497,475,845) 145% 133% 119% (4,467,711,757) 100%
(5,094,806,091) (5,922,771,578) (5,296,092,044)
Gross Profit 1,770,360,293 92% 3,009,264,560 156% 3,160,682,807 164% 2,400,690,760 124% 1,930,517,332 100%

Other operating income 128,552,483 814% 174,702,518 1106% 21,228,399 134% 52,526,164 333% 15,789,706 100%
Selling and distribution expenses 146% (1,697,205,652) 190% (1,483,017,604) 166% (1,133,908,817) 127% (891,010,514) 100%
(1,298,338,455)
Administrative and operating
(401,446,754) 108% (445,963,517) 120% (394,210,412) 106% (373,993,703) 101% (371,978,699) 100%
expenses
Profit from Operations 199,127,567 29% 1,040,797,909 152% 1,304,683,191 191% 945,314,405 138% 683,317,825 100%
Finance Costs (268,128,819) 222% (79,007,379) 65% (54,534,323) 45% (66,392,102) 55% (120,771,799) 100%
Finance Income 34,896,497 6061% 61,093,293 10611% 58,426,983 10148% 3,284,855 571% 575,748 100%
Profit Before Tax (34,104,755) -6% 1,022,883,823 182% 1,308,575,851 232% 882,207,158 157% 563,121,774 100%
Income Tax Expense

Income Tax (112,689,580) 110% (224,420,507) 219% (259,340,200) 253% (152,739,029) 149% (102,391,920) 100%
Prior period tax adjustments (884,561) 5% (17,961,000) 96% (954,000) 5% (4,230,019) 23% (18,698,714) 100%
Deferred Tax 85,824,154 -1047% (41,325,553) 504% (7,937,614) 97% (22,377,177) 273% (8,195,504) 100%
Net Profit for the year (61,854,742) -14% 739,176,763 170% 1,040,344,037 240% 702,860,933 162% 433,835,636 100%
Owners of the Company (62,349,202) -15% 697,435,967 171% 972,014,328 238% 658,376,681 161% 408,330,897 100%
Non Controlling Interest 494,460 2% 41,740,796 164% 68,329,709 268% 44,484,252 174% 25,504,739 100%
Base year is considered 2072-2073. Elements are a percent of Base Year.

17
18
VERTICAL ANALYSIS OF BALANCE SHEET

Financial Year As at 31st Ashad 2077 As at 31st Ashad 2076 As at 32nd Ashad 2075 As at 31st Ashad 2074 As at 31st Ashad 2073
ASSETS
Non-current assets:
Non Financial
Intangible Assets 110,277,143 1.0% 88,014,276 0.8% 118,270,950 1.7% 144,653,270 2.1% 7,475,603 0.1%
Property, Plant and Equipment 7,663,507,959 68.7% 7,574,155,058 72.0% 4,219,041,255 60.6% 3,945,801,849 57.7% 3,723,755,128 64.3%
Deferred Tax Assets 62,475,924 0.6% - 0.0% - 0.0% - 0.0% - 0.0%
Prepayments 28,117,535 0.3% 28,940,483 0.3% 29,763,431 0.4% 30,552,094 0.4% 32,878,637 0.6%
Financial Assets
Advances 8,140,432 0.1% 17,680,755 0.2% 13,760,370 0.2% - 0.0% - 0.0%
Current Assets:
Inventories 1,572,951,713 14.1% 1,379,124,602 13.1% 1,636,745,333 23.5% 1,516,851,758 22.2% 1,496,878,059 25.8%
Prepayments 88,552,067 0.8% 74,736,729 0.7% 29,573,451 0.4% 30,731,576 0.4% 35,780,873 0.6%
Advances 899,479,555 8.1% 583,490,513 5.5% 331,345,571 4.8% 12,436,045 0.2% 14,938,376 0.3%
Other Current Assets - 0.0% 2,887,216 0.0% 12,162,775 0.2% 165,847,511 2.4% 289,214,481 5.0%
Income Tax Receivable 19,578,467 0.2% 28,554,512 0.3% 15,999,396 0.2% - 0.0% - 0.0%
Financial Assets 0.0% 0.0% 0.0% 0.0% 0.0%
Other Current Assets 16,719,123 0.1% 7,961,479 0.1% 5,830,759 0.1% - 0.0% - 0.0%
Trade Receivables 221,507,342 2.0% 194,405,540 1.8% 318,395,799 4.6% 125,043,053 1.8% 138,010,223 2.4%
Cash and Cash Equivalents 460,921,329 4.1% 536,337,685 5.1% 229,202,881 3.3% 863,437,751 12.6% 55,013,636 0.9%
Total Assets 11,152,228,589 100.0% 100.0% 6,960,091,971 100.0% 6,835,354,907 100.0% 5,793,945,016 100.0%
10,516,288,848
Equity:
Equity Share Capital 194,888,700 1.7% 194,888,700 1.9% 194,888,700 2.8% 194,888,700 2.9% 194,888,700 3.4%
Reserve and Surplus 3,475,761,880 31.2% 3,611,729,902 34.3% 3,058,399,674 43.9% 2,080,609,983 30.4% 1,507,401,977 26.0%
Non Controlling Interest 211,050,669 1.9% 217,432,660 2.1% 183,720,814 2.6% 117,592,932 1.7% 80,119,222 1.4%
Non-current Liabilities:
Retirement Benefit Obligation 958,111,001 8.6% 830,631,023 7.9% 691,067,895 9.9% 660,434,291 9.7% 538,006,520 9.3%
Deferred Tax Liability - 0.0% 36,702,789 0.3% 16,780,175 0.2% 7,167,968 0.1% 3,099,621 0.1%
Non current Borrowing 1,700,407,009 15.2% 958,958,221 9.1% - 0.0% - 0.0% 376,000,000 6.5%
Retirement Benefit Obligation 121,160,000 66,981,000
Borrowings 1,942,510,519 17.4% 1,156,797,162 11.0% 496,608,770 7.1% 810,574,979 11.9% 1,001,167,875 17.3%
Trade Payables 1,184,806,157 10.6% 1,980,868,172 18.8% 645,401,102 9.3% 2,249,426,036 32.9% 1,486,170,768 25.7%
Other Financial Liabilities 1,329,722,984 11.9% 1,424,137,633 13.5% 1,635,180,174 23.5% 714,660,018 10.5% 607,090,333 10.5%
Non Financial Liabilities 25,084,251 0.2% 27,147,036 0.3% 38,044,667 0.5% - 0.0% - 0.0%
Income Tax Payable 8,725,419 0.1% 10,014,550 0.1% - 0.0% - 0.0% - 0.0%

Total Equity and Liabilities 11,152,228,589 100.0% 100.0% 6,960,091,971 100.0% 6,835,354,907 100.0% 5,793,945,016 100.0%
10,516,288,848
Elements are a percent of total assets
VERTICAL ANALYSIS OF PROFIT OR LOSS STATEMENT
Statement of Profit or Loss
For the year ended 31st Ashad, 2077 (15th July, 2020)
Financial Year For the Year 2076-77 For the Year 2075-76 For the Year 2074-75 For the Year 2073-74 For the Year 2072-73
Revenue from operations 6,865,166,384 100% 9,506,740,405 100% 9,083,454,385 100% 7,696,782,805 100% 6,398,229,089 100%
Cost of goods sold (5,094,806,091) -74% (6,497,475,845) -68% (5,922,771,578) -65% (5,296,092,044) -69% -70%
(4,467,711,757)
Gross Profit 1,770,360,293 26% 3,009,264,560 32% 3,160,682,807 35% 2,400,690,760 31% 1,930,517,332 30%
Other operating income 128,552,483 2% 174,702,518 2% 21,228,399 0% 52,526,164 1% 15,789,706 0%

Selling and distribution expenses (1,298,338,455) -19% (1,697,205,652) -18% (1,483,017,604) -16% (1,133,908,817) -15% (891,010,514) -14%
Administrative and operating

(401,446,754) -6% (445,963,517) -5% (394,210,412) -4% (373,993,703) -5% (371,978,699) -6%
expenses
Profit from Operations 199,127,567 3% 1,040,797,909 11% 1,304,683,191 14% 945,314,405 12% 683,317,825 11%
Finance Costs (268,128,819) -4% (79,007,379) -1% (54,534,323) -1% (66,392,102) -1% (120,771,799) -2%
Finance Income 34,896,497 1% 61,093,293 1% 58,426,983 1% 3,284,855 0% 575,748 0%
Profit Before Tax (34,104,755) 0% 1,022,883,823 11% 1,308,575,851 14% 882,207,158 11% 563,121,774 9%
Income Tax Expense

Income Tax (112,689,580) -2% (224,420,507) -2% (259,340,200) -3% (152,739,029) -2% (102,391,920) -2%
Prior period tax adjustments (884,561) 0% (17,961,000) 0% (954,000) 0% (4,230,019) 0% (18,698,714) 0%
Deferred Tax 85,824,154 1% (41,325,553) 0% (7,937,614) 0% (22,377,177) 0% (8,195,504) 0%
Net Profit for the year (61,854,742) -1% 739,176,763 8% 1,040,344,037 11% 702,860,933 9% 433,835,636 7%
Owners of the Company (62,349,202) -1% 697,435,967 7% 972,014,328 11% 658,376,681 9% 408,330,897 6%
Non Controlling Interest 494,460 0% 41,740,796 0% 68,329,709 1% 44,484,252 1% 25,504,739 0%
Elements are a percent of Net Revenue

19
Subsidiaries
Statement of
Value Added
Statement
Financial
Shareholder
Information
Value Created: Your Company creates value for its stakeholders and business by carefully managing the use of and return on all
capitals, or inputs.
Net Profit
(-)NPR 62 MM (PY NPR 739 MM)
Reports
Contribution To National Treasury

NPR 2,780,498,917/-
Innovation and
Digitization
Total expense allocated for Corporate Social Responsibility

NPR 138,230/-
Direct Employment
Governance
Company No. of Employees

Good
BNL 311
BNTL 332
Total 643
About Us
Total expense to be paid to the Employees as Bonus

NPR 1,535,892/-
Value Shared with: By running a sustainable and responsible business, we create value which is subsequently retained by our
business, making it stronger and shared with all of our stakeholders.
Shareholders Through the process of managing all inputs to our business well, we create profits which benefit
shareholders through dividend payments and share value.
Suppliers As we create value, we support business throughout our value chains and support job creation beyond
our business.
Customers Our efforts to produce products efficiently and responsibly builds value for our customers’ businesses.
Communities When our business is sustainable and responsible, the communities where we operate benefit
through job creation, tax payments to governments, useful products and services and minimisation of
environmental impact.
Consumers We offer a range of beverages to satisfy evolving consumer preferences and active healthy lifestyles.
Employees Developing, recognizing and rewarding our people secures a skilled and motivated workforce.

Subsidiaries
BEING CONSUMER CENTRIC
MARKETING CAMPAIGNS
Statement
Financial
The Coca-Cola Company (TCCC) is committed to the Responsible Marketing of its brands. In 2076-77, we continued our longstanding,
Global Responsible Marketing Policy, which includes not placing any of our brands’ marketing in media that directly targets children
Shareholder
Information
under 12. This includes television shows, print media, websites, social media, movies and SMS/email marketing. In addition to media
placement restrictions, we do not develop creative marketing material that primarily appeals to children under 12, regardless of where
the material will be placed.
Carbonated beverages of your Company continue to be the most preferred beverages in Nepal resulting in a strong market presence
Reports
during the FY 2076/77 as well. Some of the important marketing initiatives during the year under review, are as detailed below:
Coca-Cola Cap Ma Car Offer Other Events and Festival Activation
Innovation and
Digitization
(6th August 2019- 14th September, 2019)
Your Company actively participated in many local events and
Your Company started the Coca-Cola Cap Ma Car Offer from 6th festivals across the country like Holi, Goru Judai, Janai Purnima,
August 2019 till 14th September 2019 in 1L, 1.5L and 2.25L pack Shalinadi Mela etc and events like REBAN Food Festival, Damak
size wherein one consumer got a chance to win Tata Tiago car Food Festival, Valentine’s Day, New Year’s Events, Christmas,
and many other consumers got a chance to win LG LED TV. Prime Minister Cup etc. Some glimpses of the events and festival
Governance
participation are as follows:
Good
About Us

Subsidiaries
Corporate Governance
Statement
Financial
Your Company believes that sound corporate governance practices Compliance with Good Governance Directives
are essential to create sustainable value and to safeguard the for Public Listed Companies 2074
interest of stakeholders. Our commitment to best practices in
Corporate Governance plays a key role in managing our risks As required under the Directives, the Board has designated Ms.
and opportunities and maintaining the trust of our stakeholders.
Shareholder
Information
Pratima Burma, who is also a Company Secretary as Compliance

Over the years, your Company has strengthened the governance Officer. Your Company has prepared the Annual Corporate
structure, practices and processes to meet. Governance Report for FY 2076-77 as per the prescribed format
of Securities Board of Nepal (SEBON) and submitted to SEBON.
Board of Directors
Composition
Reports
The Board of Directors is appointed by Shareholders to oversee

the interest in the long-term health and overall success of the The Board of Directors comprises such number of directors as the
business and its financial strength. The Board of the Company Board deems appropriate to function efficiently as a body, subject
has ultimate responsibility for direction, performance and long-
Innovation and
to the Company’s Article of Association. The Board comprises

term success of our business as a whole. of Independent Directors, non-Executive Directors (including
Digitization
representation from public shareholders) and Executive Director

The Board appoints the Managing Director, who is charged by the and the Board considers this to be the appropriate structure.
Board with conducting the business of the Company.
During the year, the Board continued with its strength of 7
The Management Committee of the Company is headed by (seven) Members comprising of 6 (six) Non-executive Directors,
Governance
Managing Director and has function heads as its members, which who essentially have a supervisory role and, 1 (one) Managing
looks after the management of the day to day affairs of the Director.The details of each member of the Board along with the
Good
Company. number of shares held in the Company and date of joining the
Board are provided herein table below.
About Us
Board Independence
Name Date of Joining the Board No. of Shares held in the Company
Executive Director
Mr. Pradip Pandey 1st September, 2018 Representing Coca-Cola Southwest Asia Holdings Ltd.
Non-Executive Chairperson
Ms. Shukla Wassan 2nd December, 2014 Representing Coca-Cola Southwest Asia Holdings Ltd.
Non-Executive Directors
Mr. Mohamed Amin Ghoneim 2nd July, 2019 Representing Coca-Cola Southwest Asia Holdings Ltd.
Mr. Melvin Tan Chun Pin* 9th April, 2020 Representing Coca-Cola Southwest Asia Holdings Ltd.
Mr. Surendra Silwal 27th June, 2017 Representing Gorkha Brewery Private Ltd.
(Alternate Director: Mr. Amar Baidya)
Mr. Narmadeshwar Narayan Singh Re-appointed on 11th December, 5,000 unit shares individually owned and 3,730 unit
2017 shares owned by his relatives.
Independent Director
Dr. Trilochan Upreti 14th December, 2012 N/A
* Note: Sundeep Bajoria’s nomination was withdrawn on 9th April, 2020 and in his place Mr. Melvin Tan Chun Pin was nominated as
Director w.e.f 9th April, 2020.

Subsidiaries
Board Meetings conditions of appointment of the
The Board meets at regular intervals auditor and present the same in the
to discuss and decide on various general meeting for the ratification
“Bottlers Nepal Limited’s endeavor continues to focus thereof.
transactions of the company. The
on long-term success. The Company has remained
notice of the Board Meeting is given e. To review and supervise
Statement
grounded in its values through historical challenging
Financial
well in advance to all the Directors. as to whether the auditor of the
times in the past and as the world faces a global Company has observed such conduct,
The agenda and other relevant
pandemic our Board of Directors are proud of the way standards and directives determined
documents is circulated 10 days prior
the management team is leading through these tough by the competent body pursuant
to the date of the meeting to ensure
times. Furthermore, we remain proud of the progress
Shareholder
adequate and active discussion on to the prevailing law as required to
Information
the agenda(s) before arriving at the the company has made in the past decade, which has be observed in the course of doing
decisions. put us on a path to meet the needs of today. During auditing work.
these difficult times, we learn, act and reflect to keep
f. Based on the conduct, standard
During the year under review, a total preparing for the future. When we face challenges, we
and directives determined by the
of six (6) meetings of the Members persevere-it’s engraved in our way of working.”
competent body pursuant to the
Reports
of the Board were convened. The prevailing law, to formulate the
maximum interval between any Trilochan Upreti
polices required to be observed
two meeting was well within the Independent Director
by the Company in respect of the
maximum allowed gap of three
Innovation and
appointment and selection of the
months.
Digitization
auditor.
Board Evaluation Committee are in congruence with the g. To prepare the accounts related
framework defined by the Companies policy of the Company and enforce, or
In terms of the requirement of Good Act 2063 (2006) and Good Governance cause to be enforced, the same.
Governance Directives for Public Listed Directives for Listed Companies,2074.
Company, 2074, annual performance h. Where any regulator body has provided
Governance
The Audit Committee is constituted with
evaluation of the Board is undertaken where for the long term audit report to be
Non-Executive Directors; hence, all the
set out in the audit report of the
Good
the Board assess its own performance in Members of the Committee, including the
order to improve the effectiveness of Board Company, to comply with the terms
Chairman, are Non-Executive, ensuring
and Committees. required to prepare such report.
complete independence of the Committee.
i. To perform such other terms as
About Us
The Board Evaluation cycle was completed The Audit Committee comprises three
members. The composition of the Audit prescribed by the Board of Directors
by the Company internally which included the
Committee as at the end of the Fiscal Year in respect of the accounts, financial
Evaluation of the Board as a whole and Self-
2076-77 was as below: management and audit of the
Evaluation of the Directors. The exercise
Company.
was led by the Chairman. The Evaluation Mr. Mohamed Amin Ghoneim- Chairman
process focused on various aspects of the j. To ensure that the accounts book,
Mr. Melvin Tan Chun Pin- Member
functioning of the Board and Committees audit report, balance sheet or
such as improving Board effectiveness, Mr. Surendra Silwal- Member financial statement of accounts are
performance of Board Committees, Board *Mr. Melvin Tan Chun Pin was appointed maintained according to prevailing
knowledge session etc. Separate exercise as Member of Audit Committee w.e.f laws and as per the directive issued by
was carried out to evaluate the self- 9th April, 2020 replacing Mr. Sundeep the governing authority or as per the
performance of individual Directors on Bajoria. rules and regulation of the institution.
parameters such as contribution, knowledge k. To review the financial details of the
and skills etc. Annual Directors' Refresher Below are the terms of reference of Audit Company and thereafter, to ensure
Training was also conducted on 9th July, Committee Meeting: that the evidences mentioned in the
2020. a. To review the accounts and financial details are true and fact.
statements of the Company and l. To ensure that the work of internal
COMMITTEES OF THE BOARD ascertain the truth of the facts auditing is effective and is executed
mentioned in such statements. and accomplished in an independent
The Board Committees play a crucial
role in the governance structure of the b. To review the internal financial control way.
Company. The Board has three Committees system and the risk management m. To monitor and ensure that the
evaluating every activities of the Company. system of the Company. accounts, budget, internal control
c. To supervise and review the internal systems are properly and regularly
Audit Committee auditing activity of the Company. maintained.
The Board has reformed an Audit d. To recommend the names of potential n. To ensure that the accounts book,
Committee with defined terms of auditors for the appointment of documents of internal audit record
reference on 1st July, 2019. The the auditor of the Company, fix system or electronic record of
duties and responsibilities of the Audit the remuneration and terms and auditing are kept in proper way.

Subsidiaries
o. To provide opinion on the subject instructed by Board of During the Fiscal year 2076-77, the Members of Risk Management
Directors Committee met Two (2) Times i.e., 21st April, 2020 and on 9th
p. To ensure that the Company has followed the direction given by July, 2020.
the governing authority or not.
Property And Liability Committee
Statement
q. To inspect, monitor and ensure the purchasing system of the

Financial
Company are appropriate and economical. The Board has formed a Property and Liability Committee with
defined terms of reference. The duties and responsibilities of
r. To perform such or any other additional duties and responsibilities the Property and Liability Committee are in congruence with the
that may be ancillary and have financial implication on the Company framework defined by and Good Governance Directives for Listed
to the aforementioned duties Companies,2074. The composition of the Property and Liability
Shareholder
Information
During the Fiscal year 2076-77, the Members of the Audit Committee Committee as at the end of the Fiscal Year 2076-77 was as
met three times i.e., on 23rd September, 2019, 22nd January, 2020 below:
and on 16th June, 2020 for reviewing the financial statement of the Mr. Mohamed Amin Ghoneim- Chairman
Company including Internal Financial Control and Risk Management Mr. Sundeep Bajoria- Member
and other financial issues.
Reports
Mr. Surendra Silwal- Member

Risk Management Committee *Mr Sundeep Bajoria’s nomination was withdrawn and, in his place, Mr.
The Board has formed a Risk Management Committee with Melvin Tan Chun Pin was appointed as Member of Property and Liability
Innovation and
defined terms of reference. The duties and responsibilities Committee w.e.f 21st April, 2020.
Digitization
of the Risk Management Committee are in congruence with

the framework defined by Good Governance Directives for Below are the term of reference of Property & Liability Committee
Listed Companies,2074. The composition of Risk Management Meeting:
Committee at the end of the Fiscal year 2076-77 was as below: • To review the ownership documents of the property of the
Dr. Trilochan Upreti- Chairman Company.
Governance
Mr. Surendra Silwal- Member • To conduct due diligence of whether those properties are duly
registered and the statutory dues in the form of duties and
Good
Mr. Mohamed Amin Ghoneim- Member

taxes has been paid to the concerned authorities.
Below are the terms of reference of Risk Management Committee • To ensure that the properties of the company are adequately
Meeting: insured.
About Us
• To oversee the implementation of Risk management Systems • To review whether there is any pending litigation on the
and Framework; property of the company.
• To assess risk and procedures to minimize the same; • To review contingent liabilities of the Company.
• To frame, implementing and monitoring the risk management
During the Fiscal year 2075-76, the Members of Property and
plan for the Company.
Liability Committee met once on 9th July, 2020.
Attendance of Director at Board and Committee Meetings

The attendance of the Board and Committee Members are as per below:
Board Audit Committee Risk Management Property & Liability

Board Members Designation
Meeting Meeting Committee Committee
Ms. Shukla Wassan Chairperson 6 (out of 6) N/A N/A N/A
Mr. Pradip Pandey Managing Director 6 (out of 6) N/A N/A N/A
Mr. Mohamed Amin Ghoneim Director 6 (out of 6) 3 (out of 3) 2 (out of 2) 1 (out of 1)
Mr. Sundeep Bajoria* Director 3 (out of 3) 2 (out of 2) N/A 0 (out of 0)
Mr. Melvin Tan Chun Pin Director 3 (out of 3) 1 (out of 1) N/A 1 (out of 1)
Mr. Narmadeshwar Narayan Singh Director 6 (out of 6) N/A N/A N/A
Dr. Trilochan Upreti Independent Director 6 (out of 6) N/A 1 (out of 2) N/A
Mr. Surendra Silwal Director 5 (out of 6) 3 (out of 3) 1 (out of 2) 0 (out of 1)
* Sundeep Bajoria’s nomination was withdrawn on 9th April, 2020 and in his place Mr. Melvin Tan Chun Pin was nominated as Direc-
tor w.e.f 9th April, 2020.

Subsidiaries
The details of remuneration paid to the Executive Directors and Non-Executive Directors for the financial year ended 15th July, 2020
are provided hereinafter:
Details of Remuneration to the Executive Director
Statement
Name Salary and Allowances Perquisite Total
Financial
Pradip Pandey NPR 77,641,475 NPR 2,468,603 NPR 80,110,078
Details of Remuneration to the Non-Executive Directors
Shareholder
Information
Name Sitting Fees (In NPR)
Shukla Wassan 60,000
Trilochan Upreti 105,000
Narmadeshwar Narayan Singh 90,000
Reports
Note:
• Except Independent Director, Chairperson and Director representing Public Shareholder, all other Directors have waived their
sitting fees.
Innovation and
• The sitting fees for serving on Committee and Board Meeting is NPR 15,000 (Fifteen Thousand) per sitting.
Digitization
Internal Controls the Company. It also assesses the hygiene/health of actions/
approach to mitigate the risks. Risk Tracker has been maintained
The Company has robust system for Internal Control. The Audit with risk categories based on risk weightage, regularly updated,
Committee of your Company has been instrumental in ensuring and detailed action taken/considered as required and situation
Governance
that the Company has all adequate systems of financial control changes based on work done noted and monitored on a periodic
in place. The Audit Committee periodically conducts review basis and flagged/reported to the Committee. A Risk Management
Good
of the effectiveness of Internal Control Systems and oversees Committee has been formed at Board level for monitoring the risk
management activities flagged, for effective risk management in
the design of our Internal Control Systems along with the
the Company.
effectiveness of the Internal Audit Function throughout the year.
About Us
The Audit Committee of your Company reviews the Internal Audit The assets of the Company are adequately insured against
reports containing details of the audit coverage, compliance to Operation Risk (covering Fire and allied perils, Company Assets,
the laws, regulations, established policies and procedures. Transit, Money, Fidelity, Burglary etc.) and Revenue Risk
(covering Loss of Profit, 3rd party liability through Combined
The Group has adopted a “Chart of Authority (COA)” defining General Liability Policy and also covers Directors & Officers
financial and other authorization limits and setting-up procedures Liability). The repair and maintenance work of power plants
for approving capital and investment expenditures. The Group and distribution lines have been carried out timely as per the
has a strong internal control framework which is supported maintenance schedule. Good relation is maintained with the local
by risk & control matrix, Standard Operating Procedures, plant community within the project vicinity.
Policies, Guidelines, Governance Capsules and Self-Assessment
exercised. These internal control frameworks are routinely
tested by Statutory Auditors, Internal Auditors, Lawyers as well COMPANY POLICIES
as Internal Assurance Team. Significant audit observations and
follow up actions thereon are reported to the Management and Code of Business Conduct
Board of Directors. Your Company conducts its business with integrity and high
standards of ethical behaviour, and in compliance with the
Enterprise Risk Management laws and regulations that governs its business. Your Company
Bottlers Nepal Limited has implemented the Enterprise Risk has well established Code of Business Conduct that expects all
Management System (ERM). It broadly covers Strategic & employees to act transparently and with integrity. Mandatory
Reputational Risk, Sustainable Risk, People Risk, Operational training, availability of Ethics Line to report issues and, robust
Risk including Demand & Supply Chain Risk, Catastrophe Risk, mechanism to investigate and take appropriate action ensures
Pandemic Risk, Political & Regulatory Risk and Macro/Economic that values of Code of Business Conduct are put into practice.
Risk. The approach also includes managing risks through the Your Company has Code of Business Conduct Training Program
process of thorough risk identification along with identifying and designed and trainings are imparted to the employees in person
supporting risk owner. It further includes detailed assessment and web-based training in compliance with the principles laid
considering severity of risks and provide ranking based likelihood down under Prevention of Corruption Act, 2002, The Foreign
and consequences of identified risks, mitigation through right
Corrupt Practices Act(FCPA), 1977 and UK Bribery Act, 2010.
approach and periodic monitoring of the risks associated with
the activities being carried out by the different Functions across

Subsidiaries
Global Anti-Bribery Policy Ethics Codes and Principles for Non-Employee

Our Global Anti-Bribery Policy establishes the limitations we must Directors and Suppliers
adhere to when interacting with officials of various governments Non-employee directors are bound by a Code of Business Conduct
around the world. The policy provides information about anti- for Non-Employee Directors that reflects the same principles
bribery laws in order to avoid inadvertent violations. Our Code of and values as our employee Code, but focuses on matters of
Statement
Financial
Business Conduct for Suppliers also includes similar expectations most relevance to non-employee directors. Our Supplier Code of
regarding bribery for business partners. Your Company conducts Business Conduct and Supplier Guiding Principles set baseline
periodic anti-bribery assessments and audits of our business to expectations for how our suppliers conduct their business.
raise overall awareness, detect potential misconduct and monitor
Shareholder
compliance with anti-corruption laws and policy. Document Retention Policy

Information
Your Company aims to lead by example and to learn from Your Company have Document Retention Policy which lays
experience. Your Company sets high standards for its people at ground rules for how your company will manage documents and
all levels and strive to consistently meet them. Your Company's records from creation to destruction, including both physical
sound business principles and practices foster its strong, and digital records. The said policy also provides a guideline
Reports
innovative and collaborative culture, which is committed to regarding the retention period and custody of various records
ethical behavior, accountability and transparency. and documents that needs to be stored.
Your Company is guided by its established standards of corporate

Innovation and
governance and ethics. Your Company reviews its systems

Digitization
to ensure to achieve international best practices in terms of

transparency and accountability.
Sensitization of importance of our Code of Business Conduct and Anti-Bribery Policy

Governance
through awareness program

Good
About Us

Subsidiaries
Corporate Social Responsibility
Growing Sustainably
The Coca-Cola Company’s view is holistic and inclusive of sustainability for people and the planet. In line with it, your Company
Statement
Financial
strongly believes that the greatest impact is achieved through partnerships across what we call the golden triangle of government,
private sector, and civil society. Your company prioritizes sustainability as an essential part of its Policies. The business initiatives
are consciously linked with the sustainability initiatives, and highlights of the initiations by your company are stated as below:
Shareholder
Information
A. SUSTAINABLE ENVIRONMENTAL EFFORTS
WATER STEWARDSHIP
Water being the key ingredient for your products, your company feels a deep sense of responsibility to be a steward of the water
sources that sustains the business and the community at large. There are ongoing efforts to conscientiously return an equal amount
Reports
of water that is used in the finished beverages and their production.
INNOVATIVE SOLUTIONS FOR WATER solutions. This year your company has solutions in reduction of urban flooding,
initiated two Rainwater Harvesting and while over 78,000 KL of water will be
Innovation and
MANAGEMENT:
Digitization
Ground Water Recharge projects in recharged every year.
Due to high urbanization in Nepal, water
Kathmandu valley, which will lead to
crisis has become a perennial problem,
especially in the urban areas. Sustainable
water management has become a very
important aspect of the community.
Governance
Rainwater harvesting and ground water
Good
recharge is proving to be the best solution
for access to water and improved water
management, specifically in urban
About Us
locations. Conserving Natural resources
is another important component on
Water Stewardship that your company is
focusing on, with the help of The Coca-
Cola Foundation. For efficient water
management from initial sources to urban
areas, your company has partnered with
expert organizations, such as WWF Nepal,
WaterAid and SmartPaani, for innovative
WORLD WITHOUT WASTE (WWW):

The Coca-Cola Company announced an ambitious environmental program in 2018 with
an aim to solve the packaging problem in the world by collecting and recycling the
equivalent of 100% of the packaging it sells by 2030. In line with the strategic focus on
recycling and waste management, with the support of The Coca-Cola Foundation, two
impactful projects, Nagarmitra & Recyler Saathi are in the process of recovering PET
waste from the market. These two projects collaborate with the local municipalities,
business establishments, citizens & waste pickers to emulate a multi stakeholder
approach towards finding a solution to recycle PET waste in Nepal. This year, over 1,000
MT of PET waste has been recovered for responsible recycling.
Coca-Cola in Nepal continuously supports other waste management initiatives, including

collaborations with youth led organization. Support was extended to National Youth
Council for a Cleanup Campaign marking World Tourism Day in all 77 districts of the

Subsidiaries
country mobilizing over 3,500 youth. Additionally, Coca-Cola in Nepal is amplifying the WWW initiative by encouraging new partners
for innovative solution to reuse and recycle plastics endlessly in a closed loop system. Going forward your company will be focusing
on creating awareness and educating the community on Plastic Waste Management, so that they never become waste.
Statement
Financial
B. ENHANCING LIVELIHOODS
COMMUNITY WELL BEING

With an aim to create a better learning environment in schools and assist
Shareholder
Information
young children become agents of change in our society, your company

has been conducting WASH programs in community schools so that they
have access to safe water, sanitation and for an overall maintenance
of hygiene in schools. WASH in Schools not only promote hygiene and
increases access to quality education but also support national and local
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interventions to establish equitable, sustainable access to safe water

and basic sanitation services in the community
Innovation and
Digitization
Governance
WOMEN EMPOWERMENT:
Good
The Coca-Cola Company believes that women hold economic potential

and are equal contributors to the world’s shared success. The Coca-
Cola Company focuses on empowering women in the workplace and
About Us
beyond through all its strategic approaches. Putting this in action,

your company has been imparting Shopkeeper Training and Resources
“STAR’ Program as a part of its global initiative 5by20, that aims to
economically empower 5 million women across the value chain by the
year 2020. Till date 5,200 women across the country have benefitted
from this initiative in Nepal.
YOUTH CONNECT
The Coca-Cola Company continues to boost youth participation
in efforts for them to be independent and socially responsible.
Realizing that Youth are an integral part of a Nation’s success;
Coca-Cola in Nepal supports youth programs by partnering with
youth-led organizations such as Nepal Youth Council, AIESEC Nepal
& GLOCAL. The Company has been supporting to organize grass
root level provincial conferences in all 7 provinces, youth centric
discussions in colleges and events like “Action for SDGs 2019”, with
major objective to build the leadership capacity of scattered youths by
integrating their strengths to achieve sustainable developments
goals at the local and national level. These initiatives have been
able to empower and encourage over 5,000 youths across the county
so far.

Subsidiaries
C. DISASTER RELIEF
COVID-19 RESPONSE
The spread of COVID-19 disrupted several lives, livelihoods and communities in Nepal especially of the daily wage earners. To support the
vulnerable and the impacted communities, The Coca-Cola Company and the Foundation have swiftly responded with various initiations
Statement
Financial
in Nepal. The two projects funded by TCCF are- I. Waste Workers Emergency Relief Project (WWERP) and II. COVID-19 Preparedness
and Response PPE Plan for health workers and frontline workers.
Shareholder
Information
Reports
Innovation and
Digitization
Waste Workers Emergency Relief of the Nationwide lockdown and through The project aims to serve approx. 60,000
Project (WWERP): The Company this initiative, more than 3,200 waste health workers that include doctors,
teamed up with its existing recycling workers were benefited. nurses, blood technicians, ambulance
partner CREASION to provide timely drivers, medical technicians, people in
Governance
COVID-19 Preparedness and Response
and relevant awareness to waste quarantine centers and communities at
PPE Plan for health workers and
Good
workers, dignity kits for women in the risk of transmission of the virus.
frontline workers: Coca-Cola in Nepal
Waste Sector, basket fund to ensure
partnered with the largest Humanitarian Coca-Cola in Nepal supported more than
supply of medical equipment and food
organization, Nepal Red Cross Society 70,000 frontline staff, security personnel
materials for them and their families,
About Us
to provide PPE and Disinfectant kits to and those in quarantine centers across
and provision of safety gears including
health workers and frontline workers the country by providing access to
Personal Protective Equipment (PPE).
in public hospitals, blood banks and drinking water and beverages through the
The project commenced during the peak
Quarantine Centers across the country. lockdown.

Subsidiaries
Human Capital
Your Company is committed to attract, develop and retain talented Your Company’s goal is to provide a workplace where all employees
team members and to create a workplace that allows each team can thrive and grow- A workplace where all employees feel included,
member to contribute to the collective success of the Company. safe and are given the opportunities to make valuable contribution
to your Company.
Statement
Therefore, your Company endeavours in developing and creating

Financial
talented and skilled work force with modern knowledge and

Freedom of Association
competencies along with a proper mind set to cope up with the
emerging business challenges and to gain a competitive advantage. Your Company does not curtail the freedom of association of
Your Company believes that team work is the key factor in all of employees. Management is committed for discussions and
Shareholder
Information
the Company’s achievements and the credit goes to all those negotiations with the employees who are unionized. Further,
employees who see their own future in the future of the Company an open door policy is encouraged. There are three unions in
and are dedicated to make positive change. Your Company has been function in the Company which represents the interests of 208
maintaining employee turnover of less than 2.63%, which proves employees.
the level of employee satisfaction in the Company. Furthermore,
Child Labour
Reports
your Company continuously assesses for areas to enhance overall

performance of its employees and necessary trainings are provided. As a part of the ongoing commitment, your Company advocates
and upholds decent work practices and human rights. Your
Innovation and
Your Company encourages a learning environment by stimulating Company does not engage child labour and does not employ any
Digitization
integrated thinking, personal mastery and team learning. person under the age of 18 years at the workplaces. This is
Simultaneously, the employees are encouraged and motivated to inbuilt into policies and procedures of the Group. There is no
point out the areas where they require training to enhance their direct risk of child labour deployment in any operation within
overall performance. the Company.
Workplace Rights Policy

Governance
Your Company strives for development of its employees at all

levels. The learning and development goals are aimed at providing Your Company’s Workplace Rights Policy is designed to provide
Good
world class individual and organizational capability all stakeholders with clear guidelines and
development growth and opportunities to staff, internally accepted standards for the way
regardless of their employment level and gender. in which we treat our employees. The
About Us
Your Company has extended various trainings adherence to our workplace policies is
and exposure trips to its employees of various DIRECT audited on a regular basis. The Workplace
departments at all levels. EMPLOYMENT Rights Policy is guided by the Labor Act of
the Country and also by the International
Equal Employment Opportunity BNL:311 employees
Human Rights Standards. An inclusive
It is the Company’s policy to recruit candidates as BNTL: 332 employees workplace in which all members of the
per the manpower requirements derived through a community has equal opportunities for
focused and organized Human Resource Plan. All employment and development regardless
candidates are impartially assessed on objective of race, gender, religion or disability is
criterion regardless of race, gender, ethnicity, ensured at your Company.
religion, language, or civil status as an Equal
Employment Opportunity provider with a vision to attract, develop Prevention of Sexual Harassment at Workplace
and retain a group of talented team Members and to create a Policy
workplace that allows each team member to contribute to the Your Company is committed to provide a work environment that
collective success of your Company. The programs and initiatives ensures every employee is treated with dignity and respect and
related to employment practices, compensation and benefits, talent afforded equitable treatment. Your Company is also committed to
management, diversity and inclusion, and Team Member relations promote a work environment that is conducive to the professional
are important to fulfil the commitment, especially in today’s growth of its employees and encourages equality of opportunity.
challenging economic climate. Your Company will not tolerate any form of sexual harassment
and is committed to take all necessary steps to ensure that its
The multi-cultural environment of your Company is warm and
employees are not subjected to any form of harassment. Sexual
equitable ensuring that each member of the team is valued for
Harassment at Work place Policy has been framed w.e.f 1st
their capabilities and respected for who they are. Your Company
December, 2017 in accordance with the provisions of The Sexual
strives to create a happy and focused work atmosphere that
Harassment at Workplace Prevention Act, 2015 (2071).
celebrates the team and encourages innovation.

Activities

Employee Engagement

31
Subsidiaries
Quality, Health and Safety

Your Company operates in a World Class Supply Chain Organization nature through our replenishment programs, are all engraved
wherein Quality, Health and Environment plays a paramount in our regular activities. Your Company facility has effluent
importance. treatment plant, which ensures that wastewater generated at our
Statement
Financial
unit is treated prior to discharge to municipal drain complying

As a part of Integrated Management System, your Company had with our internal and Government of Nepal requirement. Such
successfully recertified to the new standards of all four (4) treated water is also effectively reused for general cleaning
International management system i.e. ISO 9001:2015 Quality purpose within the plant premises. Your Company is the only plant
Management System, ISO 14001:2015 Environment Management having Effluent treatment facility in the entire Industrial District
Shareholder
System, FSSC 22000 Ver 5.0 Food Safety System Certification

Information
and are well acknowledged by the Government and Industrial

and BS OHSAS 18000:2017 Occupational Health and Safety Management Board.
Management Systems.
Supporting The Coca-Cola Company’s World Without Waste
We believe in our “Safety First” norms in all our routine tasks commitment, your company has continuously worked towards
and people safety is one of the top priorities. With a constant making all our packaging more sustainable. From light weighting
attempt to enhance Occupational Health and Safety, your Company and using recyclable materials to manufacturing refillable glass
Reports
periodically conducts pre-work risk assessment, orientation, On- bottles, your company endeavors to reuse and recycle packaging
the-Job Training, in-house and external training to relevant staffs. materials to minimize environmental impacts. Your Company has
It also follows scientific approach in safety management system robust solid waste management system in place. Your Company
comprising HIRA (Hazard Identification and Risk Assessment),
Innovation and
has always focused the basic approach to manage solid waste by

safety orientation, ongoing supervision. Your Company has been
Digitization
trying to avoid generating such waste in the first place through

providing all relevant personal protective equipment based on the resource optimization and technological transformation. All the
job nature to all its associates. generated waste are further categorized as commercial and non-
In line with the ongoing initiatives to strengthen your Safety commercial waste. Those of the commercial waste are sent
programs to improve safety culture across operations, your for recycling purpose and non-commercial waste are disposed
Company has implemented Behavior Based Safety (BBS) with and managed through Government approved Waste Management
Governance
an objective to increase the participation of employees of all vendors.

levels in the safety process and provide feedback on behaviours
Good
Energy efficiency and usage is an integral part of our

that affect safety. BBS goes beyond compliance by engaging and manufacturing process, where we set ambitious targets for our
inspiring associates at all levels to take personally responsibility energy requirements at the Plant through green or renewable
in daily efforts. energy. Your Company has been achieving this by investing in new
About Us
With the objectives of creating “ZERO ACCIDENT”, your Company technologies and through other initiatives such as improvement
has focused on Zero Hand and Foot Injury through teamwork and of heating, repair leakages etc.
active participation of shop floor employees. Your Company has
also adopted the practices of “Measuring Total Safety Index”,
“Toolbox Talk” and “Gemba Walk”, which in turn contribute to
improved safety culture in the plant.
Furthermore, this year, COVID-19 has rapidly progressed
to become a global pandemic, causing unprecedented, far-
reaching impact on the health, social and economic well-being
of communities around the world. During this pandemic time,
your Company has been prioritizing safety in production and
warehouse facilities by implementing additional cleaning and
sanitization routines, split shifts to avoid shift - to - shift
contact, focusing on high-touch surfaces, and have taken steps
to restrict visitors to the facilities. In order to ensure product
safety and availability, your Company has provided employees
with alcohol wipes and hand sanitizers at various locations;
installed temperature screening in offices and manufacturing
facilities.
Environment
Your Company believes that profitable growth and sustainability
go hand-in-hand, which is the reason ‘sustainability-minded’
innovations are woven into every aspect of our operation. In our
manufacturing facilities, we are improving efficiency in usage
of natural resources, promoting green building and increasing
alternative energy.
Water risk management, improving water use efficiency,
wastewater treatment and returning water to communities and

Subsidiaries
Awards & Recognition
Your Company has been awarded as Runner-up in “Best-Presented Annual Report Award 2019”
in the General sector for excellence in the presentation of its Annual Report 2019, organized by the
Statement
Institute of Chartered Accountants of Nepal (ICAN) held on 16 July, 2020 (Thursday), Shrawan, 01,
Financial
2077.
Shareholder
Information
Reports
Innovation and
Digitization
Governance
Good
About Us

Subsidiaries
Innovation and
Digitization
Statement
Financial
As technology and e-commerce continue to evolve, your Company

adapts and partners in new ways with our customers. We are
reconstructing our business in the virtual world by investing in
Shareholder
Information
digital platforms, building foundational infrastructure to support

our leaner operating environment and working to improve the
employee experience.
Few of these experiences are:

Reports
Sales Force Automation (SFA) is an android based app which

Sales Force Automation and Bottling automates the order taking process. With this new technology,
Innovation and
Operation Solution our frontline sales team will now be taking outlets order in the
Digitization
tablets. This is the transformation from manual order taking to

Last year, your Company had launched Sales Force Automation digitalization making it more effective. In conjunction with this
(SFA) for its sales force and Bottlers Operation Solution (BOS) SFA, BOS is a web application which prints digital invoices, store
for its distributors in order to streamline the process of doing inventories. The orders taken by Sales Team through their tablet
business. This year we continue with this as we continue to would then be process in this BOS, which will let the distributor
Governance
expand this across the Nepal. print outlet order, invoicing and send it for distribution.
Good
About Us
Installation of FBI (Full bottle inspection)in Returnable Glass Bottles (RGB) Line
Installation of FBI provides advantage in individual detections of bottles in real-time, because
of which the identification of the bottle types is much more reliable. In addition to providing
good packaging quality products to consumers, it will also eliminate the use of inspection
station. FBI makes use of cameras for different inspection parameters like missing/crocked
crown, missing date code, Low/high fill height of the beverage inside the bottle and any
other foreign bottle. The images so captured would be processed further via software and
decide whether the bottle passes or fails. This automation eliminates the human error in the
inspection process.

Subsidiaries
The Journey to a Digital Learning
Learning Agility is of utmost importance to survive and succeed, so with a shared passion to learn and to contribute to the business,
your Company embarked on the digital learning journey together since February, 2020 with lots of excitement and enthusiasm. Harvard
ManageMentor® (HMM) “HMM’s course repository & HMM Spark’s Skill Builders” were launched for the benefits of all employee
Statement
Financial
across functions.
Likewise, virtual instructor-led programs like Lead & Inspire and Leadership Definition Program were also launched. Besides,
your Company had recently launched LinkedIn Learning that will bring a range of functional and behavioral competencies to support
Shareholder
Information
the development of their associates with an easy access. Similarly, your Company had also conducted various virtual trainings for
enhancing functional skills for front line sales team.
Reports
Innovation and
Digitization
Leading people and teams Reaching our growth
in times of crisis ambition with leadership
Governance
Good
Stay safe Be the role model
Stay focused Set the agenda
About Us
Stay informed Help people be their best
Stronger Together selves
Localization Internal Process Automation

Your Company believes in being self-sustained while contribut- The modernization of Coca-Cola’s internal processes and sys-
ing to the local economy. We continue to localize raw materials tems has advanced over the past few years, including implemen-
and packaging materials to the extent possible, while ensuring tation of new software like neoHRIS, smartContract, E-Compli-
a sustainable, quality, competitively advantaged supply of goods ance tool which offers cloud applications for finance and human
and services. This not only creates maximum value for the Com- resources. Internal digitization is resulting in faster decisions,
pany, but provides a boost to a host of ancillary industries in cost reductions and improved employee experience, all geared
the Country. This year, your Company has localized sourcing toward disciplined growth
of sugar, CO2, Label, Preform, Shrink Wrap and Closure, all of
which are essential elements for production of our beverages. Virtual Support from OEM (Original Equip-
Your Company is committed to Local Supplier Diversity by max- ment Manufacturer)
imising procurement opportunities and proactively engaging and COVID-19 provided us the increased need of a remote maintenance
building partnerships with diverse suppliers within Nepal. More- environment, as it is difficult to bring expertise and engineers
over, the business hinges on inclusive growth and your Company from OEM across the country and state borders. Even installation
recognizes the positive impact created by local procurement to supervising for new projects is being done remotely during this
our communities in Nepal. tough time utilizing web-conference software.

Subsidiaries
DIRECTOR’S REPORT
(For the Year 2076-2077)
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Financial
Dear Shareholders,
The COVID- 19 Pandemic has had an unprecedented impact on Business and the Communities worldwide. Your Company is facing one
of the most challenging times and it has adversely impacted the lives of millions of small and large businesses across the world and
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Information
the global economy as a whole. In the face of an unprecedented global crisis. During this crisis, your management team/associates/
business partners/suppliers have worked tirelessly to protect the long-term health of your Company’s business.
Financial Highlights impact during peak season.

In FY 2076/77, your Company delivered revenue of NPR 6,865 Troika Traders Private Ltd
Reports
which is 72% of last year revenue. Until mid-March, 2020 before

the Nepal Government announced nationwide lockdown, the During the year under review, your Company generated revenue
business was making good progress with a growth of 14.1% in net amounting to NPR 6 million. Your Company has made loss before
tax of NPR 9.2 Million.
Innovation and
revenue. March- July, 2020 has historically been biggest growth

Digitization
months and peak season, but owing to this nationwide lockdown Responding with Speed and Agility
announced by the Government of Nepal, your Company had a huge
setback, resulting in loss of business and revenue during the said The COVID -19 pandemic has since swamped our lives and the
period. Despite these challenges, during the same period, your way we operate our business. Your Company’s primary focus has
Company was able to achieve 27.5% of last year’s revenue. been first on the safety of its Associates and customers and
on supporting vulnerable people and healthcare workers; second
Governance
Your company has worked on productivity measures and has on securing our business, cash flow and liquidity and planning
reduced Operational cost and Manpower cost which helped to our way through the clearance and stock up of our products.
Good
achieve NPR 199 MM operating profit even though revenue was And thirdly on ensuring we learn from the crisis and come out
down by 28% vs last year. stronger, faster and more competitive for when we bounce back.
About Us
Pre-COVID 19 vs Post-COVID 19 (for FY 2076/77) The lockdowns tested the agility, resilience, and adaptability
to the new normal. Your Company responded to the challenges
with speed and agility and have emerged stronger. All businesses
worldwide including your Company is now operating in ways that
Revenue (million) it has never operated before. Your Company has increased our
hygiene across our manufacturing units, distributor points and
-72.5% sales force. The way your associates have been facing and acting
+14.1%
with pace and agility gives us confidence that your Company
can emerge stronger and faster and create a more streamlined
4,905 5,599 4,601 business. In response to emerge and face this COVID-19
1,267 Pandemic, the Management have drawn up the “Rebuild, Rebound
and Reclaim” program to harness new habits and use the lessons
Pre Covid 19 Post Covid 19 of this crisis to make new beginnings.
2019 2020 Key Business Challenges
Standalone Performance (along with its Global:

subsidiaries) Global growth is projected at (–)4.9 percent in 2020, 1.9
percentage points below the April 2020 World Economic Outlook
Bottlers Nepal Limited (WEO) forecast. The pandemic has had a more negative impact
In FY 2076/77, Your Company has made profit before tax of NPR on activities in the first half of 2020 than anticipated, and
6 Million, Further, the sales revenue of your Company during the the recovery is projected to be more gradual than previously
year under review was NPR 3,220 Million. This is primarily due to forecasted and hence, it looks like it will result in deceleration
COVID 19 impact during peak season. of the economic growth of the countries worldwide for the rest
of the period of 2020 as well.
Bottlers Nepal (Terai) Limited
Global oil demand fell as lockdowns were imposed to combat the
In FY 2076/77, BNTL has made profit before tax of NPR 8 Million.
COVID-19 pandemic. However, with recent increase in COVID-19
Further, the sales revenue of your Company during the year under
cases and the impositions of partial lockdowns, it further
review was NPR 6,796 Million. This is primarily due to COVID 19

Subsidiaries
anticipates more uncertainty to the forecast and various hurdles Training to update themselves with the Laws of the Country. A
on imports of major RMPM and impact on supply chain. Similarly, Report on Corporate Governance is detailed, in the latter part of
devaluation of local currency against Forex, mainly US Dollar has the Annual Report separately.
impacted most of our imports.
Corporate Sustainability
Statement
Nepal
Financial
Your Company is committed to system’s overall purpose -To
The Government of Nepal had projected Nepalese economy growth refresh the world and make a difference, which includes
by 7 percent for the year 2020. But due to COVID-19 and its our beverages and the work we do to enhance interconnections
impacts, the estimated growth figures have been revised and it with our communities and the activities we do. The Corporate
has projected that the economy would grow by about 2.25 percent Sustainability activities of your Company continue to resonate
Shareholder
Information
this year. Recently, the Central Bureau of Statistics (CBS), Nepal with the Nation’s priorities and the sustainability strategy ensures
has projected that the Nepalese Economy may grow by negative to adopt the right approach to serve our stakeholders better. The
trend if the lockdown prolongs further. They further predicted that Pandemic has reinforced the importance of Sustainability and
Nepal was likely to lose agriculture production, industrial output, why it matters now, more than ever. Your company continues
and service sector’s contribution. The pandemic was likely to to implement projects and process improvements despite all the
Reports
generate lower GDP in 2020 with lower employment, food prone COVID-19 restrictions, with required precautions. Your company
inflation, magnification of poverty in both rural as well as urban will continue to nurture existing partnerships and build new
areas. Remittance inflow to Nepal from abroad may decelerate collaborations, to modify/amplify efforts to the changing needs
sharply (11.6 percentage decrease) (source: World Bank) which of our communities and environment. Details of your company’s
Innovation and
will see a hit on the balance of payments and imports. contribution in shaping the sustainability vision are in the
Digitization
Corporate Sustainability report, in the latter part of the Annual
Dividend Report.
Due to this on-going Pandemic, your Directors do not recommend
any dividend for the FY 2076/77. Internal Control Framework
Your Company has an efficient and robust system of internal
Governance
Statutory Auditors. controls in place. These controls include internal checks and
audits, along with financial and other control, which is required to
Good
M/s B. K Agrawal & Co. Chartered Accountants (Firm Registration
No. 02) hold office until the conclusion of 42nd Annual General carry on the business smoothly and lawfully, whilst safeguarding
Meeting. Your Directors, with the recommendation of Audit your Company’s assets in a secure, practical, accurate and
Committee Meeting have proposed to appoint M/s CSC & Company reliable manner.
About Us
(Firm Registration No. 57) (Mr. Bikesh Madhikarmi, Partner), as
Statutory Auditor for FY 2077-78 with a remuneration of NPR Future Outlook
5,00,000 (excluding VAT and out-of-pocket expenses) (including Your Company has entered the new fiscal year at a time when
consolidation), alike last year. all major economies have been brought to a standstill. The
impact has been very fast and widespread, and it is going to be a
Human Resources challenging year going forward. On the other hand, the economic
There has been no increase in the total number of associates – downturn is majorly due to external factors that has hit the pause
they were 312 on 32nd day of Ashad 2076 and are 311 on 31st day button on all economic activities, and we have less control over it.
of Ashad 2077. Your Company has been continuing to deal with
the challenges faced as a consequence of pandemic, particularly Despite the uncertainty that surrounds your Company, it will
in, ensuring safety, health and wellbeing of the employees. continue to take actions to protect our performance, conserve
Your Company through innovative solution, has been building cash and plan for future growth. Your Company will be staying
capabilities of its frontline and support associates through virtual close to its customers, aligning themselves to their evolving
learnings. Some of the initiative undertaken are briefly expanded priorities, staying lean and nimble, finding newer ways to create
in this Annual Report. value and possibly expand new packs and categories that address
current imperatives. Many of the innovations that we pioneered
Corporate Governance are of even greater relevance today. The Sales Force Automation
that we launched last year will help your company to leverage
Your Company is committed towards adherence to good corporate
digital technology for growth and transformation agendas.
governance. Your Company continues to strive to keep the trust
Your Company will continue to find opportunities to invest in
of its stakeholders by being ethical, honest and transparent while
innovations that will help for future growth. Your Company will
doing business. Your Company has a strict Code of Business
consciously drive and maintain its high level of governance and
Conduct and Anti Bribery Policy, which guides its business
strive towards providing better returns on its investment.
conduct, requiring honesty and integrity in all matters. Your
Company’s employees, directors and vendors are required to Acknowledgement
strictly adhere to the Code of Business Conduct in the workplace
and in the larger community. Your Company regularly monitors its Your Directors thank all of the associates for their tenacity,
business to ensure compliance with the Code and the Laws of the perseverance and dedication in one of the toughest years in
Country. Your Directors also regularly undergo Annual Refresher our history. Your Directors also place a special thanks to the

Subsidiaries
Government of Nepal, particularly Ministry of Industry, Commerce (j) Progress of transactions of the Company and of its
& Supplies, Department of Industry, Nepal Police, District subsidiary company(ies) in the previous financial year
Administration Office, Securities Board of Nepal, Nepal Stock and, review of the situation existing at the end of that
Exchange, Office of Company Registrar and Inland Revenue financial year;
Department. It has been a tough year, with the increasing number As covered above under various Sections.
Statement
Financial
of COVID-19 cases globally and in Nepal, your Company continues

to strive to achieve and grow its business. We appreciate your (k) Major transactions completed by the Company and its
patience and are determined to accelerate the changes we subsidiary company(ies) in the financial year and any
committed to. material changes taken place in the transaction of the
Company during that period:
Shareholder
Information
LEGAL REPORTING & DISCLOSURES

Subsidiary Company Transactions NPR
AS PER SEC 109 OF COMPANIES ACT, 2006(2063) Bottlers Nepal (Terai) Limited ManpowerofCost
Recovery 125,209,414/-
(a) Review of the transactions of the Previous Year:
Bottlers Nepal (Terai) Limited Sale of Raw 1,690,103/-
As covered above under the “Financial Highlights” sections. Materials
Reports
Bottlers Nepal (Terai) Limited Purchase of Raw 4,784,220/-

Materials
(b) Impact, if any, caused on the transactions of the
Payment of
Company from National & International Situations; Product transfer
Innovation and
Bottlers Nepal (Terai) Limited fee

As covered above under the “Key Business Challenges” on account 64,641,593/-
of sales made in
Digitization
section. their respective

territories
(c) Achievements in the current year as at the date of Troika Traders Private Limited Recovery of 550,000/-
report & opinions of the Board of Directors on matters Manpower Cost
to be done in the future; (l) Disclosures made by the substantial shareholders of
Governance
As covered above under “Financial Highlights” and “Future the Company to the Company in the previous financial
Outlook” section. year;
Good
(d) Industrial or Professional Relations of the Company; None
During the year, the relationship of your Company with its (m) Details of shareholding taken by the directors and
About Us
employees was harmonious resulting in no strike. officers of the Company in the previous financial
years and, in the event of their involvement in share
(e) Alterations in the Board of Directors and the reasons transaction of the Company, details of information
therefore; received by the Company from them in that respect;
During the year under review, the holding Company, M/s None
Coca-Cola Southwest Asia Holdings Limited had withdrawn
their earlier nomination of Mr. Sundeep Bajoria and in his (n) Details of disclosures made about the personal
place nominated Mr. Melvin Tan Chun Pin w.e.f 9th April, interest of any director and his / her close relative
2020. in any agreement related with the Company during the
previous financial year;
(f) Major things affecting the transactions;
None.
As covered above under “Key Business Challenges”
(o) In the event that the Company has bought its own
(g) If there are any remarks in the Audit Report, the shares (buy-back), the reasons for such buy-back,
comments of the Board of Directors on such remarks; number & face value of such shares, and amount paid
None by the Company for such buy-back;
None
(h) Amount recommended for payment by way of Dividend;
The Board of Directors has not proposed any dividend to the (p) Whether there is an internal control system in place or
shareholders of the Company for the Fiscal Year 2076/77. not and, details of such system, if it is in place;
As covered under the "Internal Control Framework” Section.
(i) In the event of forfeiture of shares, details regarding
the number of forfeited shares, face value of such (q) Details of total management expenses during the
shares, total amount received by your Company for previous financial years;
such shares prior to the forfeiture thereof, proceeds
of sale of such shares after the forfeiture thereof, Particulars NPR MM
and refund of amount, if any, made for such forfeited Salaries, wages and other employee cost 141
shares; Administrative Expenses 107
NIL Total 248

Subsidiaries
(r) Name list of the members of Audit Committee, Shareholders. The dividend amount payable to M/s Coca-
remuneration, Allowances and facilities received Cola Southwest Asia Holdings Limited as on Ashad 31st,
by them, details of the functions performed by that 2077 is NPR 28,201,720/ which is in process of obtaining
committee, and details of suggestions, if any, made by approval from Central Bank for repatriation.
that committee;
Statement
(v) Details of sale and purchase of properties pursuant to
Financial
Please refer to Audit Committee details under Corporate
Section-141:
Governance Section.
None
(s) Amount, if any, outstanding & payable to the Company
by any director, managing director, chief executive, (w) Details of transactions carried on between the
Shareholder
Information
substantial shareholders or, his/her close relative or, Associated Companies pursuant to Section-175;
by any firm, company, corporate body in which he/she None
is involved;
(x) Any other matters required to be laid out in the report
None
of Board of directors under this Act and the prevailing
Reports
(t) Amount of remuneration, allowances & facilities paid laws;
to the directors, managing director, chief executive & As per page no. 40
officer;
(y) Other necessary matters;
Innovation and
Remuneration, allowances and facilities given to Directors,
Digitization
Managing Director and Key Managers during the year: i. Information (if any) regarding existence of any
relative of Companies director or official currently
NPR MM
working in Office of the Company's Registrar
Particulars Remuneration Allowances Facilities Total ("OCR"), Securities Board or any other regulatory
Director's body concerning the Company in Officer or higher
Governance
Fees & - 0.26 - 0.26 capacity.
facilities
Good
We have not received any such information from any of
Managing the official or director of your Company.
20.84 56.80 2.47 80.11
Director
Key ii. Information (if any) regarding any fines paid by any
37.08 61.49 4.21 102.77
About Us
Managers
directors, officers or shareholders of the Company
Total 57.92 118.5534 6.68 183.14 to OCR in violation of Sec. 82 of the Act including
information about the amount paid.
Notes: All the facilities provided to the Managers are as per the
policy of your Company. None
(u) Amount of Dividends remaining unclaimed by the

shareholders; On behalf of the Board of Directors,
Unclaimed dividend that has crossed the period of 5 years is
transferred to Investor Protection Fund. The Total Unclaimed Shukla Wassan Narmadeshwar Narayan Singh
dividend as on Ashad 31, 2077 (15 July, 2020) for the last Chairperson Director
5 years is NPR 57,912/-. All these unclaimed dividends
has been transferred to your Company’s Share Registrar, Date: 11th November, 2020
M/s Nabil Investment Banking limited for distribution to

Subsidiaries
Disclosure under Rule 26(2) of Securities Registration

and Issue Regulation, 2073
1. Report of the Board of Directors: 6. Problems and Challenges
Statement
Financial
Covered in Directors Report of this Annual Report (page 36- INTERNAL

39) 1. Rise in cost of operations with inflation.
2. Auditor’s Report: 2. Reduced efficiency in business due to COVID Pandemic
Included in Annual Report (page 46-49 and 85-88)
Shareholder
EXTERNAL
Information
3. Audited Financial Statements: 1. Nationwide Lockdown and adverse economic situation

due to COVID Pandemic
Included in Annual Report (page 50-84 and 89-121)
2. Fluctuation in foreign currency exchange rates
4. Legal Proceedings: impacting raw materials and packaging materials cost.
Reports
No any legal cases (except taxation related cases) was filed

STRATEGY
by or against the Company.
1. Proactively monitor the internal, external environments
5. Analysis of Stock Performance of the Body Corporate: and consumer behaviour patterns, particularly due to COVID
Innovation and
Pandemic.
Digitization
i) Management's view on the performance of the stocks of

the body corporate in the Stock Exchange. 7. Corporate Governance
Price and transactions of the Company’s shares are being Incorporated in detail under Corporate Governance section in
determined by the open share market operations through this Annual Report.
a duly established Stock Exchange. Managements view on
Governance
this is neutral.
Good
ii) High, Low and Closing price of the stocks of the company
during each quarter of the preceding year along with total
volume of trading of shares and number of days traded:
About Us
Quarter Maximum Price (in NPR) Minimum Price (in NPR) Closing Price (in NPR) No. of trades Days of trading
Q1 1,830 1,795 1,830 134 1
Q2 None None None None None
Disclosure under Rule 20(4) of Directives Related to Corporate Governance for Listed
Companies, 2074
The Board of Directors had approved the Corporate Governance 2. Compliance to the terms and conditions prescribed by the
Report as per the prescribed format on 11th November 2020 and regulator at the time of issuing license.
the signed copy of same has been sent to Securities Board of Complied
Nepal for recording.
3. Compliance to the directions given by the regulatory body
during review, inspection and supervision:
Brief Excerpts of the Corporate Governance Report Complied
1. Compliance to the Directions and Directives issued by the
regulatory body from time to time and all the requirement of
Certified By:
prevailing Acts and Regulations including Directions:
Complied
Pratima Burma
Compliance Officer
Date: 11th November, 2020

Subsidiaries
Shareholder Information
GROUP STRUCTURE
Statement
Financial
 Bottlers Nepal Limited (Parent Company): Paid-up share capital of NPR 194,888,700/- with the majority shares
(i.e. 76.16%) held by M/s Coca-Cola Southwest Asia Holdings Limited.
Representation of Coca-Cola
Shareholder
Southwest Asia Holdings
Information
Limited
22%
1. Ms. Shukla Wassan
2. Mr. Pradip Pandey
3. Mr. Mohamed Amin Ghoneim
Reports
1.84% 4. Mr. Melvin Tan Chun Pin
Representation of Gorkha
Innovation and
Brewery Private Limited
Digitization
76.16%
1. Mr. Surendra Silwal
Coca-Cola Southwest Representation of Public

Gorkha Brewery Private Limited
Shareholders
Governance
1. Mr. Narmadeshwar Narayan Singh
Other Shareholders
Good
Independent Director
1. Dr. Trilochan Upreti
About Us
 Bottlers Nepal (Terai) Limited (Subsidiary Company): Paid-up share capital of NPR 121,000,000/- with
the majority shares (i.e. 90.78%) held by its Parent Company, M/s Bottlers Nepal Limited.
Representation of
Bottlers Nepal Limited
9.22% 1. Ms. Shukla Wassan
2. Mr. Mohamed Amin Ghoneim
3. Mr. Melvin Tan Chun Pin
4. Mr. Gunjan Dhawan
90.78% 5. Mr. Surendra Silwal
Representation of
Public Shareholders
1. Mr. Neeraj Rimal
Bottlers Nepal Limited Independent Director

1. Mr. Pramod Kumar Karki
Public Shareholders
 Troika Traders Private Limited (Subsidiary Company) Representation from Bottlers Nepal Limited
A majority-owned subsidiary of M/s Bottlers Nepal Limited, with 1.Mr. Ashok Kumar Mandal
Paid-up share capital of NPR 750,000/- 2.Ms. Pratima Burma

Subsidiaries
Statement
Financial
Shareholder
Information
Reports
Unclaimed Dividend/
Unpaid Dividend
Innovation and
Digitization
In accordance with the provisions of declaration are to be transferred to dividends are transferred to our Share
of Companies Act, 2006 (including Investor Protection Fund. Registrar, M/s Nabil Investment Banking
amendment) and Investor Protection Limited for distribution to Shareholders.
Fund Operation and Management The Total Unclaimed dividend as on Ashad The details of unclaimed dividends can be
Procedures, 2016, dividend not encashed/ 31, 2077 (15 July, 2020) for the last 5 obtained from our Share Registrar, M/s
Governance
claimed within 5 years from the date years is NPR 57,912/- All these Unclaimed Nabil Investment Banking Limited.
Good
Categories of Shareholders
About Us
Category No. of Shareholders No. of Shareholding

Demat Account Holders 50 24,866
Physical Account Holders 33 19,24,021
Total Shareholders 83 19,48,887
Share prices
Year Maximum (in NPR) Minimum (In NPR) Closing (In NPR) Number of Trades Trading days
2015-16 None None None None None
2016-17 None None 1,660 100 1
2017-18 None None 1,693 100 1
2018-19 1,760 1,760 1,760 20 1
2019-20 1,830 1,795 1,830 134 1
Note- 98.16% of the Shares are held by two institutional Shareholders. The rest 1.84% shares held by the public is rarely traded.

Year Maximum (in NPR) Minimum (In NPR) Closing (In NPR) Number of Trades Trading days
2015-16 5,936 2,160 5,936 85 30
2016-17 9,999 3,382 6,085 21,856 44
2017-18 8,287 5,336 5,872 27,431 166
2018-19 7,384 5,243 6,890 19,561 137
2019-20 9,274 5,847 6.200 9,035 101

Subsidiaries
Shareholder Relationship
The Board values the Company’s stakeholders and strives to take the Company’s external auditors at the meeting. The Company
their concerns and interests into account when making business encourages its shareholders to attend its AGM and is committed
decisions. This not only enables it to anticipate and manage risk to dealing with shareholder queries in a respectful and timely
Statement
effectively, but also helps it identify new business opportunities manner whenever they are received by the Company.
Financial
and improve Company’s relationship with its stakeholders.
In order to strengthen our relation with shareholders and provide
The shareholders are given the opportunity at the AGM to get efficient services to the shareholders, Nabil Investment Banking
updates from the Chairperson and to ask questions, and to Limited has been re-appointed as “Registrar to Shares”.
Shareholder
express a view and vote on the various matters of Company’s
Information
Business on the agenda. Shareholders may also ask questions to
Communication to Shareholder
Reports
Effective communication of information is an essential component of Corporate Governance. With this the company regularly
interacts with shareholders through multiple channel of communication such as annual report and media notices
Innovation and
The Quarterly Report of the Company’s performance are published in national daily.
Digitization
The Quarterly and Annual Financial Reports are reported to regulatory authorities like Securities Board of Nepal (SEBON) and Nepal
Stock Exchange (NEPSE).
Redressal of Shareholder’s Complaint
Governance
Any complaints or queries or correspondence can be filed at Nabin Investment Banking Limited, Share Registrar or to Company
Good
Secretary/ Compliance Officer in the address mentioned below:
About Us
Nabil Investment Banking Limited Company Secretary/Compliance Officer
3rd Floor, Central Plaza Ms. Pratima Burma
Narayanchaur, Naxal, Kathmandu
OR Manager- Legal & Company Secretary
Email :- info@nabilinvest.com.np E-mail: prburma@coca-cola.com.np
Phone Numbers: - +977-01-4411604, 4411733, Phone: +977-1-4350602 Ext. 202, 253
RTS/RTA : Ext. 140, 152
In the year 2076/77, no any complaint were received from any shareholders.

Subsidiaries
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Statement
Financial
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Shareholder
Information
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Reports
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ldlt, ;do / :yfg M @)&&.&* sf] n]vfkl/If0f ug{ n]vfkl/If0f ;ldltsf]
Innovation and
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Digitization
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afnfh', sf8df8f}+ . ;+zf]wg ;lxt jf ljgf ;+zf]wg kfl/t ug]{M
Governance
-er{'cn Kn]6kmd{ l7s !M)) ah] v'Nnf ul/g]5 ._

æ>L l;=P;=l; P08 sDkgL rf68{ PsfpG6]G;\ -kmd{
Good
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z]o/wgL dxfg'efjx¿nfO{ pkl:yt u/fpg ;Dk"0f{ Joj:yfkg sDkgLsf] n]vfkl/Ifssf] ?kdf cf=j @)&&.&* sf] nflu
About Us
tyf g]kfn ;/sf/n] tf]s]sf] :jf:Yo dfkb08sf ;fy ;Dk"0f{ lgo'lQm ug]{ / lghsf] kfl/>lds ?= %)),))).– -cIf/]kL
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5nkmnsf ljifo ;"rL M #= ljljw M

!= ;fdfGo k|:tfj M -s_ ljljw M cWoIfsf] cg'dlt cg';f/ .
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-v_ k|aGw ;+rfnssf] kfl/>lds tyf cGo ;'ljwf pk/ @)&&.)(.)( ut] b]lv ldlt @)&&.)(.@# ;Dd sDkgLsf] z]o/
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-u_ :jtGq ;+rfnssf] lgo'lQmaf/] 5nkmn ul/ kfl/t ug]{ . z]o/wgL dxfg'efjx¿df ;"lrt ul/G5 . ;fwf/0f ;ef ;DaGwL
cGo sfuhftx¿ sDkgLsf] clen]vdf /x]sf] z]o/wgL
@= ljz]if k|:tfj M dxfg'efjx¿sf] 7]ufgfdf x'nfsaf6 5'§} k|]lift ul/g]5 .
-s_ Plss[t ljlQo ljj/0f, @)&& c;f/ #! ut] ;Ddsf]
jf;nft, @)&& c;f/ #! ut];Ddsf] cfo ljj/0f
;f]xL ldltdf ;dfKt ePsf] gfkmf gf]S;fg lx;fa tyf ;+rfns ;ldltsf] cfb]zfg';f/
gub k|jfx ljj/0f ;lxtsf] n]vfkl/If0f ePsf] ljQLo
ljj/0f / n]vfkl/Ifssf] k|ltj]bg :jLs[t ug]{ .
====================
lgDgadf]lhdsf] k|:tfj pk/ 5nkmn u/L plrt b]lvPdf k|tLdf adf{
;+zf]wg ;lxt jf ljgf ;+zf]wg kfl/t ug]{; sDkgL ;lrj

Subsidiaries
;fwf/0f ;ef ;DaGwL ;fdfGo hfgsf/L
Statement
Financial
!= sDkgLsf] jflif{s k|ltj]bg, k|ltlglw -k|f]S;L_ kmf/d tyf $= ;efdf pkl:yt x'gsf] nflu s'g} Ps z]o/wgLsf] tkm{af6
Shareholder
Information
jflif{s ;fwf/0f ;ef;Fu ;DalGwt cGo sfuhftx¿ Ps eGbf a9L JolQmx¿sf] gfddf k|f]S;L lgo'Qm ePdf
sDkgLsf] clen]vdf /x]sf] z]o/wgL dxfg'efjx¿sf] ;a}eGbf kl5Nnf] ldltdf lgo'Qm ul/Psf] k|f]S;Ln] ;efdf
7]ufgfdf x'nfsaf6 5'§} k]|lift ul/g]5 . s'g} sf/0fjz, olb pkl:yt x'g / dtbfg ug{ kfpg] 5 . s'g} z]o/wgLn]
s'g} z]o/wgL dxfg'efjn] jflif{s k|ltj]bg k|fKt gu/]sf] Ps} ldltdf Ps eGbf a9L k|f]S;L lgo'Qm u/]df ;a} eGbf
Reports
v08df sDkgLsf] /lhi68{ sfof{no, afnfh' cf}Bf]lus klxn] k|f]S;L sDkgLsf] sfof{nodf btf{ ug]{ JolQmn] ;efdf
If]q, afnfh', sf7df8f}+df ;Dks{ ug'{x'g ;Sg'x'g]5 jf pQm pkl:yt x'g / dtbfg ug{ kfpg] 5 .
Innovation and
jflif{s k|ltj]bg sDkgLsf] j]j;fO{6 www.bnl.com.np df
%= gfafns tyf dfgl;s ;Gt'ng 7Ls gePsf z]o/wgLsf]
Digitization
klg /flvPsf] 5 .
tkm{af6 sDkgLsf] z]o/ nut lstfadf ;+/Ifssf] ?kdf
@= ;efdf efu lng rfxg] dxfg'efjx¿n] dlgzf bfxfn btf{ ePsf] JolQmn] ;efdf efu lng / dtbfg ug{ jf
manisha.dahal@nabilinvest.com.np df O{d]n jf kmf]g k|f]S;L lgo'Qm ug{ ;Sg]5 .
Governance
g+= )!–$$!!^)$ ext. !!^ df kmf]g dfkm{t cg'/f]w ug{
^= ;+o'Qm ?kdf wf/0f u/]sf] z]o/sf] xsdf z]o/ nut
Good
;Sg'x'g]5 / pQm z]o/wgL dxfg'efjnfO{ ;fwf/0f ;efsf]
lstfadf klxn] gfd pNn]v ePsf] JolQm jf ;j{;Ddltaf6
a}7sdf efu lngsf nfuL rflxg] lnÍ z]o/wgL dxfg'efjsf]
k|ltlglw lgo'Qm ePsf] Ps JolQmn] dfq ;efdf efu lng
About Us
Od]ndf k7fO{g]5 . ;efdf s'g} k|Zg÷;Nnfx÷;'emfj /fVg
jf dtbfg ug{ kfpg] 5 .
rfxg'x'g] z]o/wgL dxfg'efjn] ;ef ;'? x'g' eGbf sDtLdf
$* 306f cufj} kbhandari@coca-cola.com.np df &= cGo s'g} hfgsf/Lsf] nflu s[kof sDkgLsf] /lhi68{
Od]n dfkm{t jf sDkgLsf] kmf]g g+= )!–$#%@(*^ jf )!– sfof{no afnfh', sf7df8f}+df cyjf kmf]g g+= )!–$#%)^)@
$#%!%#@ ext. @)@ jf @%# df cg'/f]w ug'{ kg]{5 . jf )!–$#%!*&! ext. @)@ jf @%# jf xfd|f] z]o/
/lhi6«f/ sfof{no, glan O{Ge]i6d]G6 a}FlsË lnld6]8,
#= s'g} csf]{ z]o/wgLsf] k|ltlglw -k|f]S;L_ sf] ?kdf efu lng
gf/fo0f rf}/ gS;fn, kmf]g g+= )!–$$!!^)$ ext. !$) jf
/ dtbfg ug{ rfxg] z]o/wgLn] ;ef x'g' eGbf sDtLdf
!%@ df ;Dks{ ug'{ xf]nf .
$* 306f cufj} k|f]S;L kmf/d Od]n dfkm{t dlgzf
bfxfn manisha.dahal@nabilinvest.com.np jf gljn
OGe]i6d]G6 a}+lsË lnld6]8, gf/fo0frf}/, gS;fn -sDkgLsf]
z]o/ /lhi6«f/_ df k]z ug'{ kg]{5 .

46

47
48

49
Subsidiaries

STATEMENT OF FINANCIAL POSITION
As at Ashadh 31st, 2077 (15th July, 2020)
Statement
Financial
Figures in NPR
Particulars Note As at 31st Ashad 2077 As at 31st Ashad 2076
ASSETS
Non-current assets
Shareholder
Information
Non Financial
Intangible Assets 3 110,277,143 88,014,276
Property, Plant and Equipment 4 7,663,507,959 7,574,155,058
Deferred Tax Assets 5.3 62,475,924 -
Prepayments 6.1 28,117,535 28,940,483
Reports
Financial Assets
Advances 6.2.1 8,140,432 17,680,755
Current Assets
Innovation and

Inventories 7 1,572,951,713 1,379,124,602
Digitization
Prepayments 6.1 88,552,067 74,736,729

Advances 6.2.2 899,479,555 583,490,513
Other Current Assets 6.2.3 - 2,887,216
Income Tax Receivable 8 19,578,467 28,554,512
Financial Assets
Governance
Other Current Assets 6.2.4 16,719,123 7,961,479

Trade Receivables 9 221,507,342 194,405,540
Good
Cash and Cash Equivalents 10 460,921,329 536,337,685

Total Assets 11,152,228,589 10,516,288,848
About Us
Equity
Equity Share Capital 11 194,888,700 194,888,700
Reserve and Surplus 12 3,475,761,880 3,611,729,902
Non Controlling Interest 13 211,050,669 217,432,660
Non-current liabilities
Retirement Benefit Obligation 14.1 958,111,001 830,631,023
Deferred Tax Liability 5.3 - 36,702,789
Non current Borrowing 15.1 1,700,407,009 958,958,221
Current liabilities
Borrowings 15.2 1,942,510,519 1,156,797,162
Trade Payables 15.3 1,184,806,157 1,980,868,172
Other Financial Liabilities 16 1,329,722,984 1,424,137,633
Non Financial Liabilities 17 25,084,251 27,147,036
Income Tax Payable 8 8,725,419 10,014,550
Total Equity and Liabilities 11,152,228,589 10,516,288,848
Notes 1 to 31 form an integral part of this consolidated Financial Statement
For & on behalf of the Board As per our attached
report of even date
Shukla Wassan Pradip Pandey B.K. Agrawal, FCA

Chairperson Managing Director Managing Partner
B.K. Agrawal & Co.
Narmadeshwar Narayan Singh Ashok Mandal Chartered Accountants
Director Finance Controller
Place: Kathmandu, Nepal
Date: 26th Kartik, 2077 (11th November, 2020)

Subsidiaries
STATEMENT OF PROFIT OR LOSS
Statement
Financial
Figures in NPR
Particulars Note For the Year 2076-77 For the Year 2075-76
Revenue from operations 18 6,865,166,384 9,506,740,405
Shareholder
Cost of goods sold 19 (5,094,806,091) (6,497,475,845)
Information
Gross Profit 1,770,360,293 3,009,264,560
Other operating income 20 128,552,483 174,702,518

Selling and distribution expenses 21 (1,298,338,455) (1,697,205,652)
Administrative and operating expenses 22 (401,446,754) (445,963,517)
Profit from Operations 199,127,567 1,040,797,909
Reports
Finance Costs 23 (268,128,819) (79,007,379)
Finance Income 24 34,896,497 61,093,293
Innovation and
Profit Before Tax (34,104,755) 1,022,883,823
Digitization
Income Tax Expense
Income Tax 5.1 (112,689,580) (224,420,507)
Prior period tax adjustments 5.1 (884,561) (17,961,000)
Deferred Tax 5.2 85,824,154 (41,325,553)
Net Profit for the year (61,854,742) 739,176,763
Governance
Basic/Diluted Earning Per Share 25 (32) 358
Good
Owners of the Company (62,349,202) 697,435,967
Non Controlling Interest 494,460 41,740,796
Notes 1 to 31 form an integral part of this consolidated Financial Statement
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For & on behalf of the Board
As per our attached
report of even date

B.K. Agrawal & Co.
Chartered Accountants
Narmadeshwar Narayan Singh Ashok Mandal


Subsidiaries

STATEMENT OF OTHER COMPREHENSIVE INCOME
Statement
Financial
Figures in NPR
Particulars For the Year 2076-77 For the Year 2075-76
Net Profit/ (loss) for the year as per Statement of Profit or Loss (61,854,742) 739,176,763
Shareholder
Information
Items that will not be reclassified to Statement of Profit or Loss

Actuarial Gain/(Loss) on defined benefit plan schemes (83,466,000) (113,635,999)
Deferred Tax on Actuarial Gain/(Loss) 13,354,560 18,871,610
Items that may be reclassified to Statement of Profit or Loss - -

Reports
Other comprehensive gain/(loss) for the year, net of tax (70,111,440) (94,764,389)
Total Comprehensive gain/(loss) for the year, net of tax (131,966,182) 644,412,374
Innovation and
Digitization
Owners of the Company (130,045,311) 606,128,655

Non Controlling Interest (1,920,871) 38,283,719

Governance
As per our attached

Good
report of even date

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B.K. Agrawal & Co.


Subsidiaries
STATEMENT OF CASH FLOWS
Figures in NPR
Statement
Financial
(A) CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year (34,104,755) 1,022,883,823
Adjustments for non cash and non operating:
Depreciation on property, plant and equipment 758,166,143 627,983,101
Shareholder
Information
Amortization of Intangible Assets 44,266,031 34,300,614
Loss/ (gain) on sale/write off of Property, plant and equipment (4,127,157) (8,195,396)
Finance income (34,896,497) (61,093,293)
Finance costs 268,128,819 79,007,379
Prior Period Items (5,922,711) (13,720,938)
Reports
Working capital adjustments:
Increase / (Decrease) in trade payable and other liabilities (902,490,615) 1,078,385,971
Increase / (Decrease) in provisions 96,903,847 111,779,738
Innovation and
Decrease / (Increase) in trade and other receivables (29,498,617) 129,066,803
Decrease / (Increase) in loans and advances (319,441,109) (300,405,658)
Digitization
Decrease / (Increase) in inventories (193,827,111) 257,620,731
Cash generated from operations (356,843,732) 2,957,612,875
Direct taxes paid (net of refunds) (105,887,227) (263,784,446)
NET CASH FLOWS FROM OPERATING ACTIVITIES (A) (462,730,959) 2,693,828,429
Governance
(B) CASH FLOWS FROM / (USED IN) INVESTING ACTIVITIES
Acquisition of Property, plant and Equipment (865,070,512) (3,997,380,202)
Good
Purchase of Intangibles (67,123,705) (5,184,461)
Proceeds from sale of Property, Plant and Equipment 22,273,433 23,619,218
Interest Received 32,712,015 60,621,022
Dividends Received (4,461,120) (4,461,120)
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NET CASH FLOWS FROM INVESTING ACTIVITIES (B) (881,669,889) (3,922,785,543)
(C) CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from Borrowings 1,527,162,145 1,619,146,613
Interest paid (258,177,653) (72,278,675)
Dividend paid - (10,776,020)
NET CASH FLOWS FROM FINANCING ACTIVITIES (C) 1,268,984,492 1,536,091,918
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C) (75,416,356) 307,134,804

CASH AND CASH EQUIVALENTS,
Beginning of Year 536,337,685 229,202,881
CASH AND CASH EQUIVALENTS, End of Period 460,921,329 536,337,685

As per our attached
report of even date

B.K. Agrawal & Co.


Subsidiaries

STATEMENT OF CHANGES IN EQUITY
Statement
Figures in NPR
Financial
Securities Actuarial reserve Retained

Particulars Share Capital Total
Premium Reserve (Reinstated) * Earnings
Balance as at 1st Shrawan 2075 194,888,700 165,087,020 - 2,893,312,654 3,253,288,374
Profit for the year - - - 697,435,967 697,435,967
Shareholder
Information
Other comprehensive income - - (91,307,312) - (91,307,312)

Dividends - - - (38,977,740) (38,977,740)
Change in share capital and reserve
on account of increase in Non- - - - (99,749) (99,749)
controlling interest of TTPL
Prior Period Items; - -
Interest and Penalty of VAT on CDL - (13,720,938) (13,720,938)
Reports
Balance as at 1st Shrawan 2076 194,888,700 165,087,020 (91,307,312) 3,537,950,194 3,806,618,602
Profit for the year - - - (62,349,202) (62,349,202)

Innovation and
Other comprehensive income - - (67,696,109) - (67,696,109)

Digitization
Dividends - - - - -
Prior Period Items; - - - - -
Interest and Penalty on Tax - - - (5,922,711) (5,922,711)
Balance as at 31st Ashad 2077 194,888,700 165,087,020 (159,003,421) 3,469,678,281 3,670,650,580
'*Actuarial reserve created out of OCI component - actuarial loss on defined benefit plans.
Governance
Reinstatement has been made only in respect of OCI component for FY 75-76 and FY 76-77 due to unavailability of opening actuarial reserve in
actuary report for FY 75-76.
Good
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As per our attached
report of even date

B.K. Agrawal & Co.


Subsidiaries
Significant Accounting Policies and Explanatory Notes
For the Year ended 31st Ashad, 2077 (15th July, 2020)
1. Corporate Information
Statement
Financial
The consolidated financial statements of Bottlers Nepal Limited (Group), which includes Statement of Financial Position as at 31st
Ashad 2077 (15th July 2020) and Statement of Profit or Loss, Statement of Other Comprehensive Income, Statement of Changes in
Equity and Statement of Cash Flows for the year ended 31st Ashad 2077 (15th July 2020) and related Significant Account Policies and
Notes were authorized for issue in accordance with a resolution of the Board of Directors dated 26th Kartik, 2077 (11th November,
Shareholder
Information
2020).
Bottlers Nepal Limited (Group), hereinafter referred to as “group”, comprises of Bottlers Nepal Limited (the parent company) and two
subsidiary companies namely Bottlers Nepal (Terai) limited and Troika Traders Private Limited.
Bottlers Nepal Limited (“Company”) is a public limited Company listed on the Nepal Stock Exchange Ltd incorporated under the
Companies Act of Nepal. The registered office of the Company and the principal place of business is located at Balaju Industrial District,
Reports
Balaju, Kathmandu, Nepal. Bottlers Nepal Ltd is a licensed bottler, marketer and distributor of non-alcoholic beverages products of
The Coca-Cola Company, Atlanta.
Innovation and
Bottlers Nepal (Terai) Limited (“Company”) is a public limited Company listed on the Nepal Stock Exchange Ltd incorporated under the
Digitization
Companies Act of Nepal. The registered office of the Company is located at Balaju Industrial District, Balaju, Kathmandu, Nepal and
regional office is located at Bharatpur, Chitwan, Nepal. Bottlers Nepal (Terai) Limited is a licensed bottler, marketer and distributor of
non-alcoholic beverages products of The Coca-Cola Company, Atlanta.
Troika Traders Private Ltd. (“Company”) is a private limited Company incorporated under the Companies Act of Nepal. The registered
office of the Company and the principal place of business is located at Balaju Industrial District, Balaju, Kathmandu, Nepal. Troika
Governance
Traders Private Ltd is a licensed distributor of non-alcoholic beverages products of The Coca-Cola Company, Atlanta.
Good
2. Basis of Preparation
The financial statements have been prepared in accordance with the Nepal Financial Reporting Standards (NFRS) issued by the
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Accounting Standards Board Nepal. These conform, in material respect, to International Financial Reporting Standards (IFRS) as issued
by the International Accounting Standard Board (IASB). The financial statements have been prepared on a going concern basis.
This section describes the critical accounting judgement that the group has identified as having potentially material impact on the
group’s financial statements and sets out our significant accounting policies that relate to the financial statements as a whole.
Accounting policies along with explanatory notes, wherever such explanation is required, is described in specific relevant sections. The
group’s accounting policies require the management to exercise judgement in making accounting estimates.
2.1 Accounting Pronouncements

The group for its preparation of financial statement has adopted accounting policies to comply with the pronouncements made by The
Institute of Chartered Accountants of Nepal.
2.2 Accounting Convention

The financial statements are prepared on a historical cost basis.
2.3 Presentations
The figures for previous years are rearranged and reclassified wherever necessary for the purpose of facilitating comparison. Appropriate
disclosures are made wherever necessary.
The Group presents assets and liabilities in statement of financial position based on current/non-current classification. The Group
classifies an asset as current when it is:
• Expected to be realized or intended to sold or consumed in normal operating cycle,
• Held primarily for the purpose of trading.
• Expected to be realized within twelve months after the reporting period or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the
reporting period
All other assets are classified as non-current.

Subsidiaries

The Group classifies a liability as current when it is:

Statement
Financial
• Expected to be settled in normal operating cycle

• Held primarily for the purpose of trading
• Due to be settled within twelve months after the reporting period or
Shareholder
• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period
Information
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as non-current assets/liabilities.
The group’s operating cycle has been defined as twelve-month period.

Reports
The statement of profit or loss has been prepared using classification ‘by function’’ method.
The statement of cash flows has been prepared using indirect method. Cash flows from operating activities, in addition to the
Innovation and
adjustments from profit for non-cash and non-operating activities, movements in working capital, interest and taxes, separately include
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cash flows relating to employee bonus and retirement benefits.
2.4 Accounting Policies

NFRS requires adoption of accounting policies that are most appropriate to the group’s circumstances determining and applying
accounting policies. Directors and management are required to make judgement in respect of items where the choice of specific policy,
Governance
accounting estimate or assumption to be followed could materially affect the Group’s reported financial position, results or cash flows.
Good
Specific accounting policies have been included in the specific section of the notes for each items of financial statements which
requires disclosures of accounting policies or changes in accounting policies. Effect and nature of the changes have been disclosed
wherever required.
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The Parent company’s and subsidiaries’ accounting policies are uniform and aligned.
2.5 Accounting Estimates

The preparation of financial statements in line with applicable NFRS requires management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of contingent assets and
liabilities at the date of financial statements.
The estimates and the underlying assumptions are reviewed on an ongoing basis. Although these estimates are based on management’s
best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amount of assets or liabilities in future periods. The estimates are reviewed periodically
by the management.
Specific accounting estimates have been included in the relevant section of the notes wherever the estimates have been applied along
with the nature and effect of changes of accounting estimates, if any.
2.6 Financial Periods

The group prepares consolidated financial statements in accordance with the Nepalese financial year using Nepalese calendar. The
corresponding dates for Gregorian calendar are as follows:
Particulars Nepalese Calendar Date/Period Gregorian Calendar Date/Period

SFP* Date 31st Ashad 2077 15th July 2020
Current Reporting Period 1st Shrawan 2076 – 31st Ashad 2077 17th July 2019 – 15th July 2020
Comparative SFP* Date 31st Ashad 2076 16th July 2019
Comparative reporting period 1st Shrawan 2075 – 31st Ashad 2076 17th July 2018 – 16th July 2019
*Statement of Financial Position
2.7 Presentation currency

The group’s financial statement is presented in Nepalese Rupees which is also the Group’s functional currency.

Subsidiaries
2.8 Lease
Statement
Financial
A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and
rewards incidental to ownership to the Company is classified as a finance lease.
i) Bottlers Nepal Limited
Shareholder
Information
When all the risks and rewards incidental to ownership are not transferred to the Company (an “operating lease"), the total rentals
payable under the lease are charged to the profit or loss statement over the lease term. The Company has leased 3 plots of land
ranging from 20-40 years from Balaju Industrial District (BID). These lease agreements can be extended through mutual consent
after the expiry of the initial lease term. There is no purchase option and no fixed escalation clause, however BID has right to
review the lease payment in each 5 years. Future minimum rentals payable under non-cancellable operating leases as at balance
sheet date are as follows:
Reports
Figures in NPR
Period For the Year 2076-77 For the Year 2075-76
Less than One Year 462,556 462,556
Innovation and
One year to Five years 2,312,780 2,312,780
Digitization
More than Five years 12,951,565 13,414,124
15,726,901 16,189,460
i) Bottlers Nepal (Terai) Limited

When all the risks and rewards incidental to ownership are not transferred to the Company (an “operating lease"), the total
Governance
rentals payable under the lease are charged to the profit or loss statement over the lease term. The Company has leased one plot
of godown for 10 years from Green Hand Nepal Private Ltd., Kathmandu. These lease agreements can be extended with mutual
Good
consent after the expiry of the initial lease term. There is no purchase option and no fixed escalation clause, however both parties
have right to review the lease term after the end lease period. Future minimum lease payable under non-cancellable operating
leases as at balance sheet date are as follows:
Figures in NPR
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Period As at 31st Ashad 2077 As at 31st Ashad 2076
Less than One Year 38,635,110 32,376,292
Total 326,526,401 218,055,935
Principle of Consolidation
Financial statements of the parent company Bottlers Nepal Limited (BNL) and subsidiaries Bottlers Nepal (Terai) Limited (BNTL)
and Troika Traders Private Ltd. (TTPL) has been consolidated in accordance with NFRS 3 and NFRS 10. The consolidated financial
statements have been prepared on the following basis:
a) The financial statements of the parent and its subsidiaries have been combined on a line-by-line basis by adding together the
carrying values of assets, liabilities, revenues and expenses after eliminating intra-Group balances / transactions and resulting
profits in full. Unrealized profit / losses resulting from intra-Group transactions has also been eliminated except to the extent that
recoverable value of related assets is lower than their cost to the Group.
b) The consolidated financial statements have been prepared using uniform accounting policies for like transactions and other events
in similar circumstances and are presented to the extent possible, in the same manner as the Companies’ separate financial
statements. Differences in accounting policies, if any, has been disclosed separately.
c) Non-Controlling Interest’s share in net profit of consolidated subsidiary’s result for the year is identified and adjusted against the
income of the Group in order to arrive at the net income attributable to the group and non-controlling interest.
d) Non-Controlling Interest’s share in net assets of ‘the Group’ is identified and presented in the consolidated statement of financial
position separate from liabilities and the equity of the Company’s shareholders as Non-Controlling Interest (NCI).
e) The extent of the group’s control on the subsidiaries is reflected by the shareholding in the subsidiaries. The details of which is
as under.

Subsidiaries

Percentage of Holding as
Statement
Financial
Name Country of Incorporation As at 31 Ashad, 2077

st
As at 31st Ashad, 2076
Bottlers Nepal (Terai) Ltd. Nepal 90.78% 90.78%
Troika Traders Private.Ltd. Nepal 99.73% 99.73%
f) The financial statements of the subsidiary used for consolidation are drawn for the same reporting period as that of the parent
Shareholder
Information
Company i.e. year ended 31st Ashad, 2077.

g) The parent Company has acquired the shares in the subsidiaries in fair values at the date of acquisition therefore no goodwill is
recognized.
Non-Controlling Interest
Reports
Non-controlling interest in the BNL (Group) pertains to the other shareholding in BNTL and TTPL. Non-controlling interest is presented
in accordance with the provision of IFRS 3 and IFRS 10 by allocating the net assets in the respective company in proportion to the shares
held by other shareholders other than BNL (the parent).
Innovation and
Details of Non-Controlling interest are:

Digitization
Figures in NPR
Particulars As at 31st Ashad 2077 As at 31st Ashad 2076
Share Capital 11.154,800 11.152,800
Increase in share capital on account of increase in Non-controlling interest - 2,000
Opening Reserve 206,277,860 172,357,512
Governance
Increase in reserve on account of increase in Non- controlling interest of TTPL - 97,749

Good
Profit for the year 494,460 41,740,796

Other comprehensive Income for the year (2,415,331) (3,457,077)
Dividend Income (4,461,120) (4,461,120)
Total 211,050,669 217,432,660
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3. Intangible Assets
Figures in NPR
Intangible assets under
Particulars Computer Software Total
development
Cost
Opening balance at 1st Shrawan 2076 173,415,929 - 173,415,929
Adjustment (ReClassification) 1,180,611 - 1,180,611
Additions 67,123,705 67,123,705 134,247,410
Disposals/Adjustments (673,367) (67,123,705) (67,797,072)
Closing balance at 31st Ashad 2077 241,046,878 - 241,046,878
Accumulated Amortisation
Adjustment (ReClassification) 1,180,611 - 1,180,611
Charge for the year 44,266,031 - 44,266,031
Disposals/Adjustments (78,560) - (78,560)
Closing Balance at 31st Ashad 2077 110,277,143 - 110,277,143
Intangible assets are recognized on the basis of costs incurred to acquire and bring to use the specific intangible assets such as,
software, where it is probable that such asset will generate future economic benefits in excess of its cost.
Computer software cost are amortized on the basis of expected useful life, which is estimated as 5 years (the estimate is being
reviewed periodically). Costs associated with maintaining software are recognized expenses as and when incurred. At each statement
of financial position date, these assets are assessed for indication of impairment. In the event that an asset's carrying amount being
greater than its recoverable amount, the assets are considered to be impaired and is written down immediately.
The expenditure incurred in acquisition and installation of new software till the date of commissioning is recognized as intangible under
development. Software is capitalized upon successful test run and after meeting recognition criteria. On our assessment certain assets’
carrying value had to be written down. Consequently, the carrying gross value and the relevant accumulated depreciation has been adjusted
in specific assets classification wherever required. After completion of appropriate approval procedures these amount will be written off.

4. Property Plant and Equipment

Figures in NPR
Plant & Office Capital work-
Particulars Buildings Coolers Containers Other Assets Total
Machinery Equipment in-progress
Cost
Opening balance at 1st Shrawan 2076 933,414,670 5,808,986,811 108,457,837 1,327,091,827 1,729,459,139 51,809,104 639,496,364 10,598,715,752
Adjustment (ReClassification) - 8,682,815 19,257,079 (36,616,331) 31,200,931 (23,705,105) - (1,180,611)

Additions 662,293,062 246,949,714 9,724,738 273,812,916 190,918,530 3,135,502 865,070,512 2,251,904,974
Transfer to asset block - - - - - -
(1,398,689,005) (1,398,689,005)
Disposals (17,688,663) (4,765,143) (269,500) (13,307,529) (6,382,121) - (2,527,363) (44,940,319)
Adjustments - - - 33,374,883 - - - 33,374,883
Closing balance at 31st Ashad 2077 1,578,019,069 6,059,854,197 137,170,154 1,584,355,766 1,945,196,479 31,239,501 103,350,508 11,439,185,674
Depreciation and Impairment Losses
Opening balance at 1st Shrawan 2076 196,062,839 1,412,692,167 31,681,096 454,548,137 889,548,444 40,028,011 - 3,024,560,694
Charge for the year 37,554,574 283,251,157 14,467,725 165,237,411 256,615,227 1,040,049 - 758,166,143
Disposals (17,330,078) (1,081,916) (6,708) (13,307,529) (5,610,949) - - (37,337,180)
Adjustments - - - 31,468,669 - - - 31,468,669
Closing balance at 31st Ashad 2077 216,287,335 1,736,062,449 64,180,366 601,266,772 1,142,072,771 15,808,022 - 3,775,677,715
Net Block 7,560,157,451
Closing Balance at 31st Ashad 2077 1,361,731,734 4,323,791,748 72,989,788 983,088,994 803,123,708 15,431,479 103,350,508 7,663,507,959
Closing Balance at 31st Ashad 2076 737,351,831 4,396,294,644 76,776,741 872,543,690 839,910,695 11,781,093 639,496,364 7,574,155,058

59
Subsidiaries

Property, plant and equipment are initially measured at cost in the statement of financial position. These are inclusive of all cost
Statement
Financial
excluding any recoverable taxes less any subsequent accumulated depreciation and subsequent accumulated impairment losses, if
applicable for each class of assets. Property, plant and equipment are recognized as an asset, if and only if it is probable that future
economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.
Cost includes the purchase price and other directly attributable costs of property, plant and equipment. Cost also includes the cost of
Shareholder
Information
replacing part of the plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met.
When significant parts of plant and equipment are required to be replaced at intervals, the Group depreciates them separately based
on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the
plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in
profit or loss as incurred. If an item of property, plant and equipment consists of several components with different estimated useful
Reports
lives, those components that are significant are depreciated over their individual useful lives. Subsequent costs that do not qualify the
recognition criteria under NFRS are expensed as and when incurred.
The present value of the expected cost for the decommissioning of an asset after its use is considered for determination of cost of
Innovation and
the respective asset if the recognition criteria under NAS 16 and IFRIC 1. Management determines that such costs are not material thus
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are not considered.
Assets in the course of construction are carried at cost, less any recognized impairment loss, if any. Depreciation on these assets will
commence when these assets are ready for their intended use and classified under specific asset category.
The group has made a provision for missing/obsolesce assets in the financial statement and the carrying gross value and the relevant
Governance
accumulated depreciation has been adjusted in specific block of assets wherever required. Post appropriate approval, the individual item
of assets is written off from Fixed Assets Register.
Good
The company has registered first legal mortgage covering all fixed assets including the land and building owned by the company at Plot
No. 22, 97, 99, 341, 335, 337 339, 999, 1001 and 1003 at ward No. 6 Bharatpur Municipality, Chitwan, Nepal in order to avail banking
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facilities including term loan, Overdraft, Letter of credit etc. Also, the company has provided hypothecation of specific charge over
plant and machineries to bank.
4.1 Depreciation
Depreciation on items of Property, plant and equipment is calculated on the straight-line method based on the useful life of the assets
estimated by the management. Depreciation on additions to Property, plant and equipment is provided on pro-rata basis in the year of
purchase, when the asset is ready to use. The residual values, useful lives and the depreciation methods of assets are reviewed at least
at each financial year end and, if expectations differ from previous estimates are accounted for as a change in accounting estimates
in accordance with NAS 8. If an item of property plant and equipment consist of several components with different useful lives, those
components that are significant are depreciated over their individual useful life.
Particulars Clubbed under following class of assets Useful Life (Years)

Building Building 40
Plant and Machinery Plant and Machinery 20
Cooler Cooler 9
Office Equipment Office Equipment 5
Computer Accessories Office Equipment 4
Bottles Containers 5
Crates Containers 8
Plastic Pallets Other Assets 5
Furniture and Fixtures Other Assets 10
Motor Vehicles Other Assets 5
Other Assets* Other Assets 10
*Other Assets majorly includes transformers, electrical installations and soft drink analyzer.

Subsidiaries
4.1.1 Change in Accounting Estimate
Statement
Financial
Change in accounting estimate is an adjustment of the carrying amount of an asset or a liability, or the amount of the periodic
consumption of an asset, that results from the assessment of the present status of, and expected future benefits and obligations
associated with, assets and liabilities. Changes in accounting estimates result from new information or new developments and
accordingly, are not corrections of errors.
Shareholder
Information
4.2 De-recognition
An item of property plant and equipment is de-recognized on disposal or when no future economic benefits are expected from the use of
that asset. The gain or loss arising from the disposal of an item of property, plant and equipment is the difference between net disposal
proceeds, if any, and the carrying amount of that item and is recognized in the statement of profit and loss.
Reports
4.3 Capital Work in Progress
The expenditure incurred in acquisition and installation of new systems and equipment till the date of commissioning or civil works under
construction till the date of completion is recognized as Capital works-in-progress. Equipment are capitalized upon commissioning and
Innovation and
civil works are capitalized upon handing over after being capable of being used.
Digitization
Figures in NPR
Machineries 26,585,428 401,282,639
Coolers 53,502,176 71,608,018
IT Technology 1,613,631 43,102,943
Governance
Crates 6,709,063 -
Good
Post Mix 5,992,550 -
Furniture & Fixtures 4,981,775 -
CO2 Cylinders 2,065,885 -
Plastic Pallets 1,900,000 392,718
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Construction of Office Block - 115,274,846
Design - Civil (ASSP Line) - 7,835,200
Total 103,350,508 639,496,364
4.4 Borrowing Cost

FY 2076-77
The Company (BNTL) has transferred borrowing cost amounting to NPR 27,690,788 to Property, Plant and Equipment for the year
ending 15-July-2020. The asset wise details of borrowing cost included in the costs of major heads of Property, Plant and Equipment
are as follows:
Figures in NPR
Particulars For the year 2076-77
Plant and Machinery 4,746,333
Plant Building 17,398,510
Office Building 5,545,945
Total 27,690,788
FY 2075-76
The Company (BNTL) has capitalized borrowing cost amounting to NPR 91,454,668 to Property, Plant and Equipment for the year ending
16-July-2019.The asset wise details of borrowing cost included in the costs of major heads of Property, Plant and Equipment are as
follows:
Figures in NPR
Plant Building 337,936
Office equipment 20,580
Capital Work in Progress 2,820,072
Total 91,454,668

Subsidiaries

5. Income Tax
Statement
Financial
5.1 Current Income Tax

Each consolidated company is a separate assessable unit for income taxes. The company’s tax liabilities, advance taxes and tax
expenses for the period is calculated as individual units.
Shareholder
Information
Figures in NPR
Current tax on profit for the year 112,689,580 224,420,507
Adjustment for prior periods 884,561 17,961,000
Total 113,574,141 242,381,507
Reports
5.2 Deferred Taxes

Figures in NPR
Innovation and

Digitization
Origination and reversal of temporary differences (85,824,154) 41,325,553

Total (85,824,154) 41,325,553
5.3 Deferred tax Assets

Deferred tax is calculated on temporary differences at future effective rate tax rate of 16% for Bottlers Nepal Limited and Bottlers Nepal
(Terai) Limited (PY-17% for Bottlers Nepal Limited and 16% for Bottlers Nepal (Terai) Limited). Deferred tax has been recognized in
Governance
respect of all tax gain/loss and other temporary differences giving rise to deferred tax liability (net) where the management believe it
Good
is probable that this liability will be adjusted.

FY : 76/77 Figures in NPR
Particulars Carrying Amount Tax Base Temporary Diff
About Us
1 Property, Plant & Equipment 7,524,441,471 5,960,731,127 (1,563,710,344)

2 Intangible Assets 110,277,141 112,354,305 2,077,164
3 Retirement benefit provision (490,061,973) 589,209,028 1,079,271,001
4 Provisions for Expenses not claimed in current year (8,611,918) 38,111,689 46,723,607
5. Income tax business loss carry forward (573,542,371) 252,570,729 826,113,100
Total Amount 390,474,528
Tax Rate 16% 62,475,924
Opening Deferred tax Assets/(Liability) (36,702,789)
Deferred tax provision recognised 99,178,713
Closing Deferred tax Assets/(Liability) 62,475,924
Charge/(Credit) to OCI (13,354,560)
Charge/(Credit) to PL (85,824,154)

2 Provisions for Expenses (897,612,023) 897,612,023
Total Amount (245,060,461)
Tax Rate (36,702,789)
Deferred tax provision recognised (19,922,613)
Closing Deferred tax Assets/(Liability) (36,702,789)
Adjustment of PY 2,531,329
Charge/(Credit) to PL 41,325,553

Subsidiaries
5.4 Reconciliation
Statement
Financial
Reconciliation of taxable profit and accounting profit:
Figures in NPR
Accounting profit before income tax (34,104,755) 1,022,883,823
Shareholder
Information
Adjustment as per Income Tax Act 2058 436,109,444 625,168,066
Total profit as per Income Tax 402,004,689 1,648,051,889
6. Other Assets
Reports
6.1 Prepayments
These are expenses paid for the period beyond the financial period covered under the financial statement. These will be charged off as
expenses in the respective period for which such expenses pertain to.
Innovation and
Digitization
Figures in NPR
Prepayments 116,669,602 103,677,212
Total 116,669,602 103,677,212
Current 88,552,067 74,736,729
Governance
Non Current 28,117,535 28,940,483
Good
6.2 Advances
These advances are non-interest bearing and are expected to be settled in the normal course of operations.
6.2.1 Non Current Financial Advances
About Us
Figures in NPR
Advances to Employees 8,140,432 17,680,755
Total 8,140,432 17,680,755
6.2.2 Current Non-Financial Advances

Figures in NPR
Capital Advances 31,677,591 74,098,655
Advance to suppliers 582,593,972 332,182,108
Balances with statutory/government authorities 285,207,992 177,209,750
Total 899,479,555 583,490,513
6.2.3 Non-Financial Other Current Assets

Figures in NPR
Receivable against unsettled Claims - 2,887,216
Total - 2,887,216
6.2.4 Financial Other Current Assets

Figures in NPR
Security Deposits 834,906 833,196
Interest Income Receivables 3,600,179 1,415,697
Total 16,719,123 7,961,479

Subsidiaries

Statement
Financial
7. Inventories
Figures in NPR
Raw materials 970,864,022 736,572,937
Shareholder
Information
Work-in-process 2,377,573 7,799,172

Finished goods 142,494,121 212,329,806
Consumables 457,215,997 422,422,687
Total 1,572,951,713 1,379,124,602
Inventories are carried at the lower of cost or net realizable value.
Reports
Net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the
necessary estimated expenses. The cost of obsolescence and other anticipated losses are also considered for determining the net
realizable values.
Innovation and
Digitization
In determining the cost of raw materials and packing materials, First In First Out (FIFO) method is used. Cost of inventory comprises
of all costs of purchase, duties, taxes (other than those subsequently recoverable from tax authorities), cost of conversion and other
costs incurred in bringing the inventories to their present location and condition.
In determining the cost of consumables, stores and spares weighted average cost method is used.
Governance
Cost of finished goods includes the cost of raw materials, packing materials, direct labor and appropriate proportion of fixed and
variable production overheads incurred in bringing the inventory to their present location and condition. Weighted average method is
Good
used for valuation of finished goods in Bottlers Nepal Limited and Bottlers Nepal (Terai) Limited, and FIFO method is used in Troika
Trading Private Limited (TTPL).
About Us
Inventories are presented net of allowance for obsolescence and other possible depletion in value or other losses. Those allowances are
estimated to approximate the net realizable value of such items. Allowance adjustments are made for those inventories identified by
management as obsolete on the basis of 10 Year Aging or technical evaluation whichever is earlier.
Inventories have been pledged as lien for the purpose of availing bank overdraft facilities.
Financial Instruments: Financial Assets

Financial asset is any asset that is:
(a) cash
(b) an equity instrument of another entity;
(c) a contractual right:
i) to receive cash or another financial asset from another entity; or
ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially favorable to the
entity; or
(d) a contract that will or may be settled in the entity's own equity instruments and is:
(i) a non-derivative for which the entity is or may be obliged to receive a variable number of the entity's own equity instruments;
or
(ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a
fixed number of the entity's own equity instruments.
Financial assets are classified under four categories as required by NAS 39, namely,
• Fair Value through Profit or Loss,
• Held to Maturity,
• Loans & Receivables and
• Available for Sale.

Subsidiaries
The Group only holds financial assets meeting the recognition criteria of Loans & Receivables classification. These instruments are to
Statement
be recognized at amortized cost using effective interest rate.
Financial
Financial assets of the Group comprise of advances, other current assets, Trade Receivables and cash & cash equivalents. These
instruments are mostly non-interest bearing and where interest component is present the implicit interest rate approximates effective
interest rate. These instruments are expected to be settled or recovered within a year. Therefore, it is assumed that the carrying
Shareholder
amount represents the amortized cost of the assets.
Information
Risks associated with Financial Instrument- Financial Assets
The Group has a risk management framework to monitor, access, mitigate and manage risks. The risk management framework is given
in Note 29.4.
Reports
Financial Assets include the following
• Advances
• Other Current Assets
Innovation and
Digitization
• Trade Receivables
• Cash and Cash Equivalents
8. Income Tax Receivable/Payable
Governance
Income Tax Receivable (Net)
Good
Figures in NPR
Advance Income Tax (Net) 19,578,467 28,554,512
About Us
Total 19,578,467 28,554,512
Income Tax payable (Net)

Figures in NPR
Income Tax payable (Net) 8,725,419 10,014,550
Total 8,725,419 10,014,550
9. Trade Receivables
Figures in NPR
Trade receivables:
Secured, considered good 160,553,727 127,120,835
Unsecured considered good 30,600,486 66,270,903
Receivables from other related parties 30,353,129 1,013,802
Total 221,507,342 194,405,540
Bank overdrafts are secured against all receivables.
9.1 Trade Receivables

Trade receivables comprises of amount receivable from our customers and are non-interest bearing and are generally on terms of 30
to 90 days.
Secured trade receivable are against Bank Guarantee provided by the customers.
9.2 Other Receivables

Other receivables are receivable from insurance companies against unsettled claims.

Subsidiaries

9.3 Related Parties Transaction

Statement
Financial
It includes transactions with group companies and key management personnel which are disclosed in Note 29.
9.4 Impairment of Financial Assets

For allowances, assets with a potential need for a write-down are grouped together on the basis of similar credit risk characteristics,
Shareholder
Information
tested collectively for impairment, and written down, if necessary. Estimated irrecoverable amounts are based on the ageing of the
receivable balances, taking previous cases of default into consideration and historical experiences.
10. Cash and Cash Equivalents

Reports
Figures in NPR
Balances with Banks
Innovation and
– On current accounts 44,043,340 122,117,654

Digitization
– Deposits accounts 416,719,903 413,939,133

Cash on hand 158,086 280,898
Total 460,921,329 536,337,685
Balances with banks comprises of amount held by the banks as margin money
- 13,366,639
deposits against Letter of Credits
Balances with banks comprises of amount held by the banks as Fixed Deposit 416,719,903 400,572,494
Governance
Cash at banks earns interest at floating rates based on daily balances.

Good
Short-term deposits are made for varying periods of between one day and three months, depending on the cash requirements of the
group, and earn interest at the respective short-term deposit rates.
About Us
Deposit with banks as margin against Letter of Credits have tenure of three months on an average and are included in Balances with
Bank and considered as cash and cash equivalents.
The above balances are also considered as the cash & cash equivalents for Statement of Cash Flow purposes.
11. Share Capital

Number NPR Number NPR
Authorized
Ordinary shares of Rs. 100 each 4,300,000 430,000,000 4,300,000 430,000,000
Issued and Paid Up
At the beginning of the year 1,948,887 194,888,700 1,948,887 194,888,700
At the end of the year 1,948,887 194,888,700 1,948,887 194,888,700
The shareholding pattern of the company is as follows

Shareholder Category As at 31st Ashad 2077 As at 31st Ashad 2076
No. of Shares % of holding No. of Shares % of holding
Coca-Cola South West Asia 1,484,301 76.16% 1,484,301 76.16%
Gorkha Brewery Private Limited 428,755 22.00% 428,755 22.00%
Other Shareholders 35,831 1.84% 35,831 1.84%
Total 1,948,887 100.00% 1,948,887 100.00%
Share issue expenses have not been netted off against the capital collected as these pertain to periods of initial establishment of the
Group and such expenses have been charged off during those periods. The management considers that the cost of obtaining information
is more than the benefits derived and the effect of such the amounts to be immaterial.

Subsidiaries
12. Reserve and Surplus
Statement
Financial
Figures in NPR
Share Premium 165,087,020 165,087,020
Retained earnings 3,469,678,281 3,537,950,194
Shareholder
Information
Actuarial Reserve (159,003,421) (91,307,312)
(As per Statement of Changes in Equity)
Total 3,475,761,880 3,611,729,902
Share premium is used to record the premium on issue of equity shares. These can only be utilized in accordance with the provision
of the Companies Act, 2063.
Reports
i) Premium of Rs.100 each on 264,995 ordinary shares.
ii) Premium of Rs.160 each on 866,172 ordinary shares issued as rights shares at the rate of 4 shares for 5 shares held
Innovation and
Digitization
13. Non-Controlling Interest
Figures in NPR
Share Capital 11,154,800 11,152,800
Governance
Increase in share capital on account of increase in Non-controlling interest of TTPL - 2,000
Good
Opening Reserve 206,277,860 172,357,512
Increase in reserve on account of increase in Non-controlling interest of TTPL - 97,749
Profit for the year 494,460 41,740,796
Other Comprehensive Income for the year (2,415,331) (3,457,077)
About Us
Dividend Income (4,461,120) (4,461,120)
Total 211,050,669 217,432,660
14. Employee Benefits

Current Employment Benefits
Figures in NPR
Salaries, wages and other employee cost
Cost of goods sold 507,230,886 517,944,283
Selling and distribution expenses 292,688,610 304,095,048
Administrative and operating expenses 186,936,285 207,478,896
Defined Contribution Plan Expenses
Administrative and operating expenses 288,234 274,942
Defined Benefit Plan Cost
Total Employee Cost charged to SoPL for the Period 1,115,139,167 1,147,998,175
Actuarial loss on defined benefit plan schemes charged to SoOCI for the Period 83,466,000 113,635,999
Total Employee Cost for the Period 1,198,605,167 1,261,634,174

Subsidiaries

Statement
Financial
14.1 Post-Employment Benefits

The group operates number of defined benefit and defined contribution plans for its employees of the group. The defined benefit plan
of the group includes leave encashment expenses, expenses pertaining to gratuity and other retirement benefits.
2076-77 Figures in NPR
Shareholder
Information
Particulars Gratuity Leave Encashment Others Total

Opening Liability 463,255,183 30,620,000 403,736,840 897,612,023
Current Service cost 5,683,000 40,562,978 46,245,978
-
Interest Charge 34,396,000 2,273,000 29,267,000 65,936,000
Reports
Paid (9,273,000) (605,000) (4,111,000) (13,989,000)

Acturial (gain)/loss during the year (recognised in OCI) 73,200,000 (200,000) 10,466,000 83,466,000
Closing Liability 561,578,183 37,771,000 479,921,818 1,079,271,001
Innovation and
Charge for the period to SoPL 34,396,000 7,956,000 69,829,978 112,181,978

Digitization
Charge to SoCI 73,200,000 (200,000) 10,466,000 83,466,000

Governance
Current Service cost 23,487,000 4,517,000 26,052,020 54,056,020

Interest Charge 28,890,000 1,518,000 20,212,000 50,620,000
Good
Paid (6,630,000) (218,000) (4,920,000) (11,768,000)

Acturial (gain)/loss during the year (recognised in OCI) 28,990,000 4,452,000 80,194,000 113,636,000
Closing Liability 463,255,183 30,620,000 403,736,840 897,612,023
About Us
Charge for the period to SoPL 52,377,000 6,035,000 104,676,020

46,264,020
Charge to SoCI 28,990,000 4,452,000 80,194,000 113,636,000
Breakup of Current and Non-current liability:

FY 2076-77 Figures in NPR
Particulars Gratuity Sick Leave Retirement Benefit Total
Current Liability 96,735,000 1,756,000 22,669,000 121,160,000
Non Current Liability 464,843,183 36,015,000 457,252,818 958,111,001
Net (Asset)/Liability as at 31st Ashad 2077 561,578,183 37,771,000 479,921,818 1,079,271,001

Current Liability 56,003,000 1,182,000 9,796,000
66,981,000
Net (Asset)/Liability as at 31st Ashad 2076 463,255,183 30,620,000 403,736,840 897,612,023
14.2 Defined Benefit Plans

The defined benefit plans of the group include Gratuity, Leave encashment Entitlements and Other Retirement benefits.
14.2.1 Gratuity
Gratuity for existing employees has been provided as per the actuarial assessment. The assessed amounts have been recognized as
liabilities. The gratuity scheme is computed on below basis: -

Subsidiaries
Statement
A. Gratuity Benefit till 3rd September 2017:
Financial
Plan Service Definition Number of years of service rounded to the nearest integer.
Salary Definition Last drawn Basic Salary
Shareholder
Information
Vesting period 3 years
Normal Retirement Age 58 years
Nil for each year of service up to 3 years
1/2 months’ salary of each year of service up to 7 years.
Benefit on normal retirement/ early
2/3 months’ salary for each year of service for service between 7 and 15 years.
retirement/death/ disability in service
1 month salary for each year of service for service between 15 and 17 years.
Reports
1 month 5 days’ salary for each year of service for the service over 17 years.
Innovation and
Benefit on withdrawal 2/3 months’ salary for each year of service for service between 7 and 15 years.
Digitization
Maximum Limit No Limit
Tax on Gratuity* 15%, borne by the company
*The tax under gratuity scheme is applicable to the accrued service post 31st March 2002 and is payable at a flat rate of 15% of the
Governance
benefit using gross up approach. Hence, any service prior to 31st March 2002 does not attract any tax.
Good
A. Gratuity Benefit on or after 4th September 2017:
About Us
Vesting Period No vesting applicable
Benefit on normal retirement/ early retirement/death/
8.33 % of Basic Salary per month for each year of service
disability in service
Benefit on withdrawal 8.33 % of Basic Salary per month for each year of service
Maximum Limit Accumulated Corpus
As per Section 53 of Labour Act 2074, minimum 8.33% of basic salary shall be provided to employees as gratuity after 3rd September
2017 from date of service. As per Collective Bargaining Agreement (CBA) entered by the company with its employees, any employee
completing 17 years of service at the time of retirement (20 years in case of withdrawal) will be eligible for 35 days of benefit.
Employees falling under this criteria will receive benefit as per CBA, which is beneficial over the benefit provided as per Labour Act
2074. Company has provided for entire gratuity provision based on actuarial valuation.
14.2.2 Leave Encashment

Leave encashment has been computed using actuarial assumptions. The assumptions made are the growth rate derived from the past
experience and discounting the long term obligations at the end of each reporting period. Sick leave of 1.5 times the last drawn monthly
basic salary is paid to employee. The maximum accumulation allowed is 30 days.
14.2.3 Other Retirement Benefits

Other retirement benefits include three days’ basic salary computed based on completion of 17 years compulsory retirement or 20 years
of completion of service for withdrawal and gold coin at compulsory retirement. Other retirement benefits have been computed using
actuarial assumptions. The assumptions made are the growth rate derived from the past experience and discounting the long term
obligations at the end of each reporting period.

Subsidiaries

14.2.4 Sensitivity Analysis

Statement
Financial

Particulars Gratuity Retirement Benefit Sick Leave
Effect on DBO due to 0.5% increase in disocunt rate (14,861,000) (20,288,000) (1,830,000)
Shareholder
Information
Effect on DBO due to 0.5% decrease in disocunt rate 15,829,000 22,038,000 1,990,000
Effect on DBO due to 0.5% increase in salary escalation rate 14,240,000 21,427,000 851,000
Effect on DBO due to 0.5% decrease in salary escalation rate (13,512,000) (19,943,000) (2,691,000)
Reports

Particulars Gratuity Retirement Benefit Sick Leave
Effect on DBO due to 0.5% increase in disocunt rate (11,997,000) (17,708,000) (1,491,000)
Innovation and
Effect on DBO due to 0.5% decrease in disocunt rate 12,671,000 19,208,000 1,631,000
Digitization
Effect on DBO due to 0.5% increase in salary escalation rate 11,347,000 17,747,000 1,514,000
The above sensitivity analysis is based on a change in an assumption while holding all other assumption constant. In practice, this
unlikely to occur and changes in some of the assumption is correlated. When calculating sensitivity of the defined benefit obligation
Governance
to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with projected unit
credit method at the end of reporting period) has been applied while calculating the defined benefit liability recognized in the date of
Good
Statement of Financial Position.
14.2.5 Actuarial Assumptions

About Us

Financial Assumptions
Discount rate (%) 7.50% 7.50%
Salary escalation rate 10.00% 10.00%
Expected average remaining working life of the Expected average remaining working life of the
Future service employees based on withdrawal rate and retirement age employees based on withdrawal rate and retirement
taken as 8 years age taken as 8 years
Demographic Assumptions
In accordance with the standard table, Nepal
In accordance with the standard table, Nepal Assured
Mortality Assured Lives Mortality (2009) (modified) Ultimate
Lives Mortality (2009) (modified) Ultimate Rates
Rates
Withdrawal rate 3.50% 3.50%
14.2.6 Defined Benefit Plan Assets

Defined benefit obligations are not funded and there are no Defined Benefit Plan Assets. The group is in the process of creating a
separate fund for meeting the defined benefit obligation.
14.3 Defined Contribution Plan

The defined contribution expenses include employer's contribution to provident fund. These amounts have been deposited in Employee
Provident Fund, a 100% Government of Nepal undertaking.
15. Financial Instruments – Financial Liabilities

A financial liability is any liability that is:
(a) contractual obligation:
(I) to deliver cash or another financial asset to another entity; or
(ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavorable to the
entity; or

Subsidiaries
(b) a contract that will or may be settled in the entity’s own equity instruments and is:
Statement
Financial
(i) a non-derivative for which the entity is or may be obliged to deliver a variable number of the entity’s own equity instruments;
or
fixed number of the entity’s own equity instruments.
Shareholder
Information
The Group classifies financial liabilities as Fair Value through Profit or Loss and those Held at Amortized Cost. All financial liabilities
held by the Group are classified as financial liabilities held at amortized cost using effective interest rate.
Financial liabilities held by the Group are both interest bearing and non-interest bearing.
For interest bearing financial liabilities which comprises of the bank loans, interest charged by the bank approximates effective interest
Reports
rate and the rate is considered for calculation of amortized cost of liability and the finance cost. The effect of initial charges and its
impact on effective interest rate is considered not material and the carrying value is considered to approximate the amortized cost.
Innovation and
Risks associated with Financial Instrument- Financial Liabilities
Digitization
The group has a risk management framework to monitor, access, mitigate and manage risk. The risk management framework is given
is Note 29.4.
Financial Liabilities in this financial statement includes the following

• Bank Borrowing
Governance
• Trade Payables
Good
• Other Financial Liabilities
These have been described in each section as under
About Us
15.1 Non-Current Borrowings
Figures in NPR
Secured Bank Loan 2,270,407,009 1,528,958,221
Less; Current Maturity Portion (570,000,000) (570,000,000)
Total 1,700,407,009 958,958,221
15.2 Current Borrowings

Figures in NPR
Bank Overdrafts 1,372,510,519 586,797,162
Current Portion of Term Loan 570,000,000 570,000,000
Total 1,942,510,519 1,156,797,162
Short term bank overdraft carries interest at the rate 9.15% to 9.78% Pa. during the year and repayable on demand.
Bank Overdraft are secured against all movable properties/Current assets including inventory stocks & trade Receivables.
Secured Bank Loan carries interest at the rate 9.78% p.a. during the year & repayable on due date. Term loan of Bottlers Nepal (Terai)
Limited is secured against Property, Plant and Equipment.
15.3 Trade Payables

Figures in NPR
Trade Payable 527,416,396 1,158,665,018
Trade Payable to related parties 657,389,761 822,203,154
Total 1,184,806,157 1,980,868,172

Subsidiaries

16. Other Financial Liabilities

Statement
Financial
Figures in NPR
Container deposit liability 710,705,533 662,070,815
Corporate Social Responsibility 12,458,451 15,129,563
Shareholder
Information
Trade Deposits 4,676,030 4,151,030

Employee related accruals 17,479,163 15,492,250
Bonus Payable 1,535,892 111,356,814
Provision for Expenses 363,805,398 362,100,646
Dividend payable 28,201,720 28,201,720
Reports
Statutory dues payable 156,569,181 201,709,296

Interest Payables 18,699,886 8,748,720
VAT Payable (Net) 15,591,730 15,176,779
Innovation and
Total 1,329,722,984 1,424,137,633

Digitization
Provisions are recognized when the group has a present obligation, legal or constructive, as a result of a past event, it is probable
that a transfer of economic benefits will be required to settle the obligation and when reliable estimate can be made of the amount of
obligation. If these conditions are not met, no provision is recognized.
The amount of provision recognized is the management’s best estimate of expenditure required to settle the present obligation at the
Governance
reporting date.
Good

CSR Provision is accounted as per Industrial Enterprises Act 2020 (2076 BS) (the "Act") has been introduced with effect from February
11, 2020 repealing the Industrial Enterprises Act 2016 (2073 BS) (the "Previous Act").
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Section 54 of Industrial Enterprises Act 2020 (2076 BS) makes it mandatory to allocate 1% of the annual profit to be utilized towards
corporate social responsibility (the “CSR Requirement”).
The fund created for CSR is to be utilized based on annual plans and programs in the sectors that are prescribed under the Act. The
progress report of the utilization of the fund collected for CSR is required to be submitted to the Department of Industries registered
within six months from expiry of the financial year.
The group has provided provision for CSR at the rate of 1 % of profit before tax amounting to Rs 1,38,230 for FY 76-77.
Changes in provision
Management reviews provisions at each reporting date and is adjusted to reflect the best estimate. If it is no longer probable that a
transfer of economic benefits will be required to settle the obligation, the provision is reversed.
17. Non-Financial Liabilities

Figures in NPR
Advance received from distributors 25,084,251 27,147,036
Total 25,084,251 27,147,036
18. Revenue
Figures in NPR
Sale of goods 7,783,290,766 10,749,416,344
Less: Discount (918,124,382) (1,242,675,939)
Total 6,865,166,384 9,506,740,405

Subsidiaries
18.1 Sale of Goods
Statement
Financial
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the group and the revenue and associated
costs incurred or to be incurred can be reliably measured and when recognition criteria related to sale of goods activities are met
i.e when the significant risks and rewards of ownership of the goods have transferred to the buyer, with the group retaining neither
continuing managerial involvement to the degree usually associated with ownership, nor effective control over the goods sold.
Shareholder
Information
Revenue is measured at the fair value of the consideration received or receivable net of trade discounts. Revenue include all revenue
from ordinary activities of the Group that are recorded net off Value Added Taxes and Excise Duty collected from the customer that are
remitted or are to be remitted to the government authorities.
The group generates revenue from sale of goods in the ordinary course of business.
Reports
19. Cost of goods sold
Figures in NPR
Innovation and
Digitization
Material consumed
Raw materials
At 1st Shrawan 2076 736,572,937 936,197,993
Purchase 3,429,168,186 4,526,775,533
At 31st Ashad 2077 (970,864,022) (736,572,937)
Raw material consumed total 3,194,877,101 4,726,400,589
Governance
Work in process
Good
At 1st Shrawan 2076 7,799,172 13,790,102
At 31st Ashad 2077 (2,377,573) (7,799,172)
Net change in work-in-process 5,421,599 5,990,930
About Us
Production and manufacturing overheads 1,827,253,022 1,668,446,642
Finished goods
At 1st Shrawan 2076 212,329,806 190,096,386
Purchase (2,581,316) 118,871,104
At 31st Ashad 2077 (142,494,121) (212,329,806)
Net change in finished goods 67,254,369 96,637,684
Cost of goods sold 5,094,806,091 6,497,475,845
19.1 Production and Manufacturing Overheads

Figures in NPR
Salaries, wages and other employee cost 507,230,886 517,944,283
Sick Leave 4,563,000 3,912,000
Provident fund 12,575,829 9,490,036
Gratuity 24,570,989 33,983,000
Other retirement benefits 50,509,854 33,673,047
Travel and transport costs 12,032,852 19,290,323
Repair and maintainence 152,334,339 197,403,741
Office expenses 42,758,778 40,067,942
Consumables 74,418,982 102,173,952
(Gain)/Loss on sale/write off of Property, Plant and Equipment (572,361) 1,983,029
Stock Adjustment - 1,928,274
Power & Fuel 160,663,553 207,264,609
Legal and other professional fees 432,779 772,321
Exchange (Gain)/Loss 133,372,061 (38,731,188)
Total 1,827,253,022 1,668,446,642

Subsidiaries

Statement
20. Other Operating Income

Financial
Figures in NPR
Sale of Scrap 18,865,575 28,100,310
Shareholder
Miscellaneous Income 109,686,908 146,602,208

Information
Total 128,552,483 174,702,518
20.1 Sale of Scrap

Items includes under this income are towards sale amount realized from sale of scraps.
Reports
20.2 Miscellaneous Income

Miscellaneous income includes charges recovered from customer on account of handling loss of Glass bottles, Container deposit
liability Write-off amount and Liquidated damages received from vendor.
Innovation and
The company generates revenue from sale of goods in the ordinary course of business.
Digitization
21. Selling and Distribution Expenses

Figures in NPR
Governance

Good
Sick Leave 1,516,000 1,076,000

Provident fund 3,237,345 4,513,420
Gratuity 4,742,000 8,669,000
About Us

Office expenses 33,603,318 25,590,580
Communication expenses 37,818,551 5,267,645
Utilities 57,160,868 64,191,267
Freight Charges 403,677,451 622,944,605
Liquid leakages and damages 162,404,431 292,529,693
Sales promotion expenses 103,781,477 148,193,930
Other miscellaneous expenses 4,143,961 28,945,612
Total 1,298,338,455 1,697,205,652

Subsidiaries
22. Administrative and Operating expenses
Statement
Financial
Figures in NPR
Sick Leave 1,877,000 1,047,000
Shareholder
Information
Provident fund 288,234 274,942
Gratuity 5,083,011 9,725,000
Reports
Office expenses 57,823,983 63,594,719
Bank charges 6,350,054 7,442,335
Audit fees 950,000 840,000
Innovation and
Legal and other professional fees 11,312,080 20,092,418
Digitization
Utilities 14,012,280 14,447,556
(Gain)/Loss on sale/write off of Property, plant and equipment (1,444,591) (3,805,790)
Governance
Corporate Social Responsibility 138,230 10,022,113
Public Affairs and Communication (PAC) expenses - (5,708,582)
Good
Security Expenses 21,465,560 22,987,844
Board and AGM expenses 678,765 682,422
About Us
Total 401,446,754 445,963,517
22.1 Audit Fees Disclosure
Figures in NPR
Statutory Audit Fees 950,000 840,000
Allowances 11,600 556,000
Total 961,600 1,396,000
23. Finance Cost

Finance costs comprises of interest on Term Loan and interest on short term borrowings in the form of bank overdrafts. All these costs
are amortized cost using effective interest rate as required by NAS 39.
Figures in NPR
Interest on Term Loan 209,600,684 98,500,867
Interest on Overdraft 72,189,617 67,909,102
Interest on LC Loan 14,029,306 4,052,078
Less; Interest Capitalized (27,690,788) (91,454,668)
Total 268,128,819 79,007,379

Subsidiaries

24. Finance Income

Statement
Financial

Interest income 34,896,497 61,093,293
Total 34,896,497 61,093,293
Shareholder
Information
24.1 Interest Income

Interest income has been recognized using effective interest method as required by NAS 39.
25. Earnings Per Share

Reports
Figures in NPR
Innovation and
Numerator
Digitization
Profit for the year and earnings used in basic EPS (62,349,202) 697,452,839
Denominator
Weighted average number of shares used in basic EPS 1,948,887 1,948,887
Basic and Diluted Earning Per Share (32) 358
Basic EPS is calculated by dividing the profit attributable to ordinary equity holders of the group for the period by the weighted average
Governance
number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares. Number of shares have
not changed over the reported periods. There are no potential ordinary shares that would dilute basic earnings per share, hence diluted
Good
EPS is same as basic EPS.

About Us
26. Contingent Liabilities and Capital Commitment

26.1 Contingent Liabilities
Contingent liabilities are potential future cash out flows, where the likelihood of payment is considered more than remote but is not
considered probable or cannot be measured reliably.
26.1.1 Bank Guarantee

Bank Guarantee has been provided to the department of Customs for obtaining EXIM Code. As at the reporting date the guarantee amount
is NPR 600,000.
26.1.2 Corporate Tax Matters

i) LTO assessed the income tax, TDS and VAT liabilities of the following companies for the year 2066-67. For the unaccepted
amount, the company has filed the case for Administrative Review. Pending decision from the Director General, additional
liabilities have not been recognized in the financial statements and is disclosed as contingent liabilities as below: -
a) Bottlers Nepal Limited
Figures in NPR
Additional Accepted Appeal against Estimated Interest Liabilities
Particulars Demand amount demand Upto Balance Sheet Date
Income-Tax 6,106,075 - 6,106,075 -
TDS 3,672,212 173,901 3,498,311 832,568
VAT 26,737,720 8,540,112 18,197,608 3,447,102
Total 36,516,007 8,714,013 27,801,994 4,279,670

Subsidiaries
b) Bottlers Nepal (Terai) Limited
Statement
Financial
Figures in NPR
Income-Tax 5,393,862 14,164 5,379,698 1,186,596
Shareholder
Information
TDS 4,510,857 255,194 4,255,663 1,164,270
VAT 20,397,706 12,172,084 8,225,622 822,093
Total 30,302,425 12,441,442 17,860,983 3,172,959
ii) LTO assessed the income tax, TDS and VAT liabilities of the following companies for the year 2067-68. For the unaccepted
amount, the company has filed the case for Administrative Review. Pending decision from the Director General, additional
Reports
liabilities have not been recognized in the financial statements and is disclosed as contingent liabilities as below
Innovation and
Figures in NPR
Digitization
Particulars
Demand amount demand Upto Balance Sheet Date
Income-Tax 17,850,617 - 17,850,617 3,956,046
TDS 26,531,605 444,027 26,087,578 4,809,589
VAT 10,189,874 516,194 9,673,680 3,823,688
Total 54,572,096 960,221 53,611,875 12,589,323
Governance
Good
Figures in NPR
Particulars
About Us
Income-Tax 11,469,425 - 11,469,425 -
TDS 24,018,811 121,490 23,897,321 4,421,491
VAT 3,869,900 - 3,869,900 443,439
Total 39,358,136 121,490 39,236,646 4,864,930
iii) LTO assessed the income tax, TDS and VAT liabilities of the following companies for the year 2068-69. For the unaccepted
amount, the company has filed the case for Administrative Review. Pending decision from the Director General, additional liability
have not been recognized in the financial statements and is disclosed as contingent liabilities as below.

Figures in NPR
Particulars
Income-Tax 11,314,019 - 11,314,019 2,037,348
TDS 47,604,066 467,790 47,136,276 8,603,398
VAT 6,480,279 - 6,480,279 2,107,286
Total 65,398,364 467,790 64,930,574 12,748,032

Figures in NPR
Income-Tax 30,782,794 238,286 30,544,508 4,347,518
TDS 39,993,762 100,687 39,893,075 5,998,458
VAT 830,566 830,566 - -
Total 71,607,122 1,169,539 70,437,583 10,345,976
iv) LTO assessed the income tax, TDS and VAT liabilities of the following companies for the year 2069-70. For the unaccepted
amount, the company has filed the case for Administrative Review. Pending decision from the Director General, additional liability
have not been recognized in the financial statements and is disclosed as contingent liabilities as below.

Subsidiaries


Statement
Financial
Figures in NPR
Particulars
Income-Tax 20,947,018 273,157 20,673,861 4,317,179
Shareholder
Information
TDS 44,307,639 680,651 43,626,988 8,737,249

VAT - - - -
Total 65,254,657 953,808 64,300,849 13,054,428

Reports
Figures in NPR
Particulars
Income-Tax 50,128,084 1,032,171 49,095,913 -
Innovation and
TDS 75,154,450 123,929 75,030,521 15,026,536

Digitization
VAT 26,523 26,523 - -

Total 125,309,057 1,182,623 124,126,434 15,026,536
c) Troika Traders Private Limited

Governance
Figures in NPR
Particulars
Good

Income-Tax 4,684,602 - 4,684,602 -
VAT 1,974,572 - 1,974,572 -
Total 6,659,174 - 6,659,174 -
About Us
v) LTO assessed the income tax, TDS and VAT liabilities of the company for the year 2070-71. For the unaccepted amount, the
company has filed the case at Revenue Tribunal. Pending decision from the Tribunal, additional liability has not been recognized
in the financial statements and is disclosed as contingent liabilities as below:

Figures in NPR
Income-Tax 41,888,912 810,000 41,078,912 5,556,265
TDS - - - -
VAT 2,935,937 265,000 2,670,937 462,820
Total 44,824,849 1,075,000 43,749,849 6,019,085

Figures in NPR
Appeal against Estimated Interest Liabilities
Particulars Additional Demand Accepted Amount demand Upto Balance Sheet Date
Income-Tax 47,213,938 22,776,663 24,437,275 2,800,049
TDS 9,238,997 483,000 8,755,997 1,482,390
VAT 35,661,144 2,109,057 33,552,087 5,633,538
Total 92,114,079 25,368,720 66,745,359 9,915,977
vi) LTO assessed the income tax, TDS and VAT liabilities of the company for the year 2071-72. For the unaccepted amount, the
company has filed the case for Administrative Review. Pending decision from the Director General, additional liabilities have not
been recognized in the financial statements and have been disclosed as contingent liabilities as below-

Subsidiaries
Statement
Financial
Figures in NPR
Income-Tax 77,141,879 1,146,446 75,995,433 8,736,851
Shareholder
Information
TDS 85,433,388 813,238 84,620,150 9,730,075
VAT 4,389,106 773,407 3,615,699 348,920
Total 166,964,373 2,733,091 164,231,282 18,815,846
Reports
Figures in NPR
Income-Tax 159,844,396 5,254,246 154,590,150 17,772,504
Innovation and
TDS 68,550,836 24,213 68,526,623 7,878,163
Digitization
VAT 43,900,619 4,895,328 39,005,291 4,484,171
Total 272,295,851 10,173,787 262,122,064 30,134,838
vii) IRD assessed the income tax, TDS and VAT liabilities of the company for the year 2072-73. For the unaccepted amount, the
Governance
been recognized in the financial statements and is disclosed as contingent liabilities as below: -
Good
a) Troika Traders Private Limited
Figures in NPR
Estimated Interest
Additional Accepted Appeal against
About Us
Particulars Liabilities Upto
Demand amount demand Balance Sheet Date
Income-Tax 7,775,300 2,153,714 5,621,586 -
TDS 15,000 15,000 - -
VAT 527,000 527,000 - -
Excise 20,000 20,000 - -
Total 8,337,300 2,715,714 5,621,586 -
Group liability:
Figures in NPR
Estimated Interest
Additional Accepted Appeal against
Particulars Liabilities Upto
Demand amount demand Balance Sheet Date
BNL 433,530,347 14,903,923 418,626,423 67,506,384
BNTL 630,986,670 50,457,601 580,529,069 73,461,216
TTPL 14,996,474 2,715,714 12,280,760 -
Group 1,079,513,491 68,077,238 1,011,436,253 140,967,600
26.1.3 Commitment
A commitment is a contractual obligation to make a payment in the future, mainly in relation to leases and agreements to buy assets.
These amounts are not recorded in the statement of financial position since the Group has not yet received the goods or services from
the supplier. The amounts below are the minimum amounts that we are committed to pay.
At end of financial year 2076/77, the Company had capital commitments of NPR.148,349,647 (Previous Year 2075/76 NPR 406,772,234)
relating to various small projects.

Subsidiaries

27. Interim Reporting

Statement
Financial
Interim reports have been publicly reported, for each public company in the group, in accordance with the requirement of SEBON and
NEPSE. These requirements are materially aligned with the requirements of NAS 34. Consolidated interim results have not been
published.
Shareholder
Information
28. Segment Reporting

The group has only one “business segment” i.e. dealing in “non-alcoholic ready to drink beverage (NARTD)”. The NARTD beverage
business mainly consists of products like carbonated soft drinks in different flavors, fruit pulp-based beverages and water. All these
products have similar risks and returns because of similar nature of products, common consumer segments, similar production
processes and common distribution channel. Further, internal organizational and management structure and its system of internal
Reports
financial reporting of the group is not based on geographical differentiation.

FY 2076/77 Figures in NPR
Particulars BNL BNTL TTPL Total
Innovation and
Total Assets 3,628,423,694 8,323,076,209 10,763,477 11,962,263,380

Digitization
Total Liabilities 1,906,708,323 6,057,025,423 6,187,173 7,969,920,919

Total Revenue 2,164,980,338 4,693,349,428 6,836,618 6,865,166,384
Profit after Tax (16,577,104) 5,629,707 (9,165,409) (20,112,806)
Governance
FY 2075/76 Figures in NPR

Particulars BNL BNTL TTPL Total
Good
Total Assets 3,413,203,415 7,746,715,786 44,460,946 11,204,380,147

Total Liabilities 1,633,201,085 5,405,767,357 30,719,233 7,069,687,675
Total Revenue 3,687,396,573 5,581,385,389 237,958,443 9,506,740,405
About Us
Profit after Tax 357,367,040 453,542,785 (29,991,124) 780,918,701
29. Related Party Transactions

Relationship
The group identified related parties on the following lines
1. Part of the Group
a. Parent company, ultimate parent
b. Other Subsidiaries of the parent / ultimate parent
2. Directors and their relatives
3. Key management personnel and their relatives
29.1 Transactions with Directors & Key Management Personnel

During the year neither any directors nor any key management personnel nor any associate or family member (relative) of the directors
and key management personnel was indebted to the Group.
There is no material transactions or proposed transactions with directors and key management personnel or their relatives and
associates except for the compensations and/or remuneration paid under the Group’s regulations.
Particulars Remuneration Allowances Facilities Total
Director's Fees & facilities - 510,000 - 510,000
Managing Director 20,840,912 56,800,563 2,468,603 80,110,078
Key Managers 44,510,029 73,276,524 4,210,395 121,996,948
Total 65,350,941 130,587,087 6,678,998 202,617,026

Subsidiaries
Statement
Financial
Managing Director 9,611,026 31,321,593 3,502,129 44,434,748
Shareholder
Information
Key Managers 49,640,501 72,761,053 17,250,057 139,651,611
Total 59,251,527 104,472,646 20,752,186 184,476,359
Additional Information
a) Key management personnel include 5 expatriate staffs including Managing Director.
Reports
b) Key management personnel are also provided with following benefits:
i) All Managers of the group are provided vehicle allowance as per each respective Companies Policy
Innovation and
ii) Furnished apartments are provided to all expatriate staffs.
Digitization
iii) Performance bonus based on individual, overall Division and Country performance.
c) The amounts disclosed in the table are the amounts recognized as an expense during the reporting period related to key
management personnel. Also, the liabilities for defined benefit plans excluding expatriates staff (i.e. gratuity and other retirement
benefits) and leave encashment are provided on an actuarial basis for the group as a whole, so the amounts pertaining to the key
Governance
management personnel are not included above
Good
29.2 Other Related Party Transaction and Balances
About Us
Purchase from related parties:
Purchase of comcentrate from Pacific Refreshments Pte. Ltd. 2,531,409,468 2,211,607,614
Purchase of concentrate from Atlantic Industries - -
Amounts owed by reated parties:
Coca-Cola India 905,649 500,462
Pacific Refreshments Pte. Ltd. 29,447,480 712,440
Atlantic Industries other related party - 93,722
Amounts owed to related parties:
Hindustan CCBPL 192,175,649 127,927,068
Pacific Refreshments Pte. Ltd. 399,597,598 663,142,935
Soft Drink International 65,482,878 31,425,973
Coca-Cola South West Asia 28,201,720 28,201,720
Refreshment Product Services 133,637 -
Terms and conditions of transactions with related parties

Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees
provided or received for any related party receivables or payables. This assessment is undertaken each financial year through examining
the financial position of the related party and the market in which the related party operates.
30. Financial risk management objectives and policies

The group’s principal financial liabilities comprise loans and borrowings and trade and other payables. The main purpose of these
financial liabilities is to finance the group’s operations. The group’s principal financial assets comprise trade and other receivables,
and cash and short-term deposits that arrive directly from its operations.
The Group is exposed to market risk, credit risk and liquidity risk.
The Group’s senior management oversees the management of these risks.
The Board of Directors reviews and agrees policies for managing each of these risks which are summarized below.

Subsidiaries

30.1 Market risk

Statement
Financial
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market prices comprise four types of risk: interest rate risk, currency risk, commodity price risk and other price risk, such as
equity price risk. Financial instruments affected by market risk include loans and borrowings and deposits.
Shareholder
Information
30.1.1 Interest rate risk

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. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s bank overdraft and
short term deposits.
The Group manages its interest rate risk by negotiating with highly reputed commercial banks.
Reports
30.1.2 Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
Innovation and
foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s operating
Digitization
activities (when revenue or expense is denominated in a different currency from the Group’s functional currency).
The Group manages its foreign currency risk by not holding the receivables and payables in foreign currencies for longer duration.
30.1.3 Commodity price risk

The Group is affected by the volatility of certain commodities. Its operating activities require the ongoing purchase of raw materials
Governance
and therefore require a continuous supply of the same.

Good
The Group manages this risk by purchasing materials and supplies from the supplier identified by the group and the Group has long
term relation with the supplier.
About Us
30.2 Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Group is exposed to credit risk from its operating activities (primarily for trade receivables) and from its financing
activities, including deposits with banks and financial institutions.
30.2.1 Trade receivables

Customer credit risk is managed by the Group’s established policy, procedures and control relating to customer credit risk management.
Credit quality of the customer is assessed and individual credit limits are defined in accordance with this assessment.
Outstanding customer receivables are regularly monitored and shipments to major customers are generally covered by bank guarantees.
30.2.2 Cash deposits

Credit risk from balances with banks and financial institutions are managed by maintaining the balances with highly reputed Commercial
banks only.
30.3 Liquidity risk

The Group monitors its risk to a shortage of funds on a regular basis through cash forecast.
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts and bank
loans. Access to sources of funding is sufficient.
30.4 Risk Management Framework

Contractual maturities of undiscounted cash flows of financial assets and financial liabilities are provided below.

Subsidiaries
Figures in NPR
Statement
FY 2076-77
Financial
Particulars Within 1 Year Rs. 1-5 Years Rs. More than 5 Years Rs. No stated Maturity Rs. Total Rs.
Financial assets
Advances to Employees 12,284,038 8,140,432 - - 20,424,470
Security Deposits - - - 834,906 834,906
Shareholder
Information
Interest Receivable(FD) 3,600,179 - - - 3,600,179
Trade receivables 221,507,342 - - - 221,507,342
Cash and Cash Equivalents 460,921,329 - - - 460,921,329
Total 698,312,888 8,140,432 - 834,906 707,288,226
Financial liabilities
Reports
Bank overdrafts - - - 1,372,510,519 1,372,510,519
Secured bank loan 570,000,000 1,700,407,009 - - 2,270,407,009
Trade Payable 1,184,806,157 - - - 1,184,806,157
Innovation and
Container deposit liability - - 710,705,533 710,705,533
Digitization
Corporate Social Responsibility 12,458,451 - - - 12,458,451
Trade Deposits - - 4,676,030 4,676,030
Employee related accruals 17,479,163 - - - 17,479,163
Bonus Payable 1,535,892 - - - 1,535,892
Provision for Expenses 363,805,398 - - - 363,805,398
Governance
Dividend payable 28,201,720 - - - 28,201,720
Stautory dues payable 156,569,181 - - - 156,569,181
Good
Interest Payables 18,699,886 - - - 18,699,886
VAT Payable (Net) 15,591,730 - - - 15,591,730
Gratuity 96,735,000 - - 464,843,183 561,578,183
About Us
Leave Encashment 1,756,000 - - 36,015,000 37,771,000
Other Retirement Benefits 22,669,000 - - 457,252,818 479,921,818
Total 2,490,307,578 1,700,407,009 - 3,046,003,083 7,236,717,670
Net Financial Assets (1,791,994,690) (1,692,266,577) - (3,045,168,177) (6,529,429,444)

Financial assets
Security Deposits - 833,196 833,196
Interest Receivable(FD) 1,415,697 - - 1,415,697
Trade receivables 194,405,540 - - 194,405,540
Cash and Cash Equivalents 536,337,685 - - 536,337,685
Total 737,871,508 17,680,755 - 833,196 756,385,459
Bank overdrafts - - - 586,797,162 586,797,162
Secured bank loan 570,000,000 958,958,221 - - 1,528,958,221
Trade Payable 1,980,868,172 - - - 1,980,868,172
Container deposit liability - - - 662,070,815 662,070,815
Trade Deposits - - - 4,151,030 4,151,030
Bonus Payable 111,356,814 - - - 111,356,814
VAT Payable (Net) 15,176,779 - - - 15,176,779
Gratuity 56,003,000 - - 407,252,183 463,255,183
Leave Encashment 1,182,000 - - 29,438,000 30,620,000
Total 3,375,764,960 958,958,221 - 2,083,650,030 6,418,373,211
Net Financial Assets (2,637,893,452) (941,277,466) - (2,082,816,834) (5,661,987,752)

Subsidiaries

31. Impact of COVID 19 on financial statements:

Statement
Financial
The Government of Nepal had announced complete lockdown from March 24, 2020 (F/Y 2076/77) onwards to control the spread of
COVID-19 pandemic in the country which happens to be peak sales season for the group. The management has assessed the effect of
lockdown and is of the view that the lockdown has significantly impacted sales and profit for the current year and will also have effect
on revenue and operating result of the group to some extent for next year.
Shareholder
Information
The spread of COVID-19 pandemic has severe impact on global economies including Nepal where businesses were being forced to
cease or limit operations resulting in an economic slowdown. Although, the Government has responded with monetary and fiscal
interventions to stabilize the economic conditions, there is not much relief available to the Group as on date of issue of these financial
statements. Further, the Group has assessed its ability to continue as a going concern and reached to conclusion that there is no
significant risk of going concern in near future in view of Group’s sound financial health and recovery of business volume post balance
sheet date at pre - Covid-level.
Reports
Innovation and
Digitization

As per our attached
Governance
report of even date

Good

B.K. Agrawal & Co.
About Us


85
86

87
88

Subsidiaries
Statement
Financial
Figures in NPR
Particulars Notes As at 31st Ashad 2077 As at 31st Ashad 2076
ASSETS
Shareholder
Non-current assets
Information
Non Financial
Deferred Tax Assets 5.3 97,062,327 42,617,036
Prepayments 6.1 28,117,535 28,940,483
Reports
Financial Assets
Investments 7 110,641,200 110,641,200
Innovation and
Advances 6.2.1 7,165,594 11,043,350
Digitization
Current Assets
Non Financial
Inventories 8 486,154,005 508,886,829
Prepayments 6.1 8,939,670 12,778,934
Advances 6.2.2 321,173,635 289,792,641
Governance
Financial Assets
Good
Other Current Assets 6.2.3 657,164,853 504,230,597
About Us
Total Assets 3,628,423,694 3,413,203,415

Equity
Non-current liabilities
Current liabilities
Borrowings 14 346,937,011 57,506,926
Trade Payables 15 429,777,585 547,515,364
Other Financial Liabilities 16 528,953,649 536,916,450
Income Tax Payable 18 10,922,364 10,014,550
Notes 1 to 33 form an integral part of this Financial Statement
For & on behalf of the Board As per our attached
report of even date
B.K. Agrawal & Co.


Subsidiaries

Statement
Financial
Figures in NPR
Particulars Notes For the Year 2076-77 For the Year 2075-76
Revenue from operations 19 2,164,980,338 3,687,396,573
Shareholder
Information
Gross Profit 579,760,883 1,242,676,606
Other operating income 21 73,537,841 107,529,445

Selling and distribution expenses 22 (490,192,536) (670,301,290)
Reports
Profit from Operations (85,078,290) 402,421,431
Finance Costs 24 (31,859,153) (32,286,903)

Finance Income 25 123,328,075 99,818,003
Innovation and
Profit Before Tax 6,390,632 469,952,531

Digitization
Income Tax Expense

Current tax 5.1 (70,083,340) (114,146,549)
Prior period tax adjustments 5.1 1,033,513 (1,329,000)
Deferred Tax 5.2 46,082,091 2,890,058
Governance
Net Profit for the year (16,577,104) 357,367,040

Basic/Diluted Earning Per Share 26 (9) 183
Good

About Us
As per our attached

report of even date

B.K. Agrawal & Co.


Subsidiaries
Statement
Financial
Figures in NPR
Net Profit/(Loss) for the year as per Statement of Profit or Loss (16,577,104) 357,367,040
Shareholder
Information
Reports
Innovation and
Digitization
As per our attached

report of even date
Governance
Good
B.K. Agrawal & Co.
About Us


Subsidiaries

Statement
Financial
Figures in NPR
Shareholder
Profit for the year 6,390,632 469,952,531

Information

Depreciation on Property, Plant and Equipment 227,346,679 211,658,044
Loss/ (gain) on sale/write off of Property, Plant and Equipment (1,484,711) (4,681,733)
Finance income (123,328,075) (99,818,003)
Reports
Finance costs 31,859,153 32,286,903

Innovation and
Increase / (Decrease) in trade payable and other liabilities (129,856,753) 167,343,780

Digitization

Decrease / (Increase) in trade and other receivables (13,643,468) 103,261,779
Decrease / (Increase) in inventories 22,732,824 153,279,626
Cash generated from operations (76,694,571) 447,050,515
Governance

NET CASH FLOWS FROM OPERATING ACTIVITIES (A) (144,836,584) 340,092,360
Good

Acquisition of Property, plant and Equipment (247,334,646) (378,188,541)
Purchase of Intangibles (30,285,043) (4,752,771)
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Dividends Received 41,741,936 41,741,936
Investment Write Off - 1,986,448
NET CASH FLOWS FROM INVESTING ACTIVITIES (B) (141,763,747) (276,521,968)

Repayment of Borrowings 289,430,085 57,506,926
Interest paid (25,696,204) (32,410,499)
Dividend paid - (9,291,720)
NET CASH FLOWS FROM FINANCING ACTIVITIES (C) 263,733,881 15,804,707

CASH AND CASH EQUIVALENTS, End of Year 241,173,667 264,040,117
As per our attached

report of even date
B.K. Agrawal & Co.


Subsidiaries
Statement
Financial
Figures in NPR
Share Securities Actuarial reserve Retained
Particulars Total
Capital Premium Reserve (Reinstated) * Earnings
Shareholder
Balance as at 1st Shrawan 2075 194,888,700 165,087,020 - 1,158,894,859 1,518,870,579
Information
Profit for the year - - 357,367,040 357,367,040
-
Other comprehensive income - (57,257,549) (57,257,549)
-
Dividends - - (38,977,740) (38,977,740)
-
Balance as at 1st Shrawan 2076 194,888,700 165,087,020 (57,257,549) 1,477,284,159 1,780,002,330
Reports
Profit for the year -
- (16,577,104) (16,577,104)
Other comprehensive income - (43,906,800) (43,906,800)
-
Innovation and
Dividends - - - - -
Digitization
Def. Tax - - -
Balance as at 31st Ashad 2077 194,888,700 165,087,020 (101,164,349) 1,460,707,055 1,719,518,426
*Actuarial reserve created out of OCI component - actuarial loss on defined benefit plans.
Reinstatement has been made only in respect of OCI component for FY 75-76 and FY 76-77 due to unavailability of opening actuari-
Governance
al reserve in actuary report for FY 75-76.
Good
About Us
As per our attached
report of even date

B.K. Agrawal & Co.


Subsidiaries

Statement
Financial
Bottlers Nepal Limited (“Company”) is a public limited Company listed on the Nepal Stock Exchange Ltd incorporated under the
Companies Act of Nepal. The registered office of the Company and the principal place of business is located at Balaju Industrial District,
Balaju, Kathmandu, Nepal.
Bottlers Nepal Ltd is a licensed bottler, marketer and distributor of non-alcoholic beverages products of The Coca-Cola Company,
Shareholder
Information
Atlanta. The Board of Directors has approved the financial statements for issue on its meeting held on 11th November 2020 (26th Karthik
2077) and has recommended for approval of shareholders in the forthcoming Annual General Meeting.
Reports
Accounting Standards Board Nepal. These conform, in material respect, to International Financial Reporting Standards (IFRS) issued by
the International Accounting Standard Board (IASB). The financial statements have been prepared on a going concern basis.
This section describes the critical accounting judgement that the company has identified as having potentially material impact on the
Innovation and
company’s financial statements and sets out our significant accounting policies that relate to the financial statements as a whole.
Digitization
company’s accounting policies require the management to exercise judgement in making accounting estimates.

The company for its preparation of financial statement has adopted accounting policies to comply with the pronouncements made by
Governance
The Institute of Chartered Accountants of Nepal.

Good

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2.3 Presentations
The Company presents assets and liabilities in statement of financial position based on current/non-current classification. The Company
• Expected to be realized or intended to be sold or consumed in normal operating cycle
• Held primarily for the purpose of trading,
reporting period.

The Company classifies a liability as current when it is:

The company operating cycle has been defined as a twelve-month period.
The statement of profit or loss has been prepared using classification ‘by function’ method.

Subsidiaries
Statement
Financial
NFRS requires adoption of accounting policies that are most appropriate to the company’s circumstances determining and applying
accounting estimate or assumption to be followed could materially affect the company’s reported financial position, results or cash flows.
Shareholder
Information
requires disclosures of accounting policies or changes in accounting policies. Effect and nature of the changes have been disclosed.

The preparation of financial statements in line with applicable NFRS which requires management to make judgments, estimates and
Reports
The estimates and the underlying assumptions are reviewed on ongoing basis. Although these estimates are based on management’s
Innovation and
Digitization
by the management.
2.6 Financial periods
Governance
The company prepares financial statements in accordance with the Nepalese financial year using Nepalese calendar. The corresponding
Good
dates for Gregorian calendar are as follows:

SFP* Date 31st Ashad, 2077 15th July, 2020
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Current Reporting Period 1 Shrawan 2076– 31st Ashad 2077
st
17 July 2019– 15th July 2020
th
Comparative SFP* Date 31st Ashad, 2076 16th July, 2019

Comparative reporting period 1 Shrawan 2075– 31st Ashad 2076
st
17 July 2018– 16th July 2019
th

The company’s financial statement is presented in Nepalese Rupees which is also the company’s functional currency.
2.8 Lease
payable under the lease are charged to the profit or loss statement over the lease term. The Company has leased 3 plots of land ranging
from 20-40 years from Balaju Industrial District (BID). These lease agreements can be extended through mutual consent after the expiry
of the initial lease term. There is no purchase option and no fixed escalation clause, however BID has right to review the lease payment
in each 5 years. Future minimum rentals payable under non-cancellable operating leases as at balance sheet date are as follows:
Figures in NPR
Period For the Year 2076-77 For the Year 2075-76
Less than One Year 462,556 462,556
15,726,901 16,189,460

Subsidiaries

Statement
Financial
Figures in NPR
Intangible assets
Particulars Computer Software Total
under development
Cost
Shareholder
Information
Opening balance at 1st Shrawan 2076 88,487,550 88,487,550

Adjustment (ReClassification) 1,180,611 1,180,611
Additions 30,285,043 30,285,043 60,570,086
Disposals/Adjustments - (30,285,043) (30,285,043)
Reports
Adjustment (ReClassification) 1,180,611 1,180,611
Innovation and
Disposals/Adjustments - -
Digitization
Closing balance at 31st Ashad 2077 64,162,934 64,162,934

-
Closing Balance at 31st Ashad 2077 55,790,270 55,790,270
-
Closing Balance at 31st Ashad 2076 47,779,569 47,779,569
-
Governance
Good
Computer software cost are amortized based on expected useful life which is estimated as 5 years (the estimate is being reviewed
periodically). Costs associated with maintaining software are recognized as expenses as and when incurred. At each statement of
financial position date, these assets are assessed for indication of impairment. In the event that an asset's carrying amount being
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development. Software is capitalized upon successful test run and after meeting recognition criteria.

4. Property, Plant & Equipment

Figures in NPR
Cost
Opening balance at 1st Shrawan 2076 233,523,568 1,093,481,628 41,381,927 647,920,740 622,371,077 34,218,093 104,762,475 2,777,659,508

Additions 816,970 151,823,067 4,110,569 80,725,689 53,448,597 3,135,502 247,334,646 541,395,040
Transfer to asset block - - - - - - (294,060,394) (294,060,394)
Disposals - (875,333) (269,500) (13,307,529) (17,890,538) - (2,527,363) (34,870,263)
Adjustments - - - 8,282,093 - - - 8,282,093
Closing balance at 31st Ashad 2077 234,340,538 1,253,112,177 64,480,075 687,004,662 689,130,067 13,648,490 55,509,364 2,997,225,373
Depreciation and Impairment Losses
Opening balance at 1st Shrawan 2076 57,097,546 548,989,590 9,085,746 282,289,702 353,429,579 28,810,056 - 1,279,702,219
Charge for the year 6,961,364 50,147,498 9,585,486 71,593,083 88,019,199 1,040,049 - 227,346,679
Disposals - (677,670) (6,708) (13,307,529) (6,035,995) - - (20,027,902)
Adjustments - - - 6,812,304 - - - 6,812,304
Closing balance at 31st Ashad 2077 64,058,910 639,660,459 36,702,777 310,707,644 436,932,832 4,590,067 - 1,492,652,689
Net Block
Closing Balance at 31st Ashad 2077 170,281,628 613,451,718 27,777,298 376,297,018 252,197,235 9,058,423 55,509,364 1,504,572,684
Closing Balance at 31st Ashad 2076 176,426,022 544,492,038 32,296,181 365,631,038 268,941,498 5,408,037 104,762,475 1,497,957,289

97
Subsidiaries

Property, Plant and Equipment are initially measured at cost in the statement of financial position. These are inclusive of all cost
Statement
Financial
less excluding any recoverable taxes less any subsequent accumulated depreciation and subsequent accumulated impairment losses, if
applicable for each class of assets. Property, Plant and Equipment are recognized as an asset, if and only if it is probable that future
economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably.
Cost includes the purchase price and other directly attributable costs of Property, Plant and Equipment. Cost also includes the cost of
Shareholder
Information
replacing part of the plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met.
When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based
plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in
profit or loss as incurred. If an item of Property, Plant and Equipment consists of several components with different estimated useful
Reports
Innovation and
the respective asset if the recognition criteria under NAS 16 and IFRIC 1. Management determines that such cost is not material thus
Digitization
are not considered.
Assets under construction are carried at cost, less any recognized impairment loss, if any. Depreciation on these assets will commence
when these assets are ready for their intended use and classified under specific asset category.
The company has made a provision for missing/obsolesce assets in the financial statement and the carrying gross value and the relevant
Governance
accumulated depreciation has been adjusted in specific block of assets wherever required. Post appropriate approval, the individual item
of assets is written off from Fixed Assets Register (FAR).
Good
4.1 Depreciation
Depreciation on items of Property, Plant and Equipment is calculated on the straight-line method based on the useful life of the assets
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estimated by the management. Depreciation on addition to Property, Plant and Equipment is provided on pro-rata basis in the year
of purchase when the asset is ready for its intended use. The residual values, useful lives and the depreciation methods of assets
are reviewed at least at each financial year end and if expectations differ from previous estimates, are accounted for as a change
in accounting estimates in accordance with NAS 8. If an item of Property Plant and Equipment consist of several components with
different useful lives, those components that are significant are depreciated over their individual useful life.

Cooler Cooler 9
Crates Containers 8
*Other Assets majorly include transformers, electrical installations and soft drink analyzer.

Subsidiaries
4.2 De-recognition
Statement
Financial
An item of Property, Plant and Equipment is de-recognized on disposal or when no future economic benefits are expected from the
use of that asset. The gain or loss arising from the disposal of an item of Property, Plant and Equipment is the difference between net
disposal proceeds, if any, and the carrying amount of that item and is recognized in the statement of profit and loss.
Shareholder
Information
The expenditure incurred in acquisition and installation of new systems and equipment till the date of commissioning or civil works under
construction till the date of completion is recognized as Capital works-in-progress. Equipment are capitalized upon commissioning and
civil works are capitalized upon handing over after being capable of being used.
Coolers purchased by the company is capitalized in books only after the asset is put to use by the entity for its operations.
Reports
Figures in NPR
Innovation and
Machineries 16,252,591 50,711,169
Digitization
Coolers 37,664,643 35,272,630
IT Technology 1,592,131 18,778,676
Total 55,509,364 104,762,475
5. Income Tax
Governance
Good
Figures in NPR
About Us
Adjustment for prior periods (1,033,513) 1,329,000
Total 69,049,827 115,475,549
5.2 Deferred Tax

Figures in NPR
Origination and reversal of temporary differences (46,082,091) (2,890,058)
Total (46,082,091) (2,890,058)
5.3 Deferred Tax Assets

Deferred tax is calculated on temporary differences using the effective future tax rate of 16% (PY 17%). Deferred tax assets have been
recognized in respect of all tax losses and other temporary differences giving rise to deferred tax assets where the management believe
it is probable that these assets will be recovered.

Subsidiaries

Statement

Financial

1 Property, Plant & Equipment 1,449,063,319 1,174,838,574 (274,224,745)
2 Intangible Assets 55,790,270 56,763,112 972,842
3 Retirement benefit provision (589,209,028) - 589,209,028
Shareholder
Information
4 Provision for Expenses to be claimed on actual expenditure (38,111,689) - 38,111,689

5 Income tax business loss carry forward (252,570,729) - 252,570,729
Tax Rate 16% 97,062,327
Opening Deferred tax Assets/(Liability) 42,617,036
Reports

Innovation and

Digitization

Governance
2 Provisions for Expenses (480,148,940) - 480,148,940

Good

Tax Rate 17% 42,617,036
Opening Deferred tax Assets/(Liability) 27,999,528
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5.4 Reconciliation
Reconciliation of current tax expense and the accounting profit multiplied by Company’s effective tax rate for the year.
Figures in NPR
Accounting profit before income tax 6,390,632 469,952,531
Total profit as per Income Tax 280,333,360 671,450,294
Tax Rate 25% 17%
Current tax expenses 70,083,340 114,146,550
The company is special industry as defined u/s 11 of Income Tax Act 2058, the normal applicable tax rate for which is 20%. Company
has further availed rebate of 20% provided to special industries employing 300 or more Nepalese employees during the year. Therefore
tax rate applicable for income from special industy is 16%. However, income tax rate for income from other than special industry is
applicable for 25%.
During the current year, the entity has incurred loss from special industries and income from non special industy. As per Section 20(1)
of Income Tax Act 2058, loss from one business can be set off against income from another business. However, the company has opted
to offer income from non special industry at the rate of 25% and carry forward loss from special industry which shall be set off against
income from special industry in next financial year/s.

Subsidiaries
6. Other Assets
Statement
Financial
6.1 Prepayments
Shareholder
Information
Figures in NPR
Prepayments 37,057,205 41,719,417
Total 37,057,205 41,719,417
Reports
Current 8,939,670 12,778,934
Non Current 28,117,535 28,940,483
6.2.1 Non - Current Financial Advances
Innovation and
Digitization
Figures in NPR
Total 7,165,594 11,043,350
Governance
6.2.2 Currenti Non-Financial Advances
Good
Figures in NPR
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Total 321,173,635 289,792,641
6.2.3 Current Financial Advance
Figures in NPR
Loan To BNTL 650,000,000 500,000,000
Interset Inocome Receivables 3,056,675 727,259
Total 657,164,853 504,230,595

(a) cash
(b) an equity instrument of another entity.
entity; or

Subsidiaries

Statement
Financial
i) a non-derivative for which the entity is or may be obliged to receive a variable number of the entity's own equity instruments;
or
ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a
Shareholder
Information
Reports
The company only holds financial assets meeting the recognition criteria of Loans & Receivables classification. These instruments are
Innovation and
to be recognized at amortized cost using effective interest rate.

Digitization
Financial assets of the company comprise of advances, other current assets, Trade Receivables and cash & cash equivalents. These
Governance

Good
The company has a risk management framework to monitor, access, mitigate and manage risks. This risk management framework is
given is Note 32.
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7. Investment
Figures in NPR
Bottlers Nepal (Terai) Ltd., a subsidiary company 1,098,472 (previous year 1,098,472)
ordinary sharesof Rs. 100 each fully paid up. (including premium on 2,299 shares of 109,893,200 109,893,200
Rs. 0.46 lakhs)
Troika Traders Pvt. Ltd., subsidiary company 7,480 (previous year 7,480) ordinary
748,000 748,000
shares of Rs.100 each fully paid up.
Total 110,641,200 110,641,200
The Company has made an equity investment in M/s Bottlers Nepal (Terai) Ltd. (BNTL) and Troika Traders Pvt. Ltd., a subsidiary
company and the Company has invested 90.78% of the equity in M/s Bottlers Nepal (Terai) Ltd. (BNTL) and majority holding of 99.73%
in Troika Traders Pvt. Ltd. respectively as promoter investor. Investment in subsidiaries are recognized at cost for the purpose of
separate financial statements prepared under NAS 27. The subsidiaries are consolidated as per NFRS 3 and NFRS 10, as the company
holds controlling interest in those companies.
The company holds controlling investment in the investees with regards to the representation on the board and the voting power at the
AGM of those companies and these companies are treated as subsidiaries.
7.1 Investment in Subsidiaries

Investment in subsidiary are not tested for impairment as these are consolidated and assets of subsidiaries have been subject to
impairment testing at the entity level.
7.2 Risks
Investment in subsidiaries is a long-term investment. The risks associated with beverage industry in Nepal and long-term investments
returns are relevant for these investments.

Subsidiaries
8. Inventories
Statement
Financial
Figures in NPR
Raw materials 287,457,944 285,221,299
Shareholder
Information
Work-in-process 2,236,550 2,312,028
Finished goods 34,870,992 55,019,656
Consumables 161,588,519 166,333,846
Total 486,154,005 508,886,829
Reports
Innovation and
realizable values.
Digitization
In determining the cost of raw materials & packing materials, First in First out (FIFO) method is used. Cost of inventory comprises of
all costs of purchase, duties, taxes (other than those subsequently recoverable from tax authorities), cost of conversion and other costs
incurred in bringing the inventories to their present location and condition.
Governance
Good
variable production overheads incurred in bringing the inventory to their present location and condition. Finished goods are valued based
on weighted average method.
Inventories are presented net of allowance for obsolescence and other possible depletion in value or other losses. Those allowances are
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estimated to approximate the net realizable value of such items. Allowance adjustments are made for those inventories identified by
management as obsolete based on 10 Year Aging or technical evaluation, whichever is earlier.
Figures in NPR
Trade receivables:
-
Total 110,468,254 94,495,370

Trade receivables comprises of amount receivable from our customers and are non-interest bearing and are generally on terms of 30
to 90 days.

It includes transactions with group companies and key management personnel which are disclosed in Note 31.

Subsidiaries

9.3 Impairment of financial assets

Statement
Financial
For allowances, assets with a potential need for a write-down are grouped together on the basis of similar credit risk characteristics,
tested collectively for impairment, and written down, if necessary. Estimated irrecoverable amounts are based on the ageing of the
receivable balances, taking previous cases of default into consideration and historical experiences.
Shareholder

Information
The company has a risk management framework to monitor, access, mitigate and manage risks. The risk management framework is
given is Note 32.

Reports
Figures in NPR
Innovation and
Balances with Banks

Digitization

Cash on hand 68,666 49,908
Total 241,173,667 264,040,117
Governance

Good
Short-term deposits are made for varying periods of between one day and three months, depending on the cash requirements of the
Company and earn interest at the respective short-term deposit rates.
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11. Share Capital

As at 31st Ashad 2077 As at 31st Ashad 2076
Particulars
Authorized
Issued and Paid Up
The shareholding pattern of the company is as follows:

As at 31st Ashad 2077 As at 31st Ashad 2076
Shareholder Category
Coca-Cola South West Asia 1,484,301 76.16% 1,484,301 76.16%
Gorkha Brewery Private Limited 428,755 22.00% 428,755 22.00%
Total 1,948,887 100.00% 1,948,887 100.00%
Share issue expenses have not been netted off against capital collected as these pertain to periods of initial establishment of the
company and such expenses have been charged off during those periods. The management considers that the cost of obtaining
information is more than the benefits derived and the effect of such amounts to be immaterial.

Subsidiaries
Statement
Financial
Figures in NPR
Share Premium 165,087,020 165,087,020
Shareholder
Information
Total 1,524,629,726 1,585,113,630
Reports
i) Premium of Rs. 100 each on 264,995 ordinary shares.
ii) Premium of Rs.160 each on 866,172 ordinary shares issued as rights shares at the rate of 4 shares for 5 shares held.
Innovation and
Digitization
Figures in NPR
Governance
Particulars Fort the Year 2076-77 Fort the Year 2075-76
Salaries, Wages and other Employee Cost
Good
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Defined Contribution Plan Cost
Selling and distribution expenses 863,745 1,941,348
Total Employee Cost Charged to SOPL for the Period 520,158,439 535,146,449
Total Employee Cost for the Period 572,428,439 604,131,448

The company operates number of defined benefit and defined contribution plans for its employees of the company. The defined benefit
plan of the company includes leave encashment expenses, expenses pertaining to gratuity and other retirement benefits.
Current Service cost - 3,408,000 22,003,088 25,411,088
Interest Charge 17,314,000 1,277,000 16,839,000 35,430,000
Paid (2,645,000) (100,000) (1,306,000) (4,051,000)
Acturial (gain)/loss during the year
43,688,000 (499,000) 9,081,000 52,270,000
(recognised in OCI)
Charge to SoCI 43,688,000 (499,000) 9,081,000 52,270,000

Subsidiaries

Statement
FY 2075-76
Financial

Shareholder
Information
Interest Charge 14,810,000 791,000 10,955,000 26,556,000

Paid (4,234,000) (116,000) (3,716,000) (8,066,000)
Acturial (gain)/loss during the year

8,672,000 3,257,000 57,056,000 68,985,000
(recognised in OCI)
Reports

Innovation and
Charge to SoCI 8,672,000 3,257,000 57,056,000 68,985,000

Digitization
Current and Non-Current Liability Breakup

Governance
Current Liability 49,419,000 819,000 11,299,000 61,537,000

Good

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13.2 Defined Benefit Plans

The defined benefit plan of the group includes Gratuity, Leave encashment Entitlements and Other Retirement benefits.
13.2.1 Gratuity
Gratuity for existing employees has been provided as per the actuarial assessment. The assessed amounts have been recognized as
liabilities. The gratuity scheme is computed on below basis:

Subsidiaries
Statement
Financial
Vesting Period 3 years
Shareholder
Information
Reports
1month salary for each year of service for service between 15 and 17 years.
Innovation and
Digitization
Governance
Good
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B. Gratuity Benefit on or after 4th September 2017
Vesting Period No vesting applicable
Benefit on normal retirement/ early retirement/death/ disability in service 8.33 % of Basic Salary per month for each year of service

experience and discounting the long-term obligations at the end of each reporting period. Sick leave of 1.5 times the last drawn monthly

Other retirement benefits include three days’ basic salary computed based on completion of 17 years compulsory retirement or 20 years
actuarial assumptions. The assumptions made are the growth rate derived from the past experience and discounting the long-term

Subsidiaries


Statement
Financial

Particulars Gratuity Sick Leave Retirement Benefit
Effect on DBO due to 0.5% increase in discount rate (8,328,000) (1,094,000) (12,085,000)
Shareholder
Information
Effect on DBO due to 0.5% decrease in discount rate 8,902,000 1,190,000 13,119,000
Effect on DBO due to 0.5% increase in salary escalation rate 8,064,000 71,000 12,756,000
Reports

Particulars Gratuity Sick Leave Retirement Benefit
Effect on DBO due to 0.5% increase in discount rate (6,316,000) (906,000) (10,421,000)
Innovation and
Digitization
Effect on DBO due to 0.5% decrease in discount rate 6,697,000 987,000 11,306,000
Effect on DBO due to 0.5% increase in salary escalation rate 6,029,000 919,000 10,461,000
Effect on DBO due to 0.5% decrease in salary escalation rate (5,748,000) (854,000) (9,756,000)
The above sensitivity analysis is based on a change in an assumption while holding all other assumption constant. In practice, this is
Governance
unlikely to occur and changes in some of the assumption is correlated. When calculating sensitivity of the defined benefit obligation
to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with projected unit
Good
credit method at the end of reporting period) has been applied while calculating the defined benefit liability recognized in the balance
sheet.
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Expected average remaining working life of Expected average remaining working life of
Future service the employees based on withdrawal rate and the employees based on withdrawal rate and
retirement age taken as 8 years retirement age taken as 8 years
In accordance with the standard table, Nepal In accordance with the standard table, Nepal
Mortality Assured Lives Mortality (2009) (modified) Assured Lives Mortality (2009) (modified)
Ultimate Rates Ultimate Rates

Defined benefit obligations are not funded and there are no Defined Benefit Plan Assets. The group is in the process of creating a
separate fund for meeting the defined benefit obligation.


Subsidiaries
Statement
Financial
14. Borrowings
Shareholder
Figures in NPR
Information
Bank Overdrafts 346,937,011 57,506,926
Total 346,937,011 57,506,926
Reports
Bank Overdraft are secured against all movable properties/current assets including inventories & trade receivables.
Innovation and
15. Trade Payables
Digitization
These are recognized as financial instruments held at amortized cost using Effective Interest Rate.
Figures in NPR
Trade Payable 138,853,294 136,152,922
Governance
Good
Total 429,777,585 547,515,364
Financial Instruments- Financial liabilities
About Us

(i) to deliver cash or another financial asset to another entity; or
entity; or
or
The company classifies financial liabilities as Fair Value through Profit or Loss and those Held at Amortized Cost. All financial liabilities
held by the company are classified as financial liabilities held at amortized cost using effective interest rate.
Financial liabilities held by the company are both interest bearing and non-interest bearing.

The company has a risk management framework to monitor, access, mitigate and manage risk. The risk management framework is
given in Note 32.

Subsidiaries


Statement
Financial
Figures in NPR
Shareholder
Information
Trade Deposits 2,426,600 2,176,600

Bonus Payable 710,069 48,220,628
Dividend payable 28,201,720 28,201,720
Reports

Interest Payables 6,499,274 336,325
VAT Payable (Net) 13,986,738 13,819,529
Innovation and
Total 528,953,649 536,916,450

Digitization
Breakup of provision for expenses:

Provision_General 94,856,345 84,221,516
Provision_Freight 2,350,689 1,739,827
Governance
Provision_Discount 97,050,151 75,130,418

Provision_DME 12,943,447 7,427,133
Good
Provision_Leakage & BBD 8,449,574 -

Total 215,650,206 168,518,893
Provisions are recognized when the company has a present obligation, legal or constructive, as a result of a past event, it is probable
About Us
reporting date.

The fund created for CSR is to be utilized based on annual plans and programs in the sectors that are prescribed under the Act. The
progress report of the utilization of the fund collected for CSR is required to be submitted to the Department of Industries registered
within six months from expiry of the financial year.
The company has provided provision for CSR at the rate of 1 % of profit before tax amounting to Rs 63,906 for FY 76-77.
17. Other Non-Financial Liabilities

Figures in NPR
Total 3,105,631 1,098,855

Subsidiaries
Statement
18. Income Tax Payable
Financial
Figures in NPR
Income tax payable (Net) 10,922,364 10,014,550
Shareholder
Information
Total 10,922,364 10,014,550
19. Revenue
Figures in NPR
Reports
Sale of goods 2,495,285,887 4,236,133,341
Less: Discount (330,305,549) (548,736,768)
Total 2,164,980,338 3,687,396,573
Innovation and
Digitization
19.1 Sale of Goods
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue and
associated costs incurred or to be incurred can be reliably measured and when recognition criteria related to sale of goods activities
is met i.e. when the significant risks and rewards of ownership of the goods have transferred to the buyer, with the Company retaining
neither continuing managerial involvement to the degree usually associated with ownership, nor effective control over the goods sold.
Governance
Revenue is measured at the fair value of the consideration received or receivable net of trade discounts Revenue include all revenue
Good
from ordinary activities of the company that are recorded net off Value Added Taxes and Excise Duty collected from the customer that
are remitted or are to be remitted to the government authorities.
About Us
20. Cost of Goods sold
Figures in NPR
Material consumed
Raw materials
At 1st Shrawan 2076 285,221,299 455,576,319
Purchase 971,949,754 1,784,222,180
Less: Transfer to Bottlers Nepal (Terai) Ltd. (1,690,103) (74,460,036)
At 31st Ashad 2077 (287,457,944) (285,221,299)
Total raw material consumed 968,023,006 1,880,117,164
Work in process
At 1st Shrawan 2076 2,312,028 7,539,685
At 31st Ashad 2077 (2,236,550) (2,312,028)
Net change in work-in-process 75,478 5,227,657
Production and manufacturing overheads 596,972,307 593,402,252
Finished goods
At 1st Shrawan 2076 55,019,656 20,992,550
At 31st Ashad 2077 (34,870,992) (55,019,656)
Net change in finished goods 20,148,664 (34,027,106)

Subsidiaries

20.1 Production and manufacturing overheads

Statement
Figures in NPR
Financial

Sick Leave 2,234,000 2,044,000
Provident fund 6,725,821 4,856,264
Shareholder
Information
Gratuity 12,226,989 17,187,000

Office expenses 19,192,657 19,129,512
Reports
Consumables 29,030,994 44,909,399

Stock Adjustment - 1,928,274
Power & Fuel 44,161,108 75,936,479
Innovation and

Digitization

Total 596,972,307 593,402,252
Governance

Good
Figures in NPR
Product transfer fee 64,641,593 57,171,895
About Us
Sale of Scrap 5,312,159 8,751,789

Total 73,537,841 107,529,445
21.1. Product Transfer Fee

The Company and Bottlers Nepal (Terai) Ltd, its subsidiary Company, can sell their products in their respective market territories only.
In respect of sales made by the Company and its subsidiary, in market territory of the other Company, a product transfer fee (gross) at
the rate of 12 % (Previous year 12 %) of net liquid sales revenue is recovered/ paid. Product transfer service fee is recognized/ charged
to income statement as and when sale of goods is affected as per above clause.
21.2 Sale of Scrap

Items includes under this income are towards sale amount realized from sale of scraps.

Figures in NPR
EDS (Containers) - 29,434,500
Insurance Claim 550,033 921,040
Others 3,034,056 11,250,220
Total 3,584,089 41,605,761
Income includes amount claim from Insurance on account of rebate on insurance premium.

Subsidiaries
Statement
Financial
Figures in NPR
Shareholder
Sick Leave 923,000 560,000
Information
Provident fund 863,745 1,941,348
Gratuity 2,535,000 5,068,000
Reports
Office expenses 12,053,622 8,217,127
Utilities 5,413,998 8,872,040
Innovation and
Freight Charges 96,896,326 200,046,797
Digitization
Other miscellaneous expenses 707,499 1,896,331
Governance
Product transfer fees 34,961,566 105,779,429
Total 490,192,536 670,301,290
Good
About Us
Figures in NPR
Sick Leave 1,528,000 731,000
Gratuity 2,552,011 5,897,000
Office expenses 24,753,223 24,288,123
Bank charges 2,248,985 2,183,395
Audit fees 500,000 500,000
Utilities 12,258,978 13,181,194
Depreciation on Property, plant and equipment 2,983,616 2,777,724
(Gain)/Loss on sale/write off of Property, plant and equipment (1,444,591) (3,805,790)
Other miscellaneous expenses 955,581 754,000
Total 248,184,478 277,483,330

Subsidiaries

23.1 Salaries, wages and other employee cost

Statement
Financial
Figures in NPR
Salary and other benefits 266,752,665 272,197,123
Less:- Salary cost charged to BNTL/Troika (125,759,414) (116,071,020)
Shareholder
Information
Total 140,993,251 156,126,103

Figures in NPR
Reports

Allowances 11,600 140,000
Total 511,600 640,000
Innovation and
Digitization
24. Finance Cost

Finance costs comprises of interest on Term Loan and interest on short term borrowings in the form of bank overdrafts. All these costs
are carried at amortized cost using effective interest rate as required by NAS 39.
Governance
Figures in NPR
Good

Interest on LC Loan 5,756,789 4,052,078
Total 31,859,153 32,286,903
About Us
25. Finance Income

Figures in NPR
Interest income 81,586,139 58,076,067
Dividend income from subsidiaries 41,741,936 41,741,936
Total 123,328,075 99,818,003

25.2 Dividend income

Dividend is recognized based on actual receipt of dividend. Dividend income comprises of dividend received from investment made in
the subsidiary companies.

Figures in NPR
Numerator
Profit for the year and earnings used in basic EPS (16,577,104) 357,367,040
Denominator
Weighted average number of shares used in basic EPS 1,948,887 1,948,887
Basic and Diluted Earning Per Share (9) 183

Subsidiaries
Basic EPS is calculated by dividing the profit attributable to ordinary equity holders of the company for the period by the weighted
Statement
average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares. Number of shares
Financial
have not changed over the reported periods. There are no potential ordinary shares that would dilute basic earnings per share, hence
diluted EPS is same as basic EPS.
Shareholder
Information
27. Dividend Paid and Proposed
Figures in NPR
Declared and paid during the year:
Dividends on ordinary shares: Final dividend for
- 38,977,740
Reports
2075-76: Rs.0 per share for 74-75: Rs 20 Per Share
Proposed for approval at the annual general meeting
(not recognised as a liability as at balance sheet date):
Innovation and
Dividends on ordinary shares:
Digitization
2076-77: Rs 0 per Share - -
2075-76: Rs 0 per Share - -
Governance
Good
Contingent liabilities are potential future cash out flows, where the likelihood of payment is considered more than remote but is not
About Us
28.1.1 Bank Guarantee
Bank Guarantee has been provided to the Department of Customs for obtaining EXIM Code. As at the reporting date the guarantee amount
is NPR 300,000.

i) LTO assessed the income tax, TDS and VAT liabilities of the company for the year 2066-67. For the unaccepted amount, the
been recognized in the financial statements and have been disclosed as contingent liabilities as below
Figures in NPR
Additional Accepted Appeal against Estimated Interest Liabilities Upto
Particulars Demand amount demand Balance Sheet Date
Income-Tax 6,106,075 - 6,106,075 -
TDS 3,672,212 173,901 3,498,311 832,568
VAT 26,737,720 8,540,112 18,197,608 3,447,102
Total 36,516,007 8,714,013 27,801,994 4,279,670
ii) LTO assessed the income tax, TDS and VAT liabilities of the company for the year 2067-68. For the unaccepted amount, the
been recognized in the financial statements and have been disclosed as contingent liabilities as below
Income-Tax 17,850,617 - 17,850,617 3,956,046
TDS 26,531,605 444,027 26,087,578 4,809,589
VAT 10,189,874 516,194 9,673,680 3,823,688
Total 54,572,096 960,221 53,611,875 12,589,323
iii) LTO assessed the income tax, TDS and VAT liabilities of the company for the year 2068-69. For the unaccepted amount, the
been recognized in the financial statements and is disclosed as contingent liabilities as below

Subsidiaries

Statement
Figures in NPR
Financial

Income-Tax 11,314,019 - 11,314,019 2,037,348
TDS 47,604,066 467,790 47,136,276 8,603,398
Shareholder
VAT 6,480,279 - 6,480,279 2,107,286

Information
Total 65,398,364 467,790 64,930,574 12,748,032
iv) LTO assessed the income tax, TDS and VAT liabilities of the company for the year 2069-70. For the unaccepted amount, the
company has filed the case for Administrative Review Tribunal. Pending decision from the Director General, additional liability
has not been recognized in the financial statements and is disclosed as contingent liabilities as below
Reports
Figures in NPR
Income-Tax 20,947,018 273,157 20,673,861 4,317,179
Innovation and
TDS 44,307,639 680,651 43,626,988 8,737,249

Digitization
VAT - - - -
Total 65,254,657 953,808 64,300,849 13,054,428
v) LTO assessed the income tax, TDS and VAT liabilities of the company for the year 2070-71. For the unaccepted amount, the
company has filed the case at Revenue Tribunal. Pending decision from the tribunal, additional liability has not been recognized
Governance
in the financial statements and is disclosed as contingent liabilities as below

Figures in NPR
Good

Income-Tax 41,888,912 810,000 41,078,912 5,556,265
About Us
TDS - - - -
VAT 2,935,937 265,000 2,670,937 462,820
Total 44,824,849 1,075,000 43,749,849 6,019,085
vi) LTO assessed the income tax, TDS and VAT liabilities of the company for the year 2071-72. For the unaccepted amount, the
company has filed the case for Administrative Review Tribunal. Pending decision from the Director General, additional liability
has not been recognized in the financial statements and is disclosed as contingent liabilities as below
Figures in NPR
Income-Tax 77,141,879 1,146,446 75,995,433 8,736,851
TDS 85,433,388 813,238 84,620,150 9,730,075
VAT 4,389,106 773,407 3,615,699 348,920
Total 166,964,373 2,733,091 164,231,282 18,815,846
Grand Total 433,530,347 14,903,923 418,626,423 67,506,384
28.2 Commitment
These amounts are not recorded in the statement of financial position since the company has not yet received the goods or services
from the supplier. The amounts below are the minimum amounts that we are committed to pay.
At end of financial year 2076/77, the Company had capital commitments of NPR 15,501,424 (Previous Year 2075/76 NPR 126,827,221)

Interim reports have been publicly reported in accordance with the requirement of SEBON and NEPSE. These requirements are materially
aligned with the requirements of NAS 34.

Subsidiaries
Statement
Financial
The Company has only one “business segment” i.e. dealing in “non-alcoholic beverage”. The non-alcoholic beverage business mainly
consists of products like carbonated soft drinks in different flavors. All these products have similar risks and returns because of similar
nature of products, common consumer segments, similar production processes and common distribution channel. Further, internal
organizational and management structure and its system of internal financial reporting of the Company is not based on product or
Shareholder
geographical differentiation.
Information
31.1 Relationship
Reports
The company identified related parties on the following lines
1 Part of the Group
Innovation and
a Parent company, ultimate parent
Digitization
b Other Subsidiaries of the parent / ultimate parent
c Subsidiaries of the company
2 Directors and their relatives
3 Key management personnel and their relatives
Governance
31.1.1 Transactions with Directors & Key Management Personnel
Good
and key management personnel was indebted to the company.
There have no material transactions or proposed transactions with directors and key management personnel or their relatives and
About Us
associates except for the compensations and/or remuneration paid under the company’s regulations.

Managing Director* 20,840,912 56,800,563 2,468,603 80,110,078
Key Managers 37,076,204 61,491,384 4,210,395 102,777,983
Total 57,917,116 118,546,947 6,678,998 183,143,061

Managing Director* 9,611,026 31,321,593 3,502,129 44,434,748
Key Managers 42,710,459 66,547,519 17,047,662 126,305,640
Total 52,321,485 98,124,112 20,549,791 170,995,388
a) Key management personnel include 5 expatriate staffs including Managing Director.
b) Key management personnel are also provided with following benefits:
i) All Manager of the Company are provided vehicle allowance as per Company Policy.
ii) Furnished apartments are provided to all expatriate staffs.
iii) Performance bonus based on individual, Division and overall Country performance.
c) The amounts disclosed in the table are the amounts recognized as an expense during the reporting period related to key management
personnel. Also, the liabilities for defined benefit plans excluding expatriates staff (i.e. gratuity and other retirement benefits) and
leave encashment are provided on an actuarial basis for the company as a whole, so the amounts pertaining to the key management
personnel are not included above.

Subsidiaries

Statement
Financial

Figures in NPR
Shareholder
RELATED PARTY TRANSACTIONS For the Year 2076-77 For the Year 2075-76
Information
Sale to related parties:

Sale of various materials to Bottlers Nepal (Terai) Limited 1,690,103 74,460,036
Purchases from related parties:
Purchase of various materials from Bottlers Nepal (Terai) Limited 4,784,220 111,404,698
Purchase of concentrate from Pacific Refreshments Pte. Ltd. 791,071,430 753,663,876
Reports
Product transfer fee:

Received from Bottlers Nepal (Terai) Ltd. 64,641,593 57,171,895
Paid to Bottlers Nepal (Terai) Ltd. 34,961,566 105,779,429
Innovation and
Management Fee received from Bottlers Nepal (Terai) Limited 125,209,414 114,871,021
Digitization
Management Fee received from Troika Traders Pvt Ltd. 550,000 1,200,000
Dividend received from Bottlers Nepal (Terai) Ltd. 41,741,936 41,741,936
Interest received from Bottlers Nepal (Terai) Ltd. on loan 62,521,924 13,452,192
Sale of asset (Coolers) to Bottlers Nepal (Terai) Ltd. (at cost) 11,854,543 -
Amounts owed by related parties:
Governance
Troika Traders Pvt. Ltd.-a subsidiary company 5,147,856 28,938,409

Good
Bottlers Nepal (Terai) Limited-a subsidiary company (Loan) 650,000,000 500,000,000

Coca-Cola India 905,649 500,462
Pacific Refreshments Pte. Ltd. 29,447,480 712,440
Atlantic Industries-other related party - 93,722
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Bottlers Nepal (Terai) Limited-a subsidiary company 8,822,981 4,919,716
Hindustan CCBPL-other related party 129,673,854 127,927,068
Pacific Refreshments Pte. Ltd. 86,810,942 247,382,507
Soft Drink International-other related party 65,482,878 31,425,973
Coca-Cola South West Asia 28,201,720 28,201,720
Refreshment Product Services 133,637 -


The Company’s principal financial liabilities comprise loans and borrowings and trade and other payables. The main purpose of
these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets comprise trade and other
receivables, and cash and short-term deposits that arrive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk.
The Company’s senior management oversees the management of these risks.
32.1 Market risk


Subsidiaries
Statement
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
Financial
market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s bank
overdraft and short-term deposits.
The Company manages its interest rate risk by negotiating with highly reputed commercial banks.
Shareholder
Information
foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s
operating activities (when revenue or expense is denominated in a different currency from the Company’s functional currency).
Reports
The Company manages its foreign currency risk by not holding the receivables and payables in foreign currencies for longer duration.
Innovation and
The Company is affected by the volatility of certain commodities. Its operating activities require the ongoing purchase of raw materials
Digitization
The Company manages this risk by purchasing materials and supplies from the supplier identified by the group and the Company has
long term relation with the supplier.
32.2 Credit risk
Governance
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to
Good
a financial loss. The Company is exposed to credit risk from its operating activities (primarily for trade receivables) and from its
financing activities, including deposits with banks and financial institutions.
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Customer credit risk is managed by the Company’s established policy, procedures and control relating to customer credit risk
management. Credit quality of the customer is assessed, and individual credit limits are defined in accordance with this assessment.

banks only.
32.3 Liquidity risk

The Company monitors its risk to a shortage of funds on a regular basis through cash forecast.
The Company’s objective is to maintain a balance between continuity of funding and flexibility through use of bank overdrafts and bank


Subsidiaries


Statement
Financial
Financial assets
Investments in subsidiaries - - - 110,641,200 110,641,200
Loan to BNTL 650,000,000 650,000,000
Shareholder
Information

Interest Receivable(FD) 3,056,675 - - - 3,056,675
Reports
Total 1,008,108,668 7,165,594 - 111,339,306 1,126,613,568

Bank overdrafts - - 346,937,011.00 346,937,011
Innovation and
Trade Payable 429,777,585 - - - 429,777,585

Digitization

-
Trade Deposits - - - 2,426,600 2,426,600
Bonus Payable 710,069 - - - 710,069
Governance

Dividend payable 28,201,720 - - 28,201,720
Good
-
VAT Payable (Net) 13,986,738 - - - 13,986,738
About Us
Gratuity 49,419,000 - - 241,114,000 290,533,000

Leave Encashment 819,000 - - 20,349,000 21,168,000
Total 792,321,307 28,201,720 - 1,074,354,246 1,894,877,273
Net Financial Assets 215,787,361 (21,036,126) - (963,014,940) (768,263,705)

Subsidiaries
Statement
Financial
Financial assets
Investments in subsidiaries - - - 110,641,200 110,641,200
Loan to BNTL - 500,000,000 500,000,000
Shareholder
Information
Security Deposits - - 717,146 717,146
Interest Receivable(FD) 727,259 - - - 727,259
Total 362,048,938 511,043,350 - 111,358,346 984,450,634
Reports
Bank overdrafts - - 57,506,926.00 57,506,926
Trade Payable 547,515,364 - - - 547,515,364
Innovation and
Digitization
Trade Deposits - - - 2,176,600 2,176,600
Bonus Payable 48,220,628 - - - 48,220,628
Governance
Good
Interest Payables 336,325 - - - 336,325
VAT Payable (Net) 13,819,529 - - - 13,819,529
Gratuity 30,472,000 - - 201,704,000 232,176,000
About Us
Other Retirement Benefits 5,905,000 - 224,985,940 230,890,940
Total 937,393,505 - - 684,694,175 1,622,087,680
Net Financial Assets (575,344,567) 511,043,350 - (573,335,829) (637,637,046)

COVID-19 pandemic in the country which happens to be peak sales season for the company. The management has assessed the effect of
on revenue and operating result of the company to some extent for next year.
The spread of COVID-19 pandemic has severe impact on global economies including Nepal where businesses were being forced to cease
or limit operations resulting in an economic slowdown. Although, the Government has responded with monetary and fiscal interventions
to stabilize the economic conditions, there is not much relief available to the Company as on date of issue of these financial statements.
Further, the company has assessed its ability to continue as a going concern and reached to conclusion that there is no significant risk
of going concern in near future in view of company’s sound financial health and recovery of business volume post balance sheet date
at pre - Covid-level.
As per our attached
report of even date

B.K. Agrawal & Co.


Subsidiaries
DIRECTOR’S REPORT
Statement
Financial
Dear Shareholders,
Shareholder
Information
The COVID- 19 Pandemic has had an unprecedented impact on Business and the Communities worldwide. Your Company is facing one
of the most challenging times and it has adversely impacted the lives of millions of small and large businesses across the world and the
global economy as a whole. During this crisis, your management team/associates/business partners/suppliers have worked tirelessly
to protect the long-term health of your Company’s business.
Reports
Financial Highlights Key Business Challenges

In FY 2076/77, your Company delivered revenue of NPR 6,796 Global:
Innovation and
which is 84% of last year revenue. Until mid - March, 2020

Global growth is projected at (–)4.9 percent in 2020, 1.9
Digitization
before the Nepal Government announced nationwide lockdown, the

business was making good progress with a growth of 25% in net percentage points below the April 2020 World Economic Outlook
revenue. March- July, 2020 has historically been biggest growth (WEO) forecast. The pandemic has had a more negative impact
months and peak season, but owing to this nationwide lockdown on activities in the first half of 2020 than anticipated, and
announced by Government of Nepal, your Company had a huge the recovery is projected to be more gradual than previously
forecasted and hence, it looks like it will result in deceleration
Governance
setback, resulting in loss of business and revenue during the said

period. Despite these challenges, during the same period, your of the economic growth of the countries worldwide for the rest
of the period of 2020 as well.
Good
Company was able to achieve 33% of last year’s net revenue.
Your company has worked on productivity measures and has Global oil demand fell as lockdowns were imposed to combat
reduced Operational cost and Manpower cost which helped to the Covid-19 pandemic. However, with recent increase in
About Us
achieve NPR 291 MM operating profit even though revenue was Covid-19 cases and the impositions of partial lockdowns, it
down by 16% vs last year. further anticipates more uncertainty to the forecast and various
hurdles on imports of major RMPM and impact on supply chain.
Similarly, devaluation of local currency against Forex, mainly US
Responding with Speed and Agility Dollar has impacted most of our imports.
The COVID -19 pandemic has since swamped our lives and the
way we operate our business. Your Company’s primary focus has Nepal
been first on the safety of its Associates and customers and
on supporting vulnerable people and healthcare workers; second The Government of Nepal had projected Nepalese economy
on securing our business, cash flow and liquidity and planning growth by 7 percent for the year 2020. But due to COVID-19
our way through the clearance and stock up of our products. and its impacts, the estimated growth figures have been revised
And thirdly on ensuring we learn from the crisis and come out and it has projected that the economy would grow by about 2.25
stronger, faster and more competitive for when we bounce back. percent this year. Recently, the Central Bureau of Statistics
(CBS), Nepal has projected that the Nepalese Economy may grow
The lockdowns tested the agility, resilience, and adaptability by negative trend if the lockdown prolongs further. They further
to the new normal. Your Company responded to the challenges predicted that Nepal was likely to lose agriculture production,
with speed and agility and have emerged stronger. All businesses industrial output, and service sector’s contribution. The
worldwide including your Company is now operating in ways that pandemic was likely to generate lower GDP in 2020 with lower
it has never operated before. Your Company has increased our employment, food prone inflation, magnification of poverty in
hygiene across our manufacturing units, distributor points and both rural as well as urban areas. Remittance inflow to Nepal
sales force. The way your associates have been facing and acting from abroad may decelerate sharply (11.6 percentage decrease)
with pace and agility gives us confidence that your Company (source: World Bank) which will see a hit on the balance of
can emerge stronger and faster and create a more streamlined payments and imports.
business. In response to emerge and face this COVID-19
Pandemic, the Management have drawn up the “Rebuild, Rebound Dividend
and Reclaim” program to harness new habits and use the lessons
Due to this on-going Pandemic, Your Directors do not recommend
of this crisis to make new beginnings.
any dividend for the FY 2076/77.

Subsidiaries
Statutory Auditors. Internal Control Framework
M/s B. K Agrawal & Co. Chartered Accountants (Firm Registration Your Company has an efficient and robust system of internal
No. 02) hold office until the conclusion of 34th Annual General controls in place. These controls include internal checks and
Meeting. Your Directors, with the recommendation of Audit audits, along with financial and other control, which is required to
Statement
Financial
Committee Meeting have proposed to appoint M/s CSC & Company carry on the business smoothly and lawfully, whilst safeguarding
(Firm Registration No. 57) (Mr. Bikesh Madhikarmi, Partner), as your Company’s assets in a secure, practical, accurate and
Statutory Auditor for FY 2077-78 with a remuneration of NPR reliable manner.
4,00,000 (excluding VAT and out-of-pocket expenses) (including
taxes), alike last year.
Shareholder
Information
Future Outlook
Your Company has entered into the new fiscal year at a time
Human Resources
when all major economies have been brought to a standstill. The
There has been no increase in the total number of associates – impact has been very fast and widespread, and it is going to
they were 338 on 32nd day of Ashad 2076 and are 332 on 31st day be a challenging year going forward. On the other hand, the
of Ashad 2077. Your Company has been continuing to deal with economic downturn is majorly due to external factors that has
Reports
the challenges faced as a consequence of pandemic, particularly hit the pause button on all economic activities, and we have less
in, ensuring safety, health and wellbeing of the employees. control over it.
Your Company through innovative solution, has been building
Innovation and
capabilities of its frontline and support associates through Despite the uncertainty that surrounds your Company, it will
Digitization
virtual learnings. Some of the initiative undertaken are briefly continue to take actions to protect our performance, conserve
expanded in this Annual Report. cash and plan for future growth. Your Company will be staying
close to its customers, aligning themselves to their evolving
Corporate Governance priorities, staying lean and nimble, finding newer ways to create
value and possibly expand new packs and categories that address
Your Company is committed towards adherence to good corporate
Governance
current imperatives. Many of the innovations that we pioneered
governance. Your Company continues to strive to keep the trust
are of even greater relevance today. The Sales Force Automation
of its stakeholders by being ethical, honest and transparent while
Good
that we launched last year will help your company to leverage
doing business. Your Company has a strict Code of Business
digital technology for growth and transformation agendas.
Conduct and Anti Bribery Policy, which guides its business
Your Company will continue to find opportunities to invest in
conduct, requiring honesty and integrity in all matters. Your
innovations that will help for future growth. Your Company will
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Company’s employees, directors and vendors are required to
consciously drive and maintain its high level of governance and
strictly adhere to the Code of Business Conduct in the workplace
strive towards providing better returns on its investment.
and in the larger community. Your Company regularly monitors
its business to ensure compliance with the Code and the Laws
of the Country. Your Directors also regularly undergo Annual Acknowledgement
Refresher Training to update themselves with the Laws of the Your Directors thank all of the associates for their tenacity,
Country. A Report on Corporate Governance is detailed, in the perseverance and dedication in one of the toughest years in
latter part of the Annual Report separately. our history. Your Directors also place a special thanks to the
Government of Nepal, particularly Ministry of Industry, Commerce
Corporate Sustainability & Supplies, Department of Industry, Nepal Police, District
Administration Office, Securities Board of Nepal, Nepal Stock
Your Company is committed to system’s overall purpose-To
Exchange, Office of Company Registrar and Inland Revenue
refresh the world and make a difference, which includes
Department. It has been a tough year, with the increasing number
our beverages and the work we do to enhance interconnections
of COVID-19 cases globally and in Nepal, your Company continues
with our communities and the activities we do. The Corporate
to strive to achieve and grow its business. We appreciate your
Sustainability activities of your Company continue to resonate
patience and are determined to accelerate the changes we
with the Nation’s priorities and the sustainability strategy ensures
committed to.
to adopt the right approach to serve our stakeholders better. The
Pandemic has reinforced the importance of Sustainability and
why it matters now, more than ever. Your company continues to AS PER SEC 109 OF COMPANIES ACT, 2006(2063)
implement projects and process improvements despite all the
(a) Review of the transactions of the Previous Year:
Covid-19 restrictions, with required precautions. Your company
will continue to nurture existing partnerships and build new As covered above under the “Financial Highlights” sections.
collaborations, to modify/amplify efforts to the changing needs
of our communities and environment. Details of your company’s (b) Impact, if any, caused on the transactions of the
contribution in shaping the sustainability vision are in the Company from National & International Situations;
Corporate Sustainability report, in the latter part of the Annual As covered above under the “Key Business Challenges”
Report. section.

Subsidiaries
(c) Achievements in the current year as at the date of (l) Disclosures made by the substantial shareholders of
report & opinions of the Board of Directors on matters the Company to the Company in the previous financial
to be done in the future; year;
As covered above under “Financial Highlights” and “Future None
Outlook” section.
Statement
Financial
(m) Details of shareholding taken by the directors and

(d) Industrial or Professional Relations of the Company; officers of the Company In the previous financial
During the year, the relationship of the Company with its years and, in the event of their involvement in share
employees was harmonious resulting in no strike. transaction of the Company, details of information
Shareholder
received by the Company from them in that respect;

Information
(e) Alterations in the Board of Directors and the reasons None

therefore;
(n) Details of disclosures made about the personal
During the year under review, the holding Company, Bottlers
interest of any director and his / her close relative
Nepal Limited had withdrawn their earlier nomination
in any agreement related with the Company during the
Reports
of Mr. Sundeep Bajoria and in their place nominated Mr.

Melvin Tan Chun Pin w.e.f 21st April, 2020.
None
(f) Major things affecting the transactions;
Innovation and
(o) In the event that the Company has bought its own
Digitization
As covered above under “Key Business Challenges”

shares (buy-back), the reasons for such buy-back,
number & face value of such shares, and amount paid
(g) If there are any remarks in the Audit Report, the by the Company for such buy-back;
comments of the Board of Directors on such remarks;
None
None
Governance
(h) Amount recommended for payment by way of Dividend; (p) Whether there is an internal control system in place
or not and, details of such system, if it is in place;
Good
The Board of Directors has not proposed any dividend to the

shareholders of the Company for the Fiscal Year 2076/77. As covered under the "Internal Control Framework” Section.
(q) Details of total management expenses during the

About Us
(i) In the event of forfeiture of shares, details regarding

the number of forfeited shares, face value of such previous financial years;
shares, total amount received by the Company for
such shares prior to the forfeiture thereof, proceeds Particulars NPR MM
of sale of such shares after the forfeiture thereof, Salaries, wages and other employee cost 46
and refund of amount, if any, made for such forfeited Administrative Expenses 106
shares; Total 152
NIL
(r) Name list of the members of Audit Committee,
remuneration, Allowances and facilities received
(j) Progress of transactions of the Company and of its
by them, details of the functions performed by that
subsidiary company(ies) in the previous financial year
committee, and details of suggestions, if any, made
and, review of the situation existing at the end of that
by that committee;
financial year;
Please refer to Audit Committee details under Corporate
As covered above under various Sections.
Governance Section.
(k) Major transactions completed by the Company and its
subsidiary company(ies) in the financial year and any (s) Amount, if any, outstanding & payable to the Company
material changes taken place in the transaction of the by any director, managing director, chief executive,
Company during that period: substantial shareholders or, his/her close relative or,
by any firm, company, corporate body in which he/she
Holding Company Transactions NPR is involved;
Bottlers Nepal Sale/Purchase of Raw None
4,784,220/-
Limited Materials
Payment of Product (t) Amount of remuneration, allowances & facilities paid
transfer fee on to the directors, managing director, chief executive &
Bottlers Nepal
account of sales made 34,961,566/- officer;
Limited
in their respective
territories Remuneration, allowances and facilities given to Directors,
Managing Director and Key Managers during the year:

Subsidiaries
NPR (In MM)
Director's Fees & Facilities - 0.26 - 0.26
CEO - - - -
Statement
Key Managers 7.43 11.79 0 19.22
Financial
Total 7.43 12.04 0 19.47
Notes: All the facilities provided to the Managers are as per the policy of the Company.
(u) Amount of Dividends remaining unclaimed by the (y) Other necessary matters;
Shareholder
Information
shareholders; i. Information (if any) regarding existence of any relative
Unclaimed dividend that has crossed the period of 5 of Companies director or official currently working in
years is transferred to Investor Protection Fund. During Office of the Company's Registrar ("OCR"), Securities
the year under review, we had deposited amount of NPR Board or any other regulatory body concerning the
230,713/- for FY 2070/71 at Investor Protection Fund on Company in Officer or higher capacity.
Reports
2077.03.18. The Total Unclaimed dividend as on Ashad We have not received any such information from any of
31, 2077 (15 July, 2020) is NPR 3,158,944.75/-. All these the official or director of your Company.
unclaimed dividends are transferred to your Company’s
ii. Information (if any) regarding any fines paid by any
Share Registrar, M/s Nabil Investment Banking limited for
Innovation and
distribution to Shareholders.
Digitization
to OCR in violation of Sec. 82 of the Act including
information about the amount paid.
(v) Details of sale and purchase of properties pursuant to
Section-141: None
None On behalf of the Board of Directors,
Governance
(w) Details of transactions carried on between the
Good
Associated Companies pursuant to Section-175;
Shukla Wassan Neeraj Rimal
None
Chairperson Director
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(x) Any other matters required to be laid out in the report Date: 11th November, 2020
of Board of directors under this Act and the prevailing
laws;
As per page no. 35 of BNTL Annual Report.

126

127
128

129
Subsidiaries

Statement
Financial
Figures in NPR
ASSETS
Shareholder
Non-Current Assets:
Information
Non Financial
Financial Assets
Advances 6 974,838 6,637,405
Reports
Current Assets:
Non Financial
Inventories 7 1,086,797,708 861,125,131
Innovation and
Prepayments 8 79,612,397 61,957,795

Digitization
Advances 8.1 571,174,477 285,796,278

Other Current Assets 8.2 - 2,887,216
Income Tax Receivable 9 15,946,433 23,187,133
Financial Assets
Other Current Assets 8.3 9,554,270 3,730,882
Governance

Good

Total Assets 8,323,076,209 7,746,715,786

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Equity:
Liabilities:
Non-Current Liabilities:
Non Financial
Deferred Tax Liablity 5.3 34,586,402 79,319,825
Financial Liabilities:
Non current Borrowing 15.1 1,700,407,009 958,958,221
Current liabilities:
Borrowings 15.2 2,245,573,508 1,599,290,236
Trade Payables 15.3 763,648,576 1,437,273,968
Other Financial Liabilities 16 800,769,335 887,413,843
For & on Behalf of the Board As per our attached
report of even date
Chairperson Chief Executive Officer Managing Partner
B.K. Agrawal & Co.
Neeraj Rimal Ashok Mandal

Subsidiaries
Statement
Financial
Figures in NPR
Revenue from Operations 18 4,693,349,428 5,581,385,389
Shareholder
Information
Gross Profit 1,190,294,118 1,728,037,557
Other Operating Income 20 154,617,801 229,794,500

Selling and Distribution Expenses 21 (901,717,570) (1,128,079,800)
Administrative and Operating Expenses 22 (151,951,685) (161,323,398)
Profit from Operations 291,242,664 668,428,859
Reports
Finance Costs 23 (298,791,590) (60,172,668)
Finance Income 24 15,807,170 16,408,162
Innovation and
Profit Before Tax 8,258,244 624,664,353
Digitization
Income Tax Expense
Curent tax 5.1 (42,606,240) (110,273,958)
Prior period tax adjustments 5.1 235,640 (16,632,000)
Deferred Tax 5.2 39,742,063 (44,215,611)
Net Profit for the year 5,629,707 453,542,784
Governance
Basic/Diluted Earnings per share 25 5 375
Good
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For & on Behalf of the Board
As per our attached

report of even date

B.K. Agrawal & Co.
Neeraj Rimal Ashok Mandal Chartered Accountants


Subsidiaries

Statement
Financial
Figures in NPR
Shareholder
Net Profit/(Loss) for the year as per Statement of Profit or Loss 5,629,707 453,542,784
Information

Reports
Innovation and
Digitization

Governance
As per our attached

Good
report of even date

About Us

B.K. Agrawal & Co.


Subsidiaries
Statement
Financial
Figures in NPR
A. CASH FLOWS FROM OPERATING ACTIVITIES
Shareholder
Profit for the year 8,258,244 624,664,353
Information
Loss/ (gain) on sale/write off of Property, Plant and Equipment (2,642,447) (3,513,662)
Finance income (15,807,170) (16,408,162)
Reports
Finance costs 298,791,590 60,172,668
Prior Period Items (5,922,711) (13,720,938)
Innovation and
Digitization
Increase / (Decrease) in trade payable and other liabilities (775,368,378) 959,369,840
Decrease / (Increase) in trade and other receivables 12,081,624 36,846,749
Decrease / (Increase) in inventories (225,672,577) 23,804,163
Governance
Cash generated from operations (409,438,016) 1,989,315,382
Good
NET CASH FLOWS FROM OPERATING ACTIVITIES (A) (444,567,916) 1,851,360,731
B. CASH FLOWS FROM / (USED IN) INVESTING ACTIVITIES
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Acquisition of Property, plant and Equipment (617,735,866) (3,619,191,676)
Purchase of Intangibles (36,838,662) (431,690)
NET CASH FLOWS FROM INVESTING ACTIVITIES (B) (631,206,274) (3,584,683,150)
C. CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of Borrowings 1,387,732,060 2,061,639,687
Interest paid (295,003,373) (53,320,368)
Dividend paid (48,400,000) (48,400,000)
NET CASH FLOWS FROM FINANCING ACTIVITIES ('C) 1,044,328,687 1,959,919,319

CASH AND CASH EQUIVALENTS, End of Year 219,747,662 251,193,165

As per our attached
report of even date

B.K. Agrawal & Co.


Subsidiaries

Statement
Financial
Figures in NPR
Particulars Share Capital Securities Actuarial Retained Total
Premium Reserve reserve * Earnings
Shareholder
Information
Balance as at 1st Shrawan 2075 121,000,000 952,000 - 1,865,081,424 1,987,033,424

Profit for the year - - - 453,542,784 453,542,784
Other comprehensive income - - (37,506,840) (37,506,840)
Dividends - - - (48,400,000) (48,400,000)
Prior Period Items; -
Interest and Penalty of VAT on CDL (13,720,938) (13,720,938)
Reports
Balance as at 31st Ashad, 2076 121,000,000 952,000 (37,506,840) 2,256,503,270 2,340,948,430

Profit for the year - - 5,629,707 5,629,707
Innovation and
Other comprehensive income - - (26,204,640) (26,204,640)

Digitization
Dividends - - (48,400,000) (48,400,000)
Prior Period Items;

Interest and Penalty on Tax - - (5,922,711) (5,922,711)
Governance
Balance as at 31st Ashad, 2077 121,000,000 952,000 (63,711,480) 2,207,810,266 2,266,050,786

Good
*Actuarial reserve created out of OCI component - actuarial loss on defined benefit plans.
Reinstatement has been made only in respect of OCI component for FY 75-76 and FY 76-77 due to unavailability of opening actuarial reserve in
actuary report for FY 75-76.
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As per our attached

report of even date

B.K. Agrawal & Co.


Subsidiaries
Statement
Financial
Bottlers Nepal (Terai) Limited (“Company”) is a public limited Company listed on the Nepal Stock Exchange Ltd incorporated under the
Companies Act of Nepal. The registered office of the Company is located at Balaju Industrial District, Balaju, Kathmandu, Nepal and
regional office is located at Bharatpur, Chitwan, Nepal.
Shareholder
Bottlers Nepal (Terai) Limited is a licensed bottler, marketer and distributor of non-alcoholic beverages products of The Coca-Cola
Information
Company, Atlanta. The Board of Directors has approved the financial statements for issue on its meeting held on 11th November 2020
(26th Karthik 2077) and has recommended for approval of shareholders in the forthcoming Annual General Meeting.
Reports
the International Accounting Standard Board (IASB). The financial statements have been prepared on a going concern basis.
Innovation and
This section describes the critical accounting judgement that the company has identified as having potentially material impact on the
Digitization
company’s financial statements and sets out our significant accounting policies that relate to the financial statements as a whole.
company’s accounting policies require the management to exercise judgement in making accounting estimates.
Governance
Good
The financial statements are prepared on a historical cost.
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2.3 Presentations
• Expected to be realized or intended to be sold or consumed in normal operating cycle,
reporting period


The company operating cycle has been defined as twelve-month period.
The statement of profit or loss has been prepared using classification ‘by function’’ method.

Subsidiaries

Statement
Financial

NFRS requires adoption of accounting policies that are most appropriate to the company’s circumstances determining and applying
Shareholder
Information
accounting estimate or assumption to be followed could materially affect the company’s reported financial position, results or cash flows.
requires disclosures of accounting policies or changes in accounting policies. Effect and nature of the changes have been disclosed
wherever required.
Reports

The preparation of financial statements in line with applicable NFRS which requires management to make judgments, estimates and
Innovation and
Digitization
by the management.
Governance
Good

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Particulars Nepalese CalendarDate/Period Gregorian Calendar Date/Period
SFP* Date 31st Ashad 2077 15th July 2020
Current Reporting Period 1st Shrawan 2076 – 31stAshad 2077 17th July 2019– 15th July 2020
Comparative SFP* Date 31st Ashad 2076 16th July 2019
Comparative reporting period 1st Shrawan 2075 – 31st Ashad 2076 17th July 2018– 16th July 2019

2.8 Lease
payable under the lease are charged to the profit or loss statement over the lease term. The Company has leased one plot of godown
for 10 years from Green Hand Nepal Pvt. Ltd., Kathmandu. These lease agreements can be extended with mutual consent after the
expiry of the initial lease term. There is no purchase option and no fixed escalation clause, however both parties have right to review
the lease term after the end lease period. Future minimum lease payable under non-cancellable operating leases as at balance sheet
date are as follows:
Figures in NPR
Less than One Year 38,635,110 32,376,292
One Year to Five Years 167,191,552 140,364,931
More than Five Years 120,699,739 45,314,712
Total 326,526,401 218,055,935

Subsidiaries
Statement
Financial
Figures in NPR
Particulars Computer Software Intangible assets under development Total
Cost
Shareholder
Information
Additions 36,838,662 36,838,662 73,677,324
Disposals/Adjustments (673,367) (36,838,662) (37,512,029)
Balance at 31st Ashad 2077 121,093,674 - 121,093,674
Balance at 1st Shrawan 2076 44,693,672 - 44,693,672
Reports
Disposals/Adjustments (78,560) - (78,560)
Balance at 31st Ashad 2077 66,606,801 - 66,606,801
Innovation and
Digitization
Computer software costs are amortized based on expected useful life which is estimated as 5 years (the estimate is being reviewed
Governance
periodically). Costs associated with maintaining software are recognized as expenses as and when incurred. At each statement of
financial position date, these assets are assessed for indication of impairment. In the event that an asset's carrying amount being
Good
development. Software is capitalized upon successful test run and after meeting recognition criteria.
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138

4. Property, Plant & Equipment
Figures in NPR
Cost
Opening balance at 1st Shrawan 2076 699,891,102 4,715,505,197 67,075,910 679,171,086 1,107,088,061 17,591,010 534,733,889 7,821,056,257
Additions 661,476,092 95,126,647 5,614,169 193,087,227 149,324,476 - 617,735,866 1,722,364,477
Transfer to asset block (1,104,628,611) (1,104,628,611)
Disposals (17,688,663) (3,889,810) - - (6,382,121) - (27,960,594)
Adjustments - - - 25,092,790 - - - 25,092,790
Closing balance at 31st Ashad 2077 1,343,678,531 4,806,742,034 72,690,079 897,351,103 1,250,030,416 17,591,010 47,841,144 8,435,924,319
Depreciation and impairment losses
Opening balance at 1st Shrawan 2076 138,965,293 863,702,582 22,595,349 172,258,435 536,118,865 11,217,954 - 1,744,858,478
Charge for the year 30,593,210 233,103,659 4,882,239 93,644,328 168,596,028 - - 530,819,464
Disposals (17,330,078) (404,246) - - (5,610,950) - - (23,345,274)
Adjustments - - - 24,656,365 - - - 24,656,365
Closing balance at 31st Ashad 2077 152,228,425 1,096,401,995 27,477,588 290,559,128 699,103,943 11,217,954 - 2,276,989,033
Net Block
Closing Balance at 31st Ashad 2077 1,191,450,106 3,710,340,039 45,212,491 606,791,975 550,926,473 6,373,056 47,841,144 6,158,935,286
Closing Balance at 31st Ashad 2076 560,925,809 3,851,802,615 44,480,561 506,912,651 570,969,196 6,373,056 534,733,889 6,076,197,779

Subsidiaries
Property, Plant and Equipment are initially measured at cost in the statement of financial position. These are inclusive of all cost
Statement
Financial
excluding any recoverable taxes less any subsequent accumulated depreciation and subsequent accumulated impairment losses, if
applicable for each class of assets. Property, Plant and Equipment are recognized as an asset, if and only if it is probable that future
economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably.
Cost includes the purchase price and other directly attributable costs of Property, Plant and Equipment. Cost also includes the cost of
Shareholder
Information
replacing part of the Plant and Equipment and borrowing costs for long-term construction projects if the recognition criteria are met.
When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based
Plant and Equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in
profit or loss as incurred. If an item of Property, Plant and Equipment consists of several components with different estimated useful
Reports
Innovation and
the respective asset if the recognition criteria under NAS 16 and IFRIC 1. Management determines that such cost is not material thus
Digitization
are not considered.
Assets under construction are carried at cost, less any recognized impairment loss, if any. Depreciation on these assets will commence
when these assets are ready for their intended use and classified under specific asset category.
The company has made a provision for missing/obsolesce assets during previous financial years and its carrying gross value together
Governance
with the relevant accumulated depreciation has been adjusted in the opening specific block of assets wherever required. Post appropriate
Good
approval, the individual item of assets is/will be written off from Fixed Assets Register.
The company has registered first legal mortgage covering all fixed assets including the land and building owned by the company at Plot
No. 22, 97, 99, 341, 335, 337, 339, 999, 1001 and 1003 at ward No. 6 Bharatpur Municipality, Chitwan, Nepal in order to avail banking
About Us
facilities including term loan, Overdraft, Letter of credit etc. Also, the company has provided hypothecation of specific charge over
plant and machineries to bank.
4.1 Depreciation
Depreciation on items of Property,Plant and Equipment is calculated on the straight-line method based on the useful life of the assets
estimated by the management. Depreciation on additions to Property, Plant and Equipment is provided on pro-rata basis in the year of
purchase when the asset is ready to use. The residual values, useful lives and the depreciation methods of assets are reviewed at least
at each financial year end and, if expectations differ from previous estimates are accounted for as a change in accounting estimates
in accordance with NAS 8. If an item of Property, Plant and Equipment consist of several components with different useful lives, those
components that are significant are depreciated over their individual useful life

Cooler Cooler 9
Crates Containers 8
*Other Assets majorly include transformers, electrical installations and soft drink analyzer.

Subsidiaries


Statement
Financial
Shareholder
Information
4.2 De-recognition
An item of Property, Plant and Equipment is de-recognized on disposal or when no future economic benefits are expected from the
use of that asset. The gain or loss arising from the disposal of an item of Property, Plant and Equipment is the difference between net
disposal proceeds, if any, and the carrying amount of that item and is recognized in the statement of profit and loss.
Reports

The expenditure incurred in acquisition and installation of new systems and equipment till the date of commissioning or civil works
under construction till the date of completion is recognized as Capital work-in-progress. Equipment are capitalized upon commissioning
Innovation and
and civil works are capitalized upon handing over after being capable of being used.Coolers and other assets purchased by the company
Digitization
is capitalized in books only after the assetis put to useby the entity for its operations.
Figures in NPR
Coolers 15,837,533 36,335,388
Machinery 10,332,837 350,571,470
Governance
Crates 6,709,063 -
Good
Post Mix 5,992,550 -

Furniture & Fixtures 4,981,775 -
CO2 Cylinders 2,065,886 -
Plastic Pallets 1,900,000 392,718
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IT Equipments 21,500 24,324,267

Construction of Office Block - 115,274,846
Design - Civil (ASSP Line) - 7,835,200
Total 47,841,144 534,733,889
4.4 Borrowing Cost

FY 2076-77
The Company has capitalized borrowing cost amounting to NPR 27,690,788 to Property, Plant and Equipment for the year ended 15-July-
2020. The asset wise details of borrowing cost included in the costs of major heads of Property, Plant and Equipment are as follows:
Figures in NPR
Plant Building 17,398,510
Office Building 5,545,945
Total 27,690,788
FY 2075-76
The Company has capitalized borrowing cost amounting to NPR 91,454,668 to Property, Plant and Equipment for the year ending
16-July-2019.The asset wise details of borrowing cost included in the costs of major heads of Property, Plant and Equipment are as
follows:
Figures in NPR
Building 337,936
Office Building 20,580
Capital Work in Progress 2,820,072
Total 91,454,668

Subsidiaries
5. Income Tax
Statement
Financial
Figures in NPR
Shareholder
Information
Adjustment for prior periods (235,640) 16,632,000
Total 42,370,600 126,905,958
5.2 Deferred Tax
Reports
Figures in NPR
Origination and reversal of temporary differences (39,742,063) 44,215,611
Innovation and
Total (39,742,063) 44,215,611
Digitization
5.3 Deferred Tax Liability
Deferred tax is calculated on temporary differences using the effective future tax rate of 16% (PY 16%). Deferred tax liabilityhas been
recognized in respect of all loss and other temporary differences giving rise to deferred tax liability where the management believe it
is probable that these assets and liabilities will be adjusted.
Governance
FY : 2076 - 77 Figures in NPR
Good
3 Retirement benefit provision (490,061,973) - 490,061,973
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4 Provision for Expenses to be claimed on actual expenditure (8,611,918) - 8,611,918
5 Income tax business loss carry forward (573,542,371) - 573,542,371
Tax Rate 16% (34,586,402)
FY : 2075 - 76 Figures in NPR

2 Provisions for Expenses (417,463,083) - 417,463,083
Tax Rate 16% (79,319,825)
Deferred tax provision recognised (34,540,121)
Adjustment of PY 2,531,329
Charge/(Credit) to PL 44,215,610

Subsidiaries

5.4 Reconciliation
Statement
Financial
Reconciliation of current tax expense and the accounting profit multiplied by Company’s tax rate for the year.
Figures in NPR
Shareholder
Accounting profit before income tax 8,258,244 624,664,353

Information

Total profit as per Income Tax 170,424,960 1,048,334,656
Tax Rate 25% 16%
Current tax expenses 42,606,240 167,733,545
Reports
The company is special industry as defined u/s 11 of Income Tax Act 2058, the normal applicable tax rate for which is 20%. Company
has further availed rebate of 20% provided to special industries employing 300 or more Nepalese employees during the year. Therefore
tax rate applicable for income from special industy is 16%. However, income tax rate for income from other than special industry is
applicable for 25%.
Innovation and
Digitization
During the current year, the entity has incurred loss from special industries and income from non special industy. As per Section
20(1) of Income Tax Act 2058, loss from one business can be set off against income from another business.
6. Non - Current Financial Advances

Governance
Figures in NPR
Good
Advances to Employees 974,838 6,637,405

Total 974,838 6,637,405
About Us
7. Inventories
Figures in NPR
Raw materials 683,406,078 451,351,638
Work-in-process 141,023 5,487,144
Finished goods 107,623,129 148,197,508
Consumables 295,627,478 256,088,841
Total 1,086,797,708 861,125,131
realizable values.
In determining the cost of raw materials and packing materials, First in First Out (FIFO) method is used. Cost of inventory comprises
of all costs of purchase, duties, taxes (other than those subsequently recoverable from tax authorities), cost of conversion and other
costs incurred in bringing the inventories to their present location and condition.
variable production overheads incurred in bringing the inventory to their present location and condition. Finished goods are valued based
on weighted average method.
Inventories are presented net of allowance for obsolescence and other possible depletion in value or other losses. Allowance adjustments
are made for those inventories identified by management as obsolete based on 10 Year Aging or technical evaluation whichever is earlier.

Subsidiaries
8. Current Non-Financial Assets – Prepayments
Statement
Financial
Figures in NPR
Shareholder
Information
Prepaid Expenses 79,612,397 61,957,795
Total 79,612,397 61,957,795
8.1 Current Non-Financial Assets - Advances

Figures in NPR
Reports
Innovation and
Balances with statutory/Government authorities 160,566,000 95,034,750
Digitization
Total 571,174,477 285,796,278
8.2 Current Non-Financial Other Assets

Figures in NPR
Governance
Receivable against unsettled Claims - 2,887,216
VAT Receivable (Net) - -
Good
Total - 2,887,216
Receivable against unsettled claim consist of amount receivable from tax authorities pertaining to Vat and Excise duty claim of
About Us
Finished goods stock write off during the year.
8.3 Current Financial Other Assets

Figures in NPR
Interest Income Receivables 543,504 688,438
Total 9,554,270 3,730,882

(a) cash
entity; or
(i) a non-derivative for which the entity is or may be obliged to receive a variable number of the entity's own equity instruments;
or
(ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for
a fixed number of the entity's own equity instruments.

Subsidiaries

Statement
Financial

Shareholder
Information
The company only holds financial assets meeting the recognition criteria of Loans & receivables classification. These instruments are
Financial assets of the company comprise of advances, other current assets, Trade receivables and cash & cash equivalents. These
Reports
Innovation and
Risks associated with Financial Instrument - Financial Assets

Digitization
given is Note 31.
9. Income Tax Receivables

Governance
Figures in NPR
Good

Total 15,946,433 23,187,133
About Us
10. Trade Receivable

Figures in NPR
Trade receivables:

Total 125,846,265 133,768,295

Trade receivablescomprises of amount receivable from our customers and are non-interest bearing and are generally on terms of 15
to 90 days.

It includes transactions with group companies and key managementpersonnel which are disclosed in Note 30.
10.3 Impairment of financial assets

For allowances, assets with a potential need for a write-down are grouped together based on similar credit risk characteristics, tested
collectively for impairment, and written down, if necessary. Estimated irrecoverable amounts are based on the ageing of the receivable
balances, taking previous cases of default into consideration and historical experiences.

Subsidiaries
Statement
Financial
Figures in NPR
Balances with Banks
Shareholder
Information
Cash on hand 89,420 230,990
Total 219,747,662 251,193,165
Balances with banks comprises of amount held by the banks as margin money - 13,066,639
deposits against Letter of Credits
Reports
Short-term deposits are made for varying from one day to three months, depending on the cash requirements of the Company, and earn
Innovation and
interest at the respective short-term deposit rates.
Digitization
12. Share Capital
Governance
Good
Authorized
Ordinary shares of Rs. 100 each 31,210,000 3,121,000,000 31,210,000 3,121,000,000
About Us
Issued and Paid Up
The shareholding pattern of the company is as follows

Bottlers's Nepal Limited 1,098,472 90.78% 1,098,472 90.78%
Total 1,210,000 100.00% 1,210,000 100.00%
Share issue expenses have not been netted off against the capital collected as these pertain to periods of initial establishment of
the company and such expenses have been charged off during those periods. The management considers that the cost of obtaining
information is more than the benefits derived and the effect of such the amounts to be immaterial.

Figures in NPR
Share Premium 952,000 952,000
Total 2,145,050,786 2,219,948,429
i) Premium of Rs.20 each on 47,600 ordinary shares.

Subsidiaries


Statement
Financial

Figures in NPR
Shareholder
Information
Salaries, wages and other employee cost

Defined Contribution Plan cost

Reports

Innovation and

Digitization

Total Employee Cost charged to SoPL for the Period 594,980,728 612,851,726
Governance
Total Employee Cost for the Period 626,176,728 657,502,726
Good

The company operates number of defined benefit and defined contribution plans for its employees of the company. The defined benefit
plan of the company includes leave encashment expenses, expenses pertaining to gratuity and other retirement benefits.
About Us

Current Service cost - 2,275,000 18,559,890 20,834,890
Interest Charge 17,082,000 996,000 12,428,000 30,506,000
Paid (6,628,000) (505,000) (2,805,000) (9,938,000)
Acturial (gain)/loss during the year (recognised in OCI) 29,512,000 299,000 1,385,000 31,196,000
Charge to SoCI 29,512,000 299,000 1,385,000 31,196,000

Interest Charge 14,080,000 727,000 9,257,000 24,064,000
Paid (2,396,000) (102,000) (1,204,000) (3,702,000)
Acturial (gain)/loss during the year (recognised in OCI) 20,318,000 1,195,000 23,138,000 44,651,000
Charge to SoCI 20,318,000 1,195,000 23,138,000 44,651,000

Subsidiaries
Current and Non-Current Liability Breakup
Statement
Financial
Shareholder
Information
Non Current (Asset)/ Liability 223,729,183 15,666,000 191,043,790 430,438,973

Reports
Non Current (Asset)/ Liability 205,548,183 12,932,000 168,954,900 387,435,083
Innovation and
14.2 Defined Plan Benefit
Digitization
The defined benefit plans of the group include Gratuity, Leave Encashment Entitlements and Other Retirement benefits.
14.2.1 Gratuity
Gratuity for existing employees has been provided as per the actuarial assessment. The assessed amount has been recognized as
liabilities. The gratuity scheme is computed on below basis: -
Governance
Good
Vesting period 3 years
About Us
B. Gratuity Benefit on or after 4th September 2017:
Vesting period No vesting applicable
Benefit on normal retirement/ early retirement/death/ disability in service 8.33 % of Basic Salary per month for each year of service

Subsidiaries


Statement
Financial
experience and discounting the long-term obligations at the end of each reporting period. Sick leave of 1.5 times the last drawn monthly

Shareholder
Information
Other retirement benefits include three days’ basic salary computed based on completion of 17 yrs. compulsory retirement or 20 years
actuarial assumptions. The assumptions made are the growth rate derived from the past experience and discounting the long-term

Reports

Innovation and
Digitization
Effect on DBO due to 0.5% increase in discount rate (6,533,000) (736,000) (8,203,000) (15,472,000)
Effect on DBO due to 0.5% decrease in discount rate 6,927,000 800,000 8,919,000 16,646,000
Effect on DBO due to 0.5% increase in salary escalation rate 6,176,000 780,000 8,671,000 15,627,000
Effect on DBO due to 0.5% decrease in salary escalation rate (5,885,000) (724,000) (8,063,000) (14,672,000)
Governance

Good
Effect on DBO due to 0.5% increase in discount rate (5,681,000) (585,000) (7,287,000) (13,553,000)
Effect on DBO due to 0.5% decrease in discount rate 5,974,000 644,000 7,902,000 14,520,000
About Us
Effect on DBO due to 0.5% increase in salary escalation rate 5,318,000 595,000 7,286,000 13,199,000
Effect on DBO due to 0.5% decrease in salary escalation rate (5,112,000) (554,000) (6,796,000) (12,462,000)
The above sensitivity analysis is based on a change in an assumption while holding all other assumption constant. In practice, this is
unlikely to occur and changes in some of the assumption is correlated. When calculating sensitivity of the defined benefit obligation to
significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with projected unit credit
method at the end of reporting period) has been applied while calculating the defined benefit liability recognized in the balance sheet.

Expected average remaining working Expected average remaining working
life of the employees based on life of the employees based on
Future service
withdrawal rate and retirement age withdrawal rate and retirement age
taken as 8 years taken as 8 years
In accordance with the standard In accordance with the standard
Mortality table, Nepal Assured Lives Mortality table, Nepal Assured Lives Mortality
(2009) (modified) Ultimate Rates (2009) (modified) Ultimate Rates

Defined benefit obligations are not funded and there are no Defined Benefit Plan Assets. The company is in the process of creating a
separate fund for meeting the defined benefit obligations.


Subsidiaries
15. Financial Instruments – Financial Liabilities
Statement
Financial
Shareholder
Information
entity; or
or
Reports
Innovation and
Digitization
Governance
Good
About Us
15.1 Non-Current Borrowings
Figures in NPR
Secured Bank Loan 2,270,407,009 1,528,958,221
Less; Current Maturity Portion (570,000,000) (570,000,000)
Total 1,700,407,009 958,958,221
15.2 Current Borrowings

Figures in NPR
Bank Overdrafts 1,025,573,508 529,290,236
Current Portion of Term Loan 570,000,000 570,000,000
Loan from BNL 650,000,000 500,000,000
Total 2,245,573,508 1,599,290,236
Bank Overdraft are secured against all movable properties/Current assets including inventory & trade Receivables.
The Company has obtained loan from Bottlers Nepal Limited as per Agreement made on 12th Feb 2018 (Amended on 10th July 2019).
Interest on Outstanding Principal amount of loan shall accrue at the interest rate of not less than the prevailing bank rate (Standard
Chartered Bank, Nepal) at the time of payment.
15.3 Trade Payables

Figures in NPR
Trade Payable 388,360,125 1,021,158,785
Total 763,648,576 1,437,273,968

Subsidiaries


Statement
Financial
given in Note 31.
Shareholder

Information
Figures in NPR
Reports
Trade Deposits 2,249,430 1,974,430

Bonus Payable 825,823 63,136,186
Innovation and

Digitization

Interest Payables 12,200,612 8,412,395
VAT Payable (Net) 1,604,992 1,977,423
Total 800,769,335 887,413,843
Governance
Breakup of provision for expenses:

Good

Provision_General 64,427,694 117,724,713
Provision_Freight 3,235,560 809,672
About Us
Provision_Discount 47,552,382 56,876,019

Provision_DME 6,498,000 11,772,220
Provision_Leakage & BBD 26,441,556 6,399,129
Total 148,155,192 193,581,753
Provisions are recognized when the company has a present obligation, legal or constructive, as a result of a past event, it is probable
reporting date.

The fund created for CSR is to be utilized on the basis of annual plans and programs in the sectors that are prescribed under the
Act. The progress report of the utilization of the fund collected for CSR is required to be submitted to the Department of Industries
registered within six months from expiry of the �nancial year.
The company has provided provision for CSR at the rate of 1 % of profit before tax amounting to Rs 74,324 for FY 76-77.

Subsidiaries
17. Other Non- Financial Liabilities
Statement
Financial
Figures in NPR
Total 21,978,620 26,048,181
Shareholder
Information
18. Revenue
Figures in NPR
Reports
Sale of goods 5,282,715,335 6,274,168,758
Less: Discount (589,365,907) (692,783,369)
Total 4,693,349,428 5,581,385,389
Innovation and
Digitization
18.1 Sale of Goods
are met i.e. when the significant risks and rewards of ownership of the goods have transferred to the buyer, with the Company retaining
neither continuing managerial involvement to the degree usually associated with ownership, nor effective control over the goods sold.
Governance
Revenue is measured at the fair value of the consideration received or receivable net of trade discounts. Revenue include all revenue
from ordinary activities of the company that are recorded net of Value Added Taxes and Excise Duty collected from the customer that
Good
are remitted or are to be remitted to the government authorities.
About Us
19. Cost of goods sold
Material consumed
Raw materials
At 1st Shrawan 451,351,638 480,621,674
Purchase 2,463,692,755 2,928,418,087
Less: Transfer to Bottlers Nepal Ltd. (4,784,220) (111,404,698)
At 31st Ashad (683,406,078) (451,351,638)
Total raw material consumed 2,226,854,095 2,846,283,425
Work in process
At 1st Shrawan 5,487,144 6,250,417
At 31st Ashad (141,023) (5,487,144)
Net change in work-in-process 5,346,121 763,273
Production and manufacturing overheads 1,230,280,715 1,075,044,390
Finished goods
At 1st Shrawan 148,197,508 79,454,252
At 31st Ashad (107,623,129) (148,197,508)
Net change in finished goods 40,574,379 (68,743,256)

Subsidiaries

19.1 Production and Manufacturing Overheads

Statement
Financial
Figures in NPR
Sick Leave 2,329,000 1,868,000
Shareholder
Information
Provident fund 5,850,008 4,633,772

Gratuity 12,344,000 16,796,000
Reports
Office expenses 23,566,121 20,938,430

Consumables 45,387,988 57,264,553
(Gain)/Loss on sale/write off of Property, Plant and Equipment (572,361) 1,983,029
Innovation and
Power & Fuel 116,502,445 131,328,130

Digitization
Legal and other professional fees 432,779 772,321

Total 1,230,280,715 1,075,044,390
Governance
Good

Figures in NPR
About Us
Product transfer fee 34,961,566 105,779,430

Sale of Scrap 13,553,416 19,348,521
Total 154,617,801 229,794,500
20.1 Product Transfer Fee

The Company and Bottlers Nepal Ltd, its Parent Company, can sell their products in their respective market territories only. In respect
of sales made by the Company and its holding, in market territory of the other Company, a product transfer fee (gross) at the rate of
12 % (Previous year 12 %) of net liquid sales revenue is recovered/ paid. Product transfer service fee is recognized/ charged to income
statement as and when sale of goods is affected as per above clause.
20.2 Sale of Scrap

Items included under this income are towards sale amount realized from sale of scraps.

Miscellaneous income includes charges recovered from customer on account of handling loss of Glass bottles,Container deposit liability
Write-off amountand liquidated damages received from vendor.

Subsidiaries
Statement
Financial
Figures in NPR
Shareholder
Sick Leave 593,000 516,000
Information
Provident fund 2,373,600 2,572,072
Gratuity 2,207,000 3,601,000
Reports
Office expenses 21,549,696 17,373,453
Utilities 51,599,181 52,335,294
Innovation and
Freight Charges 306,622,223 415,598,410
Digitization
Amortization of Intangible Assets 49,512 38,187
Governance
Product transfer fees 64,641,593 57,171,895
Good
Total 901,717,570 1,128,079,800
22. Administrative and Operating Expenses
About Us
Figures in NPR
Sick Leave 349,000 316,000
Gratuity 2,531,000 3,828,000
Office expenses 32,491,291 33,568,670
Bank charges 4,099,947 5,252,698
Audit fees 400,000 300,000
Utilities 1,753,302 1,266,362
Amortization of Intangible Assets 981,436 756,956
Total 151,951,685 161,323,398

Subsidiaries


Statement
Financial
Figures in NPR
Allowances - 416,000
Shareholder
Information
Total 400,000 716,000
23. Finance Cost

Finance costs comprises of interest on Term Loan,short term borrowings in the form of bank overdrafts, LC loan& Inter-company loan.
Reports
All these costs are carried at amortized cost using effective interest rate as required by NAS 39.
Figures in NPR
Innovation and
Interest on Term Loan 209,600,684 98,500,867

Digitization

Interest on LC loan 8,272,517 -
Interest on Inter Company Loan 62,521,924 13,452,192
Less; Interest Capitalized (27,690,788) (91,454,668)
Total 298,791,590 60,172,668
Governance
Good
24. Finance Income

Figures in NPR
About Us

Interest income 15,807,170 16,408,162
Total 15,807,170 16,408,162


'Basic EPS amounts are calculated by dividing the profit for the year attributable to ordinary equity holders of the company by the
weighted average number of ordinary shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit
attributable to ordinary equity holders of the company by the weighted average number of ordinary shares outstanding during the year
plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares
into ordinary shares.
The following reflects the income and share data used in the basic and diluted EPS computations:
Figures in NPR
Particulars For the year 2076-77 For the year 2075-76
Numerator
Profit for the year and earnings used in basic EPS (NPR) 5,629,707 453,542,784
Earnings used in Basic and diluted EPS
Denominator
Weighted average number of shares used in basic EPS (Nos) 1,210,000 1,210,000
Basic and diluted earnings per share (NPR) 5 375

Subsidiaries
26. Dividend Paid and Proposed
Statement
Financial
Figures in NPR
Declared and paid during the year:
Shareholder
Dividends on ordinary shares: Final dividend for 2075-76: Rs.40 per share
Information
48,400,000 48,400,000
for 74-75: Rs 40 Per Share
Proposed for approval at the annual general meeting
(not recognised as a liability as at balance sheet date):
Dividends on ordinary shares:
2076-77: Rs 0 per Share - -
Reports
2075-76: Rs 40 per Share - 48,400,000
Innovation and
Digitization
Contingent liabilities are potential future cash out flows, where the likelihood of payment is considered more than remotebut is not
Governance
27.2 Corporate Tax Matters
Good
i. LTO assessed the income tax, TDS and VAT liabilities of the company for 2066-67. For the unaccepted amount, the company
has filed the case for Administrative Review Tribunal. Pending decision from the Director General, additional liability has not
been recognized in the financial statements and is disclosed as contingent liabilities as below:
About Us
Figures in NPR
Income-Tax 5,393,862 14,164 5,379,698 1,186,596
TDS 4,510,857 255,194 4,255,663 1,164,270
VAT 20,397,706 12,172,084 8,225,622 822,093
Total 30,302,425 12,441,442 17,860,983 3,172,959
ii. LTO assessed the income tax, TDS and VAT liabilities of the company for 2067-68. For the unaccepted amount, the company
Figures in NPR
Income-Tax 11,469,425 - 11,469,425 -
TDS 24,018,811 121,490 23,897,321 4,421,491
VAT 3,869,900 - 3,869,900 443,439
Total 39,358,136 121,490 39,236,646 4,864,930
iii. LTO assessed the income tax, TDS and VAT liabilities of the company for 2068-69. For theunaccepted amount, the company
Figures in NPR
Income-Tax 30,782,794 238,286 30,544,508 4,347,518
TDS 39,993,762 100,687 39,893,075 5,998,458
VAT 830,566 830,566 - -
Total 71,607,122 1,169,539 70,437,583 10,345,976

Subsidiaries

iv. LTO assessed the income tax, TDS and VAT liabilities of the company for 2069-70. For the unaccepted amount, the company
Statement
Financial
been recognized in the financial statements and is disclosed as contingent liabilities as below
Figures in NPR
Shareholder
Particulars
Information

Income-Tax 50,128,084 1,032,171 49,095,913 -
TDS 75,154,450 123,929 75,030,521 15,026,536
VAT 26,523 26,523 - -
Total 125,309,057 1,182,623 124,126,434 15,026,536
Reports
v. LTO assessed the income tax, TDS and VAT liabilities of the company for the year 2070-71. For the unaccepted amount,
the company has filed the case at Revenue Tribunal.Pending decision from the Tribunal, additional liabilities have not been
Innovation and
recognized in the financial statements and have been disclosed as contingent liabilities as below
Digitization
Figures in NPR
Additional Appeal against Estimated Interest Liabilities
Particulars Demand Accepted Amount demand Upto Balance Sheet Date
Income-Tax 47,213,938 22,776,663 24,437,275 2,800,049
TDS 9,238,997 483,000 8,755,997 1,482,390
Governance
VAT 35,661,144 2,109,057 33,552,087 5,633,538

Good
Total 92,114,079 25,368,720 66,745,359 9,915,977
vi. LTO assessed the income tax, TDS and VAT liabilities of the company for the year 2071-72. For the unaccepted amount, the
company has filed the case for Administrative Review. Pending decision from the Director General, additional liabilities have
About Us
not been recognized in the financial statements and have been disclosed as contingent liabilities as below
Figures in NPR
Income-Tax 159,844,396 5,254,246 154,590,150 17,772,504
TDS 68,550,836 24,213 68,526,623 7,878,163
VAT 43,900,619 4,895,328 39,005,291 4,484,171
Total 272,295,851 10,173,787 262,122,064 30,134,838
Grand total 630,986,670 50,457,601 580,529,069 73,461,216
27.3 Commitment
These amounts are not recorded in the statement of financial position since the company has not yet received the goods or services
from the supplier. The amounts below are the minimum amounts that we are committed to pay.
The Capital Commitments of the company for the FY 2076/77 is shown below:
At end of financial year 2076/77, the Company had capital commitments of Rs. 132,848,223 (Previous FY 2075/76 Rs. 279,945,013)

Interim reports have been publicly reported in accordance with the requirement of SEBON and NEPSE. These requirements are materially
aligned with the requirements of NAS 34.

Subsidiaries
Statement
Financial
consists of products like carbonated soft drinks in different flavors. All these products have similar risks and returns because of similar
nature of products, common consumer segments, similar production processes and common distribution channel. Further, internal
organizational and management structure and its system of internal financial reporting of the Company is not based on product or
Shareholder
geographical differentiation.
Information
Relationship
Reports
Innovation and
Digitization
c. Subsidiaries of the company
2. Directors and their relatives
3. Key management personnel and their relatives
Governance
30.1 Transactions with Directors & Key Management Personnel
Good
There have no material transactions or proposed transactions with directors and key management personnel or their relatives and
About Us
associates except for the compensations and/or remuneration paid under the company’s regulations.
Director's Fees & Facilities - 255,000 - 255,000
Key Managers 7,433,825 11,785,140 - 19,218,965
Total 7,433,825 12,040,140 - 19,473,965

Director's Fees & Facilities - 135,000 - 135,000
Key Managers 6,930,042 6,213,534 202,396 13,345,972
Total 6,930,042 6,348,534 202,396 13,480,972
a) Key management personnel are also provided with following benefits:
i) All Manager of the Company are provided vehicle allowance as per Company Policy
II) Furnished apartments are provided to all expatriate staffs.
III) Performance bonus based on individual, Division and overall Country performance.
b) The amounts disclosed in the table are the amounts recognized as an expense during the reporting period related to key management
personnel. Also, the liabilities for defined benefit plans excluding expatriates staff (i.e. gratuity and other retirement benefits) and
leave encashment are provided on an actuarial basis for the company as a whole, so the amounts pertaining to the key management
personnel are not included above.

Subsidiaries


Statement
Financial
Figures in NPR
RELATED PARTY TRANSACTIONS For the year 2076-77 For the year 2075-76
Sale to related parties:
Sale of various materials to Bottlers Nepal Limited (at cost) 4,784,220 111,404,698
Shareholder
Information
Purchases from related parties:

Purchase of various materials from Bottlers Nepal Limited (at Cost) 1,690,103 74,460,036
Purchase of concentrate from Pacific Refreshments Pte. Ltd. 1,740,338,037 1,457,943,737
Product transfer fee:
Received from Bottlers Nepal Limited 34,961,566 105,779,430
Reports
Paid to Bottlers Nepal Limited 64,641,593 57,171,895

Management Fee Paid to Bottlers Nepal Limited 125,209,414 114,871,021
Innovation and
Dividend paid to Bottlers Nepal Limited 41,741,936 41,741,936

Digitization
Interest paid to Bottlers Nepal (Terai) Ltd on loan 62,521,924 13,452,192

Purchase of asset (Coolers) from Bottlers Nepal Ltd. (at cost) 11,854,543 -
Amounts owed by related parties:
Bottlers Nepal Limited - Parent company 8,822,981 4,919,716
Governance
Troika Traders Pvt. Ltd - Other related party 836,340 -

Good
Troika Traders Pvt. Ltd.- Other related party - 354,755

Pacific Refreshment - other related party 312,786,656 415,760,428
Hindustan CCBPL 62,501,795 -
About Us

31 Financial risk management objectives and policies

The Company’s principal financial liabilities comprise loans and borrowings and trade and other payables. The main purpose of
these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets comprise trade and other
receivables, and cash and short-term deposits that arrive directly from its operations.
31.1 Market Risk

31.1.1 Interest Rate Risk

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. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s bank
overdraft and short term deposits.

Subsidiaries
31.1.2 Foreign Currency Risk
Statement
Financial
The Company manages its foreign currency risk by not holding the receivables and payables in foreign currencies for long durations.
Shareholder
Information
31.1.3 Commodity Price Risk
The Company manages this risk by purchasing materials and supplies from the suppliers identified by the group and the Company has
Reports
long term relation with the suppliers.
31.2 Credit Risk
Innovation and
Digitization
31.2.1 Trade Receivables

Governance
management. Credit quality of the customer is assessed, and individual credit limits are defined in accordance with this assessment.
Good
31.2.2 Cash Deposits

About Us
banks only.
31.3 Liquidity risk


Subsidiaries


Statement
Financial
FY 2076-77
More than No stated
Particulars Within 1 Year Rs. 1-5 Years Rs. Total Rs.
5 Years Rs. Maturity Rs.
Shareholder
Information
Financial Assets:
Advances to Employees 8,873,966 974,838 - - 9,848,804
Reports
Total 355,011,397 974,838 - 136,800 356,123,035

Bank overdrafts - - - 1,025,573,508 1,025,573,508
Innovation and
Loan from BNL 650,000,000 - - - 650,000,000

Digitization
Secured Bank Loan 570,000,000 1,700,407,009 - - 2,270,407,009

Trade Payable 763,648,576 - - - 763,648,576
Trade Deposits - - - 2,249,430 2,249,430
Governance

Good
Bonus Payable 825,823 - - - 825,823

About Us
Interest payables 12,200,612 - - - 12,200,612

VAT Payable (Net) 1,604,992 - - - 1,604,992
Gratuity 47,316,000 - - 223,729,183 271,045,183
Total 2,328,404,555 1,700,407,009 - 1,971,648,837 6,000,460,401
Net Financial Assets (1,973,393,158) (1,699,432,171) - (1,971,512,037) (5,644,337,366)

Subsidiaries
FY 2075-76
More than No stated
Financial Assets:
Statement
Financial
Shareholder
Information
Total 388,576,292 6,637,405 - 116,050 395,329,747
Bank overdrafts - - - 529,290,236 529,290,236
Loan from BNL 500,000,000 - - 500,000,000
Secured Bank Loan 570,000,000 958,958,221 1,528,958,221
Reports
Trade Payable 1,437,273,968 - - - 1,437,273,968
Innovation and
Trade Deposits - - - 1,974,430 1,974,430
Digitization
Bonus Payable 63,136,186 - - - 63,136,186
Advance against unsettled Claims - - - - -
Governance
Interest payables 8,412,395 - - - 8,412,395
Good
VAT Payable (Net) 1,977,423 - 1,977,423
Gratuity 25,531,000 - - 205,548,183 231,079,183
About Us
Total 2,942,485,275 958,958,221 - 1,398,955,855 5,300,399,351
Net Financial Assets (2,553,908,983) (952,320,816) - (1,398,839,805) (4,905,069,604)

COVID-19 pandemic in the country which happens to be peak sales season for the company. The management has assessed the effect of
on revenue and operating result of the company to some extent for next year.
The spread of COVID-19 pandemic has severe impact on global economies including Nepal where businesses were being forced to
cease or limit operations resulting in an economic slowdown. Although, the Government has responded with monetary and fiscal
interventions to stabilize the economic conditions, there is not much relief available to the Company as on date of issue of these
financial statements. Further, the company has assessed its ability to continue as a going concern and reached to conclusion that there
is no significant risk of going concern in near future in view of company’s sound financial health and recovery of business volume post
balance sheet date at pre- Covid-level.

As per our attached
report of even date

B.K. Agrawal & Co.

Subsidiaries
DIRECTOR’S REPORT
Statement
Financial
Dear Shareholders,
Due to this ongoing pandemic, we are facing one of the most challenging times and it has spared no country or segment of society. It
has deeply impacted lives of million small and large business across the world and global economy as a whole.
Shareholder
Information
We hereby, present the Report on your Company’s business operations, along with the audited financial statements, for the year ended
on 31st Ashad, 2077.
a) Review of the transactions of the Previous Year: g) If there are any remarks in the Audit Report, the
Reports
comments of the Board of Directors on such remarks;

NPR Million
None
Particulars 2075-76 2076-77 % change
Innovation and
Gross Sales Revenue 268 6 -98% h) Amount recommended for payment by way of Dividend;
Digitization
Gross Profit 39 0.3 -99% None

Net Profit Before Tax (30) (7.0) -77%
i) In the event of forfeiture of shares, details regarding
Net Profit After Tax (30) (9.2) -69% the number of forfeited shares, face value of such
shares, total amount received by the Company for such
Governance
b) Impact, if any, caused on the transactions of the shares prior to the forfeiture thereof, proceeds of sale
Company from National & International Situations: of such shares after the forfeiture thereof, and refund
Good
of amount, if any, made for such forfeited shares;

Global NIL
Devaluation of local currency against FOREX mainly US
About Us
Dollar has impacted our imports. j) Progress of transactions of the Company in the
previous financial year and review of the situation
Nepal existing at the end of that financial year;
Import restriction on synthetic drinks and increase in excise As mentioned above in Point No. a & b
duty poses hurdle for the company to operate its business.
k) Major transactions completed by the Company) in the
c) Achievements in the current fiscal year as at the date of financial year and any material changes taken place in
report & opinions of the Board of Directors on matters the transaction of the Company during that period;
to be done in the future;
None. Your Company does not have any subsidiary Company.
During the year under review, your Company was able to
achieve a gross sales revenue of NPR 268 MM as against the
l) Disclosures made by the substantial shareholders of
previous year's figure of NPR. 394 MM recording a degrowth
the Company to the Company in the previous financial
-32%. The company has made loss of NPR 30 Million due to
year;
import restriction.
None
d) Industrial or Professional Relations of the Company;
m) Details of shareholding taken by the directors and
Not applicable
officers of the Company in the previous financial
years and, in the event of their involvement in share
e) Alterations in the Board of Directors and the reasons transaction of the Company, details of information
therefore: received by the Company from them in that respect;
No any change during this FY. None
f) Major things affecting the transactions; n) Details of disclosures made about the personal
As mentioned in Section (b). interest of any director and his / her close relative
in any agreement related with the Company during the
None.

Subsidiaries
o) In the event that the Company has bought its own v) Details of sale and purchase of properties pursuant to
shares (buy-back), the reasons for such buy-back, Section-141:
number & face value of such shares, and amount paid None
by the Company for such buy-back;
None w) Details of transactions carried on between the
Statement
Financial
Associated Companies pursuant to Section-175;
p) Whether there is an internal control system in place or None
not and, details of such system, if it is in place;
Your Company has an efficient and robust system of internal x) Any other matters required to be laid out in the report
Shareholder
Information
controls in place. These controls include internal checks of Board of directors under this Act and the prevailing
and audits, along with financial and other control, which laws;
is required to carry on the business smoothly and lawfully, None
whilst safeguarding your Company’s assets in a secure,
practical, accurate and reliable manner. y) Other necessary matters;
Reports
q) Details of total management expenses during the i. Information (if any) regarding existence of any relative
previous financial years; of Companies director or official currently working in
Office of the Company's Registrar ("OCR"), Securities
Innovation and
Particulars(FY 2076/77) NPR Million
Board or any other regulatory body concerning the
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Salaries, wages and other employee costs - Company in Officer or higher capacity.
Administrative expenses 1.3
Total 1.3 We have not received any such information from any of
the official or director of your Company.
r) Name list of the members of Audit Committee, ii. Information (if any) regarding any fines paid by any
remuneration, Allowances and facilities received
Governance
by them, details of the functions performed by that to OCR in violation of Sec. 82 of the Act including
Good
committee, and details of suggestions, if any, made by information about the amount paid.
that committee;
None
Your Company is not required to form an Audit Committee
About Us
pursuant to the Companies Act 2006 (2063). On behalf of the Board of Directors,
s) Amount, if any, outstanding & payable to the Company

by any director, managing director, chief executive,
substantial shareholders or, his/her close relative or, Mr. Ashok Mandal Ms. Pratima Burma
by any firm, company, corporate body in which he/she
is involved; Director Director
None
t) Amount of remuneration, allowances & facilities paid

to the directors, managing director, chief executive & Date: 9th November, 2020
officer;
None
u) Amount of Dividends remaining unclaimed by the

shareholders;
None.

164

165
166

Subsidiaries
Troika Traders Pvt. Ltd.
Statement
Financial
Figures in NPR
ASSETS
Shareholder
Current Assets:
Information
Non Financial Assets:
Inventories 3 - 9,112,642
Advances 4.1 7,131,443 7,901,594
Other Current Assets 4.2 - 620,173
Income Tax Receivable 4.3 3,632,034 5,367,379
Reports
Financial Assets:
Trade Receivables 5 - 354,755
Innovation and
Cash and Cash Equivalents 6 - 21,104,403
Digitization
Total Assets 10,763,477 44,460,946

Equity:
Equity Share Capital 7 750,000 750,000
Governance
Reserve and Surplus 8 3,826,304 12,991,713
Good
Trade Payables 9 6,187,173 30,291,720
About Us
Other Financial Liabilities 10 - 427,513
Total Equity and Liabilities 10,763,477 44,460,946
As per our attached

report of even date
Ashok Mandal Pratima Burma B.K. Agrawal, FCA

Director Director Managing Partner
B.K. Agrawal & Co.

Subsidiaries

Statement
Financial
Figures in NPR
Revenue from operations 11 6,836,618 237,958,443
Shareholder
Information
Cost of goods sold 12 (6,531,326) (199,408,046)

Gross Profit 305,292 38,550,397
Other operating income 13 - 329,898

Selling and distribution expenses 14 (6,031,508) (61,775,886)
Reports
Profit from Operations (7,036,807) (30,052,380)
Finance Income 16 25,112 61,256

Innovation and
Profit Before Tax (7,011,695) (29,991,124)

Digitization
Income Tax Expense

Current Tax 17.1 - -
Adjustment for prior periods 17.1 (2,153,714) -
Net Profit for the year (9,165,409) (29,991,124)
Basic/Diluted Earnings per share 18 (1,222) (3,999)
Governance

Good
About Us
As per our attached

report of even date

B.K. Agrawal & Co.

Subsidiaries
For the year ended 31st Ashad ,2077 (15th July, 2020)
Statement
Financial
Figures in NPR
Net Profit for the year as per Statement of Profit or Loss (9,165,409) (29,991,124)
Shareholder
Information
Actuarial Gain/(Loss) on defined benefit plan schemes
Deferred Tax on Actuarial Gain/(Loss)
Other comprehensive gain/(loss) for the year, net of tax - -
Reports
Total Comprehensive gain/(loss) for the year, net of tax (9,165,409) (29,991,124)
Innovation and
Digitization
As per our attached

report of even date
Governance
B.K. Agrawal & Co.
Good
About Us

Subsidiaries

Statement
Financial
Figures in NPR
Shareholder
Profit for the year (9,165,409) (29,991,124)

Information
Adjustments for non cash and non operating: (25,112) (61,256)

Increase / (Decrease) in trade payable and other liabilities (24,532,060) (69,481,397)
Decrease / (Increase) in trade and other receivables 2,710,273 7,588,931
Reports
Decrease / (Increase) in loans and advances 770,151 12,509,454

Decrease / (Increase) in inventories 9,112,642 80,536,942
Cash generated from operations (21,129,515) 1,101,550
Innovation and
Digitization
Direct taxes paid (net of refunds) - -

NET CASH FLOWS FROM OPERATING ACTIVITIES (A) (21,129,515) 1,101,550

Interest Received 25,112 61,256
NET CASH FLOWS FROM INVESTING ACTIVITIES (B) 25,112 61,256
Governance

Good
NET CASH FLOWS FROM FINANCING ACTIVITIES (C ) - -

About Us

CASH AND CASH EQUIVALENTS, End of Year - 21,104,403
As per our attached

report of even date

B.K. Agrawal & Co.

Subsidiaries
Statement
Financial
Figures in NPR
Securities Premium
Particulars Share Capital Retained Earnings Total
Reserve
Balance as at 1st Shrawan 2075 750,000 - 42,982,837 43,732,837
Shareholder
Information
Profit for the year - - (29,991,124) (29,991,124)
Other comprehensive income - - - -
Dividends
Balance as at 31st Ashad, 2076 750,000 - 12,991,713 13,741,713
Profit for the year - - (9,165,409) (9,165,409)
Reports
Other comprehensive income - - - -
Dividends - - - -
Balance as at 31st Ashad, 2077 750,000 - 3,826,304 4,576,304
Innovation and
Digitization
As per our attached
Governance
report of even date
Good
B.K. Agrawal & Co.
About Us

Subsidiaries

1. Corporate information
Statement
Financial
Troika Traders Pvt. Ltd. (“Company”) is a private limited Company incorporated under the Companies Act of Nepal. The registered office
of the Company and the principal place of business is located at Balaju Industrial District, Balaju, Kathmandu, Nepal.
Troika Traders Pvt. Ltd is a licensed distributor of non-alcoholic beverages products of The Coca-Cola Company, Atlanta. The Board
of Directors has approved the financial statements for issue on its meeting held on 9th November 2020 (24th Karthik 2077)and has
Shareholder
Information
recommended for approval of shareholders in the Annual General Meeting.
The financial statements have been prepared in accordance with Nepal Financial Reporting Standards (NFRS) the issued by the
Reports
the International Accounting Standard Board (IASB). The financial statements have been prepared on a going concern basis, although
significant doubt about future continuity of operations exists as on reporting date considering present status of nil inventory, no
pending purchase order and lack of operating funds. However, Company has plans for future revival of operations and as on reporting
Innovation and
date also, financial position of the company is not severely impacted so as to draw a conclusion that company will not be in a position
Digitization
to discharge its present liabilities with the resources available with it.This section describes the critical accounting judgement that
the company has identified as having potentially material impact on the company’s financial statements and sets out our significant
accounting policies that relate to the financial statements as a whole. Accounting policies along with explanatory notes, wherever
such explanation is required, is described in specific relevant sections. The company’s accounting policies require the management to
exercise judgement in making accounting estimates.
Governance

Good
About Us

2.3 Presentations
• Expected to be realized or intended to be sold or consumed in normal operating cycle,
reporting period


The company operating cycle has been defined as twelve-month period.
The statement of profit or loss has been prepared using classification ‘by function’ method.

Subsidiaries
Statement
Financial
Shareholder
Information
NAS requires adoption of accounting policies that are most appropriate to the company’s circumstances determining and applying
accounting estimate or assumption to be followed could materially affect the company’s reported financial position, results or cash
flows.
Reports
requires disclosures of accounting policies or changes in accounting policies. Effect and nature of the changes have been disclosed.
Innovation and
The preparation of financial statements in line with NFRSs which requires management to make judgments, estimates and assumptions
Digitization
that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of contingent assets and liabilities at the
date of financial statements.
Governance
by the management.
Good
About Us
SFP* Date 31stAshad, 2077 15thJuly, 2020
Current Reporting Period 1stShrawan, 2076– 31st, Ashad 2077 17thJuly, 2019– 15th July, 2020
Comparative SFP* Date 31stAshad, 2076 16thJuly, 2019
Comparative reporting period 1 Shrawan, 2075 – 31st, Ashad 2076
st
17 July, 2018 – 16th July, 2019
th

3. INVENTORIES
Figures in NPR
Finished goods 1,579,894 9,112,642
Provision on finished goods (1,579,894) -
Total - 9,112,642
realizable values. Inventories are valued on (First in First Out) FIFO basis.

Subsidiaries

4. Other Assets
Statement
Financial
4.1 Advances
Figures in NPR
Shareholder

Information

Total 7,131,443 7,901,594
4.2 Other Current Assets

Figures in NPR
Reports

VAT Receivable (Net) - 620,173
Total - 620,173
Innovation and
4.3 Income Tax Receivable

Digitization
Figures in NPR
Total 3,632,034 5,367,379
Governance

Good

(a) cash
About Us

entity; or
i) a non-derivative for which the entity is or may be obliged to receive a variable number of the entity's own equity instruments;
or
ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a
The company only holds financial assets meeting the recognition criteria of Loans & Receivables classification. These instruments are
Financial assets of the company comprise of advances, other current assets and cash & cash equivalents. These instruments are mostly
non-interest bearing and where interest component is present the implicit interest rate approximates effective interest rate. These
instruments are expected to be settled or recovered within a year. Therefore, it is assumed that the carrying amount represents the
amortized cost of the assets.

The company has a risk management framework to monitor, access, mitigate and manage risks.This risk management framework is
given inNote 22.

Subsidiaries
Statement
Financial
Figures in NPR
Receivables from other related parties - 354,755
Shareholder
Total - 354,755
Information
It includes transactions with group companies which are disclosed in Note 21.
5.2 Impairment
Reports
For allowances, assets with a potential need for a write-down are grouped together based on similar credit risk characteristics, tested
collectively for impairment, and written down, if necessary. Estimated irrecoverable amounts are based on the ageing of the receivable
balances, taking previous cases of default into consideration and historical experiences.
Innovation and
Digitization
Figures in NPR
Balances with Banks
Governance
– On current accounts - 20,804,403
– Deposits accounts - 300,000
Good
Total - 21,104,403
About Us
7. Share Capital
Authorized
Ordinary shares of Rs. 100 each 50,000 5,000,000 50,000 5,000,000
Issued
Ordinary shares of Rs. 100 each 25,000 2,500,000 25,000 2,500,000
Paid Up
Ordinary shares of Rs. 100 each 7,500 750,000 7,500 750,000
At the beginning of the year 7,500 750,000 7,500 750,000
At the end of the year 7,500 750,000 7,500 750,000
The shareholding pattern of the company is as follows:
Bottler's Nepal Limited 7,480 99.73% 7,480 99.73%
Others 20 0.27% 20 0.27%
Total 7,500 100% 7,500 100%
Share issue expenses have not been netted off against capital collected as these pertain to periods of initial establishment of the
company and such expenses have been charged off during those periods. The management considers that the cost of obtaining
information is more than the benefits derived and the effect of such amounts to be immaterial.

Subsidiaries


Statement
Financial
Figures in NPR
Retained earnings 3,826,304 12,991,713
Shareholder
Information
Total 3,826,304 12,991,713
9. Trade Payables
Figures in NPR
Reports

Trade Payable 202,977 1,353,311
Innovation and
Total 6,187,173 30,291,720

Digitization
Financial Instruments – Financial Liabilities

a) contractual obligation:
Governance

Good
entity; or
About Us
or

The company has a risk management framework to monitor, access, mitigate and manage risks. This risk management framework is
given inNote 22.
10.Other Financial Liabilities

Figures in NPR
Statutory dues payable - 427,513
Total - 427,513
Provisions are recognized when the company has a present obligation, legal or constructive,as a result of a past event, it is probable
reporting date.

Subsidiaries
Statement
Financial
Shareholder
11. Revenue
Information
Figures in NPR
Sale of goods 5,289,544 239,114,245
Less: Discount provided (Net) - (1,155,802)
Reports
Add: Discount reversal (Net) 1,547,074 -
Total 6,836,618 237,958,443
11.1 Sale of Goods
Innovation and
Digitization
i.e when the significant risks and rewards of ownership of the goods have transferred to the buyer, with the Company retaining neither
continuing managerial involvement to the degree usually associated with ownership, nor effective control over the goods sold.
Revenue is measured at the fair value of the consideration received or receivable net of trade discounts.Revenue include all revenue
Governance
from ordinary activities of the company that are recorded net off Value Added Taxes collected from the customer that are remitted or
are to be remitted to the government authorities.
Good
About Us
12. Cost of Goods sold
Figures in NPR
Finished goods stock
At 1st Shrawan 9,112,642 89,649,584
Purchase (2,581,316) 118,871,104
At 31st Ashad - (9,112,642)
Net change in finished goods stock 6,531,326 199,408,046

Figures in NPR
Miscellaneous Income - 329,898
Total - 329,898
14.Selling and Distribution Expenses

Figures in NPR
Rent 147,689 2,983,933
Freight Charges 158,902 7,299,398
Total 6,031,508 61,775,886

Subsidiaries


Statement
Financial
Figures in NPR
Office expenses 579,469 5,737,926
Bank charges 1,122 6,242
Shareholder
Information
Audit fees 50,000 40,000

Legal and other professional fees 680,000 1,372,621
Total 1,310,591 7,156,789

Reports
Figures in NPR
Audit fees 50,000 40,000
Innovation and
Total 50,000 40,000

Digitization
16.Finance Income
Figures in NPR
Governance
Interest income 25,112 61,256

Total 25,112 61,256
Good
17. Income T ax
About Us

Figures in NPR
Current tax on profit for the year - -
Adjustment for prior periods 2,153,714 -
Total 2,153,714 -
17.2 Reconciliation
Reconciliation of current tax expense and the accounting profit multiplied by Company’s effective tax rate for the year.
Figures in NPR
Accounting profit before income tax (7,011,695) (29,991,124)
Adjustment as per Income Tax Act 2058 - -
Total profit as per Income Tax (7,011,695) (29,991,124)
Tax Rate 25% 25%
Tax Expenses - -

Subsidiaries
Statement
Financial
Numerator
Profit for the year and earnings used in basic EPS (NPR) (9,165,409) (29,991,124)
Shareholder
Information
Earnings used in Basic and diluted EPS
Denominator
Weighted average number of shares used in basic EPS (Nos) 7,500 7,500
Basic and diluted earnings per share (NPR) (1,222) (3,999)
Basic EPS is calculated by dividing the profit attributable to ordinary equity holders of the company for the period by the weighted
Reports
average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares. Number of shares
have not changed over the reported periods. There are no potential ordinary shares that would dilute basic earnings per share, hence
diluted EPS is same as basic EPS.
Innovation and
Digitization
19. Contingent Liabilities
Contingent liabilities are potential future cash out flows, where the likelihood of payment is considered more than remotebut is not
Governance
Good
i) IRD assessed the income tax, TDS and VAT liabilities of the company for the year 2069-70. For the unaccepted amount, the
About Us
Figures in NPR
Particulars Additional Demand Accepted amount Appeal against demand
Income-Tax 4,684,602 - 4,684,602
VAT 1,974,572 - 1,974,572
Total 6,659,174 - 6,659,174
ii) IRD assessed the income tax, TDS and VAT liabilities of the company for the year 2072-73. For the unaccepted amount, the
Figures in NPR
Particulars Additional Demand Accepted amount Appeal against demand
Income-Tax 7,775,300 2,153,714 5,621,586
TDS 15,000 15,000 -
VAT 527,000 527,000 -
Excise 20,000 20,000 -
Total 8,337,300 2,715,714 5,621,586
Grand Total 14,996,474 2,715,714 12,280,760

consists of products like carbonated soft drinks in different flavors, fruit pulp-based beverages and water. All these products have
similar risks and returns because of similar nature of products, common consumer segments, similar production processes and
common distribution channel. Further, internal organizational and management structure and its system of internal financial reporting
of the Company is not based on product or geographical differentiation.

Subsidiaries


Statement
Financial
21.1 Relationship
Shareholder
Information

c. Subsidiaries of the company
2 Directors and their relatives
Reports
The Company is controlled by Bottlers Nepal Limited which owns 99.73% of the company’s share.
Innovation and
21.1.1 Transactions withDirectors & Key Management Personnel

Digitization
There are no material transactions or proposed transactions with directors and key management personnel or their relatives and
associates.
Governance

Good
Figures in NPR
Related Party Transactions For the Year 2076-77 For the Year 2075-76
Amounts owed to related parties
About Us
Bottlers Nepal Limited 5,147,856 28,938,409

Bottlers Nepal (Terai) Limited 836,340 -
Amounts owed by related parties
Bottlers Nepal (Terai) Limited - 354,755

provided or received for any related party receivables or payables. For the year ended 15th July 2020, the Company has not recorded
any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through
examining the financial position of the related party and the market in which the related party operates.

The Company’s principal financial liabilities comprisetrade and other payables. The main purpose of these financial liabilities is to
finance the Company’s operations. The Company’s principal financial assets comprise trade and other receivables, and cash and short-
term deposits that arrive directly from its operations.
22.1 Market risk


Subsidiaries
Statement
Financial
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. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s short-term
deposits.
Shareholder
Information
Reports
The Company manages its foreign currency risk by not holding the receivables and payables in foreign currencies for longer duration.
Innovation and
Digitization
The Company manages this risk by purchasing materials and supplies from the supplier identified by the group and the Company has
long term relation with the supplier.
Governance
22.2 Credit risk
Good
About Us
management. Credit quality of the customer is assessed and individual credit limits are defined in accordance with this assessment.

banks only.
22.3 Liquidity risk



Subsidiaries

Statement

Financial
More than No stated

Financial Assets:
Trade Receivable - - - - -
Shareholder
Information
Cash and Cash Equivalents - - - - -

Total - - - - -
Trade Payable 6,187,173 - - - 6,187,173
Statutory dues payable - - - - -
Reports
Total 6,187,173 - - - 6,187,173
Net Financial Assets (6,187,173) - - - (6,187,173)

Innovation and
Digitization

More than No stated
Financial Assets:
Governance
Trade Receivable 354,755 - - - 354,755

Good
Total 21,459,158 - - - 21,459,158
Trade Payable 30,291,720 - - - 30,291,720
About Us
Statutory dues payable 427,513 - - - 427,513

Total 30,719,233 - - - 30,719,233
Net Financial Assets (9,260,075) - - - (9,260,075)

The Government of Nepal had announced complete lockdown from March 24, 2020 (F/Y 2076/77) onwards to control the
spread of COVID-19 pandemic in the country. The company hadalready stopped operations as on date of lockdown hence
COVID-19 and lockdown has not affected operations for this year. The company has assessed its ability to continue as a
going concern as management is exploring alternate options to continue business of the entity.
As per our attached

report of even date

B.K. Agrawal & Co.

Subsidiaries
CORPORATE
INFORMATION
Statement
Financial
Shareholder
Information
COMPANY NAME:
REGISTRATION NUMBER:140
LEGAL FORM:
Reports
Listed Public Company
STOCK EXCHANGE LISTING:
Innovation and
Nepal Stock Exchange as "BNL"
Digitization
REGISTERED ADDRESS:
Balaju Industrial District, Balaju, Kathmandu, Nepal
BOARD OF DIRECTORS:
Governance
Ms. Shukla Wassan- Chairperson
Mr. Pradip Pandey - Managing Director
Good
Mr. Mohamed Amin Ghoneim- Director
Mr. Sundeep Bajoria- Director
Mr. Surendra Silwal- Director
About Us
Mr. Narmadeshwar Narayan Singh- Director
Dr. Trilochan Upreti- Independent Director
COMPANY SECRETARY:
Ms. Pratima Burma
STATUTORY AUDITORS:
M/s B.K. Agrawal &Co. Chartered Accountants
SUBSIDIARY COMPANIES:
Troika Traders Pvt .Ltd.
SHARE REGISTRAR:
M/s Nabil Investment Banking Limited
BANKING PARTNERS:
M/s Standard Chartered Nepal Limited
M/s NMB Bank Limited
M/s Nepal Bank Limited
M/s NIC Asia Bank Limited
M/s Everest Bank Limited
INSURANCE PARTNERS
M/s Shikhar Insurance Company Limited
M/s Premier Insurance Company Limited
M/s Prudential Insurance Company Limited

184

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BNL 42nd Annual Report 2076 77

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BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77

Good Innovation and Shareholder Financial

We are optimistic that by working together, we can ensure safety and

To make every To build a community

STRATEGIC GOALS OF THE COMPANY

4 BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77

BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77 5

6 BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77

BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77 7

Ms. Shukla Wassan

Ms. Wassan is FCS (Fellow

experience of over 37 years.

Chairperson of the Company

in Bottlers Nepal (Terai)

Mr. Mohamed Amin Ghoneim

8 BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77

Mr. Narmadeshwar Narayan Singh

BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77 9

HARI SHARMA NEUPANE K. DURAI MURUGAN

RAJNISH SHARMA SACHIN SHRESTHA

IRINA KARKI GURUNG

SHAMBHU PRASAD KOIRALA PRATIMA BURMA

10 BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77

We remain conﬁdent in navigating

rebuild and recover, and ultimately

build a stronger and even more

wish an early recovery to those who are afflicted by this disease.

Stay Safe. Stay Healthy.

12 BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77

BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77 13

Operating Profit 199,127,567 1,040,797,909 1,304,683,191 945,314,406 683,317,825

Earning Per Share (32) 379 534 361 223

Total Assets 11,152,228,589 10,516,288,848 6,960,091,971 6,835,354,908 5,793,945,016

Current Assets 3,279,709,596 2,807,498,276 2,593,016,334 2,714,347,693 2,029,835,649

Current Liabilities 4,612,009,330 4,665,945,553 2,815,234,713 3,774,661,152 3,094,428,976

14 BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77

BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77

HORIZONTAL ANALYSIS OF BALANCE SHEET

BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77

BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77

Income Tax Expense

Base year is considered 2072-2073. Elements are a percent of Base Year.

Good Innovation and Shareholder Financial

VERTICAL ANALYSIS OF BALANCE SHEET

BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77

Other operating income 128,552,483 2% 174,702,518 2% 21,228,399 0% 52,526,164 1% 15,789,706 0%

BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77

Income Tax Expense

Elements are a percent of Net Revenue

Good Innovation and Shareholder Financial

Contribution To National Treasury

Total expense allocated for Corporate Social Responsibility

Company No. of Employees

Total expense to be paid to the Employees as Bonus

20 BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77

Coca-Cola Cap Ma Car Offer Other Events and Festival Activation

BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77 21

Pratima Burma, who is also a Company Secretary as Compliance

The Board of Directors is appointed by Shareholders to oversee

to the Company’s Article of Association. The Board comprises

representation from public shareholders) and Executive Director

22 BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77

BOTTLERS NEPAL LIMITED ANNUAL REPORT 2076-77 23

q. To inspect, monitor and ensure the purchasing system of the